Taxable Years
Beginning in 1943

Taxable Years
Beginning in 1942

Taxable Years
Beginning in 1941

Sec. 711. (a) (2) (F) Refunds Sec. 711. (a) (2) (F) Refunds Sec. 711. (a) (2) (F) 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 Agri- refund of tax paid under the Agri- refund of tax paid under the Agricultural Adjustment Act of 1933, cultural Adjustment Act of 1933, cultural 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) (2) (G) Interest Sec. 711. (a) (2) (G) Interest Sec. 711. (a) (2) (G) Interest on certain government obligations. on certain government obligations. on certain government obligations. -The normal-tax net income shall-The normal-tax net income shall -The normal-tax net income shall be increased by an amount equal be increased by an amount equal be increased by an amount equal to the amount of the interest on to the amount of the interest on to the amount of the interest on obligations held during the taxable obligations held during the taxable obligations held during the taxable year which are described in section year which are described in section year which are described in section 22 (b) (4) any part of the interest 22 (b) (4) any part of the interest 22 (b) (4) any part of the interest from which is excludible from gross from which is excludible from gross from which is excludible from gross income or allowable as a credit income or allowable as a credit income or allowable as a credit against net income, if the taxpayer against net income, if the taxpayer against net income, if the taxpayer has so elected under section 720 has so elected under section 720 has so elected under section 720 (d); and (d); and (d); and

Sec. 711. (a) (2) (H) Recoveries Sec. 711. (a) (2) (H) Recoveries Sec. 711. (a) (2) (H) Recoveries of bad debts.-There shall be ex- of bad debts.-There shall be ex- of bad debts.-There shall be excluded income attributable to the cluded income attributable to the cluded income attributable to the recovery of a bad debt if a deduc- 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 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 prior to January 1, 1940.

Sec. 711 (a) (2) (E), (F), (G) and (H), I. R. C., supra, 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.

Sec. 711. (a) (2) (I) Compu tation of charitable, ete., deduetions.

Sec. 711 (a) (2) (I), I. R. C., supra, added to I. R. C. by Sec. 202 (d) (2), R. A. of 1941 and repealed by Sec. 206 (b) (2), R. A. of 1942. Sec. 101 of said R. A. of 1942 makes repeal applicable to taxable years beginning after Dec. 31, 1941.

prior to January 1, 1940.

Sec. 711 (a) (2) (E), (F), (G) and (H), I. R. C., supra, 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.

any taxable year beginning prior to January 1, 1940.

Sec. 711 (a) (2) (E), (F), (G) and (H), I. R. C., supra, 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) (2) (1) Compute- Sec. 711. (a) (2) (I) Computation of charitable, ete, deductions, tion of charitable, etc., deductions. In determining any deduction the-In determining any deduction the amount of which is limited to a amount of which is limited to a percentage of the taxpayer's not percentage of the taxpayer's net income (or net income from the property), such net income (or not income from the property) shall be computed without regard to the de duction on account of the tax im posed by this subchapter,

Sec. 711 (a) (2) (I), I. R. C., supra, added to I. R. C. by Sec. 202 (d) (2), R. A. of 1941 and repealed by Sec. 206 (b) (2), 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) (2) (J) In the case Sec. 711. (a) (2) (J) In the case of a life insurance company, there of a life insurance company, there shall be deducted from the normal shall be deducted from the normal tax net income, 50 per centum of tax net income, 50 per centum of the excess of (1) the product of (i) the excess of (1) the product of (i) the figure determined and pro- the figure determined and proclaimed under section 202 (b) and claimed under section 202 (b) and (ii) the excess profits net income (ii) the excess profits net income

income (or net income from the property), such net income (or net income from the property) shall be computed without regard to the deduction on account of the tax imposed by this subchapter.

Sec. 711 (a) (2) (I), I. R. C., supra, added to I. R. C. by Sec. 202 (d) (2), R. A. of 1941. Sec. 205 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1940.

Taxable Years
Beginning in 1943

computed without regard to this subparagraph, over (2) the adjustment for certain reserves provided in section 202 (c).

Sec. 711 (a) (2) (J), I. R. C., supra, added to I. R. C. by Sec. 205 (c), R. A. of 1942. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941.

Taxable Years
Beginning in 1942

computed without regard to this
subparagraph, over (2) the adjust-
ment for certain reserves provided
in section 202 (c).

Sec. 711 (a) (2) (J), I. R. C.,
supra, added to I. R. C. by Sec.
205 (c), R. A. of 1942. Sec. 101
of said Act makes amendment
applicable to taxable years
beginning after Dec. 31, 1941.

Taxable Years
Beginning in 1941

Sec. 711. (a) (2) (K) Nontax- Sec. 711. (a) (2) (K) Nontax- Sec. 711. (a) (2) (K) Nontaxable income of certain industries able income of certain industries able income of certain industries with depletable resources. In the with depletable resources.-In the with depletable resources. In the case of a producer of minerals, or case of a producer of minerals, or case of a producer of minerals, or a producer of logs or lumber from a producer of logs or lumber from a producer of logs or lumber from a timber block, as defined in section a timber block, as defined in section a timber block, as defined in section 735, there shall be excluded nontax- 735, there shall be excluded nontax-735, there shall be excluded nontarable income from exempt excess able income from exempt excess able income from exempt excess output of mines and timber blocks output of mines and timber blocks output of mines and timber blocks and nontaxable bonus income pro-and nontaxable bonus income pro- and nontaxable bonus income provided in section 735.*

Sec. 711 (a) (2) (K), I. R. C., supra, added to I. R. C. by Sec. 209 (b), 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) (2) (L) Net operating loss deduction adjustment. -The net operating loss deduction shall be adjusted as follows:

vided in section 735.*

vided in section 735.*

Sec. 711 (a) (2) (K), I. R. C., supra, added to I. R. C. by Sec. 209 (b), 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) (2) (L) Net op- Sec. 711. (a) (2) (L) Net operating loss deduction adjustment. erating 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 operat- (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 ing loss for any taxable year under section 122 (a), and the net income 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 for any taxable year under section 122 (b), no deduction shall be al- 122 (b), no deduction shall be al- 122 (b), no deduction shall be allowed for any excess profits tax im-lowed for any excess profits tax im-lowed 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 subparagraph (B) of this paragraph for such taxable 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 provided in section 122 limitations provided in section 122 limitations provided 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 (D), without regard to paragraph (D), without regard to paragraph (D), 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 in 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 without the net operating loss deduc- out the net operating loss deduc- out the net operating loss deduction). tion). tion).

posed by this subchapter, and, if posed by this subchapter, and, if the excess profits credit for such 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 subparagraph (B) of this para- subparagraph (B) of this paragraph for such taxable year; and graph for such taxable year; and

Sec. 711 (a) (2) (L), I. R. C., supra, added to Sec. 711 (a) (2), I. R. C., by Sec. 210 (b), R. A. of 1942. Sec. 210

Sec. 711 (a) (2) (L), I. R. C., supra, added to Sec. 711 (a) (2), I. R. C., by Sec. 210 (b), R. A. of 1942. Sec. 210

* Sec. 711 (a) (2) (K), I. R. C., supra, was amended by H. R. 2888, approved Oct. 26, 1943, to read as follows:

Sec. 711 (a) (2) (L), I. R. C., supra, added to Sec. 711 (a) (2), I. R. C., by Sec. 210 (b), R. A. of 1942. Sec. 210

(K) Nontaxable income of certain industries.-In the case of a producer of minerals, or a producer of logs or

Sec. 711. (a) (3) (A) General

Taxable Years
Beginning in 1941

(c) of said Act makes amendment effective as of Oct. 8, 1940, the date of enactment of Excess Profits Tax Act of 1940.

Sec. 711. (a) (3) Taxable year less than twelve months.

Sec. 711. (a) (3) (A) General Sec. 711. (a) (3) (A) General rule. If the taxable year is a rule. If the taxable year is a rule. If the taxable year is a period of less than twelve months the excess profits net income for period of less than twelve months period of less than twelve months such taxable year (referred to in the excess profits net income for the excess profits net income for this paragraph as the "short tax-such taxable year (referred to in such taxable year (referred to in able year") shall be placed on an this paragraph as the "short tax-this paragraph as the "short taxannual basis by multiplying the able year") shall be placed on an able year") shall be placed on an amount thereof by the number of annual basis by multiplying the annual basis by multiplying the days in the twelve months ending amount thereof by the number of amount thereof by the number of with the close of the short taxable days in the twelve months ending days in the twelve months ending year and dividing by the number with the close of the short taxable with the close of the short taxable of days in the short taxable year. year and dividing by the number year and dividing by the number The tax shall be such part of the of days in the short taxable year. of days in the short taxable year. tax computed on such annual basis The tax shall be such part of the The tax shall be such part of the as the number of days in the short tax computed on such annual basis tax computed on such annual basis taxable year is of the number of as the number of days in the short as the number of days in the short days in the twelve months ending taxable year is of the number of taxable year is of the number of with the close of the short taxable days in the twelve months ending days in the twelve months ending with the close of the short taxable with the close of the short taxable year. year.

year.

Sec. 711. (a) (3) (B) Exception. Sec. 711. (a) (3) (B) Exception. Sec. 711. (a) (3) (B) Exception. -If the taxpayer establishes its If the taxpayer establishes its If the taxpayer establishes its adjusted excess profits net income adjusted excess profits net income adjusted excess profits net income for the period of twelve months for the period of twelve months for the period of twelve months beginning with the first day of the beginning with the first day of the beginning with the first day of the short taxable year, computed as if short taxable year, computed as if short taxable year, computed as if such twelve-month period were a such twelve-month period were a such twelve-month period were taxable year, under the law appli- taxable year, under the law appli- taxable year, under the law applicable to the short taxable year, and cable to the short taxable year, and cable to the short taxable year, and using the credits applicable in de- using the credits applicable in de- using the credits applicable in determining the adjusted excess termining the adjusted excess termining the adjusted excess profits net income for such short profits net income for such short profits net income for such short taxable year, then the tax for the taxable year, then the tax for the taxable year, then the tax for the short taxable year shall be reduced short taxable year shall be reduced short taxable year shall be reduced to an amount which is such part of to an amount which is such part of to an amount which is such part of the tax computed on such adjusted the tax computed on such adjusted the tax computed on such adjusted excess profits net income so estab-excess profits net income so estab-excess profits net income so established as the excess profits net in-lished as the excess profits net in-lished as the excess profits net income for the short taxable year is come for the short taxable year is come for the short taxable year is of the excess profits net income for of the excess profits net income for of the excess profits net income for such twelve-month period. The such twelve-month period. The such twelve-month period. taxpayer (other than a taxpayer taxpayer (other than a taxpayer taxpayer (other than a taxpayer to which the next sentence applies) to which the next sentence applies) to which the next sentence applies) shall compute the tax and file its shall compute the tax and file its shall compute the tax and file its return without the application of return without the application of return without the application of this subparagraph. If, prior to one this subparagraph. If, prior to one this subparagraph. If, prior to one year from the date of the begin-year from the date of the begin-year from the date of the beginning of the short taxable year, the taxpayer has disposed of substantially all its assets, in lieu of the twelve-month period provided in the preceding provisions of this subparagraph, the twelve-month period ending with the close of the

The

ning of the short taxable year, the ning of the short taxable year, the taxpayer has disposed of substan- taxpayer has disposed of substantially all its assets, in lieu of the tially all its assets, in lieu of the twelve-month period provided in twelve-month period provided in the preceding provisions of this the preceding provisions of this subparagraph, the twelve-month subparagraph, the twelve-month period ending with the close of the period ending with the close of the