74 TH CONGRESS . SESS. II. CH. 690. J UNE 22, 1936 . dealer in stocks or securities, and with respect to a transaction made in the ordinary course of its business . (b) If the amount of stock or securities acquired (or covered by the contract or option to acquire) is less than the amount of stock or s ecurities sold or otherwise disposed of, then the particular shares of stock or securities the loss from the sale or other disposition of which is not deductible shall be determined under rules and regula- t ions presc ribed by the Commis sioner wi th the app roval of t he S ecretary . (c) If the amount of stock or securities acquired (or covered by the contract or option to acquire) is not less than the amount of s tock or se curiti es so ld or other wise dispo sed o f, the n the part icular shar es of stock or securities the acquisition of which (or the contract or option to acquire which) resulted in the nondeductibility of the l oss shall be dete rmined under rule s and regulations prescribed by t he Commissioner w ith the approval of the Secretary . SEC. 119. INCOME FR OM SOURCES WITHIN UNITED STATES. (a) GROSS INCOME FROM SOURCES IN UNITED STATES.-The follow- ing items of gross income shall be treated as income from sources withi n the United Stat es : (1) IN TE RE S T .-Intere st from the Unit ed States, any Te rritory, any political subdivision of a Territory, or the District of Colum- b i a ., and interest on bonds, notes, or other interest -bearing obliga- tions of residents, corporate or otherwise, not including- (A) interest on deposits with persons carrying on the banking business paid to persons not engaged in business within the U nited Stat es an d not havin g an office or p lace of bus iness ther e- in, or (B) i ntere st rec eived from a re sident alie n ind ividua l, a resi- dent foreign corporation, or a domestic corporation, when it is shown to the satisfaction of the Commissioner that less than 20 per centum of the gross income of such resident payor or domes- tic corporation has been derived from sources within the United States, as determined under the provisions of this section, for the three-year period ending with the close of the taxable year of such payor preceding the payment of such interest, or for such part of such period as may be applicable, or (C) income derived by a foreign central bank of issue from bankers' acceptances; (2) DIVIDENDS .-The amount received as dividends- (A) from a domestic corporation other than a corporation entitled to the benefits of section 251, and other than a corpora- t ion less than 20 per centum of wh ose gross income is shown to t he satisfaction of the Commission er to have been d erived from sources within the United States, as determined under the pro- visions of this section, for the three-year period ending with the close of the taxable year of such corporation preceding the declaration of such dividends (or for such part of such period as the corporation has been in existence), or (B) from a . foreign corporation unless less than 50 per centum of the gross incom e of such foreig n cor porat ion fo r the thre e-yea r perio d ending with the close of its ta xable year preced ing the decla ration of such di vidends (or for such part of such period as the corporation has been in existence) was derived from so urce s wi thin the Unit ed S tates as dete rmin ed un der the pro- visions of this se ction; b ut on ly in an amount which bears the same ratio to such dividends as the gross income of the corpora- tion for such period derived from sources within the United 1 693 Computation whe re property acquired is less than sold, etc . Computation where property acquired is not less than sold . Income from sources within United States. Gross income . Interest on bonds, e tc., of res idents . Exceptions . Paid to persons not in business in United States . If less than 20 percent from Unit ed States so urces . From bankers' sa cept ances . D ividen ds . Fr om domestic co r- porations : exceptions . F oreig n cor porat ions .
