Evening star., 1939-07-20

ito to the full credits provided as the
number of months in the period for
which the return is made bears to
twelve months.
Accounting Periods.
SECTION 10-The net income
shall be computed upon the basis
of the taxpayers annual accounting
period fiscal year or calendar year,
as the case may be- in accordance
with the method of accounting regu-
larly employed in keeping the books
of such taxpayer: but if no such
method of accounting has been so
employed, or if the method en-
ployed does not clearly reflect the
income, the computation shall be
made in accordance with such meth
Cd as in the opinion of the assessor
does clearly reflect the income. If
the taxpayers annual accounting
period is other than a fiscal year
as defined in section 43 or if the
taxpayer has no annual accounting
period or does not keep books. the
net income shall be computed on
the basis of the calendar year. If
the taxpayer makes a Federal in
come tax return. his income shall
be computed, for the purpose of this
title. on the basis of the same cal
endar or fiscal year as in such Fed
eral income tax return.
Period in Which Items of Gross
Income Included.
SECTION 1.-THE amount of all
items of gross income shall be in
cluded in the gross income for the
taxable year in which received by
the taxpayer unless, under methods
OF accounting permitted under Sec
ton 10, any such amounts are to be
properly accounted for as of diff
ferent period In the case of the
death OF a taxpayer there shall be
included, in computing net income
tor the taxable period in which fall
the date OF his death, amounts ac-
crued up to the date of his death if
not otherwise properly includible in
respect to such period or a prior
period.
Period for Deductions and Credits.
SECTION 12-The deductions and
credits provided for in this title
shall be taken for the taxable year
in which paid or accrued" or
paid or incurred" dependent upon
the method of accounting upon
the basis of which the net in
come is computed unless, in order
to clearly reflect the income, the
deductions or credits should be
taken as of a different period. In
the case of the death of taxpayer
there shall be allowed as deductions
and credits for the taxable period
In which falls the date of his death,
amounts accrued up to the date of
his death if not otherwise properly
allowable IN respect to such period
or a prior period.
Installment Basis.
SECTION 13 (d) DEALERS IN
PERSONAL PROPERTY - Under
regulations prescribed by the Com
miSsioners, person who regularly
sells or otherwise disposes of per-
SOnal property on the lnStallment
plan may return as income there
from in any taxable year that pro-
portion Of the installment payments
actually received in that year which
the gross profit realized or to be
realized when payment is COM
pleted bears to the total contract
price.
(b) SALES OF REALTY AND
CASUAL SALES OF PERSONAL
ITY-In the case of Cd a casual
sale or other casual disposition of
personal property (other than prop
erty of kind which would properly
be included in the inventory of the
taxpayer if on hand at the close of
the taxable year, for a price ex-
ceeding $1,000, or CD of sale or
other disposition Of real property.