SIXTY-EIGHTH CONGRESS. Sess. I. Ch. 234. 1924. 267 $92,020 upon net incomes of $300,000; and u on net incomes in ¤“°*°§¤ *4 excess of $300,000 and not in excess of $500,0009 39 per centum in Sum C°°mm°d` addition of such excess. $170,020 upon net incomes of $500,000; and upon net incomes in excess of $500,000, in addition 40 per centum of such excess. M (b) In the case of a bona fide sale of mines, oil or gas wells, or wauSil`°s’ °u °' "S any interest therein, where the principal value of the property has sd,{,‘d“§,§“‘§d,,fI*gd gg been demonstrated by prospecting or exploration and discovery work mpayér. done by the taxpayer, the portion of the tax imposed by this section V°1`42’D° w` attributable to such sale shall not exceed 16 per centum of the selling price of such property or interest. NET mcoiwn or INDIVIDUALS nnmman. ,,,,g‘,,‘ii'id““1 “°° ’“' Sec. 212. (a) In the case of an individual the term " net income " g,,?,§’{},L},$,f§$,;‘u§,§§‘{,'{{ means the gross income as defined in section 213, less the deductions mgallowed by sections 214 and 206. _ (b) The net income shall be com uted upon the basis of the tax- Bm °'°°‘“*"““’“‘ payer’s annual accounting period fiscal year or calendar year, as the case may beg) in accordance with the method of accounting regularly employ in keeping the books of such taxpayer; but if no such method of accounting has been so employed, or if the method employed does not clearly reflect the income, the computation shall be made in accordance with such method as in the o inion of the Commissioner does clearly reflect the income. If tile taxpayer’s annual accounting period is other than a fiscal year as dehned in section 200 or if the taxpayer has no annual accounting period or does not keedp books, the net income shall be computed on the basis c a taxpa er c anges is accoun in perio m a ear ,,,,,,,,,,,,,,,, -,,d_ to(calendar year? from calendar year to %scal ylear, or fromyone wm fiscal year to another, the net income shall, with the approval of the Commissioner, be computed on the basis of such new accounting ~ period, subject to the provisions of section 226. '°“· ’· m cross mcomn nnrnuzo. $§‘{§,*f‘f,‘f'§,°;_ Sec. 213. For the purposes of this title, except as otherwise pro- 2::: ;;S°°°d‘ vided in section 233- mm al Bd (a) The term " gross income " includes gains, profits, and income ms, m.°°”°° °` derived from alaries, wages, or compensation for personal service kdm, nd i I dw (including in the case of the President of the United States, the induced. " judges of the Supreme and inferior courts of the United States, and all other officers and emplo rees, whether elected or appipinted, of the United States, Alaska, Ilawaii, or any political su `vision thereof, or the District of Columbia, the compensation received as Such), of whatever kind and in whatever form paid, or from pro- ;, _°°d°°’ fessmns, vocatiagis, tilladgs, busiiiesses, commprce, or sales, or fd?1l— mgs in prope , w et er rea or ersona o out o e _ _ ownership or use of or interest in sueli propeiit g;ral;|on%rom interest, a.l.”.i§r§EZ "“'°’ dm` rent, dividends, securities, or the transaction ofy any business carried on for gain or profit, or gains or profits and income derived from Iddhdddd for tmbh any source whatever. The amount of all such items shall be in- mrwmmivm. eluded in the gross income for the taxable year in which received by the taxpayer, unless, under methods of accounting permitted under subdivision (b) of section 212, any such amounts are to be prolperly accounted for as of a different period. _ Emdmd ,mm_ ( ) The term “gross income” does_not include the following items, which shall be GX8{I\PlZ_ fl`0|D. taxation under this title: . wd ,¤dm,d, pd, (1) The proceeds of life insurance policies paid upon the death cia. of the insured;
