Internal Revenue Service—Continued Income and excess profits taxes regulations (1939 IRC)-Continued Income tax; taxable years beginning after December 31, 1951, 26 Part 39-Con. Emergency facilities, amortization §§ 39.124A (a)–39.124A (i) Estates and trusts, 26 § 39.172-1 deductions for, 26 Employees' pensions, annuities, etc.; employers' contributions to. See Contributions. Expenses, 26 §§ 39.23 (a)-1-39.23 (a)-15 Business, trade, banking corporations, professional, farm ers, etc., 26 §§ 39.23 (a)-1-39.23 (a)-14 Corporate charitable contributions, 26 § 39.23 (a)–13 26 §§ 39.23 (a)-6-39.23 (a)-9 Medical, dental, etc., expenses, 26 § 39.23 (x)-1 Unpaid expenses not deductible, 26 §§ 39.24 (c), 39.24 (c)−1 Insurance; certain items not deductible: Business insurance premiums, 26 § 39.24 (a)-3 Single premium life or endowment, 26 § 39.24 (a)–5 Insurance companies, other than life or mutual, 26 § 39.204 Interest, 26 § 39.23 (b)-1 Unpaid interest not deductible, 26 § 39.24 (c)-1 Life or terminable interests not deductible, 26 § 39.24 (d)-1 Limitations on deductions allowable to individuals in certain cases (where deductions exceed gross income in five consecutive years by more than $50,000), 26 § 39.130–1 Losses: Bad debts. See Bad debts. Basis for determining, 26 § 39.23 (i) By corporations, 26 § 39.23 (f)-1 By farmers, 26 § 39.23 (e)-5 By individuals, 26 §§ 39.23 (e)-1-39.23 (e)-5 Capital losses, 26 § 39.23 (g) Net operating loss deduction, 26 §§ 39.122-1-39.122-5, 39.170-1 Nondeductible losses; sales or exchanges between certain classes of persons, 26 § 39.24-6 Wagering losses, 26 § 39.23 (h)-1 Medical, dental, etc., expenses, 26 § 39.23 (x)-1 Mines or other natural deposits: Depletion, 26 §§ 39.23 (m)-1-39.23 (m)-28, 39.114 Expenditures for discovery or exploration, 26 § 39.23 (ff)−1 Mutual savings banks. See Banks. Net operating loss deduction, 26 §§ 39.122, 39.170 Capital expenditures, personal expenses, insurance pre- Farm crops, unharvested, sold with land; expenses attributable to, 26 § 39.24 (f) Life or terminable interest, 26 § 39.24 (d) Losses from sales or exchanges of property, 26 § 39.24 (b) Internal Revenue Service-Continued Income and excess profits taxes regulations (1939 IRC)-Continued Continued Standard deduction; election, etc., 26 § 39.23 (aa)-1 Stock, tax on; taxes of shareholders paid by corporation, 26 § 39.23 (d) Taxes: Capital items not deductible, 26 § 39.24 (a)-6 Federal and local taxes, 26 §§ 39.23 (c)-1-39.23 (c)-3 Dependents, credit for, 26 § 39.25-2 (e) Depletion: Basis for allowance for, 26 §§ 39.114-1, 39.117 (k)-1 See also Depletion. Basis for allowance for, 26 §§ 39.113 (d)-1, 39.114-1 Distributions (dividends, etc.), by corporations, 26 §§ 39.115 (a)– Emergency facilities, amortization deduction for, 26 §§ 39.124A39.124A (i)-1 Estates and trusts, 26 § 39.172-1 Employee stock options, 26 §§ 39.130A-1-39.130A-5 Employees' trusts, pension and annuity plans, etc.; employers' contributions to, 26 §§ 39.23 (p)-1-39.23 (p)-12 Exclusions from gross income, 26 §§ 39.22 (b)-39.22 (b) (16), 39.116-39.116-6 Alimony payments, 26 § 39.22 (k)−1 Annuities, 26 §§ 39.22 (b) (2)-2-39.22 (b) (2)-5 Armed forces, members of: Additional allowance for, 26 § 39.22 (b) (13)-1 Mustering-out payments of, 26 § 39.22 (b) (14)-1 Bridges acquired by State or political subdivisions, income from, 26 §§ 39.116 (e), 39.116-3 Child, income from services of, 26 § 39.22 (m)-1 China Trade Act corporation, dividend from, 26 §§ 39.22 (b) (8), 39.116 (f) Cost-of-living allowances, 26 §§ 39.116 (j), 39.116-4 Earned income from sources outside United States, 26 §§ 39.22 (b) (8), 39.116 (a), 39.116-1 Exploration, mining, etc., for defense purposes, payments to encourage, 26 § 39.22 (b) (15) Federal or State obligations, interest or dividends on, 26 §§ 39.22 (b) (4)-1-39.22 (b) (4)-6 Foreign governments, international organizations, and their employees; income of, 26 §§ 39.22 (b) (8), 39.116 (c), (h), 39.116-2 Foreign Service personnel, certain allowances of, 26 §§ 39.116 (k), 39.116-5 Gifts, bequests, etc., 26 § 39.22 (b) (3)-1 Improvements by lessee on lessor's property, value of, 26 § 39.22 (b) (11)-1 Indebtedness, discharge of; income from, 26 §§ 39.22 (b) (9)- Injuries or sickness, compensation for, 26 § 39.22 (b) (5) Life insurance, annuities, etc., 26 §§ 39.22 (b) (1)-1-39.22 (b) Ministers; rental value of house furnished as part of compen sation, 26 § 39.22 (b) (6) Internal Revenue Service-Continued Income and excess profits taxes regulations (1939 IRC)-Continued Income tax; taxable years beginning after December 31, 1951, 26 Part 39-Con. Puerto Rico, income from sources within, 26 §§ 39.116 (1), 39.116-6 Railroad corporation; discharge of indebtedness, 26 § 39.22 (b) (10)-1 Recovery of bad debts, prior taxes, etc., previously deducted, 26 § 39.22 (b) (12)-1 Shipowners' protective and indemnity associations, nonprofit; receipts, 26 §§ 39.22 (b) (8), 39.116 (g) Sports program conducted for American National Red Cross, 26 § 39.22 (b) (16) States, municipalites, etc.: Bridges; exclusion of certain income from gross income, 26 § 39.116 (e) Income from public utility or government function, 26 § 39.116 (d) Obligations of; interest on, 26 § 39.22 (b) (4)-1 Territorial employees, compensation of, 26 § 39.22 (b) (8) Gain or loss: Capital gains and losses, 26 §§ 39.117 (a)-39.117 (p)-1 Coal, disposal of, 26 §§ 39.117 (k), 39.117 (k)-1 Holding period of property, 26 §§ 39.117 (h), 39.117 (h)-1 Sales or exchanges between, 26 § 39.117 (0)-1 Involuntary conversions, 26 §§ 39.117 (j), 39.117 (j)−1 Livestock for draft, breeding, or dairy purposes, 26 § 39.117 (j)-2 Securities; sale or exchange by dealers, 26 §§ 39.117 (n), 39.117 (n)-1 Wash sales, 26 §§ 39.118, 39.118-1 Short sales, 26 §§ 39.117 (g), 39.117 (g)-1, 39.117 (1) -1 Gain attributable to amortization deduction, 26 § 39.117 (g)−2 Termination payments to employees, 26 §§ 39.117 (p), 39.117 (p)-1 Timber, cutting and disposal of, 26 §§ 39.117 (k), 39.117 Computation of gain or loss; general rule, 26 § 39.111-1 Basis for determining gain or loss from sale or other dis- Adjusted basis; cancellation or discharge of indebted ness, etc., 26 §§ 39.113 (b) (1)-1-39.113 (b) (4)−1 Depreciation, etc., allowed before 1952, 26 § 39.113 (d) Property on which lessee has made improvements, 26 § 39.113 (c)-1 Unadjusted basis (property acquired by gift, transfer, exchange, etc.), 26 §§ 39.113 (a)-1-39.113 (a)-23 Internal Revenue Service-Continued Income and excess profits taxes regulations (1939 IRC)-Continued Sales or exchanges, etc., of property-Continued Determination of amount and recognition of gain or loss, 26 §§ 39.112 (a)-39.112 (m)-4 Control of corporation; definition, 26 § 39.112 (h)−1 Exchanges not solely in kind, 26 §§ 39.112 (c)—1— 39.112 (e)-1 Exchanges solely in kind, 26 §§ 39.112 (b)-1-39.112 (b) (11)-2 Federal Communications Commission; gain from sale or exchange pursuant to policies of, 26 §§ 39.112 (m)-1-39.112 (m)-4 Foreign corporations; reorganization or transfer of property to or from foreign corporation, 26 § 39.112 (i)-1 Insolvent corporations, certain, reorganization of; exchanges by securities holders, 26 §§ 39.112 (1)−1, 39.12 (1)-2 Involuntary conversions of property, 26 §§ 39.112 (f)– 1, 39.112 (f)-2, 39.117 (j)−1 Liability, assumption of, not recognized, 26 § 39.112 (k)-1 Reorganizations, mergers, etc., exchanges in connection with, 26 §§ 39.112 (g)-1—39.112 (g)-6 Residence; gain from sale or exchange of, 26 § 39.112 (n)-1 Wash sales of stock or securities, 26 § 39.118-1 War losses, 26 §§ 39.127 (a)-39.127 (f)−1 Gross income: Adjusted gross income, 26 § 39.22 (n)−1 Individuals with adjusted gross income of $5000 or less, tax under Supplement T, 26 §§ 39.400-39.404-1 Dealers in tax-exempt securities, and short-term municipal bonds; treatment of bond premium, 26 §§ 39.22 (0), 39.22 (0)-1 Deductions from. See Deductions. Definitions; various types of compensation or income included Income from sources within or without United States (interest, Last-in first-out inventory method, election of, 26 §§ 39.22 (d)-1-39.22 (d)-7 Of certain groups: Farmers, 26 § 39.22 (c)-6 Livestock raisers, 26 § 39.22 (c)-6 Manufacturers, 26 § 39.22 (c)-7 Miners, 26 § 39.22 (c)-7 Retail merchants, 26 § 39.22 (c)-8 Securities, dealers in, 26 § 39.22 (c)-5 Valuation of (at cost or market), etc., 26 §§ 39.22 (c)—1— Losses: 39.22 (c)-4 Computation of gain or loss. See Gain or loss. Deductions for. See Deductions. War losses, 26 §§ 39.127 (a) -39.127 (f)-1 356055-56 -39 Page 583 Internal Revenue Service-Continued Income and excess profits taxes regulations (1939 IRC)—Continued Income tax; taxable years beginning after December 31, 1951, 26 Part 39—Con. Military and naval personnel. See Armed forces. Net income, meaning of, 26 § 39.21-1 Personal exemption for individuals; credits, 26 § 39.25-2 Wash sales of stocks or securities, loss from, 26 § 39.118-1 Contributions, deductions for. See Computation of net income: deductions. Corporations, provisions applicable to. See Accounting; China Trade Act corporations; Computation of net income; Foreign corporations; Rates of tax; Returns and payment of tax; and Tax-exempt organizations. Courts, District, jurisdiction of: To enforce summons, etc., 26 § 39.3633 To issue orders, processed, and judgments, 26 § 39.3800 Credits against net income. See Computation of net income. For overpayments. See Overpayments. Foreign countries, or possessions of United States, taxes paid to, 26 §§ 39.31, 39.131 (a)-39.131 (j) Tax withheld at source on wages, 26 §§ 39.35-1, 39.35-2 Decedents, income in respect of, 26 §§ 39.126 (a) -39.126 (c)-1 Deficiencies, assessment and collection of, 26 §§ 39.271-39.275-2 Jeopardy assessments, 26 § 39.273-1 Bankruptcy and receivership cases, 26 §§ 39.274-1, 39.274-2 Period of limitation on, 26 § 39.275-2 Payment of deficiencies, extension of time for, 26 § 39.272–3 On assessment of tax, 26 § 39.275-1 Associations, 26 §§ 39.3797-2, 39.3797-3 Classification of taxables, 26 § 39.3797-1 Collectors and directors, internal revenue, 26 § 39.3797-12 Domestic, foreign, resident, and nonresident person, 26 § 39.3797-8 Insurance company, 26 § 39.3797-7 Military or naval forces of United States, 26 § 39.3797-11 Delinquencies: Interest rate; 6%, 26 § 39.3794 Penalties for. See Penalties. Dependents, credits for, 26 § 39.25-2 (e) Depreciation or depletion, deductions for. See Computation of net in- Determinations under income tax laws, adjustments pursuant to. See Distraint proceedings, 26 §§ 39.3690-39.3725 Distributions: By corporations (dividends, etc.); treatment of, in computation of Distributions in obedience to orders of Securities and Exchange |