See Estates and trusts: In general the same provisions of the

law applies to fiduciaries, estates and trusts as applies to
individuals. Any particular provisions on which information
is required, should be sought under the appropriate heads

of this index.
Filing annual return of income (see Returns)
Fiscal year (see Accounting period and Returns, Partnerships)
Foreign items, license required for collection..102
Foreign corporations

Deduction at the source. . 139
Deduction from net income. . 137
Interest on indebtedness. . 138
Tax-free covenant. . 140
Tentative return. . 145

See Corporations, Returns, etc.
Foreign partnerships (see Non-resident alien individuals)
Foreign taxes, allowed non-resident alien..81
Gain or Loss

Basis of..15
Exchange of property..15
Inventory value..15
Market value or cost..15

On sales by corporation. . 128
Gift, exemption of property acquired by..32
Gross income

Corporations. . 139

Definition..14 Guardian (see Estates and trusts, Fiduciaries) "Head of family"

Definition..11

Dependents.. 12 "Holding companies”. .74 Husband and wife

Joint returns by..103

See Personal exemption, Returns
Income, exempt (see Exempt income)
Income, gross (see Gross income)
Income, net (see Net income)
Income tax laws, previous..2
Income tax (see note under Tax)
Income tax paid, no longer deductible in computing net income

Corporation. . 124
Individual. .46, 54

Individual, every, subject to tax..3, 103
Individuals—The Income Tax Law relates in general to either

individuals or corporations. Special provisions apply to individuals to be sought under their appropriate heads. That portion of "Analysis and Comment” relating to individuals is in

cluded in Sections 1-116 “Information at the source"

Applied to interest on domestic corporations, securities..98
Brokers' returns. .100
By non-taxable organizations. . 122
On bond, etc. interest..99
On payment of $1,000..98
Stockholders lists and dividend records. . 101
United States Government issues..43

When inaugurated..99
Inspection of returns (corporate)..152
Installment, taxes paid by (see Returns)..147
Insurance companies, regulations for..136
Insurance premiums, not deductible..46, 130
Interest accrued on bonds, tax paid by whom..16
Interest on indebtedness in general deducted by

See Exempt income
Domestic corporations. . 130

Individuals..46
Interest on indebtedness
Incurred in purchasing exempt securities.. 46, 130

(see Exempt income).
Interest on "municipal etc., bonds” (see Exempt income)
Inventories

Commissioner's ruling as to..17
Cost or market value. .17
“Dealer in securities”.. 17-18
Tax returns..17

Under 1918 Law..18
Inventory value, in determining gain or loss..15

When and how exempt as to interest..37, et seq.
Liberty Loan bonds

When and how exempt as to interest et seq..37

Information at the source. .43
License for making foreign collections. .102
Life insurance companies (see Insurance companies)
Life insurance premium, not deductible..46, 130
Loss (see Gain or loss)
Losses

Computation of, (see Gain or loss)
Deductions from net income. . 46-53, 130
Casualty or theft

See Gain or loss
Losses in trade”

Claim in abatement and inventory loss..51-2
In 1919..52
In taxpayer's business “Net loss”..50

Outside taxpayers business, on account of the war..53
Market value, basis of determining gain or loss..15
Mergers (see Gain or loss)
Method of computing tax, Example No. 1..Page 21
Minors, returns by and for. .104
"Municipal bonds” etc., tax exemption of

Interest on..34, 124
Must be reported..36, 126
Partnerships..66

See Exempt income “Net income”

Corporations. .130
Deductions from..47
Individuals..47
Definition of..45
Non-resident alien partnerships..65
Personal service corporation. .69-70
What not deductible..46

See Estates and trusts
“Net loss," deductions from net income. .50
Non-resident alien individuals

Agents may act for..83
Amount of tax deducted at source. .91-2
Basis of taxation..75
Deduction at the source applies..91
Deduction..46, 78
Distinguished from citizen or resident. .76
Gross income. .77
Liability of..5
Personal exemption..9, 82
Previous laws..75
Rates of tax..76
Returns of..82
Subject to surtax..5
Taxable income of..75
See “Deduction at the source"

“Information at the source,” Returns
Tax-free covenant

Non-resident alien partnership, "deduction at the source"..93
Normal tax

Basic tax..8
In 1918..3
In 1919..4
Non-resident alien..5, 75
Personal exemption,. . 10-13

Under previous laws..2
Optional methods of payment (see Returns)
Optional payment of tax in advance (see Returns)
Organizations (see Corporations)
Partners, taxable individually..65
Partnerships

Ascertaining net income..66
Exempt income..66
Must file returns..65
Non-taxable as such..65
Partners taxable individually..65
Previous laws..64
1918 Law..65

Returns. . 106
Paying agents--Attention is called especially to the following gen-

eral heads in this index which affect paying agents:
. “Deduction at the source"

"Information at the source"

Foreign collections, license for making
Payment of tax (see Returns)
Personal exemption

Dependent persons, on account of..10
Estates and trusts..60
"Head of a family"..10
Husband and wife. .10
In computing normal tax only..13
In 1918..9-10
Married or unmarried persons..10
Non-resident aliens..82
Under earlier laws..10

See Returns
Personal exemption, claim for, in deduction at the source..97
Personal service corporation

Definition of..69
Dividends. . 24, 71
Members taxable..70

Not taxable in general..69-70
Philippine Islands, income tax applied in. .158

Place of return 113
"Political subdivision”

Definition of..35

Income exempt..35
Porto Rico, income tax applied in. .158
Possessions of the United States, income tax of citizens of..157-8
Preferred stock, not interest bearing indebtedness..134.
Preliminary returns by corporations. .144
Premises owned, deduction of rental value not allowed..46, 130
Premiums on life insurance policy not deductible..46, 130
President, salary not exempt..33
Public officials, when the compensation may be exempt. .33
Public utility income (see Exemptions)
Rates of tax

Applying to individuals, Table No. I.. Pages 18-20
Average rates of tax on taxable incomes up to $100,000, Chart

A..Page 22
Average rates of tax on taxable incomes up to $2,000,000, Chart

B.. Page 23
Corporations. . 119
In previous years..2
In 1918..3
In 1919..4

Normal and basic..2-4
Receipts, to be issued on request. . 149
Receiver makes return of income (see Corporations, Returns)
Refund provision, in 1918 Law..151
Rental value of premises owned not deductible. .46, 130
Reorganization, merger, etc. (see Gain or loss)
Residents (see Citizens or residents)
Returns

Accounting period. . 108-111
Annual returns, when and how made.. 103
By agent..105
By every individual. . 104
By fiduciary..59
By non-resident alien individual..82
Consolidated..142
Examination of..148
Extension of time. . 114
Farmers.. 107
Foreign corporations. . 145
Husband and wife, . 103
Inspection of..152
Joint. . 103