States, a credit is allowable against the | Stat. 505, 49 Stat. 1926; 34 U.S.C. and excess profit for the amount of Federal Sup., 496) [As amended by T.D. 4897, income taxes paid or remaining to be Apr. 24, 1939; 4 F.R. 1693] paid on the amount of such excess profit. The "Federal income taxes" in respect of which this credit is allowable include the income taxes imposed by Titles I and IA of the Revenue Act of 1934, Titles I and IA of the Revenue Act of 1936, and NOTE: This section was amended by adding a new paragraph at the end thereof, by T.D. 4897, Apr. 24, 1939; 4 F.R. 1693. PART 9-INCOME TAX UNDER THE [The word "section" as used herein refers to the Revenue Act of 1938, and the symbol "g" and the words "this section" as used herein refer to sections of the regulations in this part, unless a contrary intent is shown.] SUBPART A-SCOPE OF REGULATIONS Sec. 9.1-1 Titles I and IA of the Revenue Act of § 5.13 Book of account and records. * Scope of regulations. 9.4-1 Application of regulations to special 9.11-1 9.11-3 9.12-1 9.12-2 9.13-1 9.13-2 9.13-4 9.14-1 classes of taxpayers. SUBPART B-RATES OF TAX Income tax on individuals. Citizens or residents of the United Who is a citizen. Computation of surtax. Tax on corporations in general. Alternative tax (corporations with Corporations in bankruptcy or receiv- Subpart C-Gross Income-NET INCOME 9.21-1 9.22 (a)-3 9.22 (a)-4 All books, records, and original evidences of costs (including, among other things, production orders, bills or schedules of materials, purchase requisitions, purchase orders, vouchers, requisitions for materials, standing expense orders, inventories, labor time cards, payrolls, cost distribution sheets) pertinent to the 9.22 (a)-2 determination of the true profit, excess profit or net loss from the performance of a contract or subcontract shall be kept at all times available for inspection by internal-revenue officers, and shall be carefully preserved and retained so long as the contents thereof may become material in the administration of the Act. This provision is not confined to books, records, and original evidences pertaining to items which may be considered to be a part of the cost of performing a contract or subcontract. It is applicable to all books, records, and original evidences of costs of each plant, branch or department involved in the performance of a contract or subcontract or in the allocation or distribution of costs to the contract or subcontract. (Sec. 3, 48 9.22 (a)-13 9.22 (a)-17 Meaning of net income. come. Compensation for personal services. Compensation paid other Compensation paid in notes. Gross income of farmers. Sale of patents and copyrights. Sale of real property in lots. Improvements by lessees. Cancellation of indebtedness. Creation of sinking fund by corporation. Acquisition or disposition by a corporation of its own capital stock. Contributions to corporation by shareholders. Sale and purchase by corporation of its bonds. Depletion of mines, oil and gas wells, other natural deposits, and timber; depreciation of improvements. Computation of depletion of mines, oil and gas wells, and other natural deposits without reference to discovery value or percentage depletion. Computation of depletion of mines (other than metal, coal, or sulphur mines) on the basis of discovery value. Computation of depletion based on a percentage of income in the case of oil and gas wells. Computation of depletion based on a percentage of income in the case of coal mines, metal mines, and sulphur mines or deposits. Determination of cost of deposits. 9.23 (m)-22 9.23 (m)-21 Computation of allowance for depletion of timber for given year. Revaluation of timber not allowed. 9.27 (d)-1 9.27 (g)-1 9.23 (m)-23 9.23 (m)-24 Depreciation of improvements in the case of timber. Information to be furnished by taxpayer claiming depletion of timber. 9.23 (m)-25 Determination of fair market value of timber. Determination of quantity of timber. Aggregating timber and land for purposes of valuation and accounting. 9.27 (h)-1 9.27 (i)−1 9.28 (a) (1)−1 9.28 (a) (2)-1 9.28 (a) (3)-1 9.28 (a) (4)-1 9.28 (a) (5)-1 9.28 (a) (6)-1 9.28 (b)-1 9.28 (b)-2 Timber depletion and deprecia- | 9.28 (c)−1 tion accounts on books. Contributions or gifts by indi 9.23 (m)-26 9.23 (m)-27 9.23 (m)-28 9.23 (0) -1 9.28 (d)−1 Dividends in kind. Dividends in obligations of Dividends paid credit for dis tributions in liquidation. Preferred dividends. Partial distribution. Liquidation of consent stock. Amount of consent dividends credit. Making and filing of consents. Consent distribution must be nonpreferential. Consent and partial distributions to be considered together. Taxability of amounts specified in consents. Treatment of amount specified in consent of corporate shareholder. Effect on basis of stock in hands of shareholders and capital account of corporation. Sec. 9.112 (b) (5)-1 9.112 (b) (5)-2 9.112 (b) (6)-1 9.112 (b) (6)-2 9.112 (b) (6)-3 9.112 (b) (6)-4 9.112 (b) (6)-5 9.112 (b) (7) −1 9.112 (b) (7)-2 9.112 (b) (7)-3 9.112 (b) (7)-4 9.112 (b) (7)-5 9.112 (c)-1 9.112 (e)-1 9.112 (f)-1 9.112 (f)-2 9.112 (g)-1 9.112 (g)-2 9.112 (g)-3 9.112 (g)-4 9.112 (g)-5 Making and filing of writ- 9.113 (a) (13)–1 Nonrecognition of loss. Replacement funds. Definition of terms. 9.113 (a) (14)-1 Property contributed in by a corporation in com- 9.113 (a) (16)-1 Basis of property established by Revenue Act of 1934. 9.113 (a) (18)-1 Basis of property received in certain corporate liquidations. 9.113 (b)-1 9.113 (b)-2 9.113 (b)-3 Exchanges in reorganiza- 9.113 (b) (3)-2 Records to be kept and in Adjusted basis; general Adjusted basis; cancella- cases. SUBPART N-DEPRECIATION AND DEPLETION 9.114-1 Basis for allowance of depreciation and depletion. formation to be filed with SUBPART O-DISTRIBUTIONS BY CORPORAreturns. TIONS-DIVIDENDS 9.112 (g)-6 9.112 (h)-1 Control of corporation. Election of shareholders as to me dium of payment. Distribution in redemption or cancellation of stock taxable as a dividend. prior to January 1, 1921. 19.115-10 Dividends paid in property. dend. |