Taxable Years Taxable Years Taxable Years omitting language in stricken through type and adding language in italics. Sec. 205 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1940. Sec. 711 (a) (1) (B), I. R. C., supra, amended by Sec. 208, R. A. of 1942, by omitting language shown in stricken through type and adding language shown in italics following immediately thereafter. Sec. 208, R. A. of 1942, makes amendment applicable to taxable years beginning after Dec. 31, 1939, but not beginning after Dec. 31, 1941. For Sec. 711 (a) (1) (A) and (B) before amendment, see 1940 column. Sec. 711. (a) (1) (C) Income Sec. 711. (a) (1) (C) Income Sec. 711. (a) (1) (C) Income from retirement or discharge of from retirement or discharge of from retirement or discharge of bonds, and so forth.-There shall bonds, and so forth.-There shall bonds, and so forth.-There shall be excluded, in the case of any tax- be excluded, in the case of any tax- be excluded, in the case of any taxpayer, income derived from the re-payer, income derived from the re- payer, income derived from the retirement or discharge by the tax-tirement or discharge by the tax- tirement or discharge by the taxpayer of any bond, debenture, note, payer of any bond, debenture, note, payer of any bond, debenture, note, or certificate or other evidence of or certificate or other evidence of or certificate or other evidence of indebtedness, if the obligation of indebtedness, if the obligation of indebtedness, if the obligation of the taxpayer has been outstanding the taxpayer has been outstanding the taxpayer has been outstanding for more than 6 months, including, for more than eighteen 6 months, for more than eighteen months, inin case the issuance was at a pre- including, in case the issuance was cluding, in case the issuance was mium, the amount includible in in- at a premium, the amount includible at a premium, the amount includible come for such year solely because in income for such year solely be- in income for such year solely beof such retirement or discharge; cause of such retirement or dis- cause of such retirement or discharge; charge; Sec. 711 (a) (1) (C), I. R. C., supra, amended by Sec. 207 (b), R. A. of 1942, to read Sec. 711 (a) (1) (C), I. R. C., Sec. 711. (a) (1) (D) Refunds Sec. 711. (a) (1) (D) Refunds Sec. 711. (a) (1) (D) Refunds and interest on Agricultural Ad- and interest on Agricultural Ad- and interest on Agricultural Adjustment Act taxes.-There shall justment Act taxes.-There shall justment Act taxes.-There shall be excluded income attributable to be excluded income attributable to be excluded income attributable to refund of tax paid under the Ag- refund of tax paid under the Ag- refund of tax paid under the Agricultural Adjustment Act of 1933, ricultural Adjustment Act of 1933, ricultural Adjustment Act of 1933, as amended, and interest upon any as amended, and interest upon any as amended, and interest upon any such refund; such refund; such refund; Sec. 711. (a) (1) (E) Recoveries of bad debts.-There shall be excluded income attributable to the recovery of a bad debt if a deduction with reference to such debt Sec. 711. (a) (1) (E) Recoveries Sec. 711. (a) (1) (E) Recoveries of bad debts.-There shall be ex- of bad debts.-There shall be excluded income attributable to the cluded income attributable to the recovery of a bad debt if a deduc- recovery of a bad debt if a deduetion with reference to such debt tion with reference to such debt was allowable from gross income was allowable from gross income was allowable from gross income for any taxable year beginning for any taxable year beginning for any taxable year beginning prior to January 1, 1940; prior to January 1, 1940; prior to January 1, 1940; Sec. 711. (a) (1) (F) Dividends received. The credit for dividends received shall apply, without limi Sec. 711. (a) (1) (F) Dividends received. The credit for dividends received shall apply, without limi Sec. 711. (a) (1) (F) Dividends received. The credit for dividends received shall apply, without limi added to I. R. C. by Sec. Sec. 711 (a) (1) (B), I. R. 208, R. A. of 1942, makes Sec. 711. (a) (1) (C) Income from retirement or discharge of bonds, and so forth.-There shall be excluded, in the case of any taxpayer, income derived from the retirement or discharge by the taxpayer of any bond, debenture, note, or certificate or other evidence of indebtedness, if the obligation of the taxpayer has been outstanding for more than eighteen months, including, in case the issuance was at a premium, the amount includible in income for such year solely because of such retirement or discharge; Sec. 711. (a) (1) (D) Refunds and interest on Agricultural Adjustment Act taxes.-There shall be excluded income attributable to refund of tax paid under the Agricultural Adjustment Act of 1933, as amended, and interest upon any such refund; Sec. 711. (a) (1) (E) Recoveries of bad debts.-There shall be excluded income attributable to the recovery of a bad debt if a deduction with reference to such debt was allowable from gross income for any taxable year beginning prior to January 1, 1940; Sec. 711. (a) (1) (F) Dividends received. The credit for dividends received shall apply, without limi Taxable Years Taxable Years Taxable Years tation, to dividends on stock of tation, to dividends on stock of tation, to dividends on stock of domestic corporations. domestic corporations. domestic corporations. Sec. 711 (a) (1) (A), (B), (C), (D), (E), (F), I. R. C., supra, before amendment, added to I. R. C. by Sec. 201, Excess Profits Tax Act of 1940. Sec. 711 (a), I. R. C., makes amendment applicable to taxable years beginning after Dec. 31, 1939. See. 711. (a) (1) (G) Compu tation of charitable, etc., tions. Sec. 711. (a) (1) (G) Computa Sec. 711. (a) (1) (G) Computation of charitable, etc., deductions. deduction of charitable, etc., deductions. In determining any deduction the Sec. 711 (a) (1) (G), I. R. C., added to I. R. C. by Sec. 202 (d) (1), R A. of 1941, and repealed by Sec. 206 (b) (1), R. A. of 1942. Sec. 101 of said R. A. of 1942 makes repeal applicable to taxable years beginning after Dec. 31, 1941. Sec. 711. (a) (1) (H) Life insurance companies. In the case of a life insurance company, there shall be deducted from the normal tax net income, the excess of (1) the product of (i) the figure determined and proclaimed under section 202 (b) and (ii) the excess profits net income computed without regard to this subparagraph, over (2) the adjustment for certain reserves provided in section 202 (c). Sec. 711 (a) (1) (H), I. R. C., supra, added to I. R. C. by Sec. 205 (b), R. A. of 1942. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941. Sec. 711 (a) (1) (G), I. R. C., added to I. R. C. by Sec. 202 (d) (1), R. A. of 1941, and repealed by Sec. 206 (b) (1), R. A. of 1942. Sec. 101 of said R. A. of 1942 makes repeal applicable to taxable years beginning after Dec. 31, 1941. Sec. 711. (a) (1) (H) Life insurance companies.-In the case of a life insurance company, there shall be deducted from the normal tax net income, the excess of (1) the product of (i) the figure determined and proclaimed under section 202 (b) and (ii) the excess profits net income computed without regard to this subparagraph, over (2) the adjustment for certain reserves provided in section 202 (c). Sec. 711 (a) (1) (H), I. R. C., supra, added to I. R. C. by Sec. 205 (b), R. A. of 1942. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941. posed by this subchapter. Sec. 711 (a) (1) (G), I. R. C., added to I. R. C. by Sec. 202 (d) (1), R. A. of 1941. Sec. 205 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1940. Sec. 711. (a) (1) (I) Nontaxable Sec. 711. (a) (1) (I) Nontaxable Sec. 711. (a) (1) (I) Nontaxable income of certain industries with income of certain industries with income of certain industries with depletable resources. In the case depletable resources.-In the. case depletable resources.-In the case of a producer of minerals, or a pro- of a producer of minerals, or a pro- of a producer of minerals, or a producer of logs or lumber from a tim-ducer of logs or lumber from a tim-ducer of logs or lumber from a tim ber block, as defined in section 735, ber block, as defined in section 735, ber block, as defined in section 735, there shall be excluded nontaxable there shall be excluded nontaxable there shall be excluded nontaxable income from exempt excess output income from exempt excess output income from exempt excess output of mines and timber blocks and of mines and timber blocks and of mines and timber blocks and nontaxable bonus income provided nontaxable bonus income provided nontaxable bonus income provided in section 735.* Sec. 711 (a) (1) (I), I. R. C., added to I. R. C. by Sec. 209 (a), R. A. of 1942. Sec. 209 (d) of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1940 to the extent that it relates to nontaxable bonus income. in section 735.* Sec. 711 (a) (1) (I), I. R. C., added to I. R. C. by Sec. 209 (a), R. A. of 1942. Sec. 209 (d) of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1940 to the extent that it relates to nontaxable bonus income. * Sec. 711 (a) (1) (I), I. R. C., supra, was amended by H. R. 2888, approved Oct. 26, 1943, to read as follows: (I) Nontaxable income of certain industries.-In the case of a producer of minerals, or a producer of logs in section 735.* Sec. 711 (a) (1) (I), I. R. C., added to I. R. C. by Sec. 209 (a), R. A. of 1942. Sec. 209 (d) of said Act makes amendment to applicable taxable years beginning after Dec. 31, 1940 to the extent that it relates to nontaxable bonus income. or lumber from a timber block, as defined in section 735, there shall be excluded nontaxable income from exempt excess output of mines and timber blocks and nontaxable bonus income provided in section 735. In respect of Taxable Years Taxable Years Taxable Years Sec. 711. (a) (1) (J) Net oper- Sec. 711. (a) (1) (J) Net operating loss deduction adjustment. -The net operating loss deduction shall be adjusted as follows: Sec. 711. (a) (1) (J) Net operating loss deduction adjustment.- ating loss deduction adjustment. The net operating loss deduction-The net operating loss deduction shall be adjusted as follows: shall be adjusted as follows: (i) In computing the net operating loss for any taxable year under section 122 (a), and the net income for any taxable year under section 122 (b), no deduction shall be allowed for any excess profits tax imposed by this subchapter, and, if the excess profits credit for such taxable year was computed under section 714, the deduction for interest shall be reduced by the amount of any reduction under paragraph (2) (B) for such taxable year; and (i) In computing the net operat- (i) In computing the net operating loss for any taxable year under ing loss for any taxable year under section 122 (a), and the net income section 122 (a), and the net income for any taxable year under section for any taxable year under section 122 (b), no deduction shall be al- 122 (b), no deduction shall be allowed for any excess profits tax lowed for any excess profits tarimposed by this subchapter, and, imposed by this subchapter, and, if the excess profits credit for such if the excess profits credit for such taxable year was computed under taxable year was computed under section 714, the deduction for in-section 714, the deduction for interest shall be reduced by the terest shall be reduced by the amount of any reduction under amount of any reduction under paragraph (2) (B) for such tax- paragraph (2) (B) for such taxable year; and able year; and (ii) In lieu of the reduction pro- (ii) In lieu of the reduction pro- (ii) In lieu of the reduction provided in section 122 (c), such re- vided in section 122 (c), such re- vided in section 122 (c), such reduction shall be in the amount by duction shall be in the amount by duction shall be in the amount by which the excess profits net income which the excess profits net income which the excess profits net income computed with the exceptions and computed with the exceptions and computed with the exceptions and limitations specified in section 122 limitations specified in section 122 limitations specified in section 122 (d) (1), (2), (3), and (4) and (d) (1), (2), (3), and (4) and (d) (1), (2), (3), and (4) and computed without regard to sub-computed without regard to sub-computed without regard to subparagraph (B), without regard to paragraph (B), without regard to paragraph (B), without regard to any credit for dividends received, any credit for dividends received, any credit for dividends received, and without regard to any credit and without regard to any credit and without regard to any credit for interest received provided in for interest received provided in for interest received provided is section 26 (a) exceeds the excess section 26 (a) exceeds the excess section 26 (a) exceeds the excess profits net income (computed with- profits net income (computed with- profits net income (computed with out the net operating loss deduc- out the net operating loss deduc-out the net operating loss deduction). tion). tion). Sec. 711. (a) (2) (A) Dividends Sec. 711. (a) (2) (A) Dividends Sec. 711. (a) (2) (A) Dividends received. The credit for dividends received. The credit for dividends received. The credit for dividends received shall apply, without limi- received shall apply, without limi- received shall apply, without limitation, to all dividends on stock of tation, to all dividends on stock of tation, to all dividends on stock of all corporations, except that no all corporations, except that no all corporations, except that no credit for dividends received shall credit for dividends received shall credit for dividends received shall be allowed with respect to dividends be allowed with respect to dividends (actual or constructive) on stock (actual or constructive) on stock be allowed with respect to dividends of foreign personal-holding comof foreign personal-holding com- (actual or constructive) on stock panies or dividends on stock which panies This subparagraph shall of foreign personal-holding comis not a capital asset; not apply to dividends on steek panies This subparagraph shall which is not a capital asset or divi- not apply to dividendo on stock dends on stock which is not a capital asset; Sec. 711 (a) (2) (A), I. R. C., supra, amended by Sec. 211 (a), R. A. of 1942, to read as above. Sec. 211 (b) of said Act makes amendment effective as of Oct. 8, 1940, the date of enactment of Excess Profits Tax Act of 1940. For Sec. 711 (a) (2), I. R. C., Sec. 711 (a) (2) (A), I. R. C., supra, amended by Sec. 211 (a), R. A. of 1942, by omitting language shown in stricken through type and adding lan which is not a capital asset or diridends on stock which is not a capi tal asset; Sec. 711 (a) (2) (A), I. R. C., supra, amended by Sec. 12 (b), Excess Profits Tax |