Taxable Years Taxable Years Taxable Years ner and on the same basis as in the ner and on the same basis as in the ner and on the same basis as in the case of an individual, except as case of an individual, except as case of an individual, except as provided in subsections (b) and provided in subsections (b) and (c). provided in subsections (b) and (e). (c). Sec. 183. (b) Segregation of items. Sec. 183. (b) (1) Capital gains and losses.-There shall be segregated the gains and losses from sales or exchanges of capital assets. Sec. 183. (b) (2) Ordinary net income or loss. After excluding all items of gain and loss from sales or exchanges of capital assets, there shall be computed (A) An ordinary net income which shall consist of the excess of the gross income over the deductions; or (B) An ordinary net loss which shall consist of the excess of the deductions over the gross income. Sec. 183 (b) (1) and (2), I. R. C., supra, amended to read as above by Sec. 150 (g) (2), R. A. of 1942. Sec. 101 of said Act makes amendment applicable to taxable years beginning ter Dec. 3r, 1941. af Sec. 183. (b) Segregation of items. Sec. 183. (b) (1) Capital gains and losses.-There shall be segregated the gains and losses from sales or exchanges of capital assets. Sec. 183. (b) (2) Ordinary net income or loss. After excluding all items of gain and loss from sales or exchanges of capital assets, there shall be computed— (A) An ordinary net income which shall consist of the excess of the gross income over the deductions; or Sec. 183. (b) Segregation of items. Sec. 183. (b) (1) Capital gains and losses.-There shall be segregated the short-term capital gains and losses and the long-term capital gains and losses, and the net short-term capital gain or loss and the net long-term capital gain or loss shall be computed. Sec. 183. (b) (2) Ordinary net income or loss. After excluding all items of either short-term or long-term capital gain or loss, there shall be computed (A) An ordinary net income which shall consist of the excess of the gross income over the deductions; or (B) An ordinary net loss which (B) An ordinary net loss which shall consist of the excess of the shall consist of the excess of the deductions over the gross income. deductions over the gross income. Sec. 183 (b) (1) and (2), I. R. C., supra, amended to read as above by Sec. 150 (g) (2), R. A. of 1942. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941. Sec. 183. (c) Charitable contri Sec. 183. (c) Charitable contributions. In computing the net in- butions. In computing the net income of the partnership the so- come of the partnership the socalled "charitable contribution" de- called "charitable contribution" deduction allowed by section 23 (o) duction allowed by section 23 (o) shall not be allowed; but each part- shall not be allowed; but each partner shall be considered as having ner shall be considered as having made payment, within his taxable made payment, within his taxable year, of his distributive portion of year, of his distributive portion of any contribution or gift, payment any contribution or gift, payment of which was made by the partner- of which was made by the partnership within its taxable year, of the ship within its taxable year, of the character which would be allowed character which would be allowed to the partnership as a deduction to the partnership as a deduction under such section if this subsection under such section if this subsection had not been enacted. had not been enacted. Sec. 184. Credits against net income. Sec. 184. Credits against net income. The partner shall, for the pur- The partner shall, for the purpose of the normal tax, be allowed pose of the normal tax, be allowed Sec. 183. (c) Charitable contributions. In computing the net income of the partnership the socalled "charitable contribution" deduction allowed by section 23 (o) shall not be allowed; but each partner shall be considered as having made payment, within his taxable year, of his distributive portion of any contribution or gift, payment of which was made by the partnership within its taxable year, of the character which would be allowed to the partnership as a deduction under such section if this subsection had not been enacted. Sec. 184. Credits against net income. The partner shall, for the purpose of the normal tax, be allowed as a credit against his net income, as a credit against his net income, as a credit against his net income, in addition to the credits allowed in addition to the credits allowed in addition to the credits allowed to him under section 25, his pro- to him under section 25, his pro- to him under section 25, his proportionate share of such amounts portionate share of such amounts portionate share of such amounts (not in excess of the net income of (not in excess of the net income of (not in excess of the net income of the partnership) of interest speci- the partnership) of interest speci- the partnership) of interest specified in section 25 (a) as are re-fied in section 25 (a) as are re-fied in section 25 (a) as are received by the partnership. If the ceived by the partnership. If the ceived by the partnership. Taxable Years ner and on the same basis as in the case of an individual, except as provided in subsections (b) and (c). Sec. 183. (b) Segregation of items. Sec. 183. (b) (1) Capital gains and losses.-There shall be segregated the short-term capital gains and losses and the long-term capital gains and losses, and the net short-term capital gain or loss and the net long-term capital gain or loss shall be computed. Taxable Years and on the same basis as in the Sec. 183. (b) Segregation of items. Taxable Years Sec. 183. (b) Segregation of items. Sec. 183. (b) (1) Capital gains See p. 296, Eighth Edition. Sec. 183. (b) (1) Capital gains Sec. 183. (b) (2) Ordinary net Sec. 183. (b) (2) Ordinary net (A) An ordinary net income which shall consist of the excess of the gross income over the deductions; or (B) An ordinary net loss which shall consist of the excess of the deductions over the gross income. (A) An ordinary net income which shall consist of the excess of the gross income over the deductions; or (B) An ordinary net loss which shall consist of the excess of the deductions over the gross income. Sec. 183. (b) (2) Ordinary net income or loss. See p. 296, Eighth Edition. Sec. 183. (c) Charitable contri See p. 296, Eighth Edition. Sec. 183. (c) Charitable contri- Sec. 183. (c) Charitable contributions. In computing the net in- butions. In computing the net in- butions. come of the partnership the so- come of the partnership the socalled "charitable contribution" called "charitable contribution" deduction allowed by section 23 (0) shall not be allowed; but each partner shall be considered as having made payment, within his taxable year, of his distributive portion of any contribution or gift, payment of which was made by the partnership within its taxable year, of the character which would be allowed to the partnership as a deduction under such section if this subsection had not been enacted. Sec. 184. Credits against net income. deduction allowed by section 23 Sec. 184. Credits against net in come. The partner shall, for the pur- The partner shall, for the purpose of the normal tax, be allowed pose of the normal tax, be allowed as a credit against his net income, as a credit against his net income, in addition to the credits allowed in addition to the credits allowed to him under section 25, his pro- to him under section 25, his proportionate share of such amounts portionate share of such amounts (not in excess of the net income of (not in excess of the net income of the partnership) of interest speci- the partnership) of interest specified in section 25 (a) as are re-fied in section 25 (a) as are received by the partnership. ceived by the partnership. Sec. 184. Credits against net in come. See p. 296, Eighth Edition. partnership elects under section 125 partnership elects under section 125 Sec. 184, I. R. C., supra, amended by Sec. 126 (f), R. A. of 1942, to read as above. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941. For Sec. 184, I. R. C., before amendment, see 1942 column. Sec. 185. Earned income. In the case of the members of a partnership the proper part of each share of the net income which consists of earned income shall be determined under rules and regulations to be prescribed by the Commissioner with the approval of the Secretary and shall be separately shown in the return of the partnership. Sec. 186. Taxes of foreign countries and possessions of United States. war Sec. 186. Taxes of foreign countries and possessions of United States. Taxable Years Sec. 185. Earned income. In the case of the members of a partnership the proper part of each share of the net income which consists of earned income shall be determined under rules and regulations to be prescribed by the Commissioner with the approval of the Secretary and shall be separately shown in the return of the partnership. Sec. 186. Taxes of foreign countries and possessions of United States. The amount of income, The amount of income, warprofits, and excess-profits taxes im- profits, and excess-profits taxes imposed by foreign countries or pos- posed by foreign countries or possessions of the United States shall sessions of the United States shall be allowed as a credit against the be allowed as a credit against the tax of the member of a partner-tax of the member of a partnership to the extent provided in section 131. The amount of income, warprofits, and excess-profits taxes imposed by foreign countries or possessions of the United States shall be allowed as a credit against the tax of the member of a partnership to the extent provided in sec-ship to the extent provided in see tion 131. tion 131. Sec. 187. Partnership returns. Sec. 187. Partnership returns. Sec. 187. Partnership returns. Every partnership shall make a Every partnership shall make a Every partnership shall make a return for each taxable year, stat- return for each taxable year, stat- return for each taxable year, stating specifically the items of its ing specifically the items of its ing specifically the items of its gross income and the deductions al- gross income and the deductions al- gross income and the deductions allowed by this chapter and such lowed by this chapter and such lowed by this chapter and such other information for the purpose other information for the purpose other information for the purpose of carrying out the provisions of of carrying out the provisions of of carrying out the provisions of this chapter as the Commissioner this chapter as the Commissioner this chapter as the Commissioner with the approval of the Secretary with the approval of the Secretary with the approval of the Secretary may by regulations prescribe, and may by regulations prescribe, and may by regulations prescribe, and shall include in the return the shall include in the return the shall include in the return the names and addresses of the indi- names and addresses of the indi- names and addresses of the individuals who would be entitled to viduals who would be entitled to viduals who would be entitled to share in the net income if distrib-| share in the net income if distrib- share in the net income if distributed and the amount of the dis- uted and the amount of the dis-uted and the amount of the distributive share of each individual. tributive share of each individual. tributive share of each individual. The return shall be sworn to by The return shall be sworn to by The return shall be sworn to by any one of the partners. any one of the partners. any one of the partners. Taxable Years Taxable Years Taxable Years Sec. 185. Earned income. Sec. 185. Earned income. In the case of the members of a In the case of the members of a partnership the proper part of partnership the proper part of each share of the net income which each share of the net income which consists of earned income shall be consists of earned income shall be determined under rules and regu- determined under rules and regulations to be prescribed by the Commissioner with the approval of the Secretary and shall be separately shown in the return of the partnership. Sec. 186. Taxes of foreign countries and possessions of United States. lations to be prescribed by the Sec. 186. Taxes of foreign countries and possessions of United States. The amount of income, war- The amount of income, warprofits, and excess-profits taxes im- profits, and excess-profits taxes imposed by foreign countries or pos- posed by foreign countries or possessions of the United States shall sessions of the United States shall be allowed as a credit against the be allowed as a credit against the tax of the member of a partner-tax of the member of a partnership to the extent provided in sec- ship to the extent provided in sec tion 131. tion 131. Sec. 187. Partnership returns. Sec. 187. Partnership returns. Every partnership shall make a Every partnership shall make a return for each taxable year, stat- return for each taxable year, stating specifically the items of its ing specifically the items of its gross income and the deductions al-gross income and the deductions allowed by this chapter and such lowed by this chapter and such other information for the purpose other information for the purpose of carrying out the provisions of of carrying out the provisions of this chapter as the Commissioner this chapter as the Commissioner with the approval of the Secretary with the approval of the Secretary may by regulations prescribe, and may by regulations prescribe, and shall include in the return the shall include in the return the names and addresses of the in-names and addresses of the individuals who would be entitled to dividuals who would be entitled to share in the net income if distrib- share in the net income if distributed and the amount of the dis-uted and the amount of the distributive share of each individual. tributive share of each individual. The return shall be sworn to by The return shall be sworn to by any one of the partners. any one of the partners. Sec. 185. Earned income. See p. 296, Eighth Edition. Sec. 186. Taxes of foreign countries and possessions of United States. See p. 298, Eighth Edition. Sec. 187. Partnership returns. See p. 298, Eighth Edition. Taxable Years Sec. 188. Different taxable years of partner and partnership. Taxable Years Sec. 188. Different taxable years of partner and partnership. Taxable Years Sec. 188. Different taxable years of partner and partnership. If the taxable year of a partner If the taxable year of a partner If the taxable year of a partner is different from that of the part- is different from that of the part- is different from that of the partnership, the inclusions with respect | nership, the inclusions with respect nership, the inclusions with respect to the net income of the partner- to the net income of the partner- to the net income of the partnership, in computing the net income ship, in computing the net income ship, in computing the net income of the partner for his taxable year, of the partner for his taxable year, shall be based upon the net income shall be based upon the net income of the partnership for any taxable of the partnership for any taxable year of the partnership (whether year of the partnership (whether beginning on, before, or after Jan- beginning on, before, or after January 1, 1939) ending within or with uary 1, 1939) ending within or with the taxable year of the partner. the taxable year of the partner. of the partner for his taxable year, shall be based upon the net income of the partnership for any taxable year of the partnership (whether beginning on, before, or after January 1, 1939) ending within or with the taxable year of the partner. Sec. 189. Net operating losses. Sec. 189. Net operating losses. Sec. 189. Net operating losses. The benefit of the deduction for The benefit of the deduction for The benefit of the deduction for net operating losses allowed by sec- net operating losses allowed by sec- net operating losses allowed by seetion 23 (s) shall not be allowed tion 23 (s) shall not be allowed tion 23 (s) shall not be allowed to a partnership but shall be al- to a partnership but shall be al- to a partnership but shall be allowed to the members of the part-lowed to the members of the part- lowed to the members of the partnership under regulations pre-nership under regulations pre-nership under regulations prescribed by the Commissioner with scribed by the Commissioner with scribed by the Commissioner with the approval of the Secretary. the approval of the Secretary. the approval of the Secretary. Sec. 189, I. R. C., supra, added by Sec. 211 (d), R. A. of 1939, approved June 29, 1939. Sec. 190. Allowance of amortization deduction. Sec. 189, I. R. Sec. 190. Allowance of amortization deduction. In the case of emergency facili- In the case of emergency facilities of a partnership, the benefit ties of a partnership, the benefit of the deduction for amortization of the deduction for amortization allowed by section 23 (t) shall not allowed by section 23 (t) shall not be allowed to the members of a be allowed to the members of a partnership but shall be allowed to partnership but shall be allowed to the partnership in the same manner the partnership in the same manner and to the same extent as in the and to the same extent as in the case of an individual. case of an individual. Sec. 201. (a) (1) In general.— Sec. 201. (a) (1) In general. There shall be levied, collected, and There shall be levied, collected, and paid for each taxable year upon the paid for each taxable year upon the adjusted normal-tax net income (as adjusted normal-tax net income (as defined in section 202) and upon defined in section 202) and upon the adjusted corporation surtax net the adjusted corporation surtax net income (as defined in section 203) income (as defined in section 203) of every life insurance company of every life insurance company taxes at the rates provided in sec-taxes at the rates provided in sec Sec. 190. Allowance of amortization deduction. In the case of emergency facilities of a partnership, the benefit of the deduction for amortization allowed by section 23 (t) shall not be allowed to the members of a partnership but shall be allowed to the partnership in the same manner and to the same extent as in the case of an individual. Sec. 190, I. R. C., supra, added to I. R. C. by Sec. 155 (h), R. A. of 1942. Sec. 155 (i) of said Act makes amendment effective as of Oct. 8, 1940. |