Taxable Years Beginning in 1949 loss is allocable. Such part of the stock or other interest of the taxpayer shall be treated for the purposes of subsections (b), (c), and (d) as property described in subsection (a) (3). Sec. 127. (e) (2) Application of paragraph (1).-For the purposes of paragraph (1)— (A) In determining the adjusted basis of all the property of the corporation, there shall be excluded money in the United States, bank deposits, the right to receive money from any person not situated in a country at war with the United States or in a territory under the control of such a country, and obligations issued or guaranteed as to principal or interest by the United States, except that there shall not be excluded any such property which is destroyed or seized as described in subsection (a) within or before the taxable period. (B) The adjusted basis of property of such corporation shall be determined as of the date immediately preceding the first date on which any property was destroyed or seized, as described in subsection (a), or as of any later date falling within or before the taxable period on the basis of which such determination will produce greater amount. a Sec. 127. (f) Determination of Taxable Years Beginning in 1948 Sec. 127. (e) (2) Application of paragraph (1). Same as 1944. tax benefits. The determination tax benefits. as to whether and to what extent an allowable deduction on account of the destruction or seizure of property described in subsection (a) did or did not result in a reduction of any tax of the taxpayer under this chapter shall be made in accordance with regulations prescribed by the Commissioner with the approval of the Secretary. Sec. 128. Recovery of unconstitutional federal taxes. Income (excluding interest) attributable to the recovery during the taxable year of a tax imposed by the United States which has been held unconstitution, and in respect of which a deduction was allowed in a prior taxable year may be excluded from gross income for Sec. 127. (f) Determination of Same as 1944. Sec. 128. Recovery of unconstitutional federal taxes. Same as 1944. Taxable Years Beginning in 1946 and 1947 Sec. 127. (e) (2) Application of paragraph (1). Same as 1944. Sec. 127. (f) Determination of tax benefits. Same as 1944. Sec. 128. Recovery of unconstitutional federal taxes. Same as 1944. Taxable Years Beginning in 1945 Sec. 127. (e) (2) Application of paragraph (1). Same as 1944. Sec. 127. (f) Determination of tax benefits. Same as 1944. Sec. 128. Recovery of unconstitutional federal taxes. Same as 1944. Taxable Years Beginning in 1944 loss is allocable. Such part of the stock or other interest of the taxpayer shall be treated for the purposes of subsections (b), (c), and (d) as property described in subsection (a) (3). Sec. 127. (e) (2) Application of paragraph (1).-For the purposes of paragraph (1)— (A) In determining the adjusted basis of all the property of the corporation, there shall be excluded money in the United States, bank deposits, the right to receive money from any person not situated in a country at war with the United States or in a territory under the control of such a country, and obligations issued or guaranteed as to principal or interest by the United States, except that there shall not be excluded any such property which is destroyed or seized as described in subsection (a) within or before the taxable period. (B) The adjusted basis of property of such corporation shall be determined as of the date immediately preceding the first date on which any property was destroyed or seized, as described in subsection (a), or as of any later date falling within or before the taxable period on the basis of which such determination will produce a greater amount. Taxable Years Beginning before 1944 Sec. 127. (e) (2) Application of paragraph (1). Section originated 1942 as Sec. 127 (e) (2), I. R. C., and was made retroactive to 1941. For any amendments prior to 1944 see Ninth Edition, p. 372. Sec. 127. (f) Determination of tax benefits. Section originated 1942 as Sec. 127 (f), I. R. C., and was made retroactive to 1941. For any amendments prior to 1944, see Ninth Edition, p. 372. Sec. 128. Recovery of unconstitutional federal taxes. Section originated 1942 as Sec. 128, I. R. C., and was made retroactive to 1941. For any amendments prior to 1944, see Ninth Edition, p. 372. Taxable Years Beginning in 1949 the taxable year, and the deduction allowed in respect thereof in such prior taxable year treated as not having been allowable, if Sec. 128. (a) The taxpayer elects in writing (at such time and in such manner as may be prescribed by regulations prescribed by the Commissioner with the approval of the Secretary) to treat such deduction as not having been allowable for such prior taxable year, and Sec. 128. (b) The taxpayer consents in writing to the assessment, within such period as may be agreed upon of any deficiencies resulting from such treatment, even though the statutory period for the assessment of any such deficiency had expired prior to the filing of such consent. Sec. 129. Acquisitions made to evade or avoid income or excess profits tax. Sec. 129. (a) Disallowance of deduction, credit or allowance.If (1) any person or persons acquire, on or after October 8, 1940, directly or indirectly, control of a corporation, or (2) any corporation acquires, on or after October 8, 1940, directly or indirectly, property of another corporation, not controlled, directly or indirectly, immediately prior to such acquisition, by such acquiring corporation or its stockholders, the basis of which property, in the hands of the acquiring corporation is determined by reference to the basis in the hands of the transferor corporation, and the principal purpose for which such acquisition was made is evasion or avoidance of Federal income or excess profits tax by securing the benefit of a deduction, credit, or other allowance which such person or corporation would not otherwise enjoy, then such deduction, credit, or other allowance shall not be allowed. For the purposes of clauses (1) and (2), control means the ownership of stock possessing at least 50 per centum of the total combined voting power of all classes of stock entitled to vote or at least 50 per Taxable Years Beginning in 1945 Sec. 129. Acquisitions made to evade or avoid income or excessprofits tax. Sec. 129. (a) Disallowance of deduction, credit or allowance. Same as 1944. Taxable Years Beginning in 1944 the taxable year, and the deduction allowed in respect thereof in such prior taxable year treated as not having been allowable, if Sec. 128. (a) The taxpayer elects in writing (at such time and in such manner as may be prescribed by regulations prescribed by the Commissioner with the approval of the Secretary) to treat such deduction as not having been allowable for such prior taxable year, and Sec. 128. (b) The taxpayer consents in writing to the assessment, within such period as may be agreed upon, of any deficiencies resulting from such treatment, even though the statutory period for the assessment of any such deficiency had expired prior to the filing of such consent. Sec. 129. Acquisitions made to evade or avoid income or excess profits tax. Sec. 129. (a) Disallowance of deduction, credit or allowance.— If (1) any person or persons acquire, on or after October 8, 1940, directly or indirectly, control of a corporation, or (2) any corporation acquires, on or after October 8, 1940, directly or indirectly, property of another corporation, not controlled, directly or indirectly, immediately prior to such acquisition, by such acquiring corporation or its stockholders, the basis of which property, in the hands of the acquiring corporation, is determined by reference to the basis in the hands of the transferor corporation, and the principal purpose for which such acquisition was made is evasion or avoidance of Federal income or excess profits tax by securing the benefit of a deduction, credit, or other allowance which such person or corporation would not otherwise enjoy, then such deduction, credit, or other allowance shall not be allowed. For the purposes of clauses (1) and (2), control means the ownership of stock possessing at least 50 per centum of the total combined voting power of all classes of stock entitled to vote or at least 50 per Taxable Years Beginning before 1944 Sec. 129. (b) (2) to distribute, apportion, or allocate gross income, and distribute, apportion, or allocate the deductions, credits or allowances the benefit of which was sought to be secured between or among the corporations, or properties, or parts thereof, involved, and to allow such deductions, credits, or allowances so distributed, apportioned, or allocated, but to give effect to such allowance only to such extent as he determines will not result in the evasion or avoidance of Federal income and excess profits tax for which the acquisition was made; or Sec. 129. (b) (3) to exercise his powers in part under paragraph (1) and in part under paragraph (2). Sec. 129. (b) Power of commissioner to allow deduction, etc., in part. Same as 1944. Sec. 129. (b) Power of commissioner to allow deduction, etc., in part. Same as 1944. Sec. 130. Limitation on deductions allowable to individuals in certain cases. Sec. 130. Limitation on deductions allowable to individuals in certain cases. Sec. 130. Limitation on deductions allowable to individuals in certain cases. |