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"Paid or accrued," 106

"Period of administration," 28

"Person," 139

"Personal service corporation," 22, 140

"Political subdivision," 66 "Possession, of United States," 107

"Present war," 139

"Prewar income," 177 "Prewar period," 175

"Revenue act of 1916," 139

"Revenue act of 1917," 139

"Royalties," 56

"Same interests," 100

"Secretary," 139

"Similar credit," 20

"Sources within United States," 16

"Stock dividend." 60

"Substantially all the stock," 99
"Tangible property," 121
"Taxable year," 31, 140

"Taxpayer," 139

"Terms relating to invested capi

tal, 177

"United States," 139
"Withholding agent," 140

DEMOLITION OF BUILDINGS, 82
DEPENDENTS, CREDIT, 5, 6, 152
DEPLETION

Deductions, 90-92, 150, 162
Invested capital, 126
Lessee by, 91

Lessor and lessee, 91

Deposit premiums, 10

United States bonds as security, 150, 162, 183

DEPOSITORS' GUARANTY FUND, 75 DEPRECIATION DEDUCTIONS, 150, 162 Amount, 85-87

Animals for breeding purposes, 16
Automobiles, 85

Capital sum returnable, 85
Clothing, 85

Computation of allowance, 86

Copyrights, 49, 86, 87

Dairy animals, 16

Designs, 87

Drafts animals, 16

Drawings, models, and patterns, 87

Experimental work, 87

Farmers, 16

Franchises, 86

Furniture, 85

Improvements, 86

Intangible property, 86, 87

Inventories, 85

Land, 86

Licenses, 86

Live stock, 16

Machinery and equipment, 87
Machinery, farm, 16

Modification of method of com

puting, 85

Nonresident aliens, 18

Patents, 49, 86, 87

Personal effects, 85

Pleasure vehicles, 85
Residence property, 85

Securities, 86

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Definition, 57

Federal land bank, 67

Federal reserve bank, 67

Forgiveness of indebtedness, 63

Gross income, 40

Invested capital, 133, 134

Life Insurance Policies, 58

Liquidating, 58

National farm loan association, 67

Nonresident aliens, 16, 17

Payment in property, 60

Rate of tax, 57, 60
Scrip, 60

Stock, 57, 60, 61, 134
EARNED SURPLUS, 120
EMPLOYEES

Bonuses to, 44, 75, 76
Federal, 45

Promissory notes, 42
State, 70

Workmen's compensation, 69

ESTATES AND TRUSTS

Bad debts, 153
Classification, 25
Credits, 152, 156
Deductions, 28, 29, 153
Returns, 26, 27, 102
Stock dividends, 60

EXCESS PROFITS TAX

Allocation of net income, 114
Consolidations, 137

Credits, 119, 176

Computation, fiscal year, 137
Credits, 119

Definitions, 173

Exemptions, 111, 175
Fiscal year, 137, 181
Foreign corporations, 137
Fractional part of year, 111, 112
Gas wells, sale of, 115

Gold mining, 111, 115
Government contracts, 111. 116

Imposition, 111, 173
Invested capital, 120-137
Limitation of tax, 116

Mineral deposits, sale of, 115

Mines, sale of, 115

Net income, 176

Oil wells, sale of, 115

Partnership, 181

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GROSS INCOME

Allocation, judgments, 40
Annuities, 65

Appreciation of property, 49
Bad debts recovered, 63

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63

Compensation, 42-45
Compensation for loss, 63
Constructive receipt, 26, 40, 57, 62
Contributions by stockholders,
Copyrights, sales, 49
Corporate bonds, 50
Corporate stock, sales, 48
Corporations in liquidation, 102
Deferred payment sales, 51, 52-54
Definition, 39, 147, 160
Exclusions, 65-70, 147, 160
Farmers, 13, 14
Foreign corporations, 16-19
Forgiveness of indebtedness, 63

Good will, sales, 50
Inclusions, 39, 147, 160

Installment plan sales, 51, 52, 54
Insurance companies, 10-13

Insurance policies, proceeds, 40, 41,

148

Long term contracts, 47
Loss or damage recovered, 42
Lots, sales of, 52

Nonresident alien, 16-19, 148
Patents, sales, 49
Rent and royalties, 55-57
Sale of capital assets, 49
Taxable year, 40

Time to be accounted for, 40

GUARDIAN AND WARD, 26, 27
HEAD OF FAMILY, 5, 6, 96
HOLDING COMPANY, 154
HUSBAND AND WIFE

Marriage settlement, 66
Personal exemption, 5, 97
Returns, 97, 157

IMPAIRMENT OF CAPITAL, 124
INADMISSIBLE ASSETS, 124, 129, 130,

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Nonresident aliens, 17, 77, 78
Railroad Administration Certifi-

cates, 55

Savings-bank deposits, 41
State and municipal obligations, 66
Tax, 168

United States obligations (See Lib-
erty Bonds).

War Finance Corporation bonds, 5,

7, 8, 55, 62

INVENTORIES

Cost, 33, 142

Dealers in securities, 34
Deduction determined by, 32, 92

Depreciation, 85

Farmers, 14, 16
Losses, 92, 151, 163

Market, 33, 34

Necessity, 32

Valuation, 33

INVESTED CAPITAL

Admissible assets, 130, 177, 178
Adjustments, 121, 125, 127, 133
Affiliated corporations, 135, 136
Apportionment of, 114

Average invested capital, 132, 178
Bank deposits, 129

Bonus stock, 123

Book accounts, 120, 121

Borrowed capital, 120, 128
Canceled indebtedness, 129
Cash paid in, 120, 122

Changes during year, 132, 133
Change in ownership, 137
Computation, 177-179

Consolidated balance sheet, 137

Current earnings, 124

Definition, 120

Discount on bonds, 128

District of Columbia obligations,

124, 129

Effect of ordinary dividend, 133,
134

Effect of stock dividend, 134
Evidences of indebtedness, 121
Expense of organization, 130
Federal farm loan bonds, 124, 130
Foreign corporations, 119, 137
Fractional part of year, 132

Good will, 121

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Basis for determining, 81, 141 Compensation for, 63

Crops, 15

Deductions, 149, 161
Depletion, 90

Depreciation, 16, 84

Destruction of property, 15, 81
Discount on bonds, 48

Exchange of property, 35-39, 141
Extraordinary obsolescence, 81

Farmers, 15

Fire, 80, 81

Flood, 80, 81

Good will, sale, 50

Indemnity, 15

Insurance reducing, 80, 81 Inventories and Rebates, 92-95,

151, 163

Live stock, 15

Net losses, 95, 142

Nonresident aliens, 18

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Credits, 19, 152

Deductions, 18, 77, 151
Definition, 4
Exemption, 17, 69
Gross income, 16, 148
Liberty bonds, 17
Normal tax, 1

Personal exemption, 19
Rəturns, 19, 27, 97, 102, 152

Withholding of tax. 155

NONRESIDENT FOREIGN

TIONS

Credits, 152

Deductions, 151

CORPORA

Returns, 19, 102
Withholding, 155

NORMAL TAX

Imposition, 1, 144
Persons liable, 1
Rate, 1

NOTES AS COMPENSATION, 42
OBSOLESCENCE, DEDUCTIONS, 81, 84

Losses from, 125
Mining property, 90

OIL WELLS, DEPLETION, 90
Sale of, 115, 146, 182

PAID-IN SURPLUS, 123
PARTNERSHIP

Association distinguished, 24

Credits of partners, 7, 23, 106, 152
Credit for taxes, 106
Distributive shares of partners,

21, 23, 24, 25, 62
Liberty bond exemptions, 7
Limited partnership, 24
Net income, 21, 152
Readjustment of interests, 39
Returns, 21, 25, 96, 157, 181, 182

Taxability, 21, 152

PATENTS, SALES OF, 49
PATTERNS, 127

PAYMENT OF TAXES

Assessment, 167

At source, 97, 155, 164

Certificates of indebtedness, 106
Dishonored checks, 105

Installments, 101, 104, 105, 118,

119, 167

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Credit for taxes, 106

Definition, 106

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Obligations, invested capital, 124,

129

RENTED PROPERTY, EXPENSES OF, 77 REORGANIZATIONS, 37-39, 137, 180.

Status of citizens, 4, 172

181

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