Taxable Years
Beginning in 1943

extent that the gross receipts from their sale or exchange are not greater than the excess, if any, for the taxable year of the sum of dividends and similar distributions paid to policyholders, losses paid, and expenses paid over the sum of interest, dividends, rents, and net premiums received. In the application of section 117 (e) for the purposes of this section, the net capital loss for the taxable year shall be the amount by which losses for such year from sales or exchanges of capital assets exceeds the sum of the gains from such sales or exchanges and whichever of the following amounts is the lesser :

(i) the corporation surtax net income (computed without regard to gains or losses from sales or exchanges of capital assets); or

(ii) losses from the sale or exchange of capital assets sold or exchanged to obtain funds to meet abnormal insurance losses and to provide for the payment of dividends and similar distributions to policyholders.

extent that the gross receipts from company, if such method is reason-
their sale or exchange are not able, and (2) in all other cases, in
greater than the excess, if any, for accordance with regulations pre-
the taxable year of the sum of divi- scribed by the Commissioner with
dends and similar distributions paid the approval of the Secretary.
to policyholders, losses paid, and
expenses paid over the sum of in- Sec. 207. (e) Deductions of for-
terest, dividends, rents, and net eign corporations. In the case of
premiums received. In the applica- a foreign corporation the dedue-
tion of section 117 (e) for the pur- tions allowed in this section shall
poses of this section, the net capital be allowed to the extent provided
loss for the taxable year shall be in Supplement I in the case of a
the amount by which losses for such foreign corporation engaged in
year from sales or exchanges of trade or business within the United
capital assets exceeds the sum of the States.
gains from such sales or exchanges
and whichever of the following
amounts is the lesser:

(i) the corporation surtax net in-
come (computed without regard to
gains or losses from sales or ex-
changes of capital assets); or

Sec. 207. (f) Double deductions. -Nothing in this section shall be construed to permit the same item to be twice deducted.

Sec. 207. (g) Credits under sec(ii) losses from the sale or ex- tion 26.-For the purposes of this change of capital assets sold or ex-section, in computing normal tax changed to obtain funds to meet net income and corporation surtax abnormal insurance losses and to net income, the credits provided in provide for the payment of divi- section 26 shall be allowed in the dends and similar distributions to manner and to the extent provided policyholders. in sections 13 (a) and 15 (a).

Sec. 207. (c) Rental value of Sec. 207. (c) Rental value of real estate. The deduction under real estate.-The deduction under subsection (b) (4) (C) or (b) (4) subsection (b) (4) (C) or (b) (4) (D) of this section on account of (D) of this section on account of any real estate owned and occupied any real estate owned and occupied in whole or in part by a mutual in whole or in part by a mutual insurance company other than life insurance company other than life or marine, shall be limited to an or marine, shall be limited to an amount which bears the same ratio amount which bears the same ratio to such deduction (computed with- to such deduction (computed without regard to this subsection) as the out regard to this subsection) as the rental value of the space not so oc- rental value of the space not so occupied bears to the rental value of cupied bears to the rental value of the entire property. the entire property.

Sec. 207. (d) Amortization of Sec. 207. (d) Amortization of premium and accrual of discount. premium and accrual of discount. -The gross amount of income dur--The gross amount of income during the taxable year from interest, ing the taxable year from interest, the deduction provided in subsec- the deduction provided in subsection (b) (4) (A), and the credit al- tion (b) (4) (Á), and the credit allowed against net income in section lowed against net income in section 26 (a) shall each be decreased by 26 (a) shall each be decreased by the appropriate amortization of the appropriate amortization of premium and increased by the ap- premium and increased by the appropriate accrual of discount at-propriate accrual of discount attributable to the taxable year on tributable to the taxable year on bonds, notes, debentures or other bonds, notes, debentures or other evidences of indebtedness held by a evidences of indebtedness held by a mutual insurance company other mutual insurance company other than life or marine. Such amortiza- than life or marine. Such amortization and accrual shall be deter- tion and accrual shall be determined mined (1) in accordance with the (1) in accordance with the method method regularly employed by such regularly employed by such com(Continued in third column.) (Continued in fourth column.)

Sec. 207, I. R. C., supra, amended to read as above by Sec. 165 (b), R. A. of 1942. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941.

(Continued on page 496.)

Taxable Years
Beginning in 1943

See. 208. Net operating losses.

Sec. 208, I. R. C.. supra, repealed by Sec. 163 (b) (2), R. A. of 1942. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941.

For Sec. 208, I. R. C., before repeal, see 1942 column.

Supplement H-Nonresident
Alien Individuals

Sec. 211. Tax on nonresident alien individuals.

Sec. 211. (a) No United States business or office.

Sec. 208. Not operating losses. Sec. 208. Net operating losses. The benefit of the deduction for The benefit of the deduction for net operating losses allowed by net operating losses allowed by section 23 (s) shall be allowed to section 23 (s) shall be allowed to insurance companies subject to the insurance companies subject to the taxes imposed in this supplement taxes imposed in this supplement under regulations prescribed by the under regulations prescribed by the Commissioner with the approval Commissioner with the approval of the Secretary, of the Secretary.

Sec. 211. (a) (1) General rule.- Sec. 211. (a) (1) General rule.— Sec. 211. (a) (1) General rule.— (A) IMPOSITION OF TAX.-There (A) IMPOSITION OF TAX.-There (A) IMPOSITION OF TAX.-There shall be levied, collected, and paid shall be levied, collected, and paid shall be levied, collected, and paid for each taxable year, in lieu of the for each taxable year, in lieu of the for each taxable year, in lieu of the tax imposed by sections 11 and 12, tax imposed by sections 11 and 12, tax imposed by sections 11 and 12, upon the amount received, by every upon the amount received, by every upon the amount received, by every nonresident alien individual not en- nonresident alien individual not en- nonresident alien individual not engaged in trade or business within gaged in trade or business within gaged in trade or business within the United States, from sources the United States and not having the United States and not having within the United States as interest an office or place of business there an office or place of business there(except interest on deposits with from sources within the United in, from sources within the United persons carrying on the banking States as interest (except interest States as interest (except interest business), dividends, rents, salaries, on deposits with persons carrying on deposits with persons carrying on the banking business), divi- on the banking business), diviwages, premiums, annuities, compensations, remunerations, emolu- dends, rents, salaries, wages, pre-dends, rents, salaries, wages, prements, or other fixed or determin-miums, annuities, compensations, miums, annuities, compensations, able annual or periodical gains, remunerations, or emoluments, remunerations, emoluments, or profits, and income, a tax of 30 other fixed or determinable annual other fixed or determinable annual per centum of such amount, except or periodical gains, profits, and in- or periodical gains, profits, and inthat such rate shall be reduced, income, a tax of 27% 30 per centum come, a tax of 271/2 15 the case of a resident of any of such amount, except that such of such amount, except that such country in North, Central, or South rate shall be reduced, in the case of rate shall be reduced, in the case of America, or in the West Indies, or a resident of any country in North, a resident of a contiguous country, of Newfoundland, to such rate (not Central, or South America, or in any country in North, Central, or less than 5 per centum) as may be the West Indies, or of Newfound- South America, or in the West provided by treaty with such land, to such rate (not less than 5 country. per centum) as may be provided by Indies, or of Newfoundland, to such treaty with such country. rate (not less than 5 per centum) as may be provided by treaty with such country.

per centum

(B) CROSS REFERENCE.—

For inclusion in computation of tax of amount specified in shareholder's consent, see section 28.

Sec. 211 (a) (1) (A), I. R. C., supra, amended by Sec. 105 (a), R. A. of 1941, by striking out "15" and substituting in lieu thereof "27%." Sec. 118 of said Act makes amendment

Sec. 208. Net operating losses. Sec. 208. Net operating losses. The benefit of the deduction for The benefit of the deduction for net operating losses allowed by net operating losses allowed by secsection 23 (s) shall be allowed to tion 23 (s) shall be allowed to ininsurance companies subject to the surance companies subject to the taxes imposed in this supplement taxes imposed in this supplement under regulations prescribed by the Commissioner with the approval under regulations prescribed by the of the Secretary. Commissioner with the approval of the Secretary.

Taxable Years
Beginning before 1939

Sec. 211. (a) (1) General rule.—

Sec. 211. (a) (1) General rule.— (A) IMPOSITION OF TAX.-There (A) IMPOSITION OF TAX.-There shall be levied, collected, and paid shall be levied, collected, and paid for each taxable year, in lieu of the for each taxable year, in lieu of the tax imposed by sections 11 and 12, tax imposed by sections 11 and 12, upon the amount received, by every upon the amount received, by every nonresident alien individual not en- nonresident alien individual not engaged in trade or business within gaged in trade or business within the United States and not having the United States and not having an an office or place of business there- office or place of business therein. in, from sources within the United from sources within the United States as interest (except interest States as interest (except interest on deposits with persons carrying on deposits with persons carrying on the banking business), divi- on the banking business), dividends, dends, rents, salaries, wages, pre- rents, salaries, wages, premiums, miums, annuities, compensations, annuities, compensations, remunerremunerations, emoluments, or ations, emoluments, or other fixed other fixed or determinable annual or determinable annual or periodor periodical gains, profits, and in- ical gains, profits, and income, at come, a tax of 15 10 per centum of tax of 10 per centum of such such amount, except that such rate amount, except that such rate shall shall be reduced, in the case of a be reduced, in the case of a resident resident of a contiguous country, of a contiguous country, to such to such rate (not less than 5 per rate (not less than 5 per centum) centum) as may be provided by as may be provided by treaty with treaty with such country. such country.

Supplement H-Nonresident
Alien Individuals

Sec. 211. Tax on nonresident alien individuals.

Sec. 211. (a) No United States business or office.

Sec. 211. (a) (1) General rule.
See p. 322, Eighth Edition.

Taxable Years
Beginning in 1943

For Sec. 211 (a) (1) (A), I. R. C., before amendment and taxable years in respect of which amendments applicable, see 1942 column.

Sec. 211. (a)
(a) (2) Aggregate

Taxable Years
Beginning in 1942

ment effective Oct. 31, 1942,
regardless of whether the
taxable year of the recipient
begins before Jan. 1, 1942, or
after Dec. 31, 1941.

Sec. 211 (a) (1) (A), I. R.
C., again amended by Sec. 160
(e), R. A. of 1942, by omitting
the language "and not having
an office or place of business
therein." Sec. 101 of said Act
makes amendment applicable
to taxable years beginning
after Dec. 31, 1941.

For prior amendments of I. R. C., 211 (a) (1) (A), see 1941 column.

Sec. 211. (a) (2) Aggregate

Taxable Years
Beginning in 1941

applicable to taxable years beginning after Dec. 31, 1940.

Sec. 211 (a) (1), I. R. C., again amended by Sec. 109 (a), R. A. of 1941, by omitting language "a contiguous country" and adding language in underlined italics. Sec. 118 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1940.

For prior amendments, see I. R. C., 211 (a) (1) (A) in 1940 column.

Sec. 211. (a) (2) Aggregate more than $15,400.-The tax im- more than $15,400 $23,000.-The more than $24,000 $23,000.-The tax imposed by paragraph (1) tax imposed by paragraph (1) shall not apply to any individual shall not apply to any individual if the aggregate amount received if the aggregate amount received during the taxable year from the during the taxable year from the sources therein specified is more sources therein specified is more than $23,000, $15,400. than $24,000-$23,000.

posed by paragraph (1) shall not apply to any individual if the aggregate amount received during the taxable year from the sources therein specified is more than $15,400.

Sec. 211 (a) (2), I. R. C., supra, amended by Sec. 106 (b), 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. 211 (a) (2), I. R. C., before amendment, see 1942 column.

foundland, so long as there is in
effect with such country a treaty
which provides otherwise.

Sec. 211 (a) (2), I. R. C., supra, amended by Sec. 105 (b), R. A. of 1941, by striking out "$24,000" and substituting in lieu thereof "$23,000." Sec. 118 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1940.

For prior amendments, see Sec. 211 (a) (2), I. R. C., in 1940 column.

Sec. 211. (a) (3) Residents of Sec. 211. (a) (3) Residents of Sec. 211. (a) (3) Residents of certain countries.-The provisions certain countries. The provisions eontiguous certain countries. De of paragraph (2) shall not apply of paragraph (2) shall not apply spite the provisions of paragraph to a resident of any country in to a resident of any country in (2), the provisions of paragraph North, Central, or South America, North, Central, or South America, (1) shall apply to a resident of a or in the West Indies, or of New- or in the West Indies, or of New- contiguous country so long as there foundland, so long as there is in is in effect a treaty with such coun effect with such country a treaty try ratified prior to August 26, which provides otherwise. 1037) under which the rate of tax under section 211 (a) of the Rev enue Act of 1936, 49 Stat. 1714, prior to its amendment by section 501 (a) of the Revenue Act of 1037, 50 Stat. 830 was reduced. The provisions of paragraph (2) shall not apply to a resident of any country in North, Central, or South America, or in the West Indies, or of Newfoundland, so long as there is in effect with such country a treaty which provides otherwise.

Sec. 211 (a) (3), I. R. C., 109 supra, amended by Sec. (b), R. A. of 1941, to read as above. Sec. 118 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1940.

For Sec. 211 (a) (3), I. R. C., before amendment, see 1941 column.

Sec. 211. (b) United States busi

109

Sec. 211 (a) (3), I. R. C.,
supra, amended by Sec.
(b), R. A. of 1941, to read as
above. Sec. 118 of said Act
makes amendment applicable
to taxable years beginning
after Dec. 31, 1940.

For Sec. 211 (a) (3), I. R.
C., before amendment, see
1941 column.

Sec. 211. (b) United States business or office.-A nonresident alien ness or office.-A nonresident alien

Sec. 211 (a) (3), I. R. C., supra, amended by Sec. 109 (b), R. A. of 1941, by substituting "certain" for "contiguous" in heading, omitting language in stricken through type and adding language in italics. Sec. 118 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1940.

Sec. 211. (b) United States business or office. A nonresident alien individual engaged in trade or individual engaged in trade or individual engaged in trade or