304 SIXTY-FIFTH CONGRESS. Sess. I. Ch. 63. 1917. '¤ ¤${§ ”°”'° Sec. 203. That for the purposes of this title the deduction shall bg D•>d¤cu¤ns`a1low¤i. as follows, except as otherwise rn this title prov1ded— a.£SY"“°° °°"’°"" (a) In the case of a domestic corlporjatron, the sum of (1) an amount equal to the same percentage of the invested capital for the taxable year which the average amount of the annual net income of the trade or business duri the prewar period was of the invested capital for the prewar peribld (but not less than seven or more than nine per _ centum of the invested capital for the taxable year) , and (2) $3,000;
“‘"' (b) In the case of a domestic partnership or of a citizen or resident
’_ of the United States, the sum of (1) an amount equal to the same percentage of the invested cplpital for the taxable year which the average amormt of the annu net income of the trade or business during the prewar period was of the invested capital for the prewar perio (but not less than seven or more than nine per centum of the F invested capital for the taxable year), and (2) $6,000; m_°"°ig"°°“’°"°‘°"“* (c) In the case of a foreign corporation or partnership or of a nonresident alien individual, an amount ascertained in the same mannqr as provided in subdivisions (a) and (b) without any exemption 0 $3 000 or $6,000. g.$°°;,§l§;°{l§'§‘·i-,,,l’,’: (d) the Secretary of the Treasury is unable satisfactorily to °'>'· _ determine the averqgp amount of the annual net income of the trade or business dur·ing e prewar period, the deduction shall be deter-
- 7**- giiued in the same manner as provided in section two hundred and
ve.
“°P""'°' Sno: 204: That if a corporation or partnership was not in existence,
oqlapgmgrwdual was nqfa¢;ngage:ll in the grade or businesj, the w o o any one ealen year rum the prewar r·io , e uctron shall be an amount equal to eiglnt per centuh)16 of the invested capital for the taxable year, plus in the case of a domestic corporation $3,000, and in the case of a domestic partnership or a citizen or D H resgdegigd of thebUnited State;1 $6,003. ,,,,,,,,,, ,°¤,, ¤•*,, e or usiness carri on a oo ration artnershi , or cuonnulm gndividual, altgough formallly grrggndzeél ol1:pi·)eorganil?l;•i on origlftor _anuary secon , nineteen nm an tlurtee° n, w ic is su tangatlley sI;1:l({D¥lDHt8i:10H of a t1’8(%6l?L)x1gbl1ilI1$)SS garriegi on prior Ito that a_, ,_0r e urposesot' tite, e eem to ave eenm oxistencrglprror to tlliat date, and the net income and invested capital of its p ecessor prior to that date shall be deemed to have been its net income and invested ca ital. ,`§f"°°**°¤='>YS°¤'* S1·:0._ 205. (a) That if the Secretary of the Treasury, upon complaint ¤¤ prewar income finds elther (_l) that dpring the prewar period a domestic corp0ratl011 or partnership, or a citizen or resident of the United States, had no Hlcwerrban sven; net_mcome from the trade or business, or (2) that during the pl‘€*W81' IMM bun"" period the percentage, which the net income was of the invested pgprtal, gras low als; compdued with the percentage, which the net come suc pen o representative co rations, artnerships, and in _ vrduals, engaged m a like or similarrlxtrade or bliisiness, F•¤¤¤¤¤¤¤»¤¤¤¢. vqaapf their mxesteddczpilal, then the deduction shall be ghc SH3 . 0 an amoun equ _ e same percent e of its investe ca it §:l£nlSl1:ntΞblB year wg11e:>lh_ the average didrlgtion (determined inllithz _ e _ ann r as provi m section two undred and three, wit ou
- !;cl ag1`eB$&000 $6,00(;rtthere§ refer;-ed d§o)dfq;·1S such yeaé Qf
_ _ _ 1'P0 -10118, nets , orin `vi u ,9 0 lll p like or sumlm- trade or busgress, is of Itlieir average invested capital or such year plus (2) m the case of a domestic corporation $3,000,
l1g§8<;#;¢$<g gogomestrc partnership or- a citizen or- resident of the
°°'“"¤“”“""°’P" The percent i which th * ' mage or me mam , _ e net mcome was of ted ca rtal wnvsred mmm in each trade oligliixsmess shall be determined by :]1;§(l'l1;;ne1?nissi0¤l?)f Of . Internal Revenue, in accordance with regulations prescribed by hi!-¤» with the approval of the Secretary of the hemmy, In the ease of ¤
