20 SIX'I`Y·NINTH CONGRESS. Sues. I. Cu. 27. 1926. "'°°" ’“· would have in the hzmds of such ether Eerson. In determining ,_§‘°°*,_,,’§f;$**°§,‘,,,‘;§§ the period for which the taxpayer has eld stock or securities mm received upon n distribution where no gain is recognized to the ·""‘**’·‘* distribubee under the ggovisicus of subdxvisiou ( of section 203 of this Ad) 0r`0f the venue Act iof 1924, there s all be included the period for whichhe held the stock or securitied in the distributing ggpogatiou prior to the receipt of the stock br securities upon suc ,§'“§,,°§w“§"§’°,,;¥ (b);1n the of any t.sxp¤,yer·(other then ad corporation) who ¤¤<i mm- for my taxable year denves u eapxtal net gum, there shall (at the election of the taxpayer) be levied, collected and aid, in lieu of ghe taxes9dimp<¥seS by sections 210 and 211 of tgis title, a. tax e etermiu as 0 ows: • d ‘ m§,$§,‘°¥“““°“ ‘° "°‘ A partial tax shall first be computed upon the basis of the ordinary net income at the rates and in the manner provided in sections 210 and 211 and the total tax shall be this amount p1us· _ 12% per centum of the capital 1et in. A _ °“ "°'·"““ °°‘·°“’· (c) In the cage of my taxpayer %?>thex· than u. corporatnou) who for any taXab1e‘,yédr·sus§:ains s, eegital net less, there shall be levied, collected, sind paid, fri Iieu of t e takes imposed by sections 210 and 211.9,f this title,. a. tax determined hs fellows: ,,$,‘{i”,’}§{““"°” °° °°` A partial tax shall first be computed upon the basis of the‘ ordinery net ipepme gt thezjxytes imd in the mmgner provided in sections 210 and 211 End the tqtalvtax shall be thm amount mmus 12% per eentum of the capital `xxetjloss; but in no case shalfthe tax under this subdivision be less than the `tzxes imposedieby sections 210 and 211 computed without regard to the provisions of this section. } m§§}°““°° md P"' (d) The total tax determined under subdivision (b) or (e) shall be collected and paidin the same manner, at the same time, and gbjeet tg lprqvisiqps ef law, including penalties, as other xes un e IS 1 e. ‘ ,,¢,§,§°§,€°°*°,2t§{L¤p°€,*§ _(e) In the case of tlgeimembers ef; u pertnershig, of eueestate or ¤¤¤¤¤··=·¤*¢· trust, or of the benefxcxury of an estate or trust, t e proper part of each share, of the net income which consists, res¥ective1y of ordinary net income, capital net 'glain, or capital net osg, sh;•.1’I be determined under riiles and regu ations to be prescribed by the Commissiuper with the egmproval of the Secretary, and shall be R°‘“’°” ud ”‘°°· sepurabelvshowu ihdi1;e»1·e umedfdthe artuership or estate or trust, and shulf be taxed tpethe member or geneficiary or to the estate or trust asdprovided iu sections 218 ande219, but at the rates and in the manner provided in subdivision (b) or (0) of this section. Earned income. ‘ ` EABNED INCOME ' Mmm °'”’”¤°· Sm. 209. (a) For the purposes of this section- "E¤¤°° i¤°°¤*°·" (1) The term " earned mcome ?’ means wages, salaries, professicmm fees, and gtk? amoéxutii rgeegvge as compengatigz. for pergongl servicesueuaytenere, u snoti¤cue,·a.tpart0te compensation derived by the taxpayer for persrmal services rendered by himdto ueorporation which represents a distribution of earnirigs AH { or pro’dt,s rather than a reasonable allowance asccmpensatin;1 or -m,1°`§¤°£$°2° ‘}} .£§$Z the personal services actually rendered. In the case of s. taxpayer {.j,’;°§,:f““ °°*’““‘ ‘” eugagediu a trade or businew in which beth personal services and ca itul are mutieriaid income producing factors, a reasonable allgwance as compensation for the personal services actually rendered by the taxpayer, not in excess of 20 per centum ef his share of the net profits of eubh trade or business, shall be considered as eumed income. ` _
