Sec. 44. (b) Sales of realty and Taxable Years Sec. 44. (b) Sales of realty and Sec. 44. (b) Sales of realty and the case (1) of a casual sale or is made. may, is made. See p. 90, Eighth Edition. Sec. 44. (c) Change from accrual See p. 90, Eighth Edition. Sec. 44. (c) Change from accrual Sec. 44. (c) Change from accrual excluded. Sec. 44. (d) Gain or loss, upon Sec. 44. (d) Gain or loss, upon Sec. 44. (d) Gain or loss upon disposition of installment obliga- disposition of installment obliga- disposition of installment obliga tions. If an installment obligation tions.-If an installment obligation tions. is satisfied at other than its face is satisfied at other than its face value or distributed, transmitted, value or distributed, transmitted, sold, or otherwise disposed of, gain sold, or otherwise disposed of, gain or loss shall result to the extent of or loss shall result to the extent of the difference between the basis of the difference between the basis of the obligation and (1) in the case the obligation and (1) in the case of satisfaction at other than face of satisfaction at other than face value or a sale or exchange the value or a sale or exchange-the amount realized, or (2) in case of amount realized, or (2) in case of a distribution, transmission, or dis- a distribution, transmission, or disposition otherwise than by sale or position otherwise than by sale or exchange the fair market value of exchange-the fair market value of the obligation at the time of such the obligation at the time of such distribution, transmission, or dis- distribution, transmission, or disposition. Any gain or loss so re- position. Any gain or loss so resulting shall be considered as result-sulting shall be considered as result See p. 90, Eighth Edition. Taxable Years Taxable Years Taxable Years ing from the sale or exchange of ing from the sale or exchange of ing from the sale or exchange of the property in respect of which the the property in respect of which the the property in respect of which the installment obligation was re- installment obligation was re- installment obligation was received. The basis of the obligation ceived. The basis of the obligation ceived. The basis of the obligation shall be the excess of the face value shall be the excess of the face value shall be the excess of the face value of the obligation over an amount of the obligation over an amount of the obligation over an amount equal to the income which would be equal to the income which would be equal to the income which would be returnable were the obligation sat- returnable were the obligation sat-returnable were the obligation satisfied in full. This subsection shall isfied in full. This subsection shall isfied in full. This subsection shall not apply to the transmission at not apply to the transmission at not apply to the transmission at death of installment obligations if death of installment obligations if death of installment obligations if there is filed with the Commissioner, there is filed with the Commissioner, there is filed with the Commissioner, at such time as he may by regula- at such time as he may by regula- at such time as he may by regulation prescribe, a bond in such tion prescribe, a bond in such tion prescribe, a bond in such amount and with such sureties as he amount and with such sureties as he amount and with such sureties as he may deem necessary, conditioned may deem necessary, conditioned may deem necessary, conditioned upon the return as income, by the upon the return as income, by the upon the return as income, by the person receiving any payment on person receiving any payment on person receiving any payment on such obligations, of the same pro- such obligations, of the same pro- such obligations, of the same proportion of such payment as would portion of such payment as would portion of such payment as would be returnable as income by the be returnable as income by the be returnable as income by the decedent if he had lived and had decedent if he had lived and had decedent if he had lived and had received such payment. If an in- received such payment. If an in- received such payment. If an installment obligation is distributed stallment obligation is distributed stallment obligation is distributed by one corporation to another cor- by one corporation to another cor- by one corporation to another corporation in the course of a liquida-poration in the course of a liquida-poration in the course of a liquidation, and under section 112 (b) tion, and under section 112 (b) tion, and under section 112 (b) (6) no gain or loss with respect to (6) no gain or loss with respect to (6) no gain or loss with respect to the receipt of such obligation is the receipt of such obligation is the receipt of such obligation is recognized in the case of the recip- recognized in the case of the recip- recognized in the case of the recipient corporation, then no gain orient corporation, then no gain or ient corporation, then no gain or loss with respect to the distribution loss with respect to the distribution loss with respect to the distribution of such obligation shall be recog- of such obligation shall be recog- of such obligation shall be recognized in the case of the distributing nized in the case of the distributing nized in the case of the distributing corporation. corporation. corporation. Sec. 45. Allocation of income and deductions. Sec. 45. Allocation of income and deductions. Sec. 45. Allocation of income and deductions. incorporated, (whether or not incorporated, In any case of two or more or- In any case of two or more orIn any case of two or more organizations, trades, or businesses ganizations, trades, or businesses ganizations, trades, or businesses (whether or not incorporated, (whether or not whether or not organized in the whether or not organized in the whether or not organized in the United States, and whether or not United States, and whether or not United States, and whether or not affiliated) owned or controlled di- affiliated) owned or controlled di- affiliated) owned or controlled directly or indirectly by the same in- rectly or indirectly by the same in-rectly or indirectly by the same interests, the Commissioner is author- terests, the Commissioner is author- terests, the Commissioner is authorized to distribute, apportion, or ized to distribute, apportion, or ized to distribute, apportion, or allocate gross income or deductions allocate gross income or deductions allocate gross income or deductions between or among such organiza- between or among such organiza- between or among such organizations, trades, or businesses, if he tions, trades, or businesses, if he determines that such distribution, determines that such distribution, apportionment, or allocation is nec- apportionment, or allocation is necessary in order to prevent evasion essary in order to prevent evasion of taxes or clearly to reflect the in- of taxes or clearly to reflect the income of any of such organizations, come of any of such organizations, trades, or businesses. trades, or businesses. Sec. 46. Change of accounting period. Sec. 46. Change of accounting period. tions, trades, or businesses, if he determines that such distribution, apportionment, or allocation is necessary in order to prevent evasion of taxes or clearly to reflect the income of any of such organizations, trades, or businesses. Sec. 46. Change of accounting period. If a taxpayer changes his ac- If a taxpayer changes his ac- If a taxpayer changes his accounting period from fiscal year to counting period from fiscal year to counting period from fiscal year to calendar year, from calendar year calendar year, from calendar year calendar year, from calendar year to fiscal year, or from one fiscal to fiscal year, or from one fiscal to fiscal year, or from one fiscal year to another, the net income year to another, the net income year to another, the net income shall, with the approval of the shall, with the approval of the shall, with the approval of the ing from the sale or exchange of ing from the sale or exchange of Sec. 45. Allocation of income and deductions. Sec. 45. Allocation of income and deductions. In any case of two or more or- In any case of two or more organizations, trades, or businesses ganizations, trades, or businesses (whether or not incorporated, (whether or not incorporated, whether or not organized in the whether or not organized in the United States, and whether or not United States, and whether or not affiliated) owned or controlled di- affiliated) owned or controlled directly or indirectly by the same in- rectly or indirectly by the same interests, the Commissioner is author-terests, the Commissioner is authorized to distribute, apportion, or ized to distribute, apportion, or allocate gross income or deductions allocate gross income or deductions between or among such organiza- between or among such organizations, trades, or businesses, if he tions, trades, or businesses, if he determines that such distribution, determines that such distribution, apportionment, or allocation is nec- apportionment, or allocation is necessary in order to prevent evasion of taxes or clearly to reflect the income of any of such organizations, trades, or businesses. Sec. 46. Change of accounting period. essary in order to prevent evasion Sec. 46. Change of accounting period. If a taxpayer changes his ac- If a taxpayer changes his accounting period from fiscal year to counting period from fiscal year to calendar year, from calendar year calendar year, from calendar year to fiscal year, or from one fiscal to fiscal year, or from one fiscal year to another, the net income year to another, the net income shall, with the approval of the shall, with the approval of the Taxable Years Beginning before 1939 Sec. 45. Allocation of income and deductions. See p. 92, Eighth Edition. Sec. 46. Change of accounting period. See p. 94, Eighth Edition. Taxable Years Commissioner, be computed on the basis of such new accounting period, subject to the provisions of section 47. Sec. 47. Returns for a period of less than twelve months. Commissioner, be computed on the Commissioner, be computed on the Sec. 47. Returns for a period of less than twelve months. Sec. 47. Returns for a period of less than twelve months. Sec. 47. (a) Returns for short Sec. 47. (a) Returns for short Sec. 47. (a) Returns for short period resulting from change of period resulting from change of period resulting from change of accounting period. If a taxpayer, accounting period.—If a taxpayer, accounting period. If a taxpayer, with the approval of the Commis- with the approval of the Commis- with the approval of the Commissioner, changes the basis of com- sioner, changes the basis of com- sioner, changes the basis of computing net income from fiscal year puting net income from fiscal year puting net income from fiscal year to calendar year a separate return to calendar year a separate return to calendar year a separate return shall be made for the period be- shall be made for the period be- shall be made for the period between the close of the last fiscal tween the close of the last fiscal tween the close of the last fiscal year for which return was made year for which return was made year for which return was made and the following December 31. and the following December 31. and the following December 31. If the change is from calendar If the change is from calendar If the change is from calendar year to fiscal year, a separate re- year to fiscal year, a separate re- vear to fiscal year, a separate return shall be made for the period turn shall be made for the period turn shall be made for the period between the close of the last calen-between the close of the last calen-between the close of the last calendar year for which return was dar year for which return was dar year for which return made and the date designated as the close of the fiscal year. If the change is from one fiscal year to another fiscal year a separate return shall be made for the period between the close of the former fiscal year and the date designated as the close of the new fiscal year. Sec. 47. (b) Income computed on basis of short period. Where a separate return is made under subsection (a) on account of a change in the accounting period, and in all other cases where a separate return is required or permitted, by regulations prescribed by the Commissioner with the approval of the Secretary, to be made for a fractional part of a year, then the income shall be computed on the basis of the period for which separate return is made. Sec. 47. (c) Income placed on annual basis. was made and the date designated as made and the date designated as cal year and the date designated as the close of the new fiscal year. Sec. 47. (b) Income computed on Sec. 47. (b) Income computed on basis of short period.-Where a basis of short period.-Where a separate return is made under sub- separate return is made under subsection (a) on account of a change section (a) on account of a change in the accounting period, and in all in the accounting period, and in all other cases where a separate return other cases where a separate return is required or permitted, by regula-is required or permitted, by regulations prescribed by the Commis- tions prescribed by the Commissioner with the approval of the Sec- sioner with the approval of the Secretary, to be made for a fractional retary, to be made for a fractional part of a year, then the income shall part of a year, then the income shall be computed on the basis of the be computed on the basis of the period for which separate return is period for which separate return is made. Sec. 47. (c) Income placed on annual basis. Sec. 47. (c) (1) General rule.- Sec. 47. (c) (1) General rule.If a separate return is made under If a separate return is made fexsubsection (a) on account of a eept returns of the income of change in the accounting period, eorporation under subsection (a) the net income, computed on the on account of a change in the acbasis of the period for which counting period, the net income, separate return is made (referred computed on the basis of the period to in this subsection as the "short for which separate return is made period") shall be placed on an an- (referred to in this subsection as nual basis by multiplying the the "short period") shall be placed amount thereof by twelve, and on an annual basis by multiplying dividing by the number of months the amount thereof by twelve, and in the short period. The tax shall dividing by the number of months be such part of the tax computed included in the period for which the made. Sec. 47. (c) Income placed on annual basis.-If a separate return is made (except returns of the income of a corporation) under subsection (a) on account of a change in the accounting period, the net income, computed on the basis of the period for which separate return is made, shall be placed on an annual basis by multiplying the amount thereof by twelve and dividing by the number of months included in the period for which the separate return is made. The tax shall be such part of the tax computed on such annual basis as the See p. 94, Eighth Edition. Sec. 47. (a) Returns for short Sec. 47. (a) Returns for short Sec. 47. (a) Returns for short period resulting from change of period resulting from change of period resulting from change of accounting period. If a taxpayer, accounting period. If a taxpayer, accounting period. with the approval of the Commis- with the approval of the Commissioner, changes the basis of com- sioner, changes the basis of computputing net income from fiscal year ing net income from fiscal year to to calendar year a separate return calendar year a separate return shall shall be made for the period be- be made for the period between the tween the close of the last fiscal close of the last fiscal year for year for which return was made which return was made and the foland the following December 31. lowing December 31. If the change If the change is from calendar is from calendar year to fiscal year, year to fiscal year, a separate re- a separate return shall be made for turn shall be made for the period the period between the close of the between the close of the last calen- last calendar year for which return dar year for which return was was made and the date designated made and the date designated as as the close of the fiscal year. If the close of the fiscal year. If the the change is from one fiscal year change is from one fiscal year to to another fiscal year a separate reanother fiscal year a separate re- turn shall be made for the period turn shall be made for the period between the close of the former fisbetween the close of the former fiscal year and the date designated as cal year and the date designated as the close of the new fiscal year. the close of the new fiscal year. Sec. 47. (b) Income computed on Sec. 47. (b) Income computed on basis of short period. Where a basis of short period.-Where a separate return is made under sub- separate return is made under subsection (a) on account of a change section (a) on account of a change in the accounting period, and in all in the accounting period, and in all other cases where a separate return other cases where a separate return is required or permitted, by regula- is required or permitted, by regulations prescribed by the Commis- tions prescribed by the Commissioner with the approval of the Sec- sioner with the approval of the Secretary, to be made for a fractional retary, to be made for a fractional part of a year, then the income shall part of a year, then the income shall be computed on the basis of the be computed on the basis of the period for which separate return is period for which separate return is made. made. Sec. 47. (c) Income placed on Sec. 47. (c) Income placed on annual basis. If a separate re- annual basis. If a separate return is made (except returns of the turn is made (except returns of the income of a corporation) under income of a corporation) under subsection (a) on account of a subsection (a) on account of a change in the accounting period, the change in the accounting period, the net income, computed on the basis net income, computed on the basis of the period for which separate re- of the period for which separate return is made, shall be placed on an turn is made, shall be placed on an annual basis by multiplying the annual basis by multiplying the amount thereof by twelve and di- amount thereof by twelve and dividing by the number of months in-viding by the number of months included in the period for which the cluded in the period for which the separate return is made. The tax separate return is made. The tax shall be such part of the tax com- shall be such part of the tax computed on such annual basis as the puted on such annual basis as the Sec. 47. (b) Income computed on basis of short period. See p. 94, Eighth Edition. Sec. 47. (c) Income placed on annual basis. See p. 94, Eighth Edition. |