SIXTY-SEVENTH CONGRESS. Sess. I. Ch. 136. 1921. 233 (4) The term "capital net gain" means the excess of the total ,. “'9°"-“·*‘·. ,, amount of capital gain over the sum of the capital deductions and Capital mt gm` capital losses; (5) The term “ ordinary net income" means the net income, com- c,,QQ,2§‘?”"’·" “"‘ i"' puted in accordance wi_th the provisions of this title, after excluding all items of capital gain, capital loss, and ca ital deductions; and (6) The term " capital assets" as used in this section means prop- "C°P*°°l “$°*¤·" erty acquired and held by the taxpayer for profit or investment for more than two years (whether or not cormected with his trade or business), but does not include property held for the personal use or consumption of the taxpayer or his family, or stock in trade of the taxpayer or other property of a kind which would properly be included in the inventory 0 the taxpayer if on hand at the close of the taxable - year. _ (b) In the case of any taxpayer (other than a co oration) who for ,,f£‘§xmi,Q'}lf,‘§S§‘Q,,‘{QXl*“ any taxable year derives a capital net gain, there lsgiall (at the elec- c€CgB*(1;¤*¤¤¤¤¤ extion of the taxpayer) be levied, collected and aid, in lieu of the taxes P ` im]-posed by sections 210 and 211 of this titie, a tax determined as o ows: A partial tax shall first be com uted upon the basis of the ordinary Dm"“m““°” °f‘ net income at the rates and in the manner provided in sections 210 and 211, and the total tax shall be this amount plus 12% per centum A1 of the capital net gain; but if the taxpa er elects to be taxed under mmm m°’ this section the total tax shall in no such case be less than 12% per centum of the total net income. The total tax thus determined shall be computed, collected and paid in the same manner, at the same time and subject to the same provisions of law, including penalties, as other taxes under this title. (c) In the case of a artnership or of an estate or trust, the proper ,,§§",§}.°${§# °°‘ part of each share of tgie net income which consists, respectively, of i ordinary net income and capital net ain, shall be determined imder rules and regulations to be prescribed b the Commissioner with the approval of the Secretary, and shall he separately shown in the R°“““”·“d mmreturn of the partnership or estate or trust, and shal be taxed to the member or beneficiary or to the estate or trust as provided in sections 218 and 219, but at the rates and in the manner provided in subdivision (b) of this section. PART II.—~INDIVIDUALS. L°dMd°°1s` Normru. Tax. _ ¥$°§°?§lf3°°¤%. 1 r Sec. 210. That, in lieu of the tax imposed bly section 210 of the nggiyu HL2 mn; Revenue Act of 1918, there shall be levied, co ected, and paid for ea.°` 'P° ’°m° each taxable year upon the net income of every individual a normal P°"’· ¥’· 2** tax of 8 per centum of the amount of the net income in excess of Prom the credits provided in section 216: Provided, That m the case of a _ 0nfirst§4,000 area. citizen or resident of the United States the rate upon the first $4,000 ‘“”°"°$*°°¤“· of such excess amount shall be 4 per centum. sum;. smrrnx. _ _ l Imgsed on incomes Sec. 211. (a) That, in lieu of the tax imposed by section 211 of yg*;'0n£*;‘,”tj§}dd¤°¤°¤ the Revenue Act of 1918, but in addition to the normal tax °dv¤1.¢o,p.1¤a2,am¤¤d- by section 210 of this Act, there shall be levied, collectedhan paid ro, www tw for each taxable ear upon the net income of every md1vidua1— 19§{$m_ (1) For the calindar year 1921, a surtax equal to the sum of the · following: _ _ 1 per centum of the amount by which the net income exceeds $5,000 and does not exceed $6,000;
