Definitions-Beneficiaries-Duties of Fiduciaries-Income of Estates and Trusts Deductions-Credits-Distribution of Income of Trust Estates -Distributable Income-Undistributed Income-Receiver in Partition Proceedings Returns by Fiduciaries-Returns by Beneficiaries-In- come to be Reported by Beneficiary—Returns of Executors and Ad- ministrators-Withholding at Source on Payments to and Payments by Domestic and Foreign Partnerships-Limited Partnerships-General Part- nerships Partnerships Consisting of Corporations-Partnerships Oper- ating Abroad-Procedure in Collecting and Duty in Paying out Income -Net Income-Deductions-Distribution of Partnership Profits- Profits to Be Reported by Partners-Fiscal Year-Net Losses-Profits Earned Prior to March 1, 1913-Returns-Foreign Partnerships....... 106 Definition-Dividends of Personal Service Corporations-Returns-Dis- 127 Definition-Residence-Gross Income-Deductions-Credits Against Net CHAPTER 11. SPECIAL PROVISIONS APPLYING TO INSURANCE COMPANIES. Definition-Gross Income-Deductions-Deduction of Required Addition to CHAPTER 12. FOREIGN CORPORATIONS. Definition-Corporations Exempt from and Subject to the Tax-Income 177 185 CHAPTER 13. EXEMPT ORGANIZATIONS. Foreign Corporations-Limitation of Exemption-Where Question Exists CHAPTER 14. INCOME IN GENERAL. What Constitutes Income-Income Actually Received-Income Construc- CHAPTER 15. INCOME FROM PERSONAL SERVICES. Salaries Bonuses and Profit Sharing-Commissions-Voluntary Offerings 208 222 Services Extending Over a Year-Compensation of Federal Employees, CHAPTER 16. INCOME FROM BUSINESS, TRADE OR COMMERCE. Gross Income from Business-Contractors-Export Business-Discounts- CHAPTER 17. 237 248 INCOME FROM SALES OR DEALINGS IN PROPERTY-QUASI CAPITAL TRANSACTIONS. 255 CHAPTER 18. INCOME FROM INTEREST, RENT AND ROYALTIES. Exempt Interest-United States Obligations-Federal Land Bank and CHAPTER 19. INCOME FROM DIVIDENDS. Definition of Dividends-Extent Taxable-Presumption as to Source of CHAPTER 20. RECEIPTS AND INCOME FROM MISCELLANEOUS SOURCES. Alimony-Accident, Health or Workmen's Compensation Insurance-Can- 277 291 State Contract-Increment to Sinking Funds-Legacies-Pensions- 319. Only Deductions Specified Allowed-Deductions Must Be Actual and Must Not Be Duplicated-Income and Deductions Must Be Reported on Same Basis-Payments in Equivalent of Cash-When Charges Deductible— Business Expenses-Professional Expenses Cost of Manufacturing Prod- ucts-Cost of Materials-Repairs-Buildings Used for Rental Pur- poses-Insurance-Redemption of Trading Stamps-Propaganda Ex- penses-Commissions-Entertainment Money-Salaries-Business and Profit Sharing Payments-Pensions-Donations-Sale and Retirement of Corporate Bonds-Earnings of Public Utility-Oil and Gas Industry 339 Interest on Capital-Indebtedness to Purchase or Carry Tax-Exempt Securities Interest Paid or Accrued Within the Year-Sale and Re- tirement of Corporate Bonds-Maryland and Pennsylvania Ground Taxes Paid or Accrued Within Year-Taxing Subdivisons of Territories- 362 Losses Sustained in Trade-Losses Not Sustained in Trade Trade or Business Defined-Losses Must Be Sustained During Year-Losses of Capital-Losses of Income-Measure of Loss-Losses from Sales of Property-Losses from Exchange of Property-Exchange of Stock- Bonds Purchased Above Par-Loss by Destruction or Disappearance of Property-Voluntary Destruction of Property-Loss of Useful Value -Cost of Drawings, Models and Patterns-Amounts Paid to Make Up Profits of Another-Shrinkage in Securities and Stocks-Worthless Stock-Sale of Capital Stock-Voluntary Payment by Stockholders of Loss of Corporation-Shrinkage or Deterioration in Storage-Loss in Value of Bonds-Loss of Oil and Gas-Reserves for Losses-Worth- less Debts-Loss Due to Adverse Judgments-Net Losses-Losses in DEDUCTION OF ALLOWANCE FOR DEPRECIATION, OBSOLESCENCE AND AMORTIZATION. Depreciation Under Preceding Income Tax Laws-Depreciable Property- Intangible Property-Capital Sum Returnable-Method of Computing Depreciation-Annual Allowances Measured by Life of Property-Rate -Charging Off Depreciation on Books-Reserves-Closing Depreciation Mines, Oil and Gas Wells-Capital Recoverable in Case of Owner and Lessee-Apportionment Between Lessor and Lessee-Determination of Cost and Fair Market Value of Deposits-Revaluations Not Allowed- Computation of Depletion Allowance-Depletion and Depreciation on Books-Rule Under 1909, 1913, 1916 Laws-Lessees Under Prior Laws Determination of Quantity of Ore in Mine-Depletion Based on Advance |