Taxable Years
Beginning in 1949

graphs in order to make another the constructive owner of such stock.

Sec. 24. (c) Unpaid expenses and interest.-In computing net income no deduction shall be allowed under section 23 (a), relating to expenses incurred, or under section 23 (b), relating to interest accrued

Sec. 24. (c) (1) If such expenses or interest are not paid within the taxable year or within two and one half months after the close thereof; and

Sec. 24. (c) (2) If, by reason of the method of accounting of the person to whom the payment is to be made, the amount thereof is not, unless paid, includible in the gross income of such person for the taxable year in which or with which the taxable year of the taxpayer ends; and

Sec. 24. (c) (3) If, at the close of the taxable year of the taxpayer or at any time within two and one half months thereafter, both the taxpayer and the person to whom the payment is to be made are persons between whom losses would be disallowed under section 24 (b).

Taxable Years
Beginning in 1948

Sec. 24. (c) Unpaid expenses and interest.

Same as 1944.

Same as 1944.

Sec. 24. (d) Holders of life or Sec. 24. (d) Holders of life or terminable interest. Amounts terminable interest. paid under the laws of any State, Territory, District of Columbia, possession of the United States, or foreign country as income to the holder of a life or terminable interest acquired by gift, bequest, or inheritance shall not be reduced or diminished by any deduction for shrinkage (by whatever

name

called) in the value of such interest due to the lapse of time, nor by any deduction allowed by this chapter (except the deductions provided for in subsections (1) and (m) of section 23) for the purpose of computing the net income of an estate or trust but not allowed under the laws of such State, Territory, District of Columbia, possession of the United States, or foreign country for the purpose of computing the income to which such holder is entitled.

Taxable Years Beginning in 1946 and 1947

Sec. 24. (c) Unpaid expenses and interest.

Same as 1944.

Sec. 24. (d) Holders of life or terminable interest.

Same as 1944.

Same as 1944.

Sec. 25. (a) (1) Interest on Sec. 25. (a) (1) Interest on United States obligations.-The United States obligations. amount received as interest upon obligations of the United States, if such interest is included in gross income under section 22, and if, under the Act authorizing the issue of such obligations, as amended and supplemented such interest is exempt from normal tax.

Same as 1944.

Sec. 25. (a) (2) Interest on ob- Sec. 25. (a) (2) Interest on obligations of instrumentalities of ligations of instrumentalities of the United States.-The amount the United States. received as interest on obligations of a corporation organized under Act of Congress, if (A) such corporation is an instrumentality of the United States; and (B) such interest is included in gross income under section 22; and (C) under the Act authorizing the issue thereof, as amended and supplemented, such interest is exempt from normal tax. (For reduction of credit under paragraph (1) or (2) on account of amortizable bond premium, see section 125).

net income:

(A) An exemption of $500 for the taxpayer;

(A) An exemption of $600 for (A) An exemption of $600 for the taxpayer; and an additional the taxpayer; and an additional exemption of $600 for the spouse exemption of $600 for the spouse of (B) An exemption of $500 for of the taxpayer if a separate re- the taxpayer if a separate return is the spouse of the taxpayer if— turn is made by the taxpayer, and made by the taxpayer, and if the if the spouse, for the calendar year spouse, for the calendar year in in which the taxable year of the which the taxable year of the taxtaxpayer begins, has no gross in-payer begins, has no gross income come and is not the dependent of and is not the dependent of another

another taxpayer;

taxpayer;

(B) (i) An additional exemp- (B) (i) An additional exemption of $600 for the taxpayer if he tion of $600 for the taxpayer if he has attained the age of 65 before has attained the age of 65 before the close of his taxable year; and the close of his taxable year; and

(ii) An additional exemption of $600 for the spouse of the taxpayer if a separate return is made by the taxpayer and if the spouse has attained the age of 65 before the close of such taxable year, and, for the calendar year in which the taxable year of the taxpayer begins, has no gross income and is not the dependent of another taxpayer;

(C) (i) An additional exemption of $600 for the taxpayer if he is blind at the close of his taxable year; and

(i) a joint return is made by the taxpayer and his spouse under section 51, in which case the aggregate exemption of the spouses under subparagraph (A) and this subparagraph shall be $1,000, or

(ii) a separate return is made by the taxpayer, and his spouse has no gross income for the calendar year in which the taxable year of the taxpayer begins and is not the dependent of another taxpayer;

(ii) An additional exemption of $600 for the spouse of the taxpayer if a separate return is made by the taxpayer, and if the spouse has at- (C) An exemption of $500 for tained the age of 65 before the each dependent whose gross inclose of such taxable year, and, for come for the calendar year in the calendar year in which the tax- which the taxable year of the taxable year of the taxpayer begins, payer begins is less than $500, exhas no gross income and is not the cept that the exemption shall not dependent of another taxpayer; be allowed in respect of a depend(C) (i) An additional exemp-ent who has made a joint return tion of $600 for the taxpayer if he with his spouse under section 51 is blind at the close of his taxable for the taxable year beginning in such calendar year. year; and