28 SIXTY-NINTH CONGRESS. Sess. I. Cn:. 27. 1926. ¤°'~‘°“* *·*· benefit of any rivahe shareholder or individual; or (E) a fraternal 3•:¤t§i?¤i?d“°` cm society order, gr association, operating under the lodge system, but only if such contributions or `fts are to be used exclusively for religious, charitable, scientific, giterary, or educational purposes, or ¤¤¤¢~ for the prevention of cruelty to children or animals; tn an amount which in all the above cases combined does not exceed 15 per centurn of the t.axpayer’s not income as computed without the benefit ofytlns paragraph, except. that if in thevtaxablea-Hear and in each of the ten
preceding taxab e years the amount in the above eases combined
exceeds 90 per centum of the I:axpaye1·’s net: incouzefor each such year, as computed without the beneiit of this paragragllii then to the By mm rmdmt full amount of such contributions and gifts made ` the taxable nam. Ear; In case of a nonresident aljen individual this deduction shall allowed only as to contributions or gifts made to domestic corpo- rations, or to community chests, funds, or foundation created in "~‘>¤i°¤°i°¤¤¤¤*’°d· the United States, or to such vocational crehabilitationsinqd. Such contributions or gifts shall be allowable as deductions only if verified ukneder ruleslan;1 rileguggtions prescribed by the Commissioner, with t approve 0 at e cretary; °;§;*‘“!éf:“F’v‘;‘”,(§} (11) In the case of a casual sale or other casual dispositionpf mm liibmriejwaunder real propert , a. reasonable allowance for future expense liabilities, °°°°°°°°’°u°w ' incuxed glnsdrer the proviiilcglrzis of tge conggact guplder which iiclbsale nr 0 er ` ositon was e, un er su re ations as iz e om- missioner, wiih the a proval of the Secretary, may prescribe, includ- ing the giving of a gond, with such sureties and in such sum (not less than the estimated tax liability computed without the benefit of this paragraph) as the Commissioner may recpliire, conditioned upon the payment (lnotwithstanding any statute of 'mitations) of the tax, computed wit out the benefit of this paragraph, in respect of any amounts allowed as a deduction under this paragraph and not ac- tual} expendedein carrying out the provisions of suc contract. I §g>g1g~;ij;¤;°Eg¤¤;{,¤h_ (bg', In the case of a nonresident alien individual, the deductmns mma with income allowed in subdivision (a), except those allowed in paragraphs (5), §{,‘{f,'§,,,,F“"°° S‘°°°‘ (6), and (gg, shall bei allowed .0nly if and to the extent that they are connec with income from sources within the United States; and the proper apportionment and allocation of the deductions with respect to sources of income within and without the United States
- ’°*‘»P-"°· sha 1 be determined as provided in section 217 under rules and regu-
lations prescribed by the Commissioner with the &PProva1 of the m·},°¥}¥°°fx§*°;{,u§‘gBs°*§§; Secretary. Inthe case of a citizen entitled to the benefits ofsecizion gym Sum www- 262 the eductions shall be the same andshall deterxnmed 111 the ”‘ same manner as in the case of n. nonresident alien individual. Items not deductible. i ITEMS NUI. DEDUCTI§LE _ °"*°°'M¤°°*°°°· Sm. 215. (a) In computing net income no deduction shall in hmm] mq W any case be allowed in respect 0fe—-· ’ i A 1 mm. ’ (1§ Personal, 11ViDg,`0D familyexpenses; r J · mg§3{’°"·Y *mP’°"°‘ (2 Any amount paid out for new buildings orifor permanent improvements or betterments made to increase the value of eny mmm an ,0 P"°P°"f§ °" mm? `- · · · i - - my · ··P 1* (5) ny amount expended 1n restoringsproperty pr 111 making gooéi the exhaustion thereof for which an a lowance 1S or has been ma e; or a ‘ 1 pk§f;§}$“’“°°°’°’°m' (4) Premiums paid on any life insurance policy covering the life of any officer or employee, or of any personaiinancially interested in any trade or business carried on by the taipayer, when the tax- pziyer is directly or indirectly a beneficiary un er such policy.
