Sec. 116. (a) Earned income sources without United See p. 188, Eighth Edition. Sec. 116. (a) Earned income Sec. 116. (a) Earned income from sources without United from sources without United from States. In the case of an individ- States.-In the case of an individ- States. ual citizen of the United States, a ual citizen of the United States, a bona fide nonresident of the United bona fide nonresident of the United States for more than six months States for more than six months during the taxable year, amounts during the taxable year, amounts rereceived from sources without the ceived from sources without the United States (except amounts United States (except amounts paid by the United States or any paid by the United States or any agency thereof) if such amounts agency thereof) if such amounts would constitute earned income as would constitute earned income as defined in section 25 (a) if received defined in section 25 (a) if received from sources within the United from sources within the United States; but such individual shall States; but such individual shall not not be allowed as a deduction from be allowed as a deduction from his his gross income any deductions gross income any deductions propproperly allocable to or chargeable erly allocable to or chargeable against amounts excluded from against amounts excluded from gross income under this subsection. gross income under this subsection. Taxable Years against amounts excluded Taxable Years from cluded from gross income under this gross income under this subsection. subsection. Sec. 116 (a) (1), I. R. C., supra, amended to read as above and Sec. 116 (a) (2) added to I. R. C. by Sec. 148 (a), R. A. of 1942. Sec. 148 (b) of said Act makes amendment of subsection (a) applicable to taxable years beginning after Dec. 31, 1942, and amendment inserting subsection (b) applicable to taxable years beginning in 1942. For Sec. 116 (a), I. R. C., before amendment, see 1942 column. See. 116 (b) Teachers in Alaska and Hawaii. Sec. 116 (b), I. R. C., supra, repealed by Pub. Sal. Tax Act of 1939, approved April 12, 1939. For Sec. 116 (b), I. R. C., before repeal, see Sec. 116 (b), I. R. C., in 1939 column. Sec. 116 (a) (2), added to I. R. C. by Sec. 148 (a), R. A. of 1942. Sec. 148 (b) of said Act makes amendment applicable to taxable years beginning in 1942. Sec. 148 (a), R. A. of 1942, also amended the first paragraph of Sec. 116 (a), I. R. C., supra, by numbering it "(1)" and making certain other changes; but said amendment was applicable to taxable years beginning after Dec. 31, 1942. See 1943 column. See. 116. (b) Teachers in Alaska and Hawaii. Sec. 116 (b), I. R. C., supra, repealed by Pub. Sal. Tax Act of 1939, approved April 12, 1939. For Sec. 116 (b), I. R. C., before repeal, see Sec. 116 (b), I. R. C., in 1939 column. Taxable Years See. 116. (b) Teachers in Alaska and Hawaii. Sec. 116 (b) I. R. C., supra, repealed by Sec. 2, Pub. Sal. Tax Act of 1939, approved April 12, 1939. For Sec. 116 (b), I. R. C., before repeal, see Sec. 116 (b), I. R. C., in 1939 column. Sec. 116. (c) Income of foreign Sec. 116. (c) Income of foreign Sec. 116. (c) Income of foreign governments. The income of for- governments.-The income of for- governments.-The income of foreign governments received from in- eign governments received from in- eign governments received from investments in the United States in vestments in the United States in vestments in the United States in stocks, bonds, or other domestic stocks, bonds, or other domestic stocks, bonds, or other domestic securities, owned by such foreign securities, owned by such foreign securities, owned by such foreign governments, or from interest on governments, or from interest on governments, or from interest on deposits in banks in the United deposits in banks in the United deposits in banks in the United States of moneys belonging to such States of moneys belonging to such States of moneys belonging to such foreign governments, or from any foreign governments, or from any foreign governments, or from any other source within the United other source within the United other source within the United States. States. States. Sec. 116. (d) Income of states, Sec. 116. (d) Income of states, Sec. 116. (d) Income of states, municipalities, etc.-Income de- municipalities, etc.-Income de- municipalities, etc.-Income derived from any public utility or rived from any public utility or rived from any public utility or the exercise of any essential gov- the exercise of any essential gov-the exercise of any essential governmental function and accruing ernmental function and accruing ernmental function and accruing to any State, Territory, or the Dis- to any State, Territory, or the Dis- to any State, Territory, or the District of Columbia, or any political trict of Columbia, or any political trict of Columbia, or any political subdivision of a State or Terri- subdivision of a State or Terri- subdivision of a State or Territory, or income accruing to the tory, or income accruing to the tory, or income accruing to the government of any possession of government of any possession of government of any possession of the United States, or any political the United States, or any political the United States, or any political subdivision thereof. subdivision thereof. subdivision thereof. Whenever any State, Territory, Whenever any State, Territory, Whenever any State, Territory, or the District of Columbia, or any or the District of Columbia, or any or the District of Columbia, or any political subdivision of a State or political subdivision of a State or political subdivision of a State or Territory, prior to September 8, Territory, prior to September 8, Territory, prior to September 8, 1916, entered in good faith into a 1916, entered in good faith into a 1916, entered in good faith into a contract with any person, the ob-contract with any person, the ob-contract with any person, the object and purpose of which is to ject and purpose of which is to ject and purpose of which is to acquire, construct, operate, or acquire, construct, operate, or acquire, construct, operate, maintain a public utilitymaintain a public utility maintain a public utility— or Sec. 116. (c) Income of foreign Sec. 116. (c) Income of foreign governments. The income of for- governments.-The income of foreign governments received from in- eign governments received from investments in the United States in vestments in the United States in stocks, bonds, or other domestic stocks, bonds, or other domestic securities, owned by such foreign securities, owned by such foreign governments, or from interest on governments, or from interest on deposits in banks in the United deposits in banks in the United States of moneys belonging to such States of moneys belonging to such foreign governments, or from any foreign governments, or from any other source within the United other source within the United States. States. Sec. 116. (d) Income of states, Sec. 116. (d) Income of states, Whenever any State, Territory, Whenever any State, Territory, Sec. 116. (b) Teachers in Alaska and Hawaii. See p. 190, Eighth Edition. Sec. 116. (c) Income of foreign governments. See p. 192, Eighth Edition. Sec. 116. (d) Income of states, municipalities, etc. See p. 192, Eighth Edition. Taxable Years Taxable Years Taxable Years Sec. 116. (d) (1) If by the terms Sec. 116. (d) (1) If by the terms Sec. 116. (d) (1) If by the terms of such contract the tax imposed of such contract the tax imposed of such contract the tax imposed by this chapter is to be paid out by this chapter is to be paid out by this chapter is to be paid out of the proceeds from the oper- of the proceeds from the opera- of the proceeds from the operaation of such public utility, prior to tion of such public utility, prior to tion of such public utility, prior to any division of such proceeds be- any division of such proceeds be- any division of such proceeds between the person and the State, tween the person and the State, tween the person and the State, Territory, political subdivision, or Territory, political subdivision, or Territory, political subdivision, or the District of Columbia, and if, the District of Columbia, and if, the District of Columbia, and if, but for the imposition of the tax but for the imposition of the tax but for the imposition of the tax imposed by this chapter, a part of imposed by this chapter, a part of imposed by this chapter, a part of such proceeds for the taxable year such proceeds for the taxable year such proceeds for the taxable year would accrue directly to or for the would accrue directly to or for the would accrue directly to or for the use of such State, Territory, polit- use of such State, Territory, polit- use of such State, Territory, political subdivision, or the District of ical subdivision, or the District of ical subdivision, or the District of Columbia, then a tax upon the net Columbia, then a tax upon the net Columbia, then a tax upon the net income from the operation of such income from the operation of such income from the operation of such public utility shall be levied, as- public utility shall be levied, as- public utility shall be levied, assessed, collected, and paid in the sessed, collected, and paid in the sessed, collected, and paid in the manner and at the rates prescribed manner and at the rates prescribed manner and at the rates prescribed in this chapter, but there shall be in this chapter, but there shall be in this chapter, but there shall be refunded to such State, Territory, refunded to such State, Territory, refunded to such State, Territory, political subdivision, or the Dis- political subdivision, or the Dis- political subdivision, or the District of Columbia (under rules trict of Columbia (under rules trict of Columbia (under rules and regulations to be prescribed and regulations to be prescribed and regulations to be prescribed by the Commissioner with the ap- by the Commissioner with the ap by the Commissioner with the approval of the Secretary) proval of the Secretary) an proval of the Secretary) an an amount which bears the same re- amount which bears the same re- amount which bears the same relation to the amount of the tax as lation to the amount of the tax as lation to the amount of the tax as the amount which (but for the im- the amount which (but for the im- the amount which (but for the imposition of the tax imposed by position of the tax imposed by position of the tax imposed by this chapter) would have accrued this chapter) would have accrued this chapter) would have accrued directly to or for the use of such directly to or for the use of such directly to or for the use of such State, Territory, political subdivi- State, Territory, political subdivi- State, Territory, political subdivi sion, or the District of Columbia, sion, or the District of Columbia, sion, or the District of Columbia, bears to the amount of the net in- bears to the amount of the net in- bears to the amount of the net income from the operation of such come from the operation of such come from the operation of such public utility for such taxable public utility for such taxable public utility for such taxable year. Sec. 116. (d) (2) If by the terms Sec. 116. (d) (2) If by the terms Sec. 116. (d) (2) If by the terms of such contract no part of the of such contract no part of the of such contract no part of the proceeds from the operation of the proceeds from the operation of the proceeds from the operation of the public utility for the taxable year public utility for the taxable year public utility for the taxable year would, irrespective of the tax im- would, irrespective of the tax im- would, irrespective of the tax imposed by this chapter, accrue di- posed by this chapter, accrue di- posed by this chapter, accrue directly to or for the use of such rectly to or for the use of such rectly to or for the use of such State, Territory, political subdivi- State, Territory, political subdivi- State, Territory, political subdivision, or the District of Columbia, sion, or the District of Columbia, sion, or the District of Columbia, then the tax upon the net income then the tax upon the net income then the tax upon the net income of such person from the operation of such person from the operation of such person from the operation of such public utility shall be of such public utility shall be of such public utility shall be levied, assessed, collected, and paid levied, assessed, collected, and paid levied, assessed, collected, and paid in the manner and at the rates prein the manner and at the rates pre- in the manner and at the rates prescribed in this chapter. scribed in this chapter. scribed in this chapter. Sec. 116. (e) Bridges to be ac- Sec. 116. (e) Bridges to be ac- Sec. 116. (e) Bridges to be acquired by state or political sub- quired by state or political sub- quired by state or political subdivision. Whenever any State or division.-Whenever any State or division.-Whenever any State or political subdivision thereof, in political subdivision thereof, in political subdivision thereof, in pursuance of a contract to which pursuance of a contract to which pursuance of a contract to which it is not a party entered into be- it is not a party entered into be- it is not a party entered into before May 29, 1928, is to acquire a fore May 29, 1928, is to acquire a fore May 29, 1928, is to acquire a bridgebridge bridge Sec. 116. (d) (1) If by the terms Sec. 116. (d) (1) If by the terms of such contract the tax imposed of such contract the tax imposed by this chapter is to be paid out by this chapter is to be paid out of the proceeds from the opera- of the proceeds from the operation of such public utility, prior to tion of such public utility, prior to any division of such proceeds be- any division of such proceeds between the person and the State, tween the person and the State, Territory, political subdivision, or Territory, political subdivision, or the District of Columbia, and if, the District of Columbia, and if, but for the imposition of the tax but for the imposition of the tax imposed by this chapter, a part of imposed by this chapter, a part of such proceeds for the taxable year such proceeds for the taxable year would accrue directly to or for the would accrue directly to or for the use of such State, Territory, polit- use of such State, Territory, political subdivision, or the District of ical subdivision, or the District of Columbia, then a tax upon the net Columbia, then a tax upon the net income from the operation of such income from the operation of such public utility shall be levied, as- public utility shall be levied, assessed, collected, and paid in the sessed, collected, and paid in the manner and at the rates prescribed manner and at the rates prescribed in this chapter, but there shall be in this chapter, but there shall be refunded to such State, Territory, refunded to such State, Territory, political subdivision, or the Dis-political subdivision, or the District of Columbia (under rules trict of Columbia (under rules and regulations to be prescribed and regulations to be prescribed by the Commissioner with the ap- by the Commissioner with the approval of the Secretary) an proval of the Secretary) an amount which bears the same re- amount which bears the same relation to the amount of the tax as lation to the amount of the tax as the amount which (but for the im- the amount which (but for the imposition of the tax imposed by position of the tax imposed by this chapter) would have accrued this chapter) would have accrued directly to or for the use of such directly to or for the use of such State, Territory, political subdivi- State, Territory, political subdivision, or the District of Columbia, sion, or the District of Columbia, bears to the amount of the net in- bears to the amount of the net income from the operation of such come from the operation of such public utility for such taxable public utility for such taxable Sec. 116. (d) (2) If by the terms Sec. 116. (d) (2) If by the terms of such contract no part of the of such contract no part of the proceeds from the operation of the proceeds from the operation of the public utility for the taxable year public utility for the taxable year would, irrespective of the tax im- would, irrespective of the tax imposed by this chapter, accrue di- posed by this chapter, accrue directly to or for the use of such rectly to or for the use of such State, Territory, political subdivi- State, Territory, political subdivision, or the District of Columbia, sion, or the District of Columbia, then the tax upon the net income then the tax upon the net income of such person from the operation of such person from the operation of such public utility shall be of such public utility shall be levied, assessed, collected, and paid levied, assessed, collected, and paid in the manner and at the rates in the manner and at the rates prescribed in this chapter. scribed in this chapter. pre Sec. 116. (e) Bridges to be ac- Sec. 116. (e) Bridges to be acquired by state or political sub- quired by state or political subdivision.—Whenever any State or division.-Whenever any State or political subdivision thereof, in political subdivision thereof, in pursuance of a contract to which pursuance of a contract to which it is not a party entered into be- it is not a party entered into before May 29, 1928, is to acquire a fore May 29, 1928, is to acquire a bridge bridge Taxable Years Beginning before 1939 Sec. 116. (e) Bridges to be acquired by state or political subdivision. See p. 194, Eighth Edition. |