254 SIXTY-SEVENTH CONGRESS. Sess. I. Ch. 136. 1921. '”°°“ ’*f· (14) Personal service co rations. This subdivision shall not be pcigiigriil W in effect after December 3l?l)921. wgntrl December 31, . Corporation mt m_ NET mcotrn or CORPORATIONS DEFINED. CONN!. ,. ,,§,{’°;'{,‘g}"°"°“ °‘ Sec. 232. That in the case of a corporation subject to the tax im-, posed by section 230 the term "net income " means the gross income as defined in section 233 less the deductions allowed by section 234, and the net incomeshall be computed on the same basis as is pro- I"°‘°"“·°°°· vided in subdivision (b) of section 212 or in section 226. In the case of a foreign coryipration or of a corporation entitled to; the benefits of section 262 ·t e computation shall also be made·in· the manner provided in section 217. _ ‘ °’°°“'“°°‘“°· ~ ( ~ cross mooim or oonronivrrous numunn. - ' i°»ui;°;i.`iiii°m°stii' Sec. 233. (a) That in the case of a corporation subjectto the taxi imposed by section 230 the term "gross inc0me" means the gr·oss _ incomeias defined in-sections 213 and 217, except that mutual marine? insurance companies shall include in gross income the gross premiums _ collected and received by them less amounts paid for reinsurance; _ §·$§$“’€{,§{°,;; Sum . (b) In the case of a foreign corporation, gross income means only
- °“'°°S· oss income from sources within the United States, determined
gd-xcept in the case of insurance companies subject to the tax imposed 4****- P·’*$· by section 243 or 246) in the manner provided in section 217. D°d“°°°"" nmnuorroiws Armowsn oonroiwrrons. $§il*i‘$?§?§‘0$!,‘_ Sec. 234. (a) That in computing the net income of a co oration Eubiject to the tax imposed by section 230 there shall be alliiwed as _ e uctions: . B“°‘“°sS°“’°‘“°S‘ (1) All the ordinary and necessary expenses paid or incurred during the taxable ear in carrying on any trade or business, including a reasonable allowance for salaries or other compensation for personal services actually rendered, and including rentals or other payments required to be made as a condition to the continued use or possession of lproperty to which the corporation has not taken or is not taking Immsmn debts tit e, or in which it has no equity; receptions. (2) All interest paid or accrued within the taxable year on its indebtedness, except on indebtedness incurred or continued to urchase or carry obligations or securities (other than obligations ofp the United Statesissued after September 24, 1917, and originally subscribed for by the taxpayer) the interest upon which is wholly exempt Dommic mcg from taxation under this title; empties. (3) Taxes paid or accrued within the taxable ear except (a) F,,,,,,g,, mm income, war—profits, and excess-profits taxes imposed by the autliority of the United States, (b) so much of the income, war—proiits and excess—profits taxes imposed by the authority of any foreign country or possession of the United States as is allowed as a credit under section Not mmmbh to 238, and (c) taxes assessed against local benefits of a kind tending to ¤¤¤><>¤¤¥*·¤•¤¤ sum- increase the value of the property assessed. In the case of obligors }$§},”fi,§lt°'”° { r ° ° specified in subdivision (b) of section 221 no deduction for the payment o the tax imposed by this title, or any other tax paid ursuant to the contract or provision referred to in that subdivision, sliiall be allowed, Au od H d nor shall such tax be included in the gross income of the obligee. i,,,.,,§§°;gm§§L;d§R The deduction allowed by this paragraph shall be allowed in the case of taxes imposed upon a shareholder or member of a corporation upon his interest as shareholder or member, which are aid by the corporation without reimbursement from the shareholder or member, but in such cases no deduction shall be allowed the shareholder or member
