PUBLIC LAWS-CIL 289-MAY 28, 1938 Limitation. Modification of foreign laws. Banks and trust companies. Definition. 38 Stat. 262 . 12 U. .c. 248(k); Supp. II , 248 (k). Rate of tax. Ante, p. 457. Oil or gas proper- ties. Tax on sales. Ante, p. 453. Claims against United States involv- ing acquisition of property. Tax imposed. Ante, p. 463. Computation of net income. Gain or loss, deter- mination of amount of, and recognition of. 03 shall be considered as imposed by section 11, 12, 13, 14, 201 (b), 204 (a), 207, 211 (a), 231 (a), or 362, as the case may be. In no case shall this section operate to increase the taxes imposed by such sections (computed without regard to this section) to an amount in excess of 80 per centum of the net income of the taxpayer. Whenever the President finds that the laws of any foreign country with respect to which the President has made a proclamation under the preceding provisions of this section have been modified so that discriminatory and extraterritorial taxes applicable to citizens and corporations of the United States have been removed, he shall so proclaim, and the provisions of this section providing for doubled rates of tax shall not apply to any citizen or corporation of such foreign country with respect to any taxable year beginning after such proclamation is made. SEC. 104. BANKS AND TRUST COMPANIES. (a) DEmNTIoN. -As used in this section the term "bank" means a bank or trust company incorporated and doing business under the laws of the United States (including laws relating to the District of Columbia), of any State, or of any Territory a substantial part of the business of which consists of receiving deposits and making loans and discounts, or of exercising fiduciary powers similar to those permitted to national banks under section 11 (k) of the Federal Reserve Act, as amended, and which is subject by law to supervision and examination by State, Territorial, or Federal authority having supervision over banking institutions. (b) RATE OF TAx.-Banks shall be taxable under section 14 (d). SEC. 105. SALE OF OIL OR GAS PROPERTIES. In the case of a bona fide sale of any oil or gas property, or any interest therein, where the principal value of the property has been demonstrated by prospecting or exploration or discovery work done by the taxpayer, the portion of the tax imposed by section 12 attrib- utable to such sale shall not exceed 30 per centum of the selling price of such property or interest. SEC. 106. CLAIMS AGAINST UNITED STATES INVOLVING ACQUISITION OF PROPERTY. In the case of amounts (other than interest) received by a taxpayer from the United States with respect to a claim against the United States involving the acquisition of property and remaining unpaid for more than fifteen years, the portion of the tax imposed by section 12 attributable to such receipt shall not exceed 30 per centum of the amount (other than interest) so received. Supplement B-Computation of Net Income [Supplementary to Subtitle B, Part II] SEC. 11. DETERMINATION OF AMOUNT OF, AND RECOGNITION OF, GAIN OR LOSS. Computationofgain (a) COM TrrATION OF GAIN OR Loss.- The gain from the sale or other disposition of property shall be the excess of the amount Past, p. 493. realized therefrom over the adjusted basis provided in section 113 (b) for determining gain, and the loss shall be the excess of the adjusted basis provided in such section for determining loss over the amount realized. Amount realized. (b) AMOUNT REALIzED.- The amount realized from the sale or other disposition of property shall be the sum of any money received plus the fair market value of the property (other than money) received. 484 [52 STAT.
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