PUBLIC LAWS-CH. 146-MAY 27, 1949 Exemptions. 61 Stat. 333 . D. C . Code, Supp. VII,§ 47-1551c (u). 61 Stat. 335 . D. C. Code, Supp. VII, §47-1557a. Post, p. 133. 61 Stat. 337. D. C . Code, Supp. VII, §47-1557b (a). Post, p. 131 . 61 Stat. 337. D. C. Code, Supp. VI, § 47-1557b (a) (1). Business expenses. 61 Stat. 337. D. C . Code, Supp. VII, § 47-1557b (a) (4) (0). Restrictons. 61 Stat. 338 . D. C . Code, Supp. VII,§ 47-1557b (a) (8). 61 Stat. 338 . D. C. Code, Supp. VI, I47-1557b (a) (9). District or not. The word 'resident' shall not include any elective officer of the Government of the United States or any employee on the staff of an elected officer in the legislative branch of the Government of the United States if such employee is a bona fide resident of the State of residence of such elected officer, or any officer of the executive branch of such Government whose appointment to the office held by him was by the President of the United States and subject to confirma- tion by the Senate of the United States and whose tenure of office is at the pleasure of the President of the United States, unless such officers are domiciled within the District on the last day of the taxable year." SEC. 402. Paragraph lettered (u) of section 4 of title I of article I of said Act is amended by adding thereto the following new sub- paragraph: "(9) The spouse of the taxpayer, if living with the taxpayer on the last day of the taxable year." SEC. 403. Section 2 of the title III of article I of said Act is amended by adding thereto the following new subsection: "(c) ADJUSTED GROSS INCOME.- The words 'adjusted gross income' as used in this article mean gross income less deductions allowed under section 3 (a) of this title: Provided, however, That such deductions were directly incurred in carrying on a trade or business: And pro- vided further, That in determining adjusted gross income, no deduc- tions shall be allowed for charitable contributions, alimony payments, medical and dental expenses, an optional standard deduction, losses of property not connected with trade or business, or for an allowance for salaries or compensation for personal services of the person or persons liable for the tax." SEC. 404. Section 3 (a) (1) of title III of article I of said Act is amended to read as follows: "(1) EPENsEs.-A ll the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business (except as otherwise provided herein), traveling expenses (including the entire amount expended for meals and lodging) while away from home in the pursuit of a trade or business; and rentals or other pay- ments required to be made as a condition to the continued use or pos- session, for purposes of the trade or business, of property to which the taxpayer has not taken or is not taking title or in which he has no equity. SEC. 405. Section 3 (a) (4) (C) of title III of article I of said Act is amended to read as follows: "(C) of property not connected with a trade or business, if such losses arise from fires, storms, shipwrecks, thefts, or other casualty: Provided, however, That no such loss shall be allowed as a deduction under this subsection if such loss is claimed as a deduction for inheritance-or estate-tax purposes: And provided further, That this subsection shall not be construed to permit the deduction of a loss of any capital asset as defined in this article." SEC. 406. Section 3 (a) (8) of title III of article I of said Act is amended to read as follows: "(8) CHARITABLE CONTRIBUTIONS. -Contributions or gifts, actually paid within the taxable year to or for the use of any religious, chari- table, scientific, literary, military, or educational institution, the activities of which are carried on to a substantial extent in the District, and no part of the net income of which inures to the benefit of any private shareholder or individual: Provided, That such deduction shall be allowed only in an amount which in the aggregate of all such deductions does not exceed 15 per centum of the adjusted gross income." SEC. 407. Section 3 (a) (9) of title III of article I of said Act is amended to read as follows: 130 [63 STAT.
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