Exchanges of property-Continued

Section 1245 property in Puerto
Rico, transfer to domestic corpo-
ration (RR 569) 314
Technical "know-how", in perpetu-
ity transfer (RR 564) 179
Exempt income:

Bond interest, Guam Economic De-
velopment Authority (RR 402)
91

German convention, compensation

paid, political persecution under
National Socialism (RR 477) 479
United Kingdom convention:
Foreign corporation, permanent
establishment in U.S., invest-
ment income (RR 302) 267
Resident alien (RR 566) 267
Exemption organizations:
General:

Information returns:

Community chest support (RR
554) 405

Filing, disclosure to State offi-

cials, public inspection (TD)
7122) 393

Penalties for failure to file (TD

7127) 424

Student government association
(RR 553) 404

Ruling procedures, public inter-

est law firms (RP 39) 575
Private foundations:

Annual reports:

Filing public inspection (TD
7122) 393

Penalties for failure to file (TD
7127) 424

Governing instruments, State laws
enacted (RR 547) 239
Returns, extension of time, status
pending (RP 41) 577

Prohibited transactions:

Employees' pension trust, loan to
labor union (RR 462) 238
Multi-employer trust, unsecured
loan (RR 479) 238

Qualification:

Charitable, etc., organizations:
Art gallery (RR 395) 228
Bar association, local (RR 505)
232

Clearinghouse and course

ordinator, classes in commu-
nity (RR 413) 228

Exemption organizations Continued
Qualification-Continued

Charitable, etc., organizations-
Continued

Dog training club (RR 421)
229

Engineering society, heating
and air conditioning (RR
506) 233

Foreign charitable activities,
domestic corporation (RR
460) 231

Genealogical research, family
members, religious purpose
(RR 580) 235
International exposition (RR
545) 235

Investment management serv-
ices, college and universities,
nonprofit (RR 529) 234
Medical society, local (RR 504)
231

Private school, racially nondis-
criminatory policy (RR 447)
230

Thrift shop (RR 581) 236
Title-holding corporation (RR
544) 227

Civic organizations:
Social welfare, representation
on tax matters (RR 530) 237
Cooperatives:

Farmers, federated, "look
through" principle, effective
date (RR 493) 240
Miscellaneous:

Cemetery company, cremato-

rium (RR 300) 238
Unrelated income, thrift shop,
separately operated (RR 581)
236
Exemptions:

Dependents:

Adopted or foster children (TD
7123) 107

Child in school for mentally re-

tarded, State aid (RR 347) 114
Children of divorced or separated
parents, evidence of support
(TD 7145) 115
Support:

Children committed to State
training school (RR 491)
114

Exemptions-Continued
Dependents Continued
Support-Continued

State benefit payments (RR
468) 115
Exploration and development:
Intangible drilling and development
costs, advance payments (RR
579) 225
Extension of time:

Corporate return, application Form
7004 (TD 7138) 407
Elections, amortization of pollution
control facilities (TD 7135) 154
Payment of tax or deficiency (TD
7133) 415

Returns, private foundations, status
pending (RP 41) 577
Farmers and farming:

Advance payments for crops sold to
cooperative (RR 430) 219
Almond groves, planting and de-
velopment costs (TD 7136) 171
Horses for racing or sporting pur-

poses, determination (RP 33) 572
Livestock exchanges, different sexes
(TD 7141) 304

Livestock holding period, deprecia-

tion recapture (TD 7141) 304
Value of summer fallow, farmland
purchased (RR 348) 122
Fellowships (See: Scholarships and
fellowships)

Gain or loss-Continued
Recognition-Continued

Reorganization exchange, securi-
ties for stock and cash (RR
427) 183

Term interests in property, sale or
other disposition (TD 7142)

295
Reorganizations (See: Reorganiza-
tions)

Gifts and inheritances:

Term interests in property (TD
7142) 295

Gross income (See also: specific sub-
ject headings):
Exclusions:

Combat pay, compensation other
than active duty pay (RR 343)
92

Death benefits, deferred compen-
sation plan, payment to de-
ceased employee's widow (RR
361) 90

Employee medical information
plan, computer data bank (RR
282) 156

Insurance reimbursements for liv-

ing expenses, loss of residence
(TD 7118) 105

Payments by state welfare agency,
work training program (RR
425) 76

Veterans, educational assistance
allowances (RR 536) 78

Inclusions:

Government allowances, employ-
ees on Santa Barbara islands
(RR 303) 272
Interest, insured loans, Agricul-
tural Credit Insurance Fund
(RR 594) 91

Partnership, retirement income,
payments to surviving spouse
(RR 507) 331

Political contributions, personal
use (RR 449) 77

Research program awards, Amer-
ican Heart Association (RR
379) 100

Inventories:

Affiliated group, subsidiary's first
separate return period (RR 570)
325
Canning factory, unlabeled can
goods (RR 366) 225
LIFO, price indexes, department
stores (RR 452) 226

LIFO method, discontinuance, ad-
justment (RP 71-16, Amendment
I) 527

Raw materials, LIFO method,

multi-pool dollar-value to single
pool dollar-value (RR 351) 216
Seed packets, contract of sales or
return (RR 451) 217
Investment credit:

Giant amusement slides (RR 377)
63
Macadamia tree (RR 488) 60
Machinery furnished exempt or-
ganizations and governmental
units (RR 397) 63

Investment credit-Continued
Mutual savings bank, two partial
taxes (RR 386) 59

Refrigerator and freezer structures,
milk products and ice cream (RR
489) 64

Replacement property, farm tractor
for truck (RR 575) 61
Roadways, manufacturing complex
(RR 555) 65

Storage facilities, grain, peanut, po-
tatoes (RR 359) 61

Termination, transitional rules (TD)
7126) 66

Involuntary conversions:

Condemnation:

Limitation period—Continued
Waiver, execution, liquidating cor-
poration (RR 71-467) 411
Liquidations:

Partial, active business requirement,
period between sale and distribu-
tion (RR 473) 179

Subsidiary into parent, distribution
delayed, basis of property (RR
326) 177

Livestock sales (See: Farmers and
farming)

Loans, real property, FHLMC partici-
pation certificates (RR 399) 433
Losses (See also: Net operating loss):
Accountant, client's account pur-
chased, business terminated (RR
418) 125
Casualty:

Disaster areas, year of deduction
(RR 592) 127

Smog damage (RR 560) 126
Residence exchanged for annuity
contract (RR 492) 127
Theft, loan induced by fraudulent
financial reports (RR 381) 126
Wash sales, securities puchased on
margin (RR 316) 311

Meals and lodging:

Meals furnished employees (RR
411) 103

Medical expenses:

Legal fees, commitment to mental

institution (RR 281) 165
Retarded child, special school (RR
347) 114

Subscription to medical information

plan, computer data bank (RR
282) 166

Mines and mining (See: Natural
resources)

Ministers:

Rental allowance, personal residence
purchased (RR 280) 92

Minors (See also: Exemptions):
Stock in small business corporations,
shareholder consents (RR 287)
317

Natural resources:

Coal mine safety equipment, amorti-
zation (TD 7137) 161

Timber:

Cutting, cooperative, patronage
income (RR 439) 321

Natural resources-Continued

Timber-Continued
Disposal expenses (RR 334) 248
Specified road construction, pur-
chaser credit, Forest Service
contract (RR 354) 246

Net operating loss:
Carryback:

Community income (RR 382)
156

Foreign tax credit adjustment
(RR 432) 270; (RR 533)

413; (RR 534) 414
Ship operator, subsidized and un-
subsidized operations, Merchant
Marine Act (RR 349) 155
Small business corporation, loan
payment by shareholder-guaran-
tor (RR 288) 319

Nonbusiness expenses, fees paid psy-

chological study organization in
seeking employment (RR 308) 167
Nonresidents:

Alien:

Fellow at U.S. university, stipends
and allowances received (RR
345) 95

Interest on foreign obligations, U.S.
underwriter (RR 516) 264

Citizen:
Author, royalties plus cash (RR
315) 271
Employees' annuities, bona fide

foreign resident (RR 458) 86
Foreign government representatives,
employees, family members (RR
565) 266

United Kingdom convention, pe-
riodic bonus payments, pensions
(RR 478) 490

Obligations:

Instrumentalities of United States:
Rural Telephone Bank (PL 92-
12) 491

U.S. Postal Service (RR 537) 262
U.S. or possessions, Guam, govern-
ment bonds (RR 402) 91

Oil and gas properties:

Intangible drilling and development
costs, advance payment (RR 579)
225

Pipeline easements, depreciation
(RR 448) 130

Optional tax method:
Application, use of table (TD 7117)
5

Husband and wife, separate returns

(TD 7123) 107

Options (See also: Employee stock
options):

"Put", premiums paid by purchaser
(RR 521) 313
Overpayments:

Foreign tax credit carryback:
Interest computation (RR 534)
414

Limitation period (RR 533) 413
Joint returns, divorce and remar-
riage (RR 324) 410

Partnerships:

Bankruptcy, operating loss and lia-
bility increase in prior year (RR
301) 256

Death of partner, retirement bene-
fits, payments to surviving spouse
(RR 507) 331

Indiana gross income tax (RR 278)
75

Limited, professional service orga-
nization, tax classification (RR
434) 430

Patronage dividends (See: Dividends)
Payment of tax:

Private foundations, extension of
time (RP 41) 577

Penalties:

Exempt organizations and trusts, re-
turns and reports, failure to file
(TD 7127) 424

Failure to file returns, community
income renounced by wife (CD
1947) 419

Failure to pay or deposit tax (TD
7133) 415

Pension trusts (See: Employees' plans;
Self-employed plans)

Period of limitation (See: Limitation
period)

Personal expenses:

Fees paid psychological study orga-
nization in seeking employment
(RR 308) 167

Personal holding companies:
Dividends received, affiliated group

bank member (RR 531) 242
Royalty income, sub-processing con-
tract, secret formula (RR 596)
242

Personal holding companies-Con.
Stock exchange member corporation
(RR 372) 241

Pollution control facilities:

Amortization of facilities, time for

making election (TD 7135) 154
Private foundations (See: Exempt or-
ganizations)
Property:

Community (See: Community prop-

erty and income)

Section 38 (See: Investment credit)
Section 1245 (See: Sales or ex-
changes)

Public utilities:

Change of accounting methods,
meter reading and billing cycle
(RR 429) 217
Depreciation,

asset depreciation
range system, regulations (TD
7128) 132

Publicity of information:

Exempt organizations, returns and
annual reports (TD 7122) 393
Railroads:

Grading and tunnel bores, amortiza-
tion (TD 7140) 157

Rates:

Tax tables (TD 7117) 5
Real estate (See also: Residence):
Installment sales, seller's note can-

celled (RR 515) 222
Loans, FHLMC participation certi-
ficates (RR 399) 433
Maintenance and upkeep expenses
(RR 475) 304

Real estate investment trust:

Investment in U.S. Postal Service
obligations (RR 537) 262
Qualification:

Investment in air rights (RR
286) 263

Two classes of shares of beneficial
interest (RR 405) 263
Records (See: Books and records)
Redemption of stock and bonds:

Death taxes, related corporations,
stock owned by estate (RR 527)
174

Exchange for stock contributed, pre-
arranged plan (RR 336) 299
Family corporation, termination of
interest (RR 562) 173
Related corporations, stock for cash,
basis (RR 563) 175

Redemption of stock and bonds-
Continued

Voting trustee position retained, ter-
mination of interest (RR 426)
173

Refunds and credits:

Interest, foreign tax credit carry-
back (RR 534) 414
Limitation period, foreign tax credit
carryback (RR 533) 413
Overpayments, joint returns, divorce
and remarriage (RR 324) 410
Regulated investment companies:
Investment in U.S. Postal Service
obligations (RR 537) 262
Stock, average basis, election (TD)
7129) 299
Regulations:

26 CFR 1.1, 1.1-1, 1.2, 1.2-1, 1.2-2,
1.3, 1.3-1, 1.5, 1.511, 1.511-1,
1.632, 1.632-1, 1.641(a),
1641(a)-1, 1.1304, 1.1304-2,
1.1347, 1.1347-1, 1.6015, 1.6015
(a)-1, amended; 1.1-2, 1.1-4, de-
leted; 1.1-3 amended and redesig-
nated 1.1-2, 1.1-5 redesignated
1.1-3; tax rate tables, declarations
of estimated tax (TD 7117) 5
26 CFR 1.4, 1.4-3, 1.141, 1.141-1,
1.143, 1.143-1, 1.144-1, 1.144-2,
amended; low income allowance
and standard deduction (TD
7123) 107

26 CFR 1.46, 1.46-2, 1.47, 1.47-3,
1.48, amended; 1.49 added; ter-
mination of investment credit
(TD 7120) 276

26 CFR 1.67-1, 1.677 (a) -1.677
(b)-1, amended; trust income for
benefit of grantor's spouse or his
spouse, charitable remainder uni-
trust (TD 7148) 251

26 CFR 1.78-1, 1.902-3, 1.959-4,
1.963-3, amended; 1.960 through
1.960-6, 1.964-5, added; foreign
tax credit, controlled foreign cor-
porations (TD 7120) 276
26 CFR 1.79-1, amended; group-

term life insurance purchased for
employees (TD 7132) 89
26 CFR 1.123, amended, 1.123,

1.123-1, added; amounts received
under insurance contracts for cer-
tain living expenses (TD 7118)
105

Regulations Continued

26 CFR 1.152-4, amended; children
of divorced or separated parents,
evidence of support (TD 7145)
115

26 CFR 1.167(a)-11, 1.167(1)−5,
added; depreciation, asset depre-
ciation range system (TD 7128)
132

26 CFR 1.169-4, amended; pollu-
tion control facilities, amortiza-
tion, time for making election (TD
7135) 154

26 CFR 1.179-1, amended; 1.187,
1.187-2, added; election to amor-
tize certified coal mine safety
equipment (TD 7137) 161
26 CFR 1.185 through 1.185-3
added, amortize railroad grading
and tunnel bores (TD 7140) 157
26 CFR 1.278, 1.278-1, amended;
capital expenditures incurred in
planting and developing citrus and
almond groves (TD 7136) 171
26 CFR 1.401-3, amended; integra-
tion of qualified plans with Social
Security Act (TD 7134) 200
26 CFR 1.596, 1.596–1, added; divi-
dends received deduction, limita-
tion (TD 7149) 245

26 CFR 1.642 (c)-5, 1.642 (c) -7,
amended; pooled income fund,
definition, termination of life in-
come interest, transitional period
extended (TD 7125) 249

26 CFR 1.1001, 1.1001-1, 1.1014-5,
1.1014-6, 1.1015-1, amended;
term interests in property, sales or
other dispositions (TD 7142)
295