Securities (Continued) Dealers in (Continued) Inventories, 555, 846 Inventory basis changed, 379 Losses on sale of securities, 847 Partnerships as, deductions for, loss, Valuation of securities, 846 Determination of fair market value, 486 By controlled corporation for property, Former procedure, 408, 409, 410 For securities, 407 Former procedure, 407 Exchanges in reorganization, 384 Fractional shares, 458 French stamps on foreign securities al- Gain from taxable distributions, in reor- Gain or loss from sale (See Gain or Loss Held for resale by other than dealer, Held in bailment, loss from embezzlement Inventoried shrinkage deductible only by Bank with department dealing in, 380 Issuance of, corporate losses on, 885-891 Non-productive, as, 562 Non-taxable (See "Exempt Securities") Redemption of, corporate losses on, 885- Reorganization, Distributed without surrender of hold- Distribution of new without surrender Distribution of, not distribution of earn- Exchange with "boot," 423-427 Restriction on exchange in reorganization, 417 Former procedure, 417, 418 Securities (Continued) Sold to employees or stockholders under Transfer to proprietorship name not sale, 403 Valuation, 523-524 Average of stock quotations on March Owned by decedents, 523 Austrian bonds not, 848 German bonds not, 848 Indemnification under agreement, not a Purchased by stockholders not deduct- Written down to a nominal value as, 850 Security (See "Collateral") Selling Expense, Deductible from gross in- come from business, 314 Servants (See "Domestic Servants") Sheriff, Excess of allowance of feeding Shipments, Charter money freight, exemp- Shipowners' Mutual Protection and In- Rents, interest and dividends taxable, 227 Shipping Board, Ships requisitioned, depre- Shipping Industry, Depreciation, 1003 Shipwreck, Losses deductible, 842, 880 Capital gain or loss not permitted, 557 Gain or loss basis, 451 Inventories, basis for dealers, 380 Inventory method, when applicable to, 379 Who is entitled to dividends, 636 Sickness, Compensation for, returns of in- Signatures, Facsimile, use of by banks and Signs, Depreciation, 1005 Silk Industry, Inventions, average cost Singer, Throat specialist's bills not deduct- Single Person (See "Unmarried Person") Increment as income, 599 Mines, 1074 Payments by lessee not income, 623 Social Clubs, Profits taxable, 29 "Social" Expenses, Not deductible, 736 Society, Repurchasing interests of resigned Soil, Restoration of fertility as capital Soldier, Non-resident alien, 1163 Dissolution of corporation not always Taxable year, one basis for all sources of Sole Stockholder, Corporation, losses of corporation not deductible in personal Source, Payment of Tax at (See "Pay- South Carolina, Income tax, accrual, 816 Special Assessment Districts, As political Special Bank Examiner, Liquidating bank, Special Counsel to City, Compensation tax- Special Counsel to State Comptroller, Salary exempt, 208 Special Deputy Bank Examiners and Clerks, Washington, Salaries exempt, Special Investigator of State Prohibition Special Tax Investigator, Compensation Speculation (See also "Margin," "Securi- ties, Dealers in," "Short Sales," As trade or business, 899 Dealers in securities distinguished from, Loss in, deduction allowed, 858 Former procedure, 858 Speculator, Capital gains may be claimed Spouse (See "Husband and Wife") Deductible, 819 From gross income, 815 Stamps, Use of by banks and trust com- State Agricultural Colleges, Employees, State Banks, Assessments, as capital invest- Ownership certificates not required, 176 Statistics, Tax, publication of, 92 Statute of Limitations (See "Limitation Statutory Net Loss (See "Net Loss") Non-resident alien, allocation of income. When not considered doing business in Stock (See also "Capital Stock," "Common Assessments not deductible, 852 Stock-(Continued) Assumption of tax liability with purchase, 837 Bank (See "Banks, Stock") Basis reduced by distributions not out of profits, 651 Bonus, 445 Income taxable, 689 Bonus in credited but not available, 253 Cancellation or redemption, 448 Compensation for personal services in, Compensation in, deductibility, 772 Distribution in reorganization, 335 Donated, no gain or loss from sale, 331 Dividends subject to normal tax, 303 "Essentially equivalent to taxable divi- Exchanged for stock, 407 Exchange for voting trust certificates, 403 Issued on invention, valuation, 301 Loss through Possible without proof of market value, Probable future profits considered, 499 When closely held, 496 Voting stock controls, 409 At a nominal price, 847 Stock Bonus Fund, Distributions to em- Stock Brokers (See also "Securities, Deal- Commissions not deductible, 771 Commissions paid to, as capital deductions, Payments to customer, returns of infor- Returns of information of accounts, 167 Allocation between life-tenant and re- Taxability to life-tenants in general, 690 Former procedure, 690 Two-year requirement, 554 Stock Exchanges, Initiation fee deductible, 789 Listing fee not deductible, 745 Stocks Exchanges-(Continued) Not a business league, chamber of com- Stock Fire Insurance Company, As mutual Depletion allowances not permitted, 556 Not included in capital assets, 551 Real property owned by dealers, 555 Acquired through, two-year requirement, Gain or loss from sale, 395 Former procedure, 395 Not dividends, 629 Owned by decedent, 1234 Sale, 443-445 Former procedure, 443 Sale above rate on exchange, 445 Stockholders -(Continued) Stock bought below market value, 451 Undistributed corporate profits, alterna- Voluntary assessments, not taxable, 328 Oil loss from, 1096 Returns of information at source not re- Storage Charges, Illegal seizure of liquor, Storms, Subsidy, Paid to manufacturer, when income arises, Paid to railroad not taxable, 325 Recoveries from claims in litigation, 322 Copies furnished for, 90, 91 Originals furnished as evidence in, 89 Superintendent of Water Works, Salary Supper Money, Not taxable, 308 Surgeon, Paid by state industrial commis- sion, compensation taxable, 292 Dividends should not be declared from March 1, 1913, effect of stock dividend Reasonable, 1150 Surtax (See also "Exempt Income") Accrued interest on War Savings Cer- Application of, 3 Point of, 126 Basis of, 3 Cash dividends joint stock land bank sub- Credits against net income not per- Credit for taxes paid at source, 198 Dividends exempt from normal tax but Dividends of individuals subject to, 4 Former procedure, 645 Evasion through transfer to trust, 402 Federal Land Bank Bonds, exempt, 613 Accrued on war savings certificates, Exempt from, certain, 217 Interest on certain obligations of the Exempt from, 607 Items subject to, 238 Liability for, 126 Surtax-(Continued) Liberty bond interest, Certain subject to, 607 Foreign corporations not doing business Non-resident aliens not subject to, 607 Non-resident aliens, 1160 Obligations of the U. S., Limited exemption for, 610 Penalty for evasion through undistributed Former procedure, 1149 Personal service corporation, dividends ex- Rate, 126, 127 Former procedure, 128 Sale of mineral deposits reduced because Specific credit for interest on, Obligations of the U. S. which are sub- Taxpayer subject, only to, claim filed re- Undistributed corporate profits (See Victory Notes not subject to, 607 As joint venture, 7 As associations, 13 Capital contribution of member, 7 Gain or loss, allocation to, members, 7 Reduction of capital contribution pro- Taxable for income from, 7 Not associations, 13 T Table of Cases (See separate index) Tax Collector (See "Collector of Internal Taxable Year (See also "Calendar Year," Accounting period recognized as, 49 Affiliated corporations having different Changed accounting period recognized as, Debts must be charged off within, 938 Estate or trust and beneficiary differ, 702 Recognition of accounting period as, 49 |