allocable to maintenance or inter-allocable to maintenance or interest charges. est charges. Taxable Years Beginning before 1939 to the extent that the amount so to the extent that the amount so Sec. R. 23 (c) (3), I. C., supra, added to I. R. C. by Sec. 122, R. A. of 1942. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941. Sec. 23. (d) Taxes of share Sec. 23 (c) (3), I. R. C., supra, added to I. R. C. by Sec. 122, R. A. of 1942. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941. Sec. 23. (d) Taxes of share Taxable Years as Sec. 23. (d) Taxes of shareholder paid by corporation.-The holder paid by corporation. The holder paid by corporation.—The deduction for taxes allowed by sub- deduction for taxes allowed by sub- deduction for taxes allowed by subsection (c) shall be allowed to a section (c) shall be allowed to a section (c) shall be allowed to a corporation in the case of taxes im- corporation in the case of taxes im- corporation in the case of taxes imposed upon a shareholder of the posed upon a shareholder of the posed upon a shareholder of the corporation upon his interest as corporation upon his interest as corporation upon his interest shareholder which are paid by the shareholder which are paid by the shareholder which are paid by the corporation without reimbursement corporation without reimbursement corporation without reimbursement from the shareholder, but in such from the shareholder, but in such from the shareholder, but in such cases no deduction shall be allowed cases no deduction shall be allowed cases no deduction shall be allowed the shareholder for the amount of the shareholder for the amount of the shareholder for the amount of such taxes. Sec. 23. (e) Losses by individuals. In the case of an individual losses sustained during the taxable year and not compensated for by insurance or otherwise Sec. 23. (e) (1) if incurred in trade or business; or Sec. 23. (e) (2) if incurred in any transaction entered into for profit, though not connected with the trade or business; or Sec. 23. (e) (3) of property not connected with the trade or business, if the loss arises from fires, storms, shipwreck, or other casualty, or from theft. No loss shall be allowed as a deduction under this paragraph if at the time of the filing of the return such loss has been claimed as a deduction for estate tax purposes in the estate tax return. such taxes. such taxes. Sec. 23. (e) Losses by individ- Sec. 23. (e) Losses by individuals. In the case of an individual, uals. In the case of an individual, losses sustained during the taxable losses sustained during the taxable year and not compensated for by year and not compensated for by insurance or otherwiseinsurance or otherwise Sec. 23. (f) Losses by corporaSec. 23. (f) Losses by corpora- Sec. 23. (f) Losses by corporations. In the case of a corpora- tions.-In the case of a corpora- tions.-In the case of a corporation, losses sustained during the tion, losses sustained during the tion, losses sustained during the taxable year and not compensated taxable year and not compensated taxable year and not compensated for by insurance or otherwise. for by insurance or otherwise. for by insurance or otherwise. Taxable Years Taxable Years Taxable Years Sec. 23. (d) Taxes of share See p. 38, Eighth Edition. Sec. 23. (d) Taxes of share- Sec. 23. (d) Taxes of shareholder paid by corporation. The holder paid by corporation. The holder paid by corporation. deduction for taxes allowed by sub- deduction for taxes allowed by subsection (c) shall be allowed to a section (c) shall be allowed to a corporation in the case of taxes im- corporation in the case of taxes imposed upon a shareholder of the posed upon a shareholder of the corcorporation upon his interest as poration upon his interest as shareshareholder which are paid by the holder which are paid by the corcorporation without reimbursement poration without reimbursement from the shareholder, but in such from the shareholder, but in such cases no deduction shall be allowed cases no deduction shall be allowed the shareholder for the amount of the shareholder for the amount of such taxes. such taxes. Sec. 23. (e) Losses by individ- Sec. 23. (e) Losses by individuals. In the case of an individual, uals. In the case of an individual, losses sustained during the taxable losses sustained during the taxable year and not compensated for by year and not compensated for by insurance or otherwiseinsurance or otherwise Sec. 23. (e) (1) if incurred in trade or business; or Sec. 23. (e) (1) if incurred in trade or business; or Sec. 23. (e) (2) if incurred in Sec. 23. (e) (2) if incurred in profit, though not connected with Sec. 23. (e) (3) of property Sec. 23. (e) (3) of property not not connected with the trade or busi- connected with the trade or business, if the loss arises from fires, ness, if the loss arises from fires, storms, shipwreck, or other casu- storms, shipwreck, or other casualty, or from theft. No loss shall alty, or from theft. No loss shall be allowed as a deduction under be allowed as a deduction under this paragraph if at the time of the filing of the return such loss has been claimed as a deduction for estate tax purposes in the estate tax return. this paragraph if at the time of the return. Sec. 23. (e) Losses by individuals. See p. 38, Eighth Edition. Sec. 23. (f) Losses by corpora Sec. 23. (f) Losses by corpora- Sec. 23. (f) Losses by corporations. In the case of a corpora- tions. In the case of a corpora- tions. tion, losses sustained during the tion, losses sustained during the taxable year and not compensated taxable year and not compensated for by insurance or otherwise. for by insurance or otherwise. See p. 40, Eighth Edition. Taxable Years Beginning in 1943 Sec. 23. (g) Capital losses. Sec. 23. (g) (1) Limitation.Losses from sales or exchanges of capital assets shall be allowed only to the extent provided in section 117. Sec. 23. (g) (2) Securities becoming worthless.—If any securities (as defined in paragraph (3) of this subsection) become worthless during the taxable year and are capital assets, the loss resulting therefrom shall, for the purposes of this chapter, be considered as a loss from the sale or exchange, on the last day of such taxable year, of capital assets. Sec. 23. (g) (3) Definition of securities. As used in paragraph (2) of this subsection the term "securities" means (A) shares of stock in a corporation, and (B) rights to subscribe for or to receive such shares. Sec. 23. (g) (2) Securities be- Sec. 23. (g) (2) Securities becoming worthless.-If any securi- coming worthless.—If any securities (as defined in paragraph (3) ties (as defined in paragraph (3) of this subsection) become worth of this subsection) become worthless during the taxable year and less during the taxable year and are capital assets, the loss result- are capital assets, the loss resulting therefrom shall, for the pur- ing therefrom shall, for the purposes of this chapter, be consid- poses of this chapter, be considered as a loss from the sale or ered as a loss from the sale exchange, on the last day of such exchange, on the last day of such taxable year, of capital assets. taxable year, of capital assets. or Sec. 23. (g) (3) Definition of se- Sec. 23. (g) (3) Definition of securities. As used in paragraph curities.-As used in this subsec(2) of this subsection the term tion the term "securities" means "securities" means (A) shares of (A) shares of stock in a corporastock in a corporation, and (B) tion, and (B) rights to subscribe rights to subscribe for or to receive for or to receive such shares. such shares. Sec. 23. (g) (4) Stock in af- Sec. 23. (g) (4) Stock in affiliated corporation.-For the pur-filiated corporation.-For the purposes of paragraph (2) stock in a corporation affiliated with the taxpayer shall not be deemed a capital asset. For the purposes of this paragraph a corporation shall be deemed to be affiliated with the taxpayer only if: (A) at least 95 per centum of each class of its stock is owned directly by the taxpayer; and (B) more than 90 per centum of the aggregate of its gross incomes for all taxable years has been from sources other than royalties, rents, dividends, interest, annuities, or gains from sales or exchanges of stocks and securities; and (C) the taxpayer is a domestic corporation. Sec. 23 (g) (3), I. R. C., amended by Sec. 123 (a) (2), R. A. of 1942, to read as above. Apparently Congress intended to insert "paragraph (2) of" before word "this" instead of before word "section" as Sec. 123 (a) provides. Sec. 23 (g) (4), I. R. C., supra, added to I. R. C. by Sec. 123 (a) (1), R. A. of 1942. Sec. 101 of R. A. of 1942 makes amendments applicable to taxable years beginning after Dec. 31, 1941. For Sec. 23 (g) (3) and (4) before amendments, see 1942 column. poses of paragraph (2) stock in a corporation affiliated with the taxpayer shall not be deemed a capital asset. For the purposes of this paragraph a corporation shall be deemed to be affiliated with the taxpayer only if: (A) at least 95 per centum of each class of its stock is owned directly by the taxpayer; and (B) more than 90 per centum of the aggregate of its gross incomes for all taxable years has been from dividends, interest, annuities, sources other than royalties, rents, gains from sales or exchanges of stocks and securities; and or (C) the taxpayer is a domestic corporation. Sec. 23 (g) (3), I. R. C., amended by Sec. 123 (a) (2), R. A. of 1942, by adding language in italics. Apparently Congress intended to insert "paragraph (2) of" before word "this" instead of before word "section" as Sec. 123 (a) provides. Sec. 23 (g) (4), I. R. C., supra, added to I. R. C. by Sec. 123 (a) (1), R. A. of 1942. Sec. 101 of R. A. of 1942 makes amendments applicable to taxable years beginning after Dec. 31, 1941. Sec. 23. (g) (3) Definition of See p. 40, Eighth Edition. Sec. 23. (g) (3) Definition of se- Sec. 23. (g) (3) Definition of se- (A) shares of stock in a corpora- |