815 rzmns zo.-1m § $7,780 upon net incomes of·$70,000; and upon net incomes ir excess ot $70,000 and not in excem ot $74,000, 26 per centum in addition" of such excess.~ - · . $8,820 upon net incomes of $74,000; and upon net incomes ix excess of $74,000 and notin excess of $76,000, 27 per centum it gnzdition of such excess. . · ·. 8 ` $9,360 upon net incomes of $76,000; and upon net incomes lr excess of $76,000,nnd not in excess of $80,000, 28 per centum ir sdtlition of such excess. . ` $10,480zupon net incomes or $80,000; and upon net incomes it e·xt·ess of $80,000 and not in excessot $82,000, 29 per centum ix saidition`1 of such excess. 0 _— , $11,0G0·upon net incomes of $82,000; and upon net incomes ix excess oi $82,000 and not in excess tot $84,000, -30 per centum ix sddition of such excess. ,— - lp ~ _ A $11,000 upon net incomes of $84,000; and upon net incomes ix excess of $84,000 and not in excess -01 $88,000, 31 per centum in sddition of such excess. ‘ · L ‘ $12,900 upon net incomes of $88,000; and upon net incgmes. .11 excess of $88,000 and not in excess ot 32 percentum ix · sddition of such- excess. i _ ‘ 9 ‘ ‘ J _ $13,540 uponnet incomes ot $90,000; •nd~ ¤p.m_¤e:.1..eemee in excess of $90,000 and not in excess ot_ $92,000, 33 per centum ix sddition of sqch . _' _· _ · = ' $14,200 upon net incomes of n-$92,000; and—upon net incomes in excess ot .w2,000 und not inexcess of$94,000,, 34 per centum 11 -eddition'o! such éxcessg ‘ _ i ‘ $14,880 upon ,:net incomes of $94,000,; and upon net lncomesi: excess ot $94,000 and not_in excess of $96,090, 85 per centum ix additionot mach excms. _ . . _. . $15,580 upon net incomes of $96,000; und upon net incomes ix excess of $6,000 and not ln excess ot $10(L000, 36 per centun in addition of such excess. _ ’ . · `!_' . $17,020 upon net incomes of $100,000; and upon net income: in excms of $100,000 and not in excess- of $200,000,; 37 peu centum in addition 04 such excess. · · $54,0% upon net; incomes `ot $200,000; and upon net incomes ln excess of $200,00% end not lnexcess ot $900,000,38 pen centum ln`ed=dition·ot such excess. J ‘ ·. · ” Y $92,020 upon net incomes of $300,000; and upon net income: ·ln sexem of$$000,000 and not-lu·—exces¤ ot $500,000, 89 pe: , centum in addition ot meh cxcem. · I - _ " $170,020. upon net incomes of w00,000; and net in comes in excem of $500,000, in addition 40 per centum of ‘ excm ‘ I ‘ .· ‘ .. ·‘ W N ' (b) _In tm ease otsbonn Bde sale oimines, oil or gas wells or sny theneln, where the principal vnlne of the prop exts has been demonstrated by prospectlu or exploration enc discovery work done by the termini. the portion of the ta: lmposcd by this amen attributable to meh, ng shall) no exceed 16 pér centum of the- selling price of shell property oa interest. (June 2, 1924, 4.01 pim., c. E4. { E-1, 43 Btst. 265.] ‘ 953.,Net oenpntstkn; dangeof ting period.- (el In the cose ot nn individual. the term " net income" menu: the gross inc@e as dedned in section %4 of this title, less tls d ons n1lowed·by"°'sectle¤,%7 and W5. » ~ , (bl The not income shall he computed upon ® basis of tn. taxpayer': annual period (Mal yur or enlends: year., ss themes may .be)· in-sccord&.wr1th the method e accounting regularly enaploym In books of mc} taxpayer; but it do such method of noeountim hes been su employed. cs- it tm mthod employm mt eleirly redeethe income, the eommtstion in wit! .mch what ns in the muon of ._ ot Interns . Revenue dom clarlj rolled the ·H the tsxpcyef: tunnel noeonntiw wid lsothu than an Mcnlyur undoing
WRNAL REVENUE § 954 n in section $31 or if the taxpayer has no annual accounting n period or does not keep books, the net income shell be computed on the basis ot the calendar year; 1 (c) It n taxpayer changes his accounting period from nsoal 1 year to cnlendnryear, from calendar yearyto fiscal year, or from — one fiscal year to another,. the net income shall; Qwith the ap- , proval of the Said commissioner, be computed on the basis 01, I such new accounting period, subject to the provisions of section 968. (June 2, 1924, 4.01 —p. om., c. 234,] 212, 43_Stat. 267.) I ·· 954. Gross income; what included; what not included.-5For 1 the purposes of this chapter, except as otherwise provideq in section 985. · ‘ ’ _‘ , ' 1 · (a) The term " gross incon1e" includes gains, pronto, and I incomei derived from salaries, wages or compengtion io: personal service >»(includ1~ng in the ease ole the ‘Pre§de¤t or tne 1 United States, the judges of the Supregne and inferior eonfts I of the United Sto.tes,' and all, other tmcers and employees, whethertelected for appointed, of the United States, Alaska, 1 -Hawaii, or- any political subtuvision thereof, or the Distrlet of 1 Columbia, the compensation received as such); ot whatever kind and in whétever fomn paid, or from professions, vocntiom, trades, businesses, commerce, or sales, o1·,deali_ngs in property, ° whether. real or personal, growing out'· of the ownership or in use of or interest in such property; nlso from interest, rent, _ dividends; securities, or or the tynmction of any buesinws can ’ ried on tor? gain or pront, or or pronto and income derived ’_ fron? any source whatever. · The amount of all such- items shall be includéé in the gross. income for the taxable yen: in ’ which received by the' tanjmyer, unlem; under. metnodf of 1 uaocounting permitted, under- subdivision P `(b) of section 953, any such amounts are to. be properly accounted for as {ot a 1 different period. __ ( ` . _ J ‘ Y ;’ -» ¤ _(‘b) ,The term “gross ~incorne" does not include the foIIowlng items, which shall We exempt from `taxntion under this actmptcr:"» . ·‘ ’ ‘· l‘* A (1) The proceeds of lite insurance policies paid upon the ‘deat,h.ot the insured; _ _ ’ ·¤ " sr . (2) The amount received by the insured an n return of r premium q1·‘p¤·em1—¤m¤ paid tiy him under lite insura&e, endowment, or annuity contrnetsi either during the term or as s the. maturity of the term mentioned an the contract or upon r surrender of the contract; .- — . ” (3) 'Im vnme of property acquired by gift, boquwt, devix, 9 or descent (but the income from such property shall be in- 1 eluded in gxoss·income)»;, _ - ‘ · (4) Interest upon _(A) the obligations of n State,ET‘erritory‘, n, or any political subdivision thereof, or the District of Colum- ··· bin: or (B) esecurities-issued' under the provisions of chapters 1 7. and 8 of Title 12_ (the Federal Farm Loon Act) ; or (C) the t obligations of the ;Unite<1 States. or its possesstons. Every t person ownmgrmy of the obligations or securities enumerated r in clause (A), (B), or (C) shall, in tHe return required by r mis, chugiter, submit; at statement showing the nnnzmr and - amonnt of such obligations and securities owned by him and so the income received therefrom, in such rom: and with such a infomation as the. Commingsioner of Internal Revenue rnny _ require. In the case of obligations of the United States issued B after September _1. 1917 (other ltbnn postal savings eertmentes r ot enosit), the Qinterest ebelt be exempt only_i1' and to ,the I exte t provided in the respective. Acts authorizing the issue 1 the I ¤¤‘¤mom1n21.nnoe supplemented;;and· shall beexcluded o fu nz gross income only if and to ,tne extent it is wholly ext `empt to the taxmyer`t3·om income. mxes; _ p t_ — r (5) ;Tho'·’ income ot foreign `governments received from in- 1 memo .i_n' the United States an stocks,. bonds, or other dos xneetie peenrities, owned by ench foreign governments, or from I interest on depwits in · banks in the United States of moneys
