Taxable Years Sec. 22. (b) (8) Miscellaneous items. Same as 1944. In Taxable Years Taxable Years Beginning before 1944 Sec. 22. (b) (8) Miscellaneous Sec. 22. (b) (8) Miscellaneous Earned income from sources Salaries of certain Territorial employees; The income of foreign governments; Income of States, municipalities, Dividends from China Trade Compensation of employees of Sec. 22. (b) (9) Income from Sec. 22. (b) (9) Income from discharge of indebtedness. discharge of indebtedness. In the case of a corporation, the the case of a corporation, the amount of any income of the tax- amount of any income of the taxpayer attributable to the discharge, payer attributable to the discharge, within the taxable year, of any in- within the taxable year, of any indebtedness of the taxpayer or for debtedness of the taxpayer or for which the taxpayer is liable evi- which the taxpayer is liable evidenced by a security (as herein- denced by a security (as hereinafter in this paragraph defined) if after in this paragraph defined) if the taxpayer makes and files at the the taxpayer makes and files at the time of filing the return, in such time of filing the return in such manner as the Commissioner, with manner as the Commissioner, with the approval of the Secretary, by the approval of the Secretary, by regulations prescribes, its consent regulations prescribes, its consent to the regulations prescribed under to the regulations prescribed under section 113 (b) (3) then in effect. section 113 (b) (3) then in effect. In such case the amount of any in- In such case the amount of any come of the taxpayer attributable income of the taxpayer attributable to any unamortized premium (com- to any unamortized premium (computed as of the first day of the tax- puted as of the first day of the taxable year in which such discharge able year in which such discharge occurred) with respect to such in- occurred) with respect to such indebtedness shall not be included in debtedness shall not be included in gross income and the amount of gross income and the amount of the deduction attributable to any the deduction attributable to any unamortized discount (computed unamortized discount (computed as of the first day of the taxable as of the first day of the taxable year in which such discharge oc- year in which such discharge occurred) with respect to such in- curred) with respect to such indebtedness shall not be allowed as debtedness shall not be allowed as a deduction. As used in this para- a deduction. As used in this paragraph the term "security" means graph the term "security" means any bond, debenture, note, or cer- any bond, debenture, note, or certificate, or other evidence of in- tificate, or other evidence of indebtedness, issued by any corpora- debtedness, issued by any corpotion. This paragraph shall not ap- ration. This paragraph shall not ply to any discharge occurring be- apply to any discharge occurring fore the date of the enactment of before the date of the enactment of the Revenue Act of 1939, or in a the Revenue Act of 1939, or in a taxable year beginning after De- taxable year beginning after December 31, 1946 1945. cember 31, 1945. Sec. 2 (b) (9). supra, amended by Sec. 152, R. A. of 1945, approved Nov. 8, 1945, by striking out "1945" and inserting in lieu thereof "1946." Section originated 1928 as Eighth Edition, p. 30, Sec. 22. (b) (9) Income from discharge of indebtedness. Section originated 1939 as Ninth Edition, p. 40. Taxable Years Sec. 22. (b) (10) Income from discharge of indebtedness of a railroad corporation. The amount of any income attributable to the discharge, within the taxable year, of any indebtedness of a railroad corporation, as defined in section 77m of the National Bankruptcy Act, as amended, to the extent that such income is deemed to have been realized by reason of a modification in or cancellation in whole or in part of such indebtedness pursuant to an order of a court in a receivership proceeding or in a proceeding under section 77 of the National Bankruptcy Act, as amended. In such case the amount of any income of the taxpayer, attributable to any unamortized premium (computed as of the first day of the taxable year in which such discharge occurred) with respect to such indebtedness shall not be included in gross income and the amount of the deduction attributable to any unamortized discount (computed as of the first day of the taxable year in which such discharge occurred) with respect to such indebtedness shall not be allowed as a deduction. Paragraph (9) shall not apply with respect to any discharge of indebtedness to which this paragraph applies. This paragraph shall not apply to any discharge occurring in a taxable year beginning after December 31, 1949 1950. Sec. 22 (b) (9) and (10), I. R. C., supra, amended by Sec. 3, Act of Aug. 27, 1949, by striking out "1949" and inserting in lieu thereof "1950." Taxable Years Sec. 22. (b) (10) Income from discharge of indebtedness of a railroad corporation. Same as 1946 and 1947. Taxable Years Beginning in 1946 and 1947 Sec. 22 (b) (10) Income from discharge of indebtedness of a railroad corporation. Same as 1945 except "1946" stricken out and "1947" inserted in lieu thereof by Act of July 31, 1946 (C. 717, 60 Stat. 749) and the Act of June 25, 1947 (C. 143, 61 Stat. 178) struck out "1947" and inserted in lieu thereof "1949." Sec. 22. (b) (11) Improvements Sec. 22. (b) (11) Improvements Same as 1944. by lessee on lessor's property.- by lessee on lessor's property. Same as 1944. Sec. 22. (b) (12) Recovery of Sec. 22. (b) (12) Recovery of bad debts, prior taxes, and de- bad debts prior taxes, and delinquency amounts.-Income at- linquency amounts. tributable to the recovery during the taxable year of a bad debt, prior tax, or delinquency amount, to the extent of the amount of the recovery exclusion with respect to such debt, tax, or amount. For the purposes of this paragraph: Sec. 22. (b) (11) Improvements by lessee on lessor's property. Same as 1944. Sec. 22. (b) (12) Recovery of bad debts, prior taxes, and delinquency amounts. Same as 1944. Taxable Years Taxable Years Sec. 22. (b) (10) Income from Sec. 22. (b) (10) Income from discharge of indebtedness of a discharge of indebtedness of a railroad corporation. The railroad corporation. The amount of any income attributable amount of any income attributable to the discharge, within the tax- to the discharge, within the taxable year, of any indebtedness of able year, of any indebtedness of a a railroad corporation, as defined railroad corporation, as defined in in section 77m of the National section 77m of the National BankBankruptcy Act, as amended, to ruptcy Act, as amended, to the exthe extent that such income is tent that such income is deemed deemed to have been realized by to have been realized by reason of reason of a modification in or can- a modification in or cancellation in cellation in whole or in part of whole or in part of such indebtedsuch indebtedness pursuant to an ness pursuant to an order of a court order of a court in a receivership in a receivership proceeding or in proceeding or in a proceeding un- a proceeding under section 77 of der section 77 of the National the National Bankruptcy Act, as Bankruptcy Act, as amended. In amended. In such case the amount such case the amount of any income of the taxpayer attributable to any unamortized premium (computed as of the first day of the taxable year in which such discharge occurred) with respect to such indebtedness shall not be included in gross income and the amount of the deduction attributable to any unamortized discount (computed as of the first day of the taxable year in which such discharge occurred) with respect to such indebtedness shall not be allowed as a deduction. Paragraph (9) shall not apply with respect to any discharge of indebtedness to which this paragraph applies. This paragraph shall not apply to any discharge occurring in a taxable year beginning after December 31, 1945 1946. Sec. 22 (b) (10), supra, amended by Sec. 152, R. A. of 1945, approved Nov. 8, 1945, by striking out "1945" and inserting in lieu thereof "1946." Sec. 22. (b) (11) Improvements by lessee on lessor's property. Same as 1944. Sec. 22. (b) (12) Recovery of bad debts, prior taxes, and delinquency amounts. Same as 1944. of any income of the taxpayer at- Sec. 22. (b) (11) Improvements by lessee on lessor's property.Income, other than rent, derived by a lessor of real property upon the termination of a lease, representing the value of such property attributable to buildings erected or other improvements made by the lessee. Sec. 22. (b) (12) Recovery of bad debts, prior taxes, and delinquency amounts.-Income attributable to the recovery during the taxable year of a bad debt, prior tax, or delinquency amount, to the extent of the amount of the recovery exclusion with respect to such debt, tax, or amount. For the purposes of this paragraph: Taxable Years Beginning in 1949 (A) Definition of Bad Debt.— The term "bad debt" means a debt on account of worthlessness or partial worthlessness of which a deduction was allowed for a prior taxable year. (B) Definition of Prior Tax.The term "prior tax" means a tax on account of which a deduction or credit was allowed for a prior taxable year. (C) Definition of Delinquency Amount. The term "delinquency amount" means an amount paid or accrued on account of which a deduction or credit was allowed for a prior taxable year and which is attributable to failure to file return with respect to a tax, or pay a tax, within the time required by the law under which the tax is imposed, or to failure to file return with respect to a tax or pay a tax. (D) Definition of Recovery Exclusion. The term "recovery exclusion," with respect to a bad debt, prior tax, or delinquency amount, means the amount, determined in accordance with regulations prescribed by the Commissioner with the approval of the Secretary, of the deductions or credits allowed, on account of such bad debt, prior tax, or delinquency amount, which did not result in a reduction of the taxpayer's tax under this chapter (not including the tax under section 102) or corresponding provisions of prior revenue laws, reduced by the amount excludible in previous taxable years with respect to such debt, tax, or amount under this paragraph. (E) Special Rules in Case of Section 102 Tax and Personal Holding Company Tax.-In the application of subparagraphs (A), (B), (C), and (D) in determining the tax under section 102 or Subchapter A of Chapter 2, a recovery exclusion allowed for the purposes of Chapter 1 shall be allowed for the purpose of such section or subchapter whether or not the bad debt, prior tax, or delinquency amount resulted in a reduction of the section 102 tax or Subchapter A tax for the prior taxable year; and in the case of a bad debt, prior tax, or delinquency amount not allowable as a deduction or credit for the prior taxable year under Chapter 1 (except section 102) but allowable for the same taxable year under such section or subchapter a recovery exclusion shall be allow (A) Definition of Bad Debt.The term "bad debt" means a debt on account of worthlessness or partial worthlessness of which a deduction was allowed for a prior taxable year. (B) Definition of Prior Tax.— The term "prior tax" means a tax on account of which a deduction or credit was allowed for a prior taxable year. (C) Definition of Delinquency Amount. The term "delinquency amount" means an amount paid or accrued on account of which a deduction or credit was allowed for a prior taxable year and which is attributable to failure to file return with respect to a tax, or pay a tax, within the time required by the law under which the tax is imposed, or to failure to file return with respect to a tax or pay a tax. (D) Definition of Recovery Exclusion. The term "recovery exclusion," with respect to a bad debt, prior tax, or delinquency amount, means the amount, determined in accordance with regulations prescribed by the Commissioner with the approval of the Secretary, of the deductions or credits allowed, on account of such bad debt, prior tax, or delinquency amount, which did not result in a reduction of the taxpayer's tax under this chapter (not including the tax under section 102) or corresponding provisions of prior reveInue laws, reduced by the amount excludible in previous taxable years with respect to such debt, tax, or amount under this paragraph. (E) Special Rules in Case of Section 102 Tax and Personal Holding Company Tax.-In the application of subparagraphs (A), (B), (C), and (D) in determining the tax under section 102 or Subchapter A of Chapter 2, a recovery exclusion allowed for the purposes of Chapter 1 shall be allowed for the purpose of such section or subchapter whether or not the bad debt, prior tax, or delinquency amount resulted in a reduction of the section 102 tax or Subchapter A tax for the prior taxable year; and in the case of a bad debt, prior tax, or delinquency amount not allowable as a deduction or credit for the prior taxable year under Chapter 1 (except section 102) but allowable for the same taxable year under such section or subchapter a Taxable Years Beginning before 1944 |