798 INC OME TAX Transfers for value. Value of g ifts, etc . Int erest on Stat e, etc ., bonds. Farm loa n bonds . Federal, etc ., obliga- tions. Statement requi.ed in returns . Limitation on Li b- erty bond s, e tc . Payments for per- sonal injuries or sick- ness . Amounts received as World War c ompensa- tion payments, or pen- sions . Dividends, etc., from domes tic b uild ing a sso- ciation3. Limit . Rent of ministers' dwelling . Miscellaneous items. Post, p. 823 . SEVENTIETH CONGRESS . SESS. I. CH. 852. 1928. on such amounts) under a life insurance, endowment, or annuity contract, but if such amounts (when added to amounts received before the taxable year under such contract) exceed the aggre- gate premiums or consideration paid (whether or not paid during the taxable year) then the excess shall be included in gross income. In the case of a transfer for a valuable considera- tion, by assignment or otherwise, of a life insurance, endowment, or annuity contract, or any interest therein, only the actual value of such consideration and the amount of the premiums and other sums subsequently paid by the transferee shall be exempt from taxation under paragraph (1) or this paragraph ; (3) GIFTS, BEQUESTS, AND DEVISES .-The value of property acquired by gift, bequest, devise, or inheritance (but the income from such property shall be included in gross income)
(4) TAX-FREE INTEREST .-Interest upon (A) the obligations of a State, Territory, or any political subdivision thereof, or the District of Columbia ; or (B) securities issued under the provisions of the Fed er al Fa rm Lo an Ac t, or under the provi- sions of such Act as amended ; or (C) the obligations of the United States or its possessions . Every person owning any of the obligations or securities enumerated in clause (A), (B), or (C) shall, in the return required by this title, submit a state- ment show ing the number and amount of such obligations and securities owned by him and the income received therefrom, in such form and with such information as the Commissioner may require. In the case of obligations of the United States issued after September 1, 1917 (other than postal savings certificates of deposit), the interest shall be exempt only if and to . the extent pro vided in the res pective Acts aut horizing the iss ue there of as amended and supplemented, and shall bs excluded from gross income only if and to the extent it is wholly exempt to the taxpayer fr om income taxes ; (5) COMPEN SATION FOR I NJURIE S OR SICKNESS .-Amounts received, through accident or health insurance or under work- men's compensation acts, as compensation for personal injuries or sickness, plus the amount of any dam ag es received whether by suit or agreement on account of such injuries or sickness ; (6) PENSIO NS AND WORLD WAR C OMPENS ATION PAYMENT S . - Amounts received as compensation, family allotments and allow- ances under the provisions of the War Ri sk In suran ce and the Vocational Rehabilitation Ac ts or the Wo rld War Veterans' Act, 1924, or as pensions from the United States for service of the beneficiary or another in the military or naval forces of the United States in time of war, or as a State pension for services rendered by the beneficiary or another for which the State is paying a pension ; (7) BUILDING AND LOAN ASSOCIATIONS .-The amount received by a n indivi dual as dividends or inte rest fro m domest ic build ing and loan associations, substantially all the business of which is confined to making loa ns to members, but the amount excluded from gross inc ome under this paragraph in any taxable year shall not exce ed $300 ; (8) MINISTERS .-The rental value of a dwelling house and appurtenances thereof furnished to a minister of the gospel as part of his compensation ; (9) MIS CELLANEOUS ITEMS .-The following items, to the extent provided in section 116 : Earned income from sources without the United States ; Salaries of certain Territorial employees ; The income of foreign governments
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