Regulations 65 Relating to the Income Tax Under the Revenue Act of 1924

Section 210. Normal tax..

Article 1. Income tax on individuals

2. Normal tax

3. Persons liable to tax-

4. Who is a citizen_

Section 211. Surtax..

Article 11. Surtax----

12. Computation of surtax.

13. Surtax on sale of mineral deposits_

Section 212. Net income of individuals defined..

Article 21. Meaning of net income.--.

22. Computation of net income-.

23. Bases of computation---

24. Methods of accounting-

25. Accounting period -

26. Change in accounting period.---

Section 213(a). Gross income defined: inclusions.

Article 31. What included in gross income_-

32. Compensation for personal services--

33. Compensation paid other than in cash.

34. Compensation paid in notes_-

35. Gross income from business.-

36. Long-term contracts

37. State contracts_-

38. Gross income of farmers_

39. Sale of stock and rights.

40. Sale of patents and copyrights--

41. Sale of good will -

42. Sale of personal property on installment plan.

43. Sale of real estate in lots-----

44. Sale of real estate involving deferred payments.

45. Sale of real estate on installment plan.----

46. Deferred-payment sales of real estate not on installment

plan---

47. Annuities and insurance policies_

48. Improvements by lessees_

49. Forgiveness of indebtedness-

50. When included in gross income-

51. Income not reduced to possession.

52. Examples of constructive receipt.-

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Section 213(b). Gross income defined: exclusions.---

Article 71. Exclusions from gross income..

72. Proceeds of insurance Compensation-Pensions..

73. Gifts and bequests--

74. Interest upon State obligations.

75. Dividends and interest from Federal land banks, Federal

intermediate credit banks, and national farm loan asso-

tions----

76. Dividends from Federal reserve bank..

77. Interest upon United States obligations..

78. Liberty bond exemptions, as amended and supplemented

by the Revenue Act of 1924.-

79. Liberty bond exemption under Second, Third, and Fourth

Liberty Bond Acts_-

80. Exemption of Treasury (war) savings certificates..

81. Liberty bond exemption under Supplement to Second

Liberty Bond act, as amended and supplemented by the

Revenue Act of 1924.--

82. Summary of tax exemptions of Liberty bonds, Treasury

bonds, Treasury notes, Treasury certificates of indebt-

edness, and Treasury (war) savings certificates---

83. Liberty bond exemption in the case of trusts or partner-

ships------

84. Liberty bond exemption in the case of nonresident aliens.

85. Return for fiscal year ending in 1924..

86. Income of foreign governments, ambassadors, and consuls.

87. Income of States.

88. Compensation of State officers and employees_

89. Additional exclusions from gross income--

90. Income accrued prior to March 1, 1913.

91. Subtraction for redemption of trading stamps..

Section 213(c). Gross income defined: nonresident alien individual..

Article 92. Gross income of nonresident alien individuals.-----

93. When the wages of a nonresident alien seaman are de-

rived from sources within the United States ---

Section 214(a) (1). Deductions allowed individuals: business ex-

penses

Article 101. Business expenses.

102. Traveling expenses.-

103. Cost of materials.

104. Repairs

105. Professional expenses.

106. Compensation for personal services.

107. Treatment of excessive compensation.

108. Bonuses to employees---

109. Pensions-Compensation for injuries--

110. Rentals

111. Expenses of farmers--

112. When charges deductible..

Section 214(a) (2). Deductions allowed individuals: interest

Article 121. Interest.

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Section 214(a) (3). Deductions allowed individuals: taxes--

Article 131. Taxes

132. Federal duties and excise taxes_

133. Taxes for local benefits.

134. Federal estate and State inheritance taxes_-

135. Tax on stock--

Section 214(a) (4), (5), and (6). Deductions allowed individuals:

losses

Article 141. Losses

142. Voluntary removal of buildings.

143. Loss of useful value-----

144. Shrinkage in value of stocks_

145. Losses of farmers_-

146. Losses from the sale and repurchase of securities-

Section 214(a) (7). Deductions allowed individuals: bad debts.

Article 151. Bad debts_-

152. Examples of bad debts..

153. Uncollectible deficiency upon sale of mortgaged or

pledged property--

154. Worthless securities_

155. Reserve for bad debts.

Section 214(a) (8). Deductions allowed individuals: depreciation --

Article 161. Depreciation

162. Depreciable property-

163. Depreciation of intangible property--

164. Capital sum recoverable through depreciation allow-

ances

165. Method of computing depreciation allowance_-

166. Obsolescence

167. Depreciation of patent or copyright.

168. Depreciation of drawings and models..

169. Charging off depreciation -----

170. Closing depreciation account----

171. Depreciation in the case of farmers..

Section 214(a) (9). Deductions allowed individuals: depletion---

Article 201. Depletion of mines, oil and gas wells; depreciation of im-

provements

202. Amount returnable through depletion and depreciation

deductions in the case of an operating owner---

203. Amount returnable through depletion and depreciation

deductions in the case of lessee.-

204. Amount returnable through depletion and depreciation

in case of lessor...

205. Determination of cost of deposits---

206. Determination of fair market value of mineral property

other than oil and gas--

207. Determination of fair market value of oil and gas prop-

erties_

208. Revaluation of mineral deposits not allowed.--

209. Determination of mineral contents of mine -

210. Determination of quantity of oil in ground.

211. Computation of deduction for depletion of mineral de-

Section 214(a) (9)-Continued.

Article 212. Computation of deduction for depletion of gas wells---

213. Gas well pressure records to be kept--

214. Computation of allowance where quantity of oil or gas

uncertain-----

215. Computation of depletion allowance for combined hold-

ings of oil and gas wells----

216. Depletion-Adjustments of accounts based on bonus or

advanced royalty---

217. Depletion and depreciation accounts on books_-

218. Statement to be attached to return when depletion or de-

preciation of mineral property is claimed -

219. Additional statement to be attached to return where

depletion of oil or gas is claimed..

220. Discovery of mines.-

221. Oil and gas wells---

222. Discovery-Proven tract or lease—Value disproportion-

ate to cost----

223. Proof of discovery of oil and gas wells_

224. Allowable capital additions in case of mines..

225. Charges to capital and to expense in the case of oil and

gas wells

226. Depreciation in the case of mines--

227. Depreciation of improvements in the case of oil and

gas wells.

228. Depletion and depreciation of oil and gas wells in years

before 1916_

229. Depletion of timber.

230. Capital recoverable through depletion allowance in the

case of timber --

231. Computation of allowance for depletion of timber for

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given year--

232. Revaluation of timber not allowed

233. Charges to capital and to expenses in the case of timber.

234. Depreciation of improvements in the case of timber ---

235. Information to be furnished by taxpayer claiming deple-

tion of timber..

236. Determination of fair market value of timber_

237. Determination of quantity of timber.

238. Aggregating timber and land for purposes of valuation

and accounting

239. Timber depletion and depreciation accounts on books_-

Section 214(a) (10). Deductions allowed individuals: contributions

or gifts---

Article 251. Contributions or gifts

Section 214 (b). Deductions allowed: nonresident alien individual.-

Article 271. Deductions allowed nonresident alien individuals ----

Section 215. Items not deductible_

Article 291. Personal and family expenses.

292. Capital expenditures_-

293. Premiums on business insurance_

294. Life or terminable interests.

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