Hiring passenger automobiles (except for carrying children to and from school): Seating from 3 to 7 passengers, each automobile..... liquor dealer, retail liquor dealer, wholesale dealer in SPECIAL TOBACCO MANUFACTURERS' TAX IO 20 1,000 Manufacturers of tobacco, cigars and cigarettes must pay on July 1 of each year special taxes computed on the basis of sales for the preceding year ending June 30. In computing the amount of annual sales, no account need be taken of tobacco, cigars or cigarettes sold for export and exported. Rates of Tax Tobacco Where annual sales do not exceed 50,000 pounds.. Where annual sales exceed 50,000 pounds but not 100,000 pounds.. Where annual sales exceed 100,000 pounds but not 200,000 pounds... Where annual sales exceed 200,000 pounds, a tax of $24 is imposed. In addition, a tax of 16 cents per 1,000 pounds or fraction thereof is imposed on all quantities over 200,000 pounds. Cigars .... Where annual sales do not exceed 50,000 cigars. is imposed. In addition, a tax of 10 cents per 1,000 or 400,000. SPECIAL TAXES ON BOATS AND NARCOTICS Cigarettes On cigarettes, including small cigars weighing not more than three pounds per 1,000, at the rate of 6 cents for every 10,000 or fraction thereof. SPECIAL TAX ON USE OF BOATS Title VII, Section 703, Revenue Act, 1924 At the time of the original purchase of a new boat by a user, and annually thereafter on July 1, a tax is levied on the use of yachts, pleasure boats, power boats, sailing boats and motor boats with fixed engines, of over five net tons and more than 32 feet in length, not used exclusively for trade, fishing or national defense, or not built according to plans and specifications approved by the Navy Department. The rates of this tax are: Where the over-all length is: Over 32 feet and not over 50 feet. TAX ON NARCOTICS $1 per foot 2 per foot 4 per foot Title VII, Sections 705-707, Revenue Act, 1924 Opium or Coca Leaves and Derivatives Every person who imports, manufactures, compounds, sells, deals in, dispenses or gives away opium or coca leaves or any of their derivatives, must first be registered with the Collector of Internal Revenue for his district, and must renew his registration on or before July 1 of each year. Such persons are taxed at the following rates: Importers, manufacturers, producers or compounders... Wholesale dealers. Retail dealers.. Physicians, dentists, veterinary surgeons and other practitioners authorized to distribute or administer any of these drugs in the course of their practice. .... Sales of Opium, Coca Leaves and Derivatives $24 a year 12 a year 6 a year 3 a year In addition to any import duty, a tax of one cent an ounce or fraction thereof is levied on all sales of these drugs. Revenue Act of 1924 [PUBLIC NO. 176-68TH CONGRESS.] An Act To reduce and equalize taxation, to provide revenue, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, TITLE I.-GENERAL DEFINITIONS SECTION 1. This Act may be cited as the "Revenue Act of 1924.” SEC. 2. (a) When used in this Act (1) The term "person" means an individual, a trust or estate, a partnership, or a corporation. (2) The term "corporation" includes associations, joint-stock companies, and insurance companies. (3) The term "domestic" when applied to a corporation or partnership means created or organized in the United States or under the law of the United States or of any State or Territory. (4) The term "foreign" when applied to a corporation or partnership means a corporation or partnership which is not domestic. (5) The term "United States" when used in a geographical sense includes only the States, the Territories of Alaska and Hawaii, and the District of Columbia. (6) The term "Secretary" means the Secretary of the Treasury. (7) The term "Commissioner" means the Commissioner of Internal Revenue. (8) The term "collector" means collector of internal revenue. (9) The term "taxpayer” means any person subject to a tax imposed by this Act. (10) The term "military or naval forces of the United States" includes the Marine Corps, the Coast Guard, the Army Nurse Corps, Female, and the Navy Nurse Corps, Female. (b) The terms "includes" and "including" when used in a definition contained in this Act shall not be deemed to exclude other things otherwise within the meaning of the term defined. SEC. 200. TITLE II.-INCOME TAX PART I.-GENERAL PROVISIONS DEFINITIONS When used in this title (a) The term "taxable year" means the calendar year, or the fiscal year ending during such calendar year, upon the basis of which the net income is computed under section 212 or 232. The term "fiscal year" means an accounting period of twelve months ending on the last day of any month other than December. The term "taxable year" includes, in the case of a return made for a fractional part of a year under the provisions of this title or under regulations prescribed by the Commissioner with the approval of the Secretary, the period for which such return is made. The first taxable year, to be called the taxable year 1924, shall be the calendar year 1924 or any fiscal year ending during the calendar year 1924. (b) The term "fiduciary" means a guardian, trustee, executor, administrator, receiver, conservator, or any person acting in any fiduciary capacity for any person. (c) The term "withholding agent" means any person required to deduct and withhold any tax under the provisions of section 221 or 237. (d) The terms "paid or incurred" and "paid or accrued" shall be construed according to the method of accounting upon the basis of which the net income is computed under section 212 or 232. 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 income is computed under section 212 or 232, unless in order to clearly reflect the income the deductions or credits should be taken as of a different period. (e) The term "stock" includes the share in an association, joint-stock company, or insurance company. (f) The term "shareholder" includes a member in an association, joint-stock company, or insurance company. DISTRIBUTIONS BY CORPORATIONS SEC. 201. (a) The term "dividend" when used in this title (except in paragraph (9) of subdivision (a) of section 234 and paragraph (4) of subdivision (a) of section 245) means any distribution made by a corporation to its shareholders, whether in money or in other property, out of its earnings or profits accumulated after February 28, 1913. (b) For the purposes of this Act every distribution is made out of earnings or profits to the extent thereof, and from the most recently accumulated earnings or profits. Any earnings or profits accumulated, or increase in value of property accrued, before March 1, 1913, may be distributed exempt from tax, after the earnings and profits accumulated after February 28, 1913, have been distributed, but any such tax-free distribution shall be applied against and reduce the basis of the stock provided in section 204. (c) Amounts distributed in complete liquidation of a corporation shall be treated as in full payment in exchange for the stock, and amounts distributed in partial liquidation of a corporation shall be treated as in part or full payment in exchange for the stock. The gain or loss to the distributee resulting from such exchange shall be determined under section 202, but shall be recognized only to the extent provided in section 203. In the case of amounts distributed in partial liquidation (other than a distribution within the provisions of subdivision (g) of section 203 of stock or securities in connection with a reorganization) the part of such distribution which is properly chargeable to capital account shall not be considered a distribution of earnings or profits within the meaning of subdivision (b) of this section for the purpose of determining the taxability of subsequent distributions by the corporation. (d) If any distribution (not in partial or complete liquidation) made by a corporation to its shareholders is not out of increase in value of property accrued before March 1, 1913, and is not out of earnings or profits, then the amount of such distribution shall be applied against and reduce the basis of the stock provided in section 204, and if in excess of such basis, such excess shall be taxable in the same manner as a gain from the sale or exchange of property. The provisions of this paragraph shall also apply to distributions from depletion reserves based on the discovery value of mines. (e) Any distribution made by a corporation, which was classified as a personal service corporation under the provisions of the Revenue Act of 1918 or the Revenue Act of 1921, out of its earnings or profits which were taxable in accordance with the provisions of section 218 of the Revenue Act of 1918 or section 218 of the Revenue Act of 1921, shall be exempt from tax to the distributees. (f) A stock dividend shall not be subject to tax, but if before or after the distribution of any such dividend the corporation proceeds to cancel or redeem its stock at such time and in such manner as to make the distribution and cancellation or redemption in whole or in part essentially equivalent to the distribution of a taxable dividend, the amount so distributed in redemption or cancellation of the stock, to the extent that it represents a distribution of earnings or profits accumulated after February 28, 1913, shall be treated as a taxable dividend. (g) As used in this section the term "amounts distributed in partial liquidation' means a distribution by a corporation in complete cancellation or redemption of a part of its stock, or one of a series of distributions in complete cancellation or redemption of all or a portion of its stock. DETERMINATION OF AMOUNT OF GAIN OR LOSS SEC. 202. (a) Except as hereinafter provided in this section, the gain from the sale or other disposition of property shall be the excess of the amount realized therefrom over the basis provided in subdivision (a) or (b) of section 204, and the loss shall be the excess of such basis over the amount realized. (b) In computing the amount of gain or loss under subdivision (a) proper adjustment shall be made for (1) any expenditure properly chargeable to capital account, and (2) any item of loss, exhaustion, wear and tear, obsolescence, amortization, or depletion, previously allowed with respect to such property. (c) The amount realized from the sale or other disposition of property shall be the sum of any money received plus the fair market value of the property (other than money) received. (d) In the case of a sale or exchange, the extent to which the gain or loss determined under this section shall be recognized for the purposes of this title, shall be determined under the provisions of section 203. (e) Nothing in this section shall be construed to prevent (in the case of property sold under contract providing for payment in installments) the taxation of that portion of any installment payment representing gain or profit in the year in which such payment is received. RECOGNITION OF GAIN OR LOSS FROM SALES AND EXCHANGES SEC. 203. (a) Upon the sale or exchange of property the entire amount of the gain or loss, determined under section 202, shall be recognized, except as hereinafter provided in this section. (b) (1) No gain or loss shall be recognized if property held for productive use in trade or business or for investment (not including stock in trade or other property held primarily for sale, nor stocks, bonds, notes, choses in action, certificates of trust or beneficial interest, or other securities or evidences of indebtedness or interest) is exchanged solely for property of a like kind to be held either for productive use in trade or business or for investment, or if common stock in a corporation is exchanged solely for common stock in the same corporation, or if preferred stock in a corporation is exchanged solely for preferred stock in the same corporation. (2) No gain or loss shall be recognized if stock or securities in a corporation a party to a reorganization are, in pursuance of the plan of reorganization, exchanged solely for stock or securities in such corporation or in another corporation a party to the reorganization. (3) No gain or loss shall be recognized if a corporation a party to a reorganization exchanges property, in pursuance of the plan of reorganization, solely for stock or securities in another corporation a party to the reorganization. (4) No gain or loss shall be recognized if property is transferred to a corporation |