Taxable Years Beginning in 1945 Sec. 23. (c) (3) Retail sales tax. Same as 1944. Sec. 23. (d) Taxes of shareholder paid by corporation. Same as 1944. Taxable Years Beginning in 1944 (D) estate, inheritance, legacy, succession, and gift taxes; and (E) taxes assessed against local benefits of a kind tending to increase the value of the property assessed; but this paragraph shall not exclude the allowance as a deduction of so much of such taxes as is properly allocable to maintenance or interest charges; and Sec. 23. (c) (1) (F) Federal import duties, and Federal excise and stamp taxes (not described in subparagraph (A), (B), (D), or (E)), but this subsection shall not prevent such duties and taxes from being deducted under subsection (a). Sec. 23 (c) (1), I. R. C., amended by Sec. 111, R. A. of 1943, by striking out "and" at end of subparagraph (D), by striking out period and inserting "and" at end of subparagraph (E), and by adding subparagraph (F), supra. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1943. Sec. 23. (c) (3) Retail sales tax. -In the case of a tax imposed by any State, Territory, District, or possession of the United States, or any political subdivision thereof, upon persons engaged in selling tangible personal property at retail, which is measured by the gross sales price or the gross receipts from the sale or which is a stated sum per unit of such property sold, or upon persons engaged in furnishing services at retail, which is measured by the gross receipts for furnishing such services, if the amount of such tax is separately stated, then to the extent that the amount so stated is paid by the purchaser (otherwise than in connection with the purchaser's trade or business) to such person such amount shall be allowed as a deduction in computing the net income of such purchaser as if such amount constituted a tax imposed upon and paid by such purchaser. Sec. 23. (d) Taxes of shareholder paid by corporation.-The deduction for taxes allowed by subsection (c) shall be allowed to a corporation in the case of taxes imposed upon a shareholder of the corporation upon his interest as shareholder which are paid by the Taxable Years Beginning before 1944 Sec. 23. (e) Losses by individ Sec. 23. (e) Losses by individuals. In the case of an individual uals. losses sustained during the taxable year and not compensated for by insurance or otherwise Sec. 23. (e) (1) if incurred in trade or business; or Sec. 23. (e) (2) if incurred in any transaction entered into for profit, though not connected with the trade or business; or Sec. 23. (e) (3) of property not connected with the trade or business, if the loss arises from fires, storms, shipwreck, or other casualty, or from theft. No loss shall be allowed as a deduction under this paragraph if at the time of the filing of the return such loss has been claimed as a deduction for estate tax purposes in the estate tax return. Sec. 23. (f) Losses by corporations. In the case of a corporation, losses sustained during the taxable year and not compensated for by insurance or otherwise. Sec. 23. (g) Capital losses. Sec. 23. (g) (1) Limitation.— Losses from sales or exchanges of capital assets shall be allowed only to the extent provided in section 117. Sec. 23. (g) (2) Securities becoming worthless.-If any securities (as defined in paragraph (3) of this subsection) become worthless during the taxable year and are capital assets, the loss resulting therefrom shall, for the purposes of this chapter, be considered as a loss from the sale or exchange, on the last day of such taxable year, of capital assets. Section originated 1913 as Sec. B, R. A. of 1913. For any amendments prior to 1944, see Second Edition, pp. 94, 96, p. 38, p. 70. Sec. 23. (f) Losses by corporations. Section originated 1913 as Second Edition, p. 196, Sec. 23. (g) Capital losses. Sec. 23. (g) (1) Limitation. Section originated 1934 as Eighth Edition, p. 40, Sec. 23. (g) (2) Securities becoming worthless. Section originated 1938 as Eighth Edition, p. 40, Taxable Years Taxable Years Sec. 23. (g) (3) Definition of Sec. 23. (g) (3) Definition of securities.-As used in paragraph securities. (2) of this subsection the term "securities" means (A) shares of stock in a corporation, and (B) rights to subscribe for or to receive such shares. Sec. 23. (g) (4) Stock in affiliated corporation.-For the purposes of paragraph (2) stock in a corporation affiliated with the taxpayer shall not be deemed a capital asset. For the purposes of this paragraph a corporation shall be deemed to be affiliated with the taxpayer only if: (A) at least 95 per centum of each class of its stock is owned directly by the taxpayer; and (B) more than 90 per centum of the aggregate of its gross incomes for all taxable years has been from sources other than royalties, rents (except rents derived from rental of properties to employees of the company in the ordinary course of its operating business), dividends, interest (except interest received on deferred purchase price of operating assets sold), annuities, or gains from sales or exchanges of stocks and securities; and (C) the taxpayer is a domestic corporation. Same as 1944. Sec. 23. (g) (4) Stock in affiliated corporation. Same as 1944. Taxable Years Sec. 23. (g) (3) Definition of securities. Same as 1944. Sec. 23. (g) (4) Stock in affiliated corporation. Same as 1944. Taxable Years Beginning in 1945 Sec. 23. (g) (3) Definition of securities. Same as 1944. Sec. 23. (g) (4) Stock in affiliated corporation. Same as 1944. Sec. 23. (h) Wagering losses. Same as 1944. Sec. 23. (i) Basis for determining loss. Same as 1944. Taxable Years Beginning in 1944 Sec. 23. (g) (3) Definition of securities.-As used in paragraph (2) of this subsection the term "securities" means (A) shares of stock in a corporation, and (B) rights to subscribe for or to receive such shares. Sec. 23. (g) (4) Stock in affiliated corporation.-For the purposes of paragraph (2) stock in a corporation affiliated with the taxpayer shall not be deemed a capital asset. For the purposes of this paragraph a corporation shall be deemed to be affiliated with the taxpayer only if: (A) at least 95 per centum of each class of its stock is owned directly by the taxpayer; and (B) more than 90 per centum of the aggregate of its gross incomes for all taxable years has been from sources other than royalties, rents (except rents derived from rental of properties to employees of the company in the ordinary course of its operating business), dividends, interest (except interest received on deferred purchase price of operating assets sold), annuities, or gains from sales or exchanges of stocks and securities; and (C) the taxpayer is a domestic corporation. Sec. 23 (g) (4) (B), I. R. C., supra, amended by Sec. 112 (a), R. A. of 1943, by adding language in italics. Retroactivity Sec. 112 (c) of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941. Sec. 23. (h) Wagering losses.— Losses from wagering transactions shall be allowed only to the extent of the gains from such transactions. Sec. 23. (i) Basis for determining loss.-The basis for determining the amount of deduction for losses sustained, to be allowed under subsection (e) or (f), and for bad debts, to be allowed under subsection (k), shall be the adjusted basis provided in section 113 (b) for determining the loss from the sale or other disposition of property. Taxable Years Beginning before 1944 Sec. 23. (g) (3) Definition of securities. Section originated 1938 as Eighth Edition, p. 40, Ninth Edition, p. 72. Sec. 23. (g) (4) Stock in affiliated corporation. Section originated 1942 as For any amendments prior to Ninth Edition, p. 72. Sec. 23. (h) Wagering losses. Section originated 1934, as Eighth Edition, p. 40, Sec. 23. (i) Basis for determining loss. Section originated 1928 as For any amendments prior to Eighth Edition, p. 40, |