SEVENTIETH CONGRESS . SEss . I . CH. 852. 1928 . on such annual basis as the number of months in such period is of twelvee months . (d ) Cap ital net gains and loss es-ea rner inco me .-The Commis - sioner with the approval of the Secretary shall by regulations prescribe the method of applying the provisions of subsections (b) and (c) (relating to computing income on the basis of a short period, and placing such income on an annual basis) to cases where the taxpayer makes a separate return under subsection (a) on account of a change in the accounting period, and it appears that for the period for which the return is so made he has derived a capital net gain , or sust ained a c apital ne t loss, o r receive d earned income . (e) Reduction of credits against net income .-In the case of a return made for a fractional part of a year, except a return made under subsection (a ), on account of a change in the accounting period, the personal exemption and credit for dependents, and the specific credit for corporations, shall be reduced respectively to amounts which bear the same ratio to the full credits provided as the number of months in the period for which return is made bears to twelve months . (f) Closing of taxable year in case of jeopardy .-For closing of taxable year in case of jeopardy, see section 147 . SEC . 48 . DEFINITIONS . When used in this title- (a) Taxable year .-" Taxable year " means the calendar year, or the fiscal year ending during such calendar year, upon the basis of which the net income is computed under this Part . " Taxable year " includes, in the case of a return made for a fractional part of a year under the provisions of this title or under regulations pre- scribed by th e Comm ission er wit h the approva l of t he Sec retary , the period for which such return is made . The first taxable year, to be called the taxable year 1928, shall be the calendar year 1928 or any fiscal year ending during the calendar year 1928 . ( b ) F is ca l y e ar .-" Fiscal year" means an accounting period of twelve months ending on the last day of any month other than December. (c) Paid, incurred, accrued .-The terms "paid or incurred" and "paid or accrued" shall be construed according to the method of accounting upon the basis of which the net income is computed under this Part . Part V-Returns and Payment of Tax SEC . 51 . INDIVIDUAL RETURNS . (a) Requirement .-The following individuals shall each make under oath a return stating specifically the items of his gross income and the deduc tions and cr edits allowe d under this title- (1) Every individual having a net income for the taxable year of $1,500 or over, if single, or if married and not living with husband or wife ; (2) Every individual having a net income for the taxable year of $3,500 or over, if married and living with husband or wife ; and (3) Every individual having a gross income for the taxable year of $5,000 or over, regardless of the amount of his net income . 807 INCOME TAX Application of capital gain or loss, or earned income. Reduction of per- sonal credits for frac- tions of a year. Closing taxable year . Past, p.835. Definitions . Meaning of terms . "Taxable year ." First taxable year, calendar year 1928 . "Fiscal year ." "Paid or inc urred" and "paid or ac crued ." Returns and pay- ment . Individual returns . Sworn sta teme nt of gross income , deduc- tions, and credits . Net income $1,500 or over, if single, etc . Net income $3,500, if married, and living with husband or wife . Gross income $5,000, or over .
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