72d CONGRESS . SESS . I. CH. 209. JUNE 6, 1932 .
231 Supplement J-Possessions of the United States
INCOME TAX SEC . 251 . INC OME FROM S OURCE S WITH IN POSSESSIONS OF umtted~statees of the Income from sources UNITED STATES.
wit hin . (a) GENERAL RuLE .-In the case of citizens of the United States Ors income of citi . or domestic corporations, satisfying the following conditions, gross income means only gross income from sources within the United States- (1) If 80 pe r centum or more of the gross in come of such citi zen rro80percea` diSaes ced or domestic corporation (computed without the benefit of this sources . sectio n), for the thre e-year period im mediately preced ing the close of the taxable year (or for such part of such period immediatel preceding the close of such taxable year as may be applicable was derived from sources within a possession of the United States; and (2) If, in the case of such corporation, 50 per centum or more it corporation deriv- of its gross income (computed without the benefit of this section) busini herei n . from for such period or such part thereof was derived from the active conduct of a trade or business within a possession of the United States; or ( 3) If, in case of such citizen , 50 per centum or more of his If citizen derived 60 E cent from active gr oss income (computed without the benefit of this section) for businesstherein. such period or such Tart. thereof was derived from the active con- d uct ofa trade or usness within a possession of the United States either on his own account or as an employee or agent of another. t (b) AMOUNTS RECEIVED IN UNITED STATEs .-Notwithstanding un tno so`sere elved in he provisi ons of s ubsectio n (a) th ere shal l be inc luded in gross Included in gross in- income all amounts received by such citizens or corporations within the Unit ed State s, wheth er deriv ed from sources w ithin or without the United States . (c) DEFINITION.-As used in this section the term "possession status of Virgin of the United States" does not include the Virgin Islands of the United States . (d) DEDUCTIONS .-
Deductions . (1) Citizens of the United S tates en titled to the ben efits of Citi ns llo on this section shall have the same deductions as are allowed by Sup- residents . same nefits as r plement H in the case of a nonresident alien individual . (2) Domestic corporations entitled to the benefits of-this oDom est ic cor por a- section shall have the same deductions as are allowed by Supple- Ante, p. 229. ment I in the case of a foreign corporation . (e) CREDITS AGAINST NET INCOME .-A citizen of the United States incre its against net entitled to the benefits of this section shall be allowed a personal Personal exemption exemption of only $1,000 and shall not be allowed the credit for `°A,`,te,p.184 . dependents provided in section 25(d) . (f) ALLOWA NCE OF DED UCTIONS AND CREDITS .-C itize ns of the Allowance of United States and domestic corporations entitled to the benefits of total income. filing return ot this section shall receive the benefit of the deductions and credits allowed to them in this title only by filing or causing to be filed with the collector a true and accurate return of their total income received from all sources in the United States, in the manner pre- scribed in this title; inclluding therein all the information which the Comm issi oner may dee m ne cess ary for the calc ulat ion of s uch deductions and credits. (g) CREDITS AGAINST TA X .-Person s entitle d to the benefit s of No alo agains i onor this section shall not be allowed the credits against the tax for taxes foreign countri es . of foreign countries and possessions of the United States allowed by An te . p. 211. section 131 . i I
