272 SIXTY-EIGHTH CONGRESS. Sess. I. Ch. 234. 1924. ¤¤¤°¤¤ ¤¤· 4 Premiums aid on an life insurance policy covering the life euiipiigyeisuiumco for of (aiiy officer or Employee, br of any person financially interested in any trade or business carried on pg the taxpayer, when the taxpayer is directly or indirectly a ben ciary under such policy. _ wlggdgocgjgggmml Qu, ‘ (b) Amounts paid under the laws of any State,`Terr1tory, Disece. by beqwt. trict of Columbia, possession of the United States, or foreign country °"“h°"°°°°°" as income to the holder of a life or terminable interest acquired by gift, b§uest, er inheritance shall not be reduced or diminished by any d uction for shrinkage (by whatever name called) in the value of such interest due to the lapse of time, nor by any deduction allowed by this Act for the purpose of computing the net income of an estate or trust but not allowed under the laws of such State, Territory, District of Columbia, possession of the United States, or foreign country for the pm·pose of computing the income to which such holder is entitled.
§,'l%_°°· canons Annownn 1Nn1vm1:rA1.s.
sp2i°i?1i°' °°mm“ Sec. 216. For the purpose of the normal tax only there shall be Dmdms mm M_ allowed the following credits: _ _ pamaaas. (a) The amount received as_d1v1dends (1) from a domestic cor- D°‘“°‘“°· poration other than a corporation entitled to the benefits of section Forum mmvnmd 262, and other than a corporation organised under the China Trade sam mines. Act, 1922, or (2) from a oreign corporation when it is shown to the satisfaction o the Commissioner that more than 50 per centum of the gross income of such foreign corporation for the three-year riod ending with the close of its taxable year preceding the declagration of such dividends_ (or for such part of such period as the co ration has been in existence) was derived from sources within P°"· "‘ m` theplgnited States as deterrmned under the provisions of section 217;
°“ F°°°’°’ (b) The amount received as mterest upon obli tions of the
. United States which is included in gross income undilii section 213; P°"°““*°‘°'“""°”" (o) In the case of a smgle (person, a lpersonal exem, tion of Om mmpmu M $1,000; or in the case of the ea of a fam` y or a marries person husband aaawimuv- living with husband or W1fB, a personal exemption of $2,500, A "’“°°‘°°b°t' husband and Wife liV111g lG0getl1e1‘ shall receive but one personal exemption. The amount of such personal exemption shall be $2 500. If such husband and wife make separate returns, the personal ex~ Auowmm for dg em tion may be taken by either or ivided between them, possess. gil) $400 for each person (other than husband or wife) dependent upon and receiving his clnef support from the taxpayer if such dependent grson IS under eighteen years of age or is incapable of self· N d t mm support cause mentally or physically defective, °“‘°“‘ °“ ‘ (sg In the case of a nonresident a ien individual or of a citizen For dcmdmu ,,m_ gntit ed to the benefits of section 262_, the personal exem tion shall me wmmgamus be only $1,000. The credit provided m ubdivision (d) glial] not bg °°““°“' ‘ allowed in the case of a nonresident alien individual unless he is a resident of a contiguous country, nor in the case of a citizen entitled Scam 0, mgm, to the benefits of section 262. Iorpersonal mma. (i) (gg The credits allowed by subdivisions (d) and (s) of this section all be determined by the status of the taxpayer on the Pmoml mmptim last dayipf his taxable year. on change of mania (2) e credit allowed by subdivision (c) of this section Shan “‘”“· in case the status of the taxpayer changes during his taxable year, be the sum of (A) an amount which bears the same ratio to $1,000 as the number of months during which the taxpayer was single bears to 12 months, plus (B) an amount which bears the same ratio to $2,500 as the number of months during which the taxpayer was a married person living with husband or wife or was the head of a family bears to 12 months. For the purposes of this paragraph
