Taxable Years Taxable Years Taxable Years (B) Corporate Charitable Con- See. 23. (a) (2) (B) Corporate Seer 23. (a) (2) (B) Corporate tributions. No deduction shall be Charitable Contributions.-No de- Charitable Contributions.-No deallowable under subparagraph (A) duction shall be allowable under duction shall be allowable under to a corporation for any contribu- subparagraph (A) to a cor- subparagraph (1)(A) to a cortion or gift which would be allow-poration for any contribution or poration for any contribution or able as a deduction under subsection gift which would be allowable as gift which would be allowable as (q) were it not for the 5 per centum a deduction under subsection (q) a deduction under subsection (q) limitation therein contained and were it not for the 5 per centum were it not for the 5 per centum for the requirement therein that limitation therein contained and payment must be made within the for the requirement therein that taxable year. payment must be made within the taxable year. limitation therein contained and for the requirement therein that payment must be made within the taxable year. (C) Expenditures for Advertis- See. 23. (a) (3) (C) Expendi- See. 23. (a) (3) (C) Expendiing and Good Will.-If a corpora- tures for Advertising and Good tures for Advertising and Good tion has, for the purpose of com- Will.-If a corporation has, for Will.-If a corporation has, for puting its excess profits credit under the purpose of computing its the purpose of computing its Chapter 2E, claimed the benefits of excess profits credit under Chapter excess profits credit under Chapter the election provided in section 733, 2E, claimed the benefits of the 2E, claimed the benefits of the no deduction shall be allowable election provided in section 733, election provided in section 733, under subparagraph (A) to such no deduction shall be allowable no deduction shall be allowable uncorporation for expenditures for under subparagraph (1)(A) to der subparagraph (4) to such advertising or the promotion of such corporation for expenditures corporation for expenditures for good will which, under the rules for advertising or the promotion and regulations prescribed under section 733 (a), may be regarded as capital investments. of good will which, under the rules advertising or the promotion of good will which, under the rules section 733 (a), may be regarded as and regulations prescribed under capital investments. Sec. 23. (a) (2) Non-trade or Sec. 23. (a) (2) Non-trade or Sec. 23. (a) (2) Non-trade or non-business expenses.-In the non-business expenses.-In the non-business expenses.-In the case of an individual, all the ordicase of an individual, all the ordi- case of an individual, all the ordinary and necessary expenses paid nary and necessary expenses paid nary and necessary expenses paid or incurred during the taxable year or incurred during the taxable year or incurred during the taxable year for the production or collection of for the production or collection of income, or for the management, income, or for the management, for the production or collection of conservation, or maintenance of conservation, or maintenance of income, or for the management, property held for the production property held for the production conservation, or maintenance of of income. property held for the production of income. of income. Sec. 23 (a), I. R. C., supra, amended by Sec. 121 (a), R. A. of 1942, to read as above. Sec. 121 (d) of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1938. For Sec. 23 (a), supra, before amendment, see Sec. 23 (a) in 1942 and prior column. Sec. 23 (a), I. R. C., supra, amended by Sec. 10 (b), Excess Profits Tax Amendments of 1941, by adding subsection "(3)," headed "Expenditures for advertising and goodwill," before being changed to paragraph "(C)" by Sec. 121 (a), R. A. of 1942. Sec. 17 of said Act makes amendment effective October 10, 1940. Sec. 23 (a), I. R C., supra, again amended by Sec. 121 (a), R. A. of 1942, by inserting in subsection "(1)" the heading, "Trade or business expenses.-" and also "(A)" immediately preceding the words, "In General"; also by changing subsection "(2)" to "(B)," by changing the word "paragraph" to "subparagraph," and by changing "(1)" to "(A)"; and by changing subsection "(3)" to "(C)," by changing the word "paragraph" to "subparagraph" and "(1)" to "(A)"; and by adding the last subsection "(2) Non-trade or non-business expenses.-.' Sec. 121 (d) of said R. A of 1942 makes amendments ap Sec. 23 (a), I. R. C. supra, amended by Sec. 10 (b), Excess Profits Tax Amendments of 1941, by adding subsection "(3)", headed "Expenditures for advertising and goodwill," before being changed to paragraph "(C)" by Sec. 121 (a), R. A. of 1942. Sec. 17 of said Act makes amendment effective October 10, 1940. Sec. 23 (a), I. R. C., supra, again amended by Sec. 121 (a), R. A. of 1942, by inserting in subsection (1) the heading, "Trade or business expenses.and also "(A)" immediately preceding the words, "In General"; also by changing subsection "(2)" to "(B)", by changing the word "paragraph" to subparagraph," and by changing ་(1)" to "(A)"; and by changing subsection "(3)" to "(C)", by changing the word "paragraph" to "subparagraph" and "(1)" to "(a)"; and by adding the last subsection, "(2) Nontrade or non-business expenses.-. Sec. 121 (d) of said R. A. of 1942, makes " Taxable Years Taxable Years Taxable Years Beginning before 1939 See. 23 (a) (2) (B) Corporate Sec. 23. (a) (2) Corporate ration for any contribution or gift See. 23, (a) (2) (B) Corporate charitable Contributions.-No deduction shall be allowable under subparagraph (1)(A) to a corporation for any contribution or gift which would be allowable as a deduction under subsection (q) duction under subsection (q) were were it not for the 5 per centum it not for the 5 per centum limitalimitation therein contained and tion therein contained and for the for the requirement therein that requirement therein that payment payment must be made within the must be made within the taxable taxable year. the year. See. 23. (a) (3) (C) Expendi- (C) Expenditures for Advertistures for Advertising and Good ing and Good Will.-If a corporaWill.-If a corporation has, for tion has, for the purpose of comexcess purpose of computing its puting its profits credit excess profits credit under Chapter under Chapter 2E, claimed the bene2E, claimed the benefits of the fits of the election provided in election provided in section 733, section 733, no deduction shall be no deduction shall be allowable allowable under subparagraph (A) under subparagraph 1 (A) to to such corporation for expendisuch corporation for expenditures tures for advertising or the promofor advertising or the promotion tion of good will which, under the of good will which, under the rules rules and regulations prescribed unand regulations prescribed under der section 733 (a), may be resection 733 (a), may be regarded garded as capital investments. as capital investments. Sec. 23. (a) (2) Non-trade or Sec. 23. (a) (2) Non-trade or non-business expenses.-In the non-business expenses.-In the case of an individual, all the ordi- case of an individual, all the ordinary and necessary expenses paid nary and necessary expenses paid or incurred during the taxable year or incurred during the taxable year for the production or collection of income, or for the management, confor the production or collection of income, or for the management, con- servation, or maintenance of propservation, or maintenance of property held for the production of inerty held for the production of in- come. come. Sec. 23(a), I. R. C., supra, amended by Sec. 10(b), Excess-Profits Tax Amendments of 1941, by adding subsection (3), headed "Expenditures for advertising and goodwill," before being changed to paragraph "(C)" by Sec. 121(a), R. A. of 1942. Sec. 17 of said Act makes amendment effective October 10, 1940. or ex Sec. 23 (a), I. R. C., supra, again amended by Sec. 121(a), R A. of 1942, by inserting in subsection "(1)" the heading, "Trade business penses.-"” and also "(A)" immediately preceding the words, "In General"; also by changing subsection "(2)" to "(B)", by changing the word "paragraph" to "subparagraph,' and by changing "(1)" to "(A)"; and by changing subsection "(3)" to "(C)," by changing the word "paragraph" to "subparagraph" and "(1)" to "(A)"; and by adding the last subsection, "(2) Non-trade or non-business expenses.-' Sec. 121 (d) of said R. A. of 1942 Sec. 23(a), I. R. C., supra, and also "(A)" immedi- " ap See p. 36, Eighth Edition. Sec. 23. (b) Interest.-All inter Sec. 23. (b) Interest.-All inter Sec. 23. (b) Interest.-All interest paid or accrued within the est paid or accrued within the est paid or accrued within the taxable year on indebtedness, ex- taxable year on indebtedness, ex- taxable year on indebtedness, except on indebtedness incurred or cept on indebtedness incurred or cept on indebtedness incurred or continued to purchase or carry ob- continued to purchase or carry ob- continued to purchase or carry obligations (other than obligations of ligations (other than obligations of ligations (other than obligations of the United States issued after Sep- the United States issued after Sep- the United States issued after September 24, 1917, and originally sub-tember 24, 1917, and originally sub- tember 24, 1917, and originally subscribed for by the taxpayer) the scribed for by the taxpayer) the scribed for by the taxpayer) the interest upon which is wholly exinterest upon which is wholly ex- interest upon which is wholly exempt from the taxes imposed by empt from the taxes imposed by empt from the taxes imposed by this chapter. this chapter. this chapter. Sec. 23. (c) Taxes generally. Sec. 23. (c) Taxes generally. Sec. 23. (c) Taxes generally.— Sec. 23. (c) (1) Allowance in general. Taxes paid or accrued within the taxable year, except Sec. 23. (c) (1) Allowance in general.-Taxes paid or accrued within the taxable year, except (A) Federal income taxes; Sec. 23. (c) (1) Allowance in general.-Taxes paid or accrued within the taxable year, except― (A) Federal income taxes; (B) war-profits and excess-profits taxes imposed by Title II of the Revenue Act of 1917, Title III of the Revenue Act of 1918, Title III of the Revenue Act of 1921, section 216 of the National Industrial Recovery Act, or section 702 of the Revenue Act of 1934, or by any (A) Federal income taxes; (B) war-profits and excess-profits (B) war-profits and excess-profits taxes imposed by Title II of the taxes imposed by Title II of the Revenue Act of 1917, Title III of Revenue Act of 1917, Title III of the Revenue Act of 1918, Title III the Revenue Act of 1918, Title III of the Revenue Act of 1921, section of the Revenue Act of 1921, section 216 of the National Industrial Re- 216 of the National Industrial Recovery Act, section 702 of the Rev-covery Act, or section 702 of the enue Act of 1934, or Subchapter Revenue Act of 1934, or Subchapter E of Chapter 2, or by any such E of Chapter 2, or by any such such provisions as amended or supprovisions as amended or supple- provisions as amended or supple-plemented; mented; (C) income, war-profits, and excess-profits taxes imposed by the authority of any foreign country or possession of the United States, if the taxpayer chooses to take to any extent the benefits of section 131. mented; (C) income, war-profits, and excess-profits taxes imposed by the authority of any foreign country or possession of the United States; but this deduction shall be allowed in the case of a taxpayer who does not signify in his return his desire to have to any extent the benefite of section 131 (relating to credit for taxes of foreign countries and possessions of the United States);, if the taxpayer chooses to take to any extent the benefits of section 131. (D) estate, inheritance, legacy, succession, and gift taxes; and (E) taxes assessed against local benefits of a kind tending to increase the value of the property assessed; but this paragraph shall not exclude the allowance as a deduction of so much of such taxes as is properly allocable to maintenance or interest charges. (C) income, war-profits, and excess-profits taxes imposed by the authority of any foreign country or possession of the United States, but this deduction shall be allowed in the case of a taxpayer who does not signify in his return his desire to have to any extent the benefits of section 131 (relating to credit for taxes of foreign countries and poe sessions of the United States),, if the taxpayer chooses to take to any extent the benefits of section 131; (D) estate, inheritance, legacy, succession, and gift taxes; and (E) taxes assessed against local benefits of a kind tending to increase the value of the property assessed; but this paragraph shall not exclude the allowance as a deduction of so much of such taxes as is properly allocable to maintenance or interest charges. Taxable Years makes amendments applicable to taxable years beginning after Dec. 31, 1938. For Sec. 23(a), supra, before amendments, see Sec. 23(a) in 1939 column. Taxable Years Taxable Years Beginning before 1939 Sec. 23. (b) Interest.—All inter- Sec. 23. (b) Interest.-All interest paid or accrued within the est paid or accrued within the taxable year on indebtedness, ex- taxable year on indebtedness, except on indebtedness incurred or cept on indebtedness incurred or continued to purchase or carry ob- continued to purchase or carry obligations (other than obligations of ligations (other than obligations of the United States issued after Sep- the United States issued after September 24, 1917, and originally sub-tember 24, 1917, and originally subscribed for by the taxpayer) the scribed for by the taxpayer) the interest upon which is wholly ex- interest upon which is wholly exempt from the taxes imposed by empt from the taxes imposed by this chapter. this chapter. Sec. 23. (c) Taxes generally.— Taxes paid or accrued within the taxable year, except Sec. 23. (c) Taxes generally.— Taxes paid or accrued within the taxable year, except Sec. 23. (c) (1) Federal income, Sec. 23. (c) (1) Federal income, war-profits, and excess-profits taxes war-profits, and excess-profits taxes (other than the excess-profits tax (other than the excess-profits tax imposed by section 106 of the Rev-imposed by section 106 of the Revenue Act of 1935, 49 Stat. 1010, or enue Act of 1935, 49 Stat. 1019, or by section 600 of this title); (49 Stat. 1019), or by Section 602 of the Revenue Act of 1938 (52 Stat. 567), and other than the declared value excess profits tax imposed by section 600); by section 600 of this title)+ (49 Sec. 23. (c) (2) Income, warSec. 23. (c) (2) income, warprofits, and excess-profits taxes profits, and excess-profits taxes imposed by the authority of any imposed by the authority of any foreign country or possession of foreign country or possession of the United States; but this deduc- the United States; but this deduction shall be allowed in the case of tion shall be allowed in the case of a taxpayer who does not signify a taxpayer who does not signify in in his return his desire to have to his return his desire to have to any extent the benefits of section any extent the benefits of section 131 (relating to credit for taxes 131 (relating to credit for taxes of of foreign countries and posses- foreign countries and possessions sions of the United States); of the United States); Sec. 23. (c) (3) estate, inherit- Sec. 23. (c) (3) estate, inheritance, legacy, succession, and gift ance, legacy, succession, and gift taxes; and taxes; and Sec. 23. (c) (4) taxes assessed Sec. 23. (c) (4) taxes assessed against local benefits of a kind against local benefits of a kind tending to increase the value of tending to increase the value of the property assessed; but this the property assessed; but this paragraph shall not exclude the paragraph shall not exclude the allowance as a deduction of so allowance as a deduction of so much of such taxes as is properly much of such taxes as is properly Sec. 23. (b) Interest. See p. 36, Eighth Edition. Sec. 23. (c) Taxes generally. See p. 36, Eighth Edition. Taxable Years See, 23. (e) (2) Excess profits tax under chapter 2 special rules. Sec. 23 (c) (1) (B), I. R. C., 105 supra, amended by Sec. (c) (1), R. A. of 1942, to read as above. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941. Sec. 23 (c) (1) (C), I. R. C., supra, amended by Sec. 158 (b), R. A. of 1942, to read above. Sec. 158 (c) of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1940. as Sec. 23 (c) (2), I. R. C., supra, repealed by Sec. 105 (c) (2), R. A. of 1942. Sec. 101 of said Act makes amendment applicable to taxable beginning after Dec. years 31, 1941. Taxable Years Taxable Years See. 28. (e) (2) Excess-profits Sec. 23. (c) (2) Excess-proî's tax-under chapter 2E special tax under chapter 2E-special rules. For the purposes of this rules. For the purposes of this subsection, in the case of the excess-subsection, in the case of the excessprofits tax imposed by Subchapter profits tax imposed by Subchapter E of Chapter 2 E of Chapter 2 (A) The deduction shall be lim ited to the tax imposed for the taxable year, but any portion of such tax paid after the taxable year shall be considered as having been paid within the taxable year; (B) No reduction in such tax shall be made by reason of the eredit for income, war profits, or excess profits taxes paid to any foreign country or possession of the United States; (C) Such tax shall be computed without regard to the adjustments provided in section 734; and (A) The deduction shall be limited to the tax imposed for the taxable year, but any portion of such tax paid after the taxable year shall be considered as having been paid within the taxable year; (B) No reduction in such tax shall be made by reason of the credit for income, war-profits, or any excess-profits taxes paid to foreign country or possession of the United States; (C) Such tax shall be computed without regard to the adjustments provided in section 734; and (D) Such tax, in the case of a (D) Such tax, in the ease of a consolidated return undersection consolidated return under section 730, shall be allocated to the mom | 730, shall be allocated to the memunder bers of the affiliated group under bers of the affiliated group regulations prescribed by the Com regulations prescribed by the Commissioner, with the approval of the missioner, with the approval of the Secretary, Secretary. Sec. 23 (c) (1) (B), I. R. C., Sec. 23 (c) (1) (C), I. R. C., Sec. 23 (c) (2), I. R. C., supra, repealed by Sec. 105 (c) (2), R. A. of 1942. Sec. 101 of said Act makes amendment applicable to taxable beginning after Dec. years 31, 1941. See 1941 column for Sec. 23 (c) before amendments. Sec. 23. (c) (3) Retail sales tax. Sec. 23. (c) (3) Retail sales tax. -In the case of a tax imposed by -In the case of a tax imposed by any State, Territory, District, or any State, Territory, District, or possession of the United States, or possession of the United States, or any political subdivision thereof, any political subdivision thereof, upon persons engaged in selling upon persons engaged in selling tangible personal property at retail, tangible personal property at retail, which is measured by the gross sales which is measured by the gross sales price or the gross receipts from the price or the gross receipts from the sale or which is a stated sum per sale or which is a stated sum per unit of such property sold, or upon unit of such property sold, or upon persons engaged in furnishing serv-persons engaged in furnishing services at retail, which is measured by ices at retail, which is measured by the gross receipts for furnishing the gross receipts for furnishing such services, if the amount of such services, if the amount of such tax is separately stated, then such tax is separately stated, then Sec. 23 (c), I. R. C., supra, amended by Sec. 202 (a), R. A. of 1941, to read as shown above in italics before omission of language in stricken through italics and addition of language in underlined italics. Sec. 205 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1940. Sec. 23 (c) (1) (C), I. R. C., supra, again amended by Sec. 158 (b), R. A. of 1942, by omitting language in stricken through italics and adding of language in underlined italics. Sec. 158 (c) of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1940. See 1940 column for Sec. 23 (c) before amendment. |