Taxable Years
Beginning in 1940

Taxable Years
Beginning in 1939

Taxable Years
Beginning before 1939

by Sec. 22. (e) Distributions by

Sec. 22. (e) Distributions by Sec. 22. (e) Distributions corporations.-Distributions by cor- corporations.-Distributions by cor- corporations. porations shall be taxable to the porations shall be taxable to the shareholders as provided in section shareholders as provided in section

See p. 34, Eighth Edition.

Sec. 22. (f) Determination of

Sec. 22. (f) Determination of Sec. 22. (f) Determination of gain or loss. In the case of a sale gain or loss. In the case of a sale gain or loss. or other disposition of property, or other disposition of property, the gain or loss shall be computed the gain or loss shall be computed as provided in section 111. as provided in section 111.

See p. 34, Eighth Edition.

or not made at regular intervals)
received subsequent to such decree
in discharge of, or attributable to
property transferred (in trust or
otherwise) in discharge of, a legal
obligation which, because of the
marital or family relationship, is
imposed upon or incurred by such
husband under such decree or under

of divorce or of separate mainte- of divorce or of separate mainte-
nance, periodic payments (whether nance, periodic payments (whether
or not made at regular intervals)
received subsequent to such decree
in discharge of, or attributable to
property transferred (in trust or
otherwise) in discharge of, a legal
obligation which, because of the
marital or family relationship, is
imposed upon or incurred by such
husband under such decree or under
a written instrument incident to
a written instrument incident to
such divorce or separation shall be
such divorce or separation shall be
includible in the gross income of
includible in the gross income of such wife, and such amounts re-
such wife, and such amounts received as are attributable to prop-
ceived as are attributable to property so transferred shall not be in-
erty so transferred shall not be in- cludible in the gross income of such
cludible in the gross income of such husband. This subsection shall not
husband. This subsection shall not apply to that part of any such pe-
apply to that part of any such pe- riodic payment which the terms of
riodic payment which the terms of the decree or written instrument
the decree or written instrument fix, in terms of an amount of money
fix, in terms of an amount of money or a portion of the payment, as a
or a portion of the payment, as a sum which is payable for the sup-
sum which is payable for the sup- port of minor children of such hus-
port of minor children of such hus- band. In case any such periodic
band. In case any such periodic payment is less than the amount
payment is less than the amount specified in the decree or written
specified in the decree or written instrument, for the purpose of ap-
instrument, for the purpose of ap-
plying the preceding sentence, such
plying the preceding sentence, such payment, to the extent of such sum
payment, to the extent of such sum
payable for such support, shall be
considered a payment for such sup-
payable for such support, shall be
port. Installment payments dis-
considered a payment for such sup-
charging a part of an obligation the
port. Installment payments dis-
principal sum of which is, in terms
charging a part of an obligation the of money or property, specified in
principal sum of which is, in terms the decree or instrument shall not
of money or property, specified in be considered periodic payments for
the decree or instrument shall not the purposes of this subsection; ex-
be considered periodic payments for cept that an installment payment
the purposes of this subsection; ex- shall be considered a periodic pay-
cept that an installment payment ment for the purposes of this sub-
shall be considered a periodic pay-section if such principal sum, by the
ment for the purposes of this sub-terms of the decree or instrument,
section if such principal sum, by the may be or is to be paid within a
terms of the decree or instrument, period ending more than 10 years
may be or is to be paid within a from the date of such decree or in-
period ending more than 10 years strument, but only to the extent that
from the date of such decree or in- such installment payment for the
strument, but only to the extent that taxable year of the wife (or if more
than one such installment payment
such installment payment for the
for such taxable year is received
taxable year of the wife (or if more
during such taxable year, the aggre-
than one such installment payment
for such taxable year is received gate of such installment payments)
during such taxable year, the aggre- such principal sum.
does not exceed 10 per centum of
For the pur-
gate of such installment payments)
poses of the preceding sentence, the
does not exceed 10 per centum of
portion of a payment of the prin-
such principal sum. For the pur-cipal sum which is allocable to a
poses of the preceding sentence, the
portion of a payment of the prin-
cipal sum which is allocable to a
period after the taxable year of the

period after the taxable year of the
wife in which it is received shall be
considered an installment payment
for the taxable year in which it is

Taxable Years Beginning in 1941

Taxable Years
Beginning in 1943

wife in which it is received shall be considered an installment payment for the taxable year in which it is received. (In cases where such periodic payments are attributable to property of an estate or property held in trust, see section 171 (b).)

Sec. 22 (k), I. R. C., supra, added to I. R. C. by Sec. 120 (a), R. A. of 1942. Sec. 120 (g) of said Act makes amendment applicable only with respect to taxable years beginning after December 31, 1941; except that if the first taxable year beginning after December 31, 1941, of the husband does not begin on the same day as the first taxable year beginning after December 31, 1941, of the wife, such amendment shall first become applicable in the case of the husband on the first day of the wife's first taxable year beginning after December 31, 1941, regardless of the taxable year of the husband in which such day falls.

Sec. 22. (1) Income of decedents. -For inclusion in gross income of certain amounts which constituted gross income in respect of a decedent, see section 126.

Sec. 22 (1), I. R. C., supra, added to I. R. C. by Sec. 134 (c), R. A. of 1942. Sec. 134 (f) of said Act makes amendment applicable to taxable years ending after Dec. 31,

1942.

Sec. 23. Deductions from gross income.

In computing net income there shall be allowed as deductions:

Sec. 23. (a) Expenses.

Sec. 23. (a) (1) Trade or business expenses.

or

Taxable Years
Beginning in 1942

received. (In cases where such pe-
riodic payments are attributable to
property of an estate or property
held in trust, see section 171 (b).)

Sec. 22 (k), I. R. C., supra,
added to I. R. C. by Sec. 120
(a), R. A. of 1942. Sec. 120
(g) of said Act makes
amendment applicable only
with respect to taxable years
beginning after December 31,
1941; except that if the first
taxable year beginning after
December 31, 1941, of the
husband does not begin on
the same day as the first
taxable year beginning after
December 31, 1941, of the
wife, such amendment shall
first become applicable in the
case of the husband on the
first day of the wife's first
taxable year beginning after
December 31, 1941, regard-
less of the taxable year of
the husband in which such
day falls.

Sec. 22 (1) Income of decedents.

See Sec. 22 (1) in 1943 column, which is applicable to taxable years ending after Dec. 31, 1942.

Sec. 23. Deductions from gross income.

In computing net income there shall be allowed as deductions:

Sec. 23. (a) Expenses.

Sec. 23. (a) (1) Trade or business expenses.

or

reasonable
or other

Taxable Years
Beginning in 1941

Sec. 23. Deductions from gross income.

In computing net income there shall be allowed as deductions: Sec. 23. (a) Expenses.

Sec. 23. (a) (1) Trade or business expenses.

(A) In General.-All the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, including a reasonable allowance for salaries or other

(A) In General. All the ordi(A) In General. All the ordinary and necessary expenses paid nary and necessary expenses paid or incurred during the taxable or incurred during the taxable year in carrying on any trade or year in carrying on any trade business, including a reasonable business, including a allowance for salaries other allowance for salaries compensation for personal services compensation for personal services compensation for personal services actually rendered; traveling ex- actually rendered; traveling ex- actually rendered; traveling expenses (including the entire amount penses (including the entire amount expended for meals and lodging) expended for meals and lodging) expended for meals and lodging) penses (including the entire amount while away from home in the pur- while away from home in the pur- while away from home in the pursuit of a trade or business; and suit of a trade or business; and suit of a trade or business; and rentals or other payments required rentals or other payments required rentals or other payments required to be made as a condition to the to be made as a condition to the to be made as a condition to the continued use or possession, for continued use or possession, for continued use purposes of the trade or business, purposes of the trade or business, purposes of the trade or business, or possession, for of property to which the taxpayer of property to which the taxpayer of property to which the taxpayer has not taken or is not taking title has not taken or is not taking title has not taken or is not taking title or in which he has no equity. or in which he has no equity. or in which he has no equity.

Taxable Years
Beginning in 1940

Taxable Years
Beginning in 1939

Taxable Years Beginning before 1939

Sec. 23. Deductions from gross income.

In computing net income there shall be allowed as deductions:

Sec. 23. (a) Expenses.

Sec. 23. (a) (1) Trade or business expenses.

or

Sec. 23. Deductions from gross income.

In computing net income there shall be allowed as deductions:

Sec. 23. (a) Expenses.

Sec. 23. (a) (1) Trade or business expenses.

(A) In General. All the ordi(A) In General.-All the ordinary nary and necessary expenses paid and necessary expenses paid or inincurred during the taxable curred during the taxable year in year in carrying on any trade or carrying on any trade or business, business, including a reasonable including a reasonable allowance allowance for salaries or other for salaries or other compensation compensation for personal services for personal services actually renactually rendered; traveling ex- dered; traveling expenses (includpenses (including the entire amount ing the entire amount expended for expended for meals and lodging) meals and lodging) while away while away from home in the pur- from home in the pursuit of a trade suit of a trade or business; and or business; and rentals or other rentals or other payments required payments required to be made as a to be made as a condition to the condition to the continued use or continued use or possession, for possession, for purposes of the purposes of the trade or business, trade or business, of property to of property to which the taxpayer which the taxpayer has not taken has not taken or is not taking title or is not taking title or in which he or in which he has no equity. has no equity.

Sec. 23. Deductions from gross income.

See p. 34, Eighth Edition.

Sec. 23. (a) Expenses.
Sec. 23. (a) (1) In general.
See p. 34, Eighth Edition.

Retroactivity

Sec. 121 (e), R. A. of 1942. provides that the amendment made to Sec. 23 (a), I. R. C., by Sec. 121 (a), R. A. of 1942 (1939 column) shall be retroactively applicable to the R. A. of 1938, or any prior revenue act, as if it were a part of such revenue act on the date of its enactment.