DEDUCTIONS-Cont.

[References are to pages.]

from theft deductible only for year of occurrence, 333.
in inventory and from rebates, 389.

measure, 375.

method of computing loss in inventory, 393.

not sustained in trade, 372.

of capital, 374.

of income, 375.

of useful value, 379.

oil and gas, 383.

reserves, 383.

sale of capital stock, 382.

shrinkage in securities and stocks, 381.

shrinkage or deterioration in storage, 383.

sustained in trade, 371.

voluntary payment by stockholders of loss of corporation, 382.
where bonds purchased above par, 377.

worthless debts, 383.

worthless stock, 382.

meaning of term "trade or business," 372.

method of computing depreciation allowance, 407.

must be in equivalent of cash, 332.

necessity that annual allowance be charged off books, 410.

necessity that losses be sustained during year, 372.

necessity that they be actual, 331.

necessity of filing return to obtain benefit by nonresident alien, 52.
net losses, 388.

normal tax credit, personal exemptions, 475-482.

not to be duplicated, 331.

obsolescence, 413.

in case of distillers and dealers in liquor, 415.

only those specified in statute allowed, 331.

payment on income and excess-profits tax deducted from undivid
profits, 310.

personal living or family expenses, 334.

personal service corporations, 133.

professional expenses. 341.

provisions for deductions in income tax law, 975.

public utilities, 336.

rate on depreciation, 409.

reporting deductions upon accrual basis, 488.

required to be returned by partnerships, 122.

reserves to meet losses from shrinkage, bad debts and capital invest-

ments, not allowed as deductions, 490.

revaluation of deposit not allowed on question of depletion, 430.

revaluation of stumpage, 472.

share of profits paid to employe on profit-sharing contract, 113.

statement attached to return or claim of depletion of oil and gas, 461.
on claim of depletion of mines, 438.

on claim of depletion of timber, 474.

special assessment against local benefits, 338.

taxes, 362.

against estates, 79.

automobile license fee, 364.

capital stock, 364.

depositors' guaranty fund, 364.

federal duties and excise taxes, 363.

not deductible, 365.

capital recoverable through depletion allowance in case of owner,

427.

charges to capital or to expenses in the case of oil and gas wells, 466.
clearing house, 803.

collector, 965.

commissioner,

965.

duress, 533.

exchange, 803.

false, 840.

false returns, 554.

farming, 95.

fiduciaries, 69, 499, 966.

fiscal year, 651.

fixed or determinable annual and periodical income, 598.

foreign corporations, 186, 622, 966.

foreign items, 590.

foreign partnership, 106.

general partnership, 110.

gentlemen farmers, 95.

Government contracts, 965.

gross income, 10.

inadmissible assets, 674.

income of farmers, 101.

insurance, 777.

insurer, 777.

intangible property, 661.

F. T.-68

DEMAND,

[References are to pages.]

necessary to create lien for specific amount of unpaid taxes, 547.
payment of tax, 521.

after receipt of notice and demand for tax not constituting
duress, 537, 538.

service by mail for payment of tax, 522.

DEPENDENTS,

credits, 478.

deducted from net income, 236.

personal exemption for dependent person, 12, 478.

DEPLETION,

See DEPRECIATION.

account on books of taxpayers, 431.

adjustment for excess-profits tax, 683.

allowance for depletion for past years, 435.

for depletion of timber, 471.

allowances on discovery of oil and gas wells, 464.
on discovery of mines, 439.

apportionment of deduction between lessor and lessee, 429.

of oil or gas well, 445.

capital recoverable through depreciation allowance in case of lessee,
428, 444.

capital sum, in estimate of oil and gas wells, 441.

charges to capital and expense in case of mines, 439.

of timber, 473.

computation of allowances for depletion of gas wells, 451.

mines and oil wells, 430, 449.

combined holder of oil and gas wells, 460.

definition, 426.

depreciation of improvements in case of mine, 440.
oil and gas wells, 467.

depreciation of physical property, 468.
determination of costs of deposits, 429.

of fair market value of deposits, 430.
of fair market value of timber, 471.
of quantity of oil in ground, 448.
of quantity of ore in mines, 436.
of quantity of timber, 471.

discovery of mines, 439.

estimation of recoverable underground reserves of oil, 860.
fair market value of oil and gas properties, 447.

formula for computing depletion of gas wells, 459.

maps included in claim for depletion of oil and gas property, 463.

method of assessment with reference to mines, 437.

mines and oil and gas wells, 427.

not deducted in determining gross income, 248.

oil and gas wells prior to 1916, 469.
questionnaire on depletion of mines, 917.
of oil and gas wells, 901.

reserve in excess-profits return, 668.
revaluation of deposits not allowed, 430.
re-valuation of stumpage, 472.

rule as to lessees under prior laws, 435.

rule under 1909 law, 432.

rule under 1913 law, 433.

rule as to mines under 1916 law, 434.

DEPLETION-Cont.

[References are to pages.]

statement to be attached to return where claim of depletion of mine, 438.
of oil and gas, 461.

of timber, 474.

table of capital returnable through depletion of timber, 938.
timber, 937.

DEPOSITORS' GUARANTY FUND,

deduction, 364.

DEPOSITS,

See BANKS AND BANKING.

interest credited constructively received and taxable, 229.
returns of interest on deposits, 286.

DEPRECIATION,

See DEPLETION; OBSOLESCENCE.

adjustment for excess-profits tax, 683.

allowance in earlier income tax laws, 402.

to farmers, 104.

to foreign corporations, 202.

amounts expended for additions and betterments, 409.
annual allowance measured by life of property, 407.
capital sum returnable through depreciation allowance, 406.
closing account as to another item, 413.

deduction against estate or trust, 80.

for depreciation of apartment houses, 410.
for depreciation of real property, 403.

for wearing apparel, 404.

improvements in case of timber, 473.

on sale of patents or copyrights, 268.
of steamer, 410.

depreciable property, 402.

drawings and models, 405.

estimate of depreciation of oil and gas equipment, 869.

factory running night shifts, 410.

farm machinery, 101.

incidental repairs to property on which depreciation is claimed, 408.

loss in rental value of building, 403.

method of computing allowances, 407.

mine improvements, 440.

necessity that annual allowance be charged off of books, 410.

not to be confused with ordinary repairs, 408.

intangible property, 404.

questionnaire of depreciation of mines, 918.

of oil and gas wells, 902.

rate, 409.

renewals to property, 409.

reserves for depreciation, 412.

in excess-profits return, 668.

stock in trade, 404.

DESCENT AND DISTRIBUTION,

exemption of property acquired by descent, 31.

sale of property acquired by descent, determination of gain or loss, 256.
value of property acquired by descent exempt from gross income, 235.

DETERIORATION,

See DEDUCTIONS; DEPLETION; DEPRECIATION; SHRINKAGE.