Act of 1921. Act of 1918. Act of 1917. any asset so transferred or re- any asset so transferred or re- paid for specifically as such, in ceived shall be taken at its cost ceived shall be taken at its cost cash or tangible property, and of acquisition (at the date when of acquisition (at the date when then not to exceed the actual acquired by such previous acquired by such previous cash or actual cash value of the owner) with proper allowance owner) with proper allowance tangible property paid therefor for depreciation, impairment, for depreciation, impairment, at the time of such payment. betterment or development, but betterment or development, but no addition to the original cost no addition to the original cost shall be made for any charge or shall be made for any charge or expenditure deducted as expense expenditure deducted as expense or otherwise on or after March or otherwise on or after March 1, 1913, in computing the net in- 1, 1913, in computing the net income of such previous owner for come of such previous owner for purposes of taxation. purposes of taxation. PART VII.-MISCELLANEOUS. PART VII.-MISCELLANEOUS. SEC. 335. (a) That if a corporation (other than a personal poration (other than a personal service corporation) makes return for a fiscal year beginning in 1920 and ending in 1921, the war-profits and excess-profits tax for the taxable year 1921 shall be the sum of: (1) the same proportion of a tax for the entire period computed under the Revenue Act of 1918, which the portion of such period falling within the calendar year 1920 is of the entire period, and (2) the same proportion of a tax for the entire period computed under this title, which the portion of such period falling within the calendar year 1921 is of the entire period. Any amount heretofore or hereafter paid on account of the tax imposed for such taxable year by the Revenue Act of 1918 shall be credited towards the payment of the tax as above computed, and if the amount so paid exceeds the amount of such tax, the excess shall be credited or refunded to the corporation in accordance with the provisions of section 252411 of this Act. SEC. 335. (b) If a corporation (other than a personal service corporation) makes a return for a fiscal year beginning in 1921 and ending in 1922, the war 410 Sec. 301 (a), p. 319. service corporation) makes re- SEC. 335. (b) If a corporation 411 Sec. 252, p. 302. Act of 1921. profits and excess-profits tax for the portion of the year falling within the calendar year 1921 shall be an amount equivalent to the same proportion of a tax for the entire period computed under this title, which the portion of such period falling within the calendar year 1921 is of the entire period. Act of 1918. of: (1) the same proportion of SEC. 335. (c) If a partnership Any tax paid by a partnership or personal service corporation for any period beginning on or after January 1, 1918, shall be immediately refunded to the partnership or corporation as a tax erroneously or illegally collected. SEC. 336. That every corporaSEC. 336. That every corporation, not exempt under section tion, not exempt under section. 304,* 113 shall make a return for 304,* 413 shall make a return for the purposes of this title. Such the purposes of this title. Such returns shall be made, and the returns shall be made, and the taxes imposed by this title shall taxes imposed by this title shall be paid, at the same times and be paid, at the same times and places, in the same manner, and places, in the same manner, and subject to the same conditions, subject to the same conditions, as is provided in the case of re- as is provided in the case of returns and payment of income turns and payment of income tax by corporations for the purposes of Title II, and all the provisions of that title not inapplicable, including penalties, are hereby made applicable to the taxes imposed by this title. SEC. 337. That in the case of a bona fide sale of mines, oil or gas wells, or any interest therein, where the principal value of tax by corporations for the pur- SEC. 337. That in the case of 412 Sec. 301 (a), (b) and (c), pp. 319, 320, 321. 413 Sec. 304, p. 323. Act of 1917. the property has been demon- the property has been demon- EFFECTIVE DATE OF TITLE. SEC. 338. That this title shall take effect as of January 1, 1921. terest. Act of 1917. SEC. 211. That every foreign exceed 20 per centum of the sell-partnership having a net income ing price of such property or in- of $3,000 or more for the taxable year, and every domestic partnership having a net income of $6,000 or more for the taxable year, shall render a correct return of the income of the trade or business for the taxable year, setting forth specifically the gross income for such year, and the deductions allowed in this title. Such returns shall be rendered at the same time and in the same manner as is prescribed for income-tax returns under Title I of such Act of September eighth, nineteen hundred and sixteen, as amended by this Act. SEC. 212. That all administrative, special, and general provisions of law, including the laws in relation to the assessment, remission, collection, and refund of internal-revenue taxes not heretofore specifically repealed, and not inconsistent with the provisions of this title are hereby extended and made applicable to all the provisions of this title and to the tax herein imposed, and all provisions of Title I of such Act of September eighth, nineteen hundred and sixteen, as amended by this Act, relating to returns and payment of the tax therein imposed, including penalties, are hereby made applicable to the tax imposed by this title. SEC. 213. That the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall make all necessary regulations for carrying out the provisions of this title, and may require any corporation, partnership, or individual, subject to the provisions of this title, to furnish him with such facts, data, and information as in his judgment are necessary to collect the tax imposed by this title. Act of 1924. TITLE III.-ESTATE TAX.414 PART I.-ESTATE TAX.414 SEC. 300. When used in Part I of this titleThe term "executor" means the executor or administrator of the decedent, or, if there is no executor or administrator appointed, qualified, and acting within the United States, then any person in actual or constructive possession of any property of the decedent; The term "net estate" means the net estate as determined under the provisions of section 303;415 The term "month" means calendar month; and The term "collector" means the collector of internal revenue of the district in which was the domicile of the decedent at the time of his death, or, if there was no such domicile in the United States, then the collector of the district in which is situated the part of the gross estate of the decedent in the United States, or, if such part of the gross estate is situated in more than one district, then the collector of internal revenue of such district as may be designated by the Commissioner. SEC. 301. (a) In lieu of the tax imposed by Title IV of the Revenue Act of 1921, a tax equal to the sum of the following percentages of the value of the net estate (determined as 414 (a) The estate tax imposed by the Act of 1924 was effective June 2, 1924 at 4:01 p. m. 414 (b) The estate tax imposed by the Act of 1921 was effective Nov. 23, 1921 at 3:55 p. m. 414 (c) The estate tax imposed by the Act of 1919 was effective Feb. 24, 1919 at 6:55 p. m. Under the income tax provisions this act was designated as the "Act of 1918," because such provisions were retroactive to Jan. 1, 1918. 414 (d) The estate tax imposed by the Act of 1916 was effective Sept. 9, 1916. It was amended by the Act of March 3, 1917, which was effective March 3, 1917. (See footnote No. 417 (b)). The Act of Oct. 3, 1917 further amended this act, effective Oct. 4, 1917. (See footnote No. 417 (c)). 415 Sec. 303, p. 354. 416 Sec. 403, p. 354. * # 417 (a) Congress intended that the Act (Federal Estate Tax Act of 1916) should operate not in opposition to, but in harmony with, the many different State Acts with which, because of its very terms, it would come into contact. Thus it appears that the Federal Estate Tax may reach property in one state when it would fail to reach like property in another, according as the laws of distribution and administration vary in different states." Lederer (Col.) v. Pearce (C. C. A., Third Cir. 1920) 266 Fed. 497. 417 (b) An additional estate tax was imposed by Secs. 300 and 301 of the Act of March 3, 1917, effective from March 3, 1917, until repealed by the Act of Oct 3, 1917. (See footnote 417 (c), post.) TITLE III-ESTATE TAX. Sec. 300. That section two hundred and one, Title Act of 1921. TITLE IV.-ESTATE TAX.414 SEC. 400. That when used in this title The term "executor" means the executor or administrator of the decedent, or, if there is no executor or administrator, any person in actual or constructive possession of any property of the decedent; The term "net estate" means the net estate as determined under the provisions of section 403;416 The term "month" means calendar month; and The term "collector" means the collector of internal revenue of the district in which was the domicile of the decedent at the time of his death, or, if there was no such domicile in the United States, then the collector of the district in which is situated the part of the gross estate of the decedent in the United States, or, if such part of the gross estate is situated in more than one district, then the collector of internal revenue of such district as may be designated by the Commissioner. SEC. 401. That, in lieu of the tax imposed by Title IV of the Revenue Act of 1918, a tax equal to the sum of the following percentages of the value of the net estate (determined as II, of the Act entitled "An Act to increase the revenue, and for other purposes, approved September eighth, nineteen hundred and sixteen, be, and the same is hereby, amended to read as follows: "Sec. 201. That a tax (hereinafter in this title referred to as the tax), equal to the following percentages of the value of the net estate, to be determined as provided in section two hundred and three, is hereby imposed upon the transfer of the net estate of every decedent dying after the passage of this Act, whether a resident or nonresident of the United States: "One and one-half per centum of the amount of such net estate not in excess of $50,000; "Three per centum of the amount by which such net estate exceeds $50,000 and does not exceed $150,000; "Four and one-half per centum of the amount by which such net estate exceeds $150,000 and does not exceed $250,000; "Six per centum of the amount by which such net estate exceeds $250,000 and does not exceed $450,000; "Seven and one-half per centum of the amount by which such net estate exceeds $450,000 and does not exceed $1,000,000; "Nine per centum of the amount by which such net estate exceeds $1,000,000 and does not exceed $2,000,000; "Ten and one-half per centum of the amount by which such net estate exceeds $2,000,000 and does not exceed $3,000,000; "Twelve per centum of the amount by which such net estate exceeds $3,000,000 and does not exceed $4,000,000; "Thirteen and one-half per centum of the amount Act of 1919. TITLE IV.-ESTATE TAX.414 SEC. 400. That when used in this titleThe term "executor" means the executor or administrator of the decedent, or, if there is no executor or administrator, any person who takes possession of any property of the decedent; and The term "collector" means the collector of internal revenue of the district in which was the domicile of the decedent at the time of his death, or, if there was no such domicile in the United States, then the collector of the district in which is situated the part of the gross estate of the decedent in the United States, or, if such part of the gross estate is situated in more than one district, then the collector of internal revenue of such district as may be designated by the Commissioner. SEC. 401. That (in lieu of the tax imposed by Title II of the Revenue Act of 1916, as amended, and in lieu of the tax imposed by Title IX of the Revenue Act of 1917) a tax by which such net estate exceeds $4,000,000 and does not exceed $5,000,000; and "Fifteen per centum of the amount by which such net estate exceeds $5,000,000.'' Sec. 301. That the tax on the transfer of the net estate of decedents dying between September eighth, nineteen hundred and sixteen, and the passage of this Act shall be computed at the rates originally prescribed in the Act approved September eighth, nineteen hundred and sixteen. 417 (c) An additional estate tax was imposed by Sec. 900 of the Act of 1917, effective Oct. 4, 1917, repealing the Act of March 3, 1917. Sec. 900. That in addition to the tax imposed by section two hundred and one of the Act entitled 66 'An Act to increase the revenue, and for other purposes, approved September eighth, nineteen hundred and sixteen, as amended (a) A tax equal to the following percentages of its value is hereby imposed upon the transfer of each net estate of every decedent dying after the passage of this Act, the transfer of which is taxable under such section (the value of such net estate to be determined as provided in Title II of such Act of September eighth, nineteen hundred and sixteen): One-half of one per centum of the amount of such net estate not in excess of $50,000; One per centum of the amount by which such net estate exceeds $50,000 and does not exceed $150,000; One and one-half per centum of the amount by which such net estate exceeds $150,000 and does not exceed $250,000; Two per centum of the amount by which such net estate exceeds $250,000 and does not exceed $450,000; Two and one-half per centum of the amount by which such net estate exceeds $450,000 and does not exceed $1,000,000; Three per centum of the amount by which such net estato exceeds $1,000,000 and does not exceed $2,000,000; Three and one-half per centum of the amount by which such net estate exceeds $2,000,000 and does not exceed $3,000,000; Four per centum of the amount by which such net estate exceeds $3,000,000 and does not exceed $4,000,000; Four and one-half per centum of the amount by which such net estate exceeds $4,000,000 and does not exceed $5,000,000; Five per centum of the amount by which such net estate exceeds $5,000,000 and does not exceed $8,000,000; Seven per centum of the amount by which such net estate exceeds $8,000,000 and does not exceed $10,000,000; and Ten per centum of the amount by which such net estate exceeds $10,000,000. Sec. 901. That the tax imposed by this title shall not apply to the transfer of the net estate of any decedent dying while serving in the military or naval forces of the United States, during the continuance of the war in which the United States is now engaged, or if death results from injuries received or disease contracted in such service, within one year after the termination of such war. For the purposes of this section the termination of the war shall be evidenced by the proclamation of the President. |