Taxable Years Sec. 23. (u) Alimony, etc., payments. In the case of a husband described in section 22 (k), amounts includible under section 22 (k) in the gross income of his wife, payment of which is made within the husband's taxable year. If the amount of any such payment is, under section 22 (k) or section 171, stated to be not includible in such husband's gross income, no deduction shall be allowed with respect to such payment under this subsection. Sec. 23 (u), I. R. C., supra, added to I. R. C. by Sec. 120 (b), 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. 23. (v) Bond premium de Sec. 23. (u) Alimony, etc., pay- Sec. 23. (x) Medical, dental, etc., ments.-In the case of a husband expenses.-Except as limited under described in section 22 (k), amounts paragraph (1) or (2), expenses includible under section 22 (k) in paid during the taxable year, not the gross income of his wife, pay-compensated for by insurance or ment of which is made within the otherwise, for medical care of the husband's taxable year. If the taxpayer, his spouse, or a dependamount of any such payment is, un- ent specified in section 25 (b) (2) der section 22 (k) or section 171, (A) of the taxpayer. The term stated to be not includible in such "medical care," as used in this subhusband's gross income, no deduc-section, shall include amounts paid tion shall be allowed with respect for the diagnosis, cure, mitigation, to such payment under this subsec- treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body (including amounts paid for accident or health insurance). tion. Sec. 23 (u), I. R. C., supra, added to I. R. C. by Sec. 120 (b), 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 amendments 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. 23. (v) Bond premium deduction. In the case of a bond-duction.-In the case of a bondholder, the deduction for amortiz-holder, the deduction for amortizable able bond premium provided in bond premium provided in section section 125. Sec. 23 (v), I. R. C., supra, added to I. R. C. by Sec. 126 (a), R. A. of 1942. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941. Sec. 23. (w) Deductions of estate, etc., on account of decedent's deductions.— Sec. 23. (w) (1) In the case of a person described in section 126 (b), the amount of the deductions in respect of a decedent to the extent allowed by such subsection. Sec. 23. (w) (2) In the case of a person described in section 126 (a), the amount of the deductions in respect of a decedent to the extent allowed by section 126 (c). Sec. 23 (w), I. R. C., supra, added to I. R. C. by Sec. 134 (d), R. A. of 1942. Sec. 134 (f) of said Act makes amendment applicable to taxable years ending after Dec. 31, 1942. (Continued in third column.) 125. Sec. 23 (v), I. R. C., supra, added to I. R. C. by Sec. 126 (a), R. A. of 1942. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941. Sec. 23. (w) Deductions of estate, etc., on account of decedent's deductions. See Sec. 23 (w) in 1943 column, which is applicable to taxable years ending after Dec. 31, 1942. (Continued in fourth column.) Sec. 23. (x) (1) A husband and wife who file a joint return may deduct only such expenses as exceed 5 per centum of the aggregate net income of such husband and wife, computed without the benefit of this subsection, and the maximum deduction for the taxable year shall be not in excess of $2,500 in the case of such husband and wife. 5 Sec. 23. (x) (2) An individual who files a separate return may deduct only such expenses as exceed centum of the net income of per the taxpayer, computed without the benefit of this subsection, and the maximum deduction for the taxable year shall be not in excess of $2,500 in the case of the head of a family, and not in excess of $1,250 in the case of all other such individuals. Sec. 23 (x), I. R. C., supra, added to I. R. C. by Sec. 127 (a), R. A. of 1942. Sec. of said Act makes 101 years amendtaxable Dec. Sec. 23. (z) Amounts representing taxes and interest paid to cooperative apartment corporation. Sec. 23. (z) (1) In general.—In the case of a tenant-stockholder (as defined in paragraph (2)), amounts, not otherwise deductible, paid or accrued to a cooperative apartment corporation within the taxable year, if such amounts represent that proportion of the real estate taxes on the apartment building and the land on which it is situated, allowable as deductions under subsection (c), paid or incurred by the (Continued in fifth column.) Taxable Years Sec. 23. (x) Medical, dental, etc., expenses. Except as limited under paragraph (1) or (2), expenses paid during the taxable year, not compensated for by insurance or otherwise, for medical care of the taxpayer, his spouse, or a depend ent specified in section 25 (b) (2) (A) of the taxpayer. The term "medical care," as used in this subsection, shall include amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body (including amounts paid for accident or health insurance). ose of such husband and wife. corporation, or of the interest paid corporation, or of the interest paid Sec. 23. (z) (2) Definitions.- For the purposes of this subsection (A) Cooperative Apartment Cor- (A) Cooperative Apartment Corporation. The term "cooperative poration. The term "cooperative apartment corporation" means a apartment corporation" means a corporation— corporation (i) having one and only one class of stock outstanding, (i) having one and only one class of stock outstanding, Sec. 23. (x) (1) A husband and wife who file a joint return may deduct only such expenses as exceed 5 per centum of the aggregate net income of such husband and wife, computed without the benefit of this (ii) all of the stockholders of (ii) all of the stockholders of subsection, and the maximum de- which are entitled, solely by reason which are entitled, solely by reason duction for the taxable year shall of their ownership of stock in the of their ownership of stock in the he not in excess of $2,500 in the corporation, to occupy for dwelling corporation, to occupy for dwelling purposes apartments in a building purposes apartments in a building owned or leased by such corpora- owned or leased by such corporaSec. 23. (x) (2) An individual tion, and who are not entitled, tion, and who are not entitled, either who files a separate return may de- either conditionally or uncondition- conditionally or unconditionally, exduct only such expenses as exceed ally, except upon a complete or cept upon a complete or partial 5 per centum of the net income of partial liquidation of the corpora- liquidation of the corporation, to the taxpayer, computed without the tion, to receive any distribution not receive any distribution not out of benefit of this subsection, and the out of earnings and profits of the earnings and profits of the corporamaximum deduction for the taxable corporation, and tion, and year shall be not in excess of $2,500 in the case of the head of a family, and not in excess of $1,250 in the case of all other such individuals. Sec. 23 (x), I. R. C., supra, added to I. R. C. by Sec. 127 (a), R. A. of 1942. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941. Sec. 23. (z) Amounts representing taxes and interest paid to cooperative apartment corporation. (iii) 80 per centum or more of the gross income of which for the taxable year in which the taxes and interest described in paragraph (1) are paid or incurred is derived from tenant-stockholders. (B) Tenant-stockholder.-The term "tenant-stockholder" means an individual who is a stockholder in a cooperative apartment corporation, and whose stock is fully paid-up in an amount not less than an amount shown to the satisfaction of the Commissioner as bearing a reasonSec. 23. (z) (1) In general. In able relationship to the portion of the case of a tenant-stockholder (as defined in paragraph (2)), in the building and the land on the value of the corporation's equity amounts, not otherwise deductible, which it is situated which is attribpaid or accrued to a cooperative utable to the apartment which such apartment corporation within the individual is entitled to occupy. taxable year, if such amounts represent that proportion of the real estate taxes on the apartment building and the land on which it is situated, allowable as deductions under subsection (c), paid or incurred by the (Continued in sixth Column.) Sec. 23 (z), I. R. C., supra, added to I. R. C. by Sec. 128, R. A. of 1942. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941. (Continued on page 96.) (iii) 80 per centum or more of the gross income of which for the taxable year in which the taxes and interest described in paragraph (1) are paid or incurred is derived from tenant-stockholders. (B) Tenant-stockholder.-The term "tenant-stockholder" means an individual who is a stockholder in a cooperative apartment corporation, and whose stock is fully paid-up in an amount not less than an amount shown to the satisfaction of the Commissioner as bearing a reasonable relationship to the portion of in the building and the land on the value of the corporation's equity which it is situated which is attributable to the apartment which such individual is entitled to occupy. Sec. 23 (z), I. R. C., supra, added to I. R. C. by Sec. 128, R. A. of 1942. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941. (Continued on page 96.) Sec. 24. (a) (1) Personal, living, Sec. 24. (a) (1) Personal, living, or family expenses, except ex- or family expenses, except extraordinary medical expenses de- traordinary medical expenses deductductible under section 23 (x). ible under section 23 (x). Sec. 24 (a) (1), I. R. C., supra, amended by Sec. 127 (b), R. A. of 1942, to read as above. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941. For Sec. 24 (a) (1), I. R. C., before amendment, see 1942 column. Sec. 24. (a) (2) Any amount Sec. 24 (a) (1), I. R. C., supra, amended by Sec. 127 (b), R. A. of 1942, by adding language in italics. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941. Sec. 24. (a) (2) Any amount paid out for new buildings or for paid out for new buildings or for permanent improvements or bet- permanent improvements or betterments made to increase the terments made to increase the value of any property or estate; value of any property or estate; Taxable Years Sec. 24. Items not deductible. Sec. 24. (a) General rule.-In computing net income no deduction shall in any case be allowed in respect of Sec. 24. (a) (1) Personal, living, or family expenses; Sec. 24. (a) (2) Any amount paid out for new buildings or for permanent improvements or betterments made to increase the value of any property or estate; Sec. 24. (a) (3) Any amount ex- Sec. 24. (a) (3) Any amount exSec. 24. (a) (3) Any amount expended in restoring property or pended in restoring property or pended in restoring property or in making good the exhaustion in making good the exhaustion in making good the exhaustion thereof for which an allowance is thereof for which an allowance is thereof for which an allowance or has been made; or has been made; is or has been made; Sec. 24. (a) (4) Premiums paid on any life insurance policy covering the life of any officer or employee, or of any person financially interested in any trade or business carried on by the taxpayer, when the taxpayer is directly or indirectly a beneficiary under such policy; Sec. 24. (a) (4) Premiums paid on any life insurance policy covering the life of any officer or employee, or of any person financially interested in any trade or business carried on by the taxpayer, when the taxpayer is directly or indirectly a beneficiary under such policy; or Sec. 24. (a) (4) Premiums paid on any life insurance policy covering the life of any officer or employee, or of any person financially interested in any trade or business carried on by the taxpayer, when the taxpayer is directly or indirectly a beneficiary under such policy; or Sec. 24. (a) (5) Any amount Sec. 24. (a) (5) Any amount. Sec. 24. (a) (5) Any amount otherwise allowable as a deduction otherwise allowable as a deduction otherwise allowable as a deduction which is allocable to one or more which is allocable to one or more which is allocable to one or more classes of income other than inter- classes of income other than inter- classes of income other than interest (whether or not any amount est (whether or not any amount est (whether or not any amount of income of that class or classes of income of that class or classes of income of that class or classes is received or accrued) wholly ex- is received or accrued) wholly ex- is received or accrued) wholly exempt from the taxes imposed by empt from the taxes imposed by empt from the taxes imposed by this chapter, or any amount other- this chapter, or any amount other- this chapter, or any amount otherwise allowable under Sec. 23 (a) wise allowable under Sec. 23 (a) wise allowable under Sec. 23 (a) (2) which is allocable to interest (2) which is allocable to interest (2) which is allocable to interest (whether or not any amount of (whether or not any amount of (whether or not any amount of such interest is received or ac- such interest is received or ac- such interest is received or accrued) wholly exempt from the crued) wholly exempt from the taxes imposed by this chapter; taxes imposed by this chapter. crued) wholly exempt from the Sec. 24. (a) (6) Any amount Sec. 24. (a) (6) Any amount paid or accrued on indebtedness in- paid or accrued on indebtedness incurred or continued to purchase a curred or continued to purchase a single premium life insurance or single premium life insurance or endowment contract. For the pur- endowment contract. For the purposes of this paragraph, if substan- poses of this paragraph, if substan Sec. 24 (a) (5), I. R. C.. supra, amended by Sec. 121 (b), R. A. of 1942, by adding language in italics. Sec. 121 (d) of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1938. Sec. 24. (a) (2) Any amount Sec. 24. (a) (2) Any amount paid out for new buildings or for paid out for new buildings or for permanent improvements or bet- permanent improvements or betterments made to increase the terments made to increase the value of any property or estate; value of any property or estate; Sec. 24. (a) (3) Any amount ex- Sec. 24. (a) (3) Any amount expended in restoring property or pended in restoring property or in making good the exhaustion in making good the exhaustion thereof for which an allowance is thereof for which an allowance is or has been made; or has been made; Sec. 24. (a) (4) Premiums paid Sec. 24. (a) (4) Premiums paid on any life insurance policy cover-on any life insurance policy covering the life of any officer or em- ing the life of any officer or employee, or of any person finan- ployee, or of any person financially interested in any trade or cially interested in any trade or business carried on by the tax-business carried on by the taxpayer, when the taxpayer is di- payer, when the taxpayer is directly or indirectly a beneficiary rectly or indirectly a beneficiary under such policy; or under such policy; or Sec. 24. (a) (5) Any amount Sec. 24. (a) (5) Any amount otherwise allowable as a deduction otherwise allowable as a deduction which is allocable to one or more which is allocable to one or more classes of income other than inter- classes of income other than interest (whether or not any amount est (whether or not any amount of income of that class or classes of income of that class or classes is received or accrued) wholly ex- is received or accrued) wholly exempt from the taxes imposed by empt from the taxes imposed by this chapter, or any amount other- this chapter, or any amount otherwise allowable under Sec. 23 (a) wise allowable under Sec. 23 (a) (2) which is allocable to interest (2) which is allocable to interest (whether or not any amount of (whether or not any amount of such such interest is received or ac-interest is received or accrued) crued) wholly exempt from the wholly exempt from the taxes imtaxes imposed by this chapter. Sec. 24 (a) (5), I. R. C., supra, amended by Sec. 121 (b), R. A. of 1942, by adding language in italics. Sec. 121 (d) of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1938. posed by this chapter. Sec. 24 (a) (5), I. R. C., supra, amended by Sec. 121 (b) R. A. of 1942, by adding language in italics. Sec. 121 (d) of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1938. 98 Taxable Years Taxable Years tially all the premiums on a life in- tially all the premiums on a life in- Sec. 24. (a) (7) Amounts paid or Sec. 24. (a) (7) Amounts paid or accrued for such taxes and carry-accrued for such taxes and carrying charges as, under regulations ing charges as, under regulations the Commissioner prescribed by the Commissioner prescribed by with the approval of the Secretary, with the approval of the Secretary, are chargeable to capital account are chargeable to capital account with respect to property, if the tax- with respect to property, if the taxpayer elects, in accordance with payer elects, in accordance with such regulations, to treat such taxes such regulations, to treat such taxes or charges as so chargeable. or charges as so chargeable. Sec. 24 (a) (5), I. R. C., 121 supra, amended by Sec. (b), R. A. of 1942, to read as Sec. 121 (d) of said above. apAct makes amendment plicable to taxable years beginning after Dec. 31, 1938. For Sec. 24 (a) (5), I. R. amendment, C., before 1942 column. see Sec. 24 (a) (6) and (a) (7), Sec. 101, R. A. of 1942, makes taxable years after Dec. 31, 1941. to beginning Sec. 24. (b) Losses from sales or exchanges of property. Sec. 24. (b) (1) Losses disallowed. In computing net income no deduction shall in any case be allowed in respect of losses from sales or exchanges of property, directly or indirectly (A) Between members of a family, as defined in paragraph (2) (D); liquidation, R. C., Sec. 24 (a) (5), I. Sec. 24 (a) (6) and (a) (7), Sec. 24. (b) Losses from sales Sec. 24. (b) (1) Losses disallowed. In computing net income no deduction shall in any case be allowed in respect of losses from sales or exchanges of property, directly or indirectly (A) Between members of a family, as defined in paragraph (2) (D); Beginning in 1941 Sec. 24. (b) Losses from sales or exchanges of property.— Sec. 24. (b) (1) Losses disallowed. In computing net income no deduction shall in any case be allowed in respect of losses from rectly or indirectlysales or exchanges of property, di (A) Between members of a family, as defined in paragraph (2) (D); (B) Except in the case of distributions in liquidation, between an individual and a corporation more than 50 per centum in value of the outstanding stock of which is owned, directly or indirectly, by or for such individual; (B) Except in the case of distributions in liquidation, between (B) Except in the case of disan individual and a corporation tributions in liquidation, between an individual and a corporation more than 50 per centum in value more than 50 per centum in value of the outstanding stock of which of the outstanding stock of which is owned, directly or indirectly, by or for such individual; (C) Except in the case of distriis owned, directly or indirectly, by (C) Except in the case of distriin liquidation, between or for such individual; in liquidation, between butions (C) Except in the case of distributions butions in between two corporations more than 50 per two corporations more than 50 per two corporations more than 50 per centum in value of the outstand- centum in value of the outstandcentum in value of the outstanding stock of each of which is ing stock of each of which is for the same individual, if ing stock of each of which is owned, directly or indirectly, by owned, directly or indirectly, by same individual, if or owned, directly or indirectly, by or for the one of such corporations, either one of such corporations, same individual, if either or for the either one of such corporations, with respect to the taxable year of with respect to the taxable year of with respect to the taxable year of the corporation preceding the date the corporation preceding the date. the corporation preceding the date of the sale or exchange was, under of the sale or exchange was, under of the sale or exchange was, under the law applicable to such taxable the law applicable to such taxable |