SEVENTIETH CONGRESS . SESS. I . CH. 852. 1928 .
797 $7,860 upon net incomes of $80,000 ; and upon net incomes in
INCOME TAX excess of $80,000 and not in excess of $100,000, 19 per centum in addition of such excess . $11,660 upon net incomes of $100,000 ; and upon net incomes in excess o f $100,0 00, in a ddition 20 per c entum of such exc ess . (b) Sale of mines and oil or gas wells .-For lim it ati on of surtax .P siof mines, etc . attributable to sale of mines and oil or gas wells, see section 102 . (c) Capital net gains and losses .-For rate and computation of tax 1° Capi tal netga ins and in lieu of normal and surtax in case of net incomes of not less Pos t,p . 811 . than $30,000, approximately, or in case of net incomes, excluding items of capital gain, capital loss, a nd capital deduc tions, of not le ss tha n $30,00 0, appro ximately , see se ction 10 1 . (d) Evasion of surtaxes by incorporation,-For tax on corpora- Evasion by incor- poration . tions which accumulate surplus to evade surtax on stockholders, see Post, p. 814. section 104. SEC. 13. TAX ON CO RPO RATI ONS .
Tax on corporat ions . (a) Rate of tax . There shall be levied, collected, and paid for Rate. ea ch taxab le year upon the net inc ome of e very cor poration , a tax of 12 per centum of the amount of the net income in excess of the credits against net income provided in section 26 . (b) Exempt corporations .-For corporations exempt from tax Exempt corpora- , tions . see section 103 .
Post, p .812 . Accumulating su r- e) Improper accumulation of surplus .-For tax on corporations plus to avoid surtax . wh ich accu mula te s urpl us to ev ade surt ax on st ockh olde rs, see Post, p . 814. section - 104 . SEC . 14. TAXABLE PERIOD EMBRACING YEARS WITH DIFFER- Years with ith a different ENT LAWS .
laws. If a taxable period embraces portions of two calendar years for Pomal5ting tax . which the laws are different, the tax shall be computed as provided in section 105 . Part II-Computation of Net Income
income.
of net SEC. 21. NET INCOME .
Ne t income . " Net income " means the gross income computed under section 22, Meaning of . less the deductions allowed by section 23 . SEC. 22 . GROSS INCOME .
Gross income . (a) General definition .-" Gross income" includes gains , prof its, General definition . and income derived from salaries, wages, or compensation for personal service, of whatever kind and in whatever fo rm pa id, or from pro fessions , vocati ons, tra des, bus inesses, commerce , or sal es, or dealings in property, whether real or personal, growing out of the ownership or use of or interest in such property ; also from interest, rent, dividends, securities, or the transaction of any business carried on for gain or profit, or gains or profits and income derived from any source what ever .
Items exemp t from (b ) Exclus ions fro m gross income . -Th e following ite ms shall not taxation . be in clud ed in gr oss inco me and s hall be exem pt f rom taxa tion under this title (1) Li -i INS U .KANCE .-Amounts received under a life insur- Life insurance poli- ties . anc e co ntra ct p aid by reason of the dea th of the in sure d, whether in a single sum or in installments (but if such amounts are held by the in surer under an agreement to pay interest thereon, the interest payments shall be included in gross income) ; (2) ANNUITiEs, ET c .-Amounts received (other than amounts Amounts fr om an. nuities. paid b y reason of the death of the ins ured and interes t paymen ts
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