srxrrrrrrn CONGRESS. sees. 111. ou. is. 1919. 1065 employed in keeping the books of such taxpayer; but if no such *N°°*¤ *¤- method of acconmting has been so employed, or if the method employed does not clear y reflect the income, the computation shall be made upon such basis and in such manner as in the opinion of the Commissioner does clearly reflect the income. If the tax ayer’s annual accounting period is other than a fiscal year as defigied in section 200 or if the taxpayer has no annual accounting period or does not kee books, the net income shall be computed on the basis of the calendlair year. If a taxpayer changes his accounting period from fiscal year to calendar year, from calendar year to fiscal ear, or from one fiscal year to another, the net income shall, with the approval of the Commissioner, be computed on the basis of such new aecoimting period, subject to the provisions of section 226. onoss mcomm nnrrrvnn. °'°““"’°'“°‘ Sec. 213. That for the purposes of this title (except as otherwise §¤°.,'i,‘fff,Sj‘fo‘§!,‘}d°d‘ provided in section 233) the term "gross income"— (a) Includes gains, profits, and income derived from salaries, wages, m¥;;°g*m P°'S°¤°' S¤'· or compensation for ersonal service (includin in the case of the r&1¤mi¤m¤¤¤,em., President of the Uniteg States, the judges of the Supreme and inferior i°°]°°°d‘ courts of the United States, and all other officers and em loyees, whether elected or appointed, of the United States, Alaska, Ilawaii, or any political subdivision thereof, or the District of Columbia, the compensation received as such), of whatever kind and in whatever form paid, or from (professions, vocations, trades, businesses, com- bm$’ "“d°“· merce, or sales, or ealing in property, whether real or personal, growing out of the owners 'p or use of or interest in such property; I also gem interest, agent, dividends, secméties, or the transacéition oc; dtflffxi "°°’ di"' an usmess earrr on or or ro t, or ams or ro ts an indbme derived from any sourgtifcinwhatfiver. Thg amountlbf all such y.§,'}°,}§',_°L?,‘},§’} tmbb items shall be included in the gross income for the taxable year in which received by the taxpayer, unless, under methods of accounting permitted under subdivision (b) of section 212, any such amounts are to be properly accounted for as of a different per1od· but Cb) Does not include the following items, which shall be exempt E‘°'°°°°°‘ from taxation under this title: (1) The proceeds of life insurance policies paid upon the death ,,,,l§§‘{§‘§_m° ""'”`°““’ of the insured to individual beneficiaries or to the estate of the insured; (2) The amount received by the insured as a return of premium ,,,§Q`L§§[,'}’f§,‘f,{" *"`“'° or premiums paid by him under life insurance, endowment, or annuity contracts, eit er during the term or at the maturity of the term mentioned in the contract or upon surrender of the contract; Gm mum! et (3) The value of property acquired by gift, befliuest, devise, or ’ °` descent (but the income from such property sha be included in gross income) ‘ (4) Interest upon (a) the obligations of a State, Territory, or any etgligiid. °° Sm°' political subdivision thereof, or the District of Columbia; or $§,’f"3,,{°,§f‘;,%‘f""’· (b) securities issued under the provisions of the Federal Farm Loan Act of July 17, 1916; or (c) the obligations of the United States F§,‘,§‘Qf§§'€}§}‘,§§{,:¥'§§ or its possessions; or (d) bonds issued by the War Finance Corpo— b°,§§fém ration: Provided, That every person owning any of the obligations, neun-rsnquam. securities or bonds enumerated in clauses (a), (b), (c) and (d) shall, in the return required by this title, submit a statement showing the number and amount of such obligations, securities and bonds owned by him and the income received therefrom, in such form and with such infomation as the Commissioner may require- ummm m psd. In the case of obligations of the United States issued after Sep- g{gjr;_?°°,°'j;*;,}$g§$ tember 1, 1917, and in the case of bonds issued by the War Fimuwé aw. P '
