SIXTY-EIGHTH CONGRESS. Sess. I. Ch. 234. 1924. 283 (10) Benevolent life insurance associations of a purely local char- 4 Lgfggciggig for acter, farmers’ or other mutual hail, cyclone, casualty, or fire insur- '1iroi¤smo¤oo,:ormorsance companies, mutual ditch or irrigation companies, mutual or {E‘$‘,ll§*§;0c‘§§§0¤§Y°p°’a` cooperative telephone companies, or like organizations; but only if C°¤di*i°¤S· 85 per centum or more of the income consists of amounts collected from members for the sole purpose of meeting losses and expenses; A . . (11) Farmers’, fruit growers’, or like associations, organized and komiiisgmigigiiniighiiilil operated as sales agents for the purpose of marketing the products "*°· of members and turning back tqlthlem thefprlpceeds of sales, lessdthe necessar sellin expenses, on the asis 0 the uantit of ro ucc . fumishelil by theing or organized and operated ac; purclirasing agents rmmsggiiioiilliiggeigi for the purpose of purchasing supplies and equipment for the use m°m°°”" of members and turning over such supplies and equipment to such members at actual cost lus necessary expenses; _ (12) Corporations organized for the exclusive purpose of hold~ ouigltoirgodireiwsmtiimix ing title to property, collecting income therefrom, and turning over » the entire amount thereof, less expenses, to an organization which itself is exempt from the tax imposed by this title; and Fcdml md banks (13) Federal land banks, national farm—loan associations, and r»;rm-1oo¤ associations: Federal intermediate credit banks, as provided in the Federal Farm ° $01.39, p. sac. Loan Act, as amended. Corporation not in- NET INCOME OF CORPORATIONS DEFINED. come. Sm. 232. In the case of a corporation subject to the tax imposed mSoii$putm°° °f d°` by section 230 the term " net income " means the gross income as defined in section 233 less the deductions allowed by sections 234 and 206, and the net income shall be computed on the same basis as is _ provided in subdivision (b) of section 212 or in section 226. In the F°'°"“‘ case of a foreign corporation or of a corporation entitled to the benefits of section 262 the computation shall also be made in the manner provided in section 217. onosg moomn or CORPORATIONS DHFINED. oog°$l°°mt1°°°r°S”`°` Sec. 233. (a) In the case of a corporation subject to the tax im- S°“'°°“ °' °°“‘°°“°· posed by section 230 the term " gross income’ means the gross income as defined in sections 213 and 217, except that mutual marine E‘°°"“°“‘ insurance companies shall include in gross income the gross premiums collected and received by them less amounts paid for reinsurance. Fm, D from United (b) In the case of a foreign corporation, gross income means only amos slgmroes. gross income from sources within the United States, determined (except in the case of insurance companies subject to the tax imposed by sections 243 or 246) in the manner provided in section 217. nnnucrroivs ALLOWED CORPORATIONS. D°d°°"°°s' _ Sec. 234] (a) In com uting the net income of a corporation sub- mgA2§§'i‘§fl,0i,§‘,,,_°°mp°° gect to the tax imposed) by section 230 there shall be allowed as deductions: _ _ (1) All the ordinary and necessary expenses paid or incurred dur- B°m°“ °m°°s°S' mg the taxable year in carrying on any trade or business, including a reasonable allowance for salaries or other compensation for personal services actually rendered, and including rentals or other pay- ments required to be made as a condition to the continued use or possession of property to which the corporation has not taken or is not taking title, or in which it has no equity; (2) All interest paid or accrued within the taxable year on its him °°d°m“ indebtedness, except on indebtedness incurred or continued to ur- Ex°°°°°°°` chase or carry obligations or securities (other than obligations of) the
