338
PUBLIC LAWS-CH. 258-JULY 16, 1947
[61 STAT.
and regulations which the Commissioners are hereby authorized to
promulgate. The basis upon which such allowances are to be com-
PoF,p 361.
puted is the basis provided for in title XI, section 6, of this article.
(8) CHARITABLE CONTRIBuTIONS. - Contributions or gifts, actually
paid within the taxable year to or for the use of any religious, char-
itable, scientific, literary, military, or educational institution, the
activities of which are carried on to a substantial extent in the Dis-
trict, and no part of the net income of which inures to the benefit of
Limitatio,
any private shareholder or individual: Provided, however, That such
deductions shall be allowed only in an amount which in the aggregate
of all such deductions does not exceed 15 per centum of net income
as computed without the benefit of this subsection.
(9) MEDICAL, DENTAL, AND SO FORTH, EXPENSES OF INDIVIDUALS.-
Expenses in the case of residents, paid by the taxpayer during the
taxable year, not compensated for by insurance or otherwise, for the
medical care of the taxpayer, his spouse, or dependents as defined in
"Medical c.
this article. The term "medical care", as used in this subsection, shall
include amounts paid for the diagnosis, cure, mitigation, treatment,
or prevention of diseases, or for the purpose of effecting healthier func-
tion of the body (including amounts paid for accident or health insur-
Dductions.
ance): Provided, however, That a taxpayer may deduct only such
expenses as exceed 5 per centum of his net income, or 5 per centum
of the aggregate net income in the case of husband and wife filing a joint
return, computed with the benefit of subsection (8) of this section but
without the benefit of this subsection: And provided further, That the
maximum deduction for the taxable year shall not exceed $2,500 in the
case of a husband and wife filing a joint return, or $1,250 in the case
of all other residents.
(10) ALIMONY OR SEPARATE MAINTENANCE--In the case of residents,
amounts paid as alimony or separate maintenance pursuant to and
under a decree or judgment of a court of record of competent jurisdic-
tion to adjudge or decree that the taxpayer pay such alimony or sepa-
Income of recipient. rate maintenance: Provided, however That all amounts allowed as a
deduction under this subsection shall be reported and taxed as income
of the recipient thereof if such recipient is a resident as defined in
this article.
(11) CONTRIBUTIONS OF AN EMPLOYER TO AN EMPLOYEES' TRUST OR
ANNUITY PLAN AND COMPENSATION UNDER A DEFERRED-PAYMENT PLAN .-
In the return of an employer, contributions made by such employer to
an employees' trust or annuity plan and compensation under a deferred-
payment plan to the extent that deductions for the same are allowed
the taxpayer under the provisions of section 23 (p) of the Federal
staat. 15.
Internal Revenue Code.
,Js.s c . i 23(p). (12) NONTRADE OR NONBUSINESS EXPENSE. -In the case of an indi-
vidual, all the ordinary and necessary expenses paid or incurred during
the taxable year for the production or collection of income, or for the
management, conservation, or maintenance of property held for the
production of income taxable under this article.
Optionl standad
( 13) In lieu of the foregoing deductions, any resident, whose gross
income less allowance for dependents is $5,000 or more may irrevocably
elect to deduct for the taxable year an optional standard deduction of
Restriction.
$500: Provided,however, That the option provided in this subsection
shall not be permitted to any such taxpayer on any return filed by
him for any period less than a full calendar or fiscal year: And pro-
Hosband and wi
f
e vided further, That in the case of husband and wife living together,
the standard deduction shall not be allowed to either if the net income
of one of the spouses is determined without regard to the standard
deduction or by use of the optional method provided in title VI, section
aWe 3
>4
(a).
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