SIXTY-EIGHTH CONGRESS. Sess. I. Ch. 234. 1924. 261 (c 1 If in the second year the taxpa er other than a cor ra- INCOME WAX- tion)) siudtains a capital net loss, the dediuctibn allowed by siibdi- 1os`i§iIid'ii¥$i¤i1i:i(i:iS)¤iiiiii vision (b) of this section shall first be applied as a deduction in wa" computing the ordinary net income for such year. If the deduction is in excess of the ordinary net income (computed without such deduction) then the amount of such excess shall be allowed as a deduction in computing net income for the third year. (2) If in the second year the taxpayer (other than a corporation) A1>r;·1i¤•¢i<>¤ to cart has a capital net gain, the deduction allowed by subdivision (b) of t°lg°`°f°rS°°°°dye”' this section shall first be applied as a deduction in computing the ordinary net income for such year. If the deduction is in excess of the ordinary net income (computed without such deduction) the amount of such excess shall next be applied a ainst the capital net gain for such year and if in excess of the capital net gain the amount of that excess shall be allowed as a deduction in computing net income for the third year. (d) If any portion of a net loss is allowed as a deduction in com- egg>¥>“°¤**°¤ *° thkd puting net income for the third year, under the provisions of either y ` subdivision (b) or (c), and the taxpayer (other than a corporation) has in such year a capital net gain or a capital net loss, then the method of allowing such deduction in such third year shall be the same as provided in subdivision _ (e) If for the taxable year 1922 a taxpayer sustained a net loss in °°g¤gP}*c'f:*§’9g2 tfmég; excess of his net income for the taxab e year 1923 (such net loss Acc M1921. ' and net income being computed under the Revenue Act of 1921), the amount of such excess shall be allowed as a deduction in computing net income for the taxable year 1924 in accordance with the method provided in subdivisions (b) and (c) of this section. (f) If for the taxable year 1923 a taxpayer sustained a net loss ,,g“°”°¤°° '°' YW within the provisions of the Revenue Act of 1921, the amount of ` such net loss shall be allowed as a deduction in computing net income for the two succeeding taxable years to the same extent and in the same manner as a net loss sustained for one taxable year is, under this Act, allowed as a deduction for the two succeeding taxable years. _ _ ( If a taxpayer makes return for a riod beginning in one cal- A *’h°°“°!‘“’°°“‘“. endgi year (hereinafter in this subdivigion called " first calendar giiédzrwfegrlgmfmm year ") and ending in the following calendar year (hereinafter in this subdivision called “second calendar iyear”) and the law applicable to the second calendar year is_di erent from the law applicable to the first calendar (year, then his net loss for the period u;;f’°°"’°“°‘ °“°“" en ing during the second calen ar year shall_be the sum of: (1) the same proportion of a. net loss for the entire period, determined under the law applicable to the first calendar year, which the portion of such period falling within such calendar year is of the entire period; and (2) the same proportion of a net loss for the entire period, determined under the law applicable to the second calendar year, which the portion of such period falhng within such calendar year is of the entire period. · (h) The benefit of this section shall be allowed to the members pa*Qg‘:,§°$ gtgygj **0*; of a partnership, to an estate or trust, and to insurance comlpanies trusts. and insurance subject to the tax imposed by section 243 or 246, under regu ations °°mp“m°S' prescribed by the Commissioner with the approval of the Sicretary. mscan mins. Fm`1 Wa"' Sec. 207. (a) If the taxpa er makes return for a period begin- be£S“{§S¤¤ifcgi‘L°§d§°; ning in one calendar year (liereinafter in this subdivision called g';§},{ me °“"~‘ “‘ ”°°` " first calendar year ") and ending in the following calendar year (hereinafter in this subdivision called " second calendar year ")
