Evening star., 1939-07-20
Tangible Tax Retained.

If in either case the initial payments
do not exceed 80 per centum of the
selling price, the income may, under
regulations prescribed by the Com
missioners. be returned on the basis
and in the manner above pre-
scribed in this section. AS used in
this section the term initial pay
ments' means the payments re-
ceived in cash or property other
than evidences of Indebtedness of
the purchaser during the taxable
period in which the sale or other
disposition is made.
fc) CHANGE FROM ACCRUAL
TO INSTALLMENT BASIS-If
taxpayer entitled to the benefits of
subsection (a) elects for any tax
able year to report his net income
on the installment basis, then in
computing his income for the year
of change or any subsequent year,
amounts actually received during
any such year on account of sales
or other disposition of property made
in any prior year shall not be ex-
cluded.
ID GAIN OR LOSS UPON DIS
POSITION OF INSTALLMENT
OBLIGATIONS-If an installment
obligation is satisfied at other than
its face value or distributed. trans
mltted, sold, or otherwise disposed
OF, gain or loss shall result to the
extent of the difference between
the basis of the obligation and Cd
in the case of satisfaction at other
than face value or a sale or ex-
change-the amount realized. or (2)
in case of distribution, transmits
sion. or disposition otherwise than
by sale or eXchange-the fair mar
ket value of the obligation at the
time OF such distribution. transmits
sion. or disposition. Any gain or
loss so resulting shall be considered
as resulting from the sale or ex-
change of the property in respect
TO which the installment obliga-
ton was received. The basis of the
obligation shall be the excess of the
face value of the obligation over
an amount equal to the income
which would be returnable were the
obligation satisfied in full. This
paragraph shall not apply to the
transmission at death of INSTALL
ment obligations if there is filed
with the assessor, at such time as
ne may by regulation prescribe, a
bond in such amount and with such
suretles as he may deem necessary,
conditioned upon the return as in
come, by the person receiving any
payment In such obligations, of the
same proportion of such payment as
would be returnable as income by the
decedent if he had lived and had re-
ceived such payment.
Inventories.
SECTION 14-Whenever in the
opinion Of the assessor the use of
inventories is necessary in order
clearly to determine the income of
any taxpayer, inventories shall be
taken by such taxpayer upon such
basis as the assessor may prescribe
as conforming as nearly as may be
to the best accounting practice in
the trade or business and as most
clearly rejecting the income.
Individual Returns.
SECTION IS (aJ REQUIREMENT
The following individuals shall
each make under oath a return
stating specifically the items of his
gross income and the deductions
and credits allowed under this title
and such other information for the
purpose Of carrying out the pro-
visions of this title as the Commits
sionersN may by regulations pre-
scribe:
1) Every individual having a net
income for the taxable year Of ST.
600 or over, If single, or If married
and not living with husband or
wife:
(2) Every individual having q net