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PART I.

INCOME TAX ON INDIVIDUALS.

[The section numbers refer to the statute and the article numbers to the regulations.]

Section 210. Normal tax
Article 1. Income tax on individuals..

2. Normal tax....
3. Persons liable to tax..

4. Who is a citizen...
Section 211. Surtax.
Article 11. Surtax..

12. Computation of surtax....

13. Surtax on sale of mineral deposits.
Section 212. Net income defined.
Article 21. Meaning of net income..

22. Computation of net income.
23. Bases of computation
24. Methods of accounting.
25. Accounting period.....

26. Change in accounting period....... Section 213 (a). Gross income defined: inclusions Article 31. What included in gross income..

32. Compensation for personal services...
33. Compensation paid other than in cash.
34. Compensation paid in notes...
35. Gross income from business.
36. Long term contracts..
37. State contracts..
38. Gross income of farmers..
39. Sale of stock and rights..
40. Sale of patents and copyrights...
41. Sale of good will....
42. Sale of personal property on installment plan..
43. Sale of real estate in lots....
44. Sale of real estate involving deferred payments.
45. Sale of real estate on installment plan.
46. Deferred payment sales of real estate not on installment plan..
47. Annuities and insurance policies ....
48. Rent and royalties....
49. Compensation for loss.
50. Replacement fund for losses..
51. Forgiveness of indebtedness.
52. When included in gross income.
53. Income not reduced to possession.
54. Examples of constructive receipt.

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Section 213 (b). Gross income defined: exclusions
Article 71. What excluded from gross income.

72. Proceeds of insurance..

73. Gifts and bequests..

74. Interest upon State obligations..

75. Dividends and interest from federal land bank and national

farm loan association...

76. Dividends from federal reserve bank..

77. Interest upon United States obligations.

78. Liberty bond exemption from normal tax in 1918...

79. Liberty bond exemption from surtax and war profits and excess

profits tax in 1918..

80. Liberty bond exemption after December 31, 1918.

81. Liberty bond exemption in the case of trusts...

82. Liberty bond exemption in the case of partnerships and per-

sonal service corporations...

83. Income of foreign governments.

84. Income of States...

85. Compensation of State officers.

86. Compensation of soldiers and sailors..

87. Income accruing prior to March 1, 1913.

88. Subtraction for redemption of trading stamps.

Section 213 (c). Gross income defined: nonresident alien individual..

Article 91. Gross income of nonresident alien individuals.

92. Income of nonresident alien individuals not subject to tax..

93. Income of nonresident aliens from United States bonds.

Section 214 (a) (1). Deductions allowed: business expenses.

Article 101. Business expenses.

102. Cost of materials.

103. Repairs...

104. Professional expenses..

105. Compensation for personal services..

106. Treatment of excessive compensation.

107. Bonuses to employees..

108. Pensions..

109. Rentals..

110. Expenses of farmers..

111. When charges deductible.

Section 214 (a) (2). Deductions allowed: interest.

Article 121, Interest......

122. Interest on capital..

Section 214 (a) (3). Deductions allowed: taxes.

Article 131. Taxes....

132. Federal duties and excise taxes.

133. Taxes for local benefits.

134. Inheritance taxes.

Section 214 (a) (4), (5) and (6). Deductions ailowed: losses..

Article 141. Losses....

142. Voluntary removal of buildings.

143. Loss of useful value......

144, Shrinkage in securities and stocks..

145. Losses of farmers...

Section 214 (a) (7). Deductions allowed: bad debts

Article 151. Bad debts......

152. Examples of bad debts..

153. Worthless mortgage debt..

154. Worthless securities...

Section 214 (a) (8). Deductions allowed: depreciation

Article 161. Depreciation....

162. Depreciable property.

163. Depreciation of intangible property....

164. Capital sum returnable through depreciation allowance.

165. Method of computing depreciation allowance...

166. Modification of method of computing depreciation.

167. Depreciation of patent or copyright.

168. Depreciation of drawings and models.

169. Charging off depreciation. ...

170. Closing depreciation account.

171. Depreciation in the case of farmers.

Section 214 (a) (9). Deductions allowed: amortization.

Article 181. Scope of provision for amortization.

182. Property cost of which may be amortized.

183. Cost recoverable through amortization.

184. Cost which may be amortized.

185. Method of amortization....

186. Additional requirements for amortization..

187. Redetermination of amortization allowance.

188. Information to be furnished by taxpayer.

Section 214 (a) (10). Deductions allowed: depletion

Article 201. Depletion of mines, oil and gas wells..

202. Capital recoverable through depletion allowance in the case of

owner..

203. Capital recoverable through depletion allowance in the case

of lessee...

204. Apportionment of deductions between legsor and lessee.

205. Determination of cost of deposits......

206. Determination of fair market value of deposits...

207. Revaluation of deposits not allowed......

208. Determination of quantity of ore in mine..

209. Determination of quantity of oil in ground..

210. Computation of allowance for depletion of mines and oil wells..

211. Computation of allowance for depletion of gas wells.

212. Gas well pressure records to be kept..

213. Computation of allowance where quantity of oil or gas uncer-

tain...

214. Computation of depletion allowance for combined holdings of

oil and gas wells...

215. Depletion of mine based on advance royalties..

216. Depletion and depreciation accounts on books..

217. Statement to be attached to return where depletion of mine

claimed...

218. Statement to be attached to return where depletion of oil or

gas claimed...

219. Discovery of mine...

Section 214 (a) (10). Deductions allowed: depletion-Continued. Page.

Article 220. Discovery of oil and gas
wells...

79

221. Proof of discovery of oil and gas wells..

80

222. Charges to capital and to expense in the case of mine....

80

223. Charges to capital and to expense in the case of oil and gas

wells...

81

224. Depreciation of improvements in the case of mine..

81

225. Depreciation of improvements in the case of oil and gas wells. 82

226. Depletion and depreciation of oil and gas wells in years before

1916..

82

227. Depletion of timber..

83

228. Capital recoverable through depletion allowance in the case of

timber....

83

229. Computation of allowance for depletion of timber.

83

230. Revaluation of stumpage not allowed

83

231. Charges to capital and to expense in the case of timber..

84

232. Depreciation of improvements in the case of timber....

84

233. Statement to be attached to return where depletion of timber

claimed.....

84

Section 214 (a) (11). Deductions allowed: charitable contributions. 85

Article 251. Charitable contributions.....

85

Section 214 (a) (12). Deductions allowed: loss in inventory.

86

Article 261. Losses in inventory and from rebates .

86

262. Loes from rebates.

86

263. Loss in inventory..

87

264. Loss where goods have been sold..

87

265. Loss where goods have not been sold..

87

266. Claims....

87

267. Disposition of claims..

88

268. Effect of claim in abatement...

Section 214 (b). Deductions allowed: nonresident alien individual... 89

Article 271. Deductions allowed nonresident alien individuals..

89

Section 215. Items not deductible

89

Article 291. Personal and family expenses.

89

292. Traveling expenses..

90

293. Capital expenditures ..

90

294. Premiums on business insurance.

91

Section 216. Credits allowed. ...

91

Article 30). Credits against net income.

92

302. Personal exemption of head of family.

92

303. Personal exemption of married person.

92

304. Credit for dependents....

93

305. Date determining exemption..

93

306. Credits to nonresident alien individuals.

93

307. When nonresident alien individual entitled to personal exemp-

tion.....

94

Section 217. Nonresident aliens-Allowance of deductions and credits 95

Article 311. Allowance of deductions and credits to nonresident alien in-

dividual..

95

312. Who is a nonresident alien individual.

95

313. Proof of residence of alien...

96

314. Loss of residence by alien..

96

315. Duty of employer to determine status of alien employee.. 96

316. Allowance of personal exemption to nonresident alien em-

ployee...

97

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