CHAPTER 63

INCOME TAX

AN ACT TO AMEND AN ACT ENTITLED "AN ACT TO AMEND CHAPTER 6 OF THE REVISED CODE OF THE STATE OF DELAWARE OF 1935 RELATING TO INCOME TAX," BEING CHAPTER 11, VOLUME 41, LAWS OF DELAWARE.

Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met:

Section 1. That Section 116 (c) (1) of said Chapter 11, of Volume 41, Laws of Delaware, be and the same is hereby amended by striking out Section 116 (c) (1), and substituting in lieu thereof the following new section to be known as Section 116 (c) (1):

Section 116 (c) (1). The basis for ascertaining the gain derived or loss sustained from the sale, exchange or other disposition of capital assets, including property, real or personal, acquired by a taxable prior to becoming a taxable of the State of Delaware, shall be (1) the cost of such property or (2) the fair market value of such property as of January 1, 1920, or (3) the fair market value of such property as of the date such taxable first became a taxable of the State of Delaware, whichever is the highest; provided, that in ascertaining the deductible loss under this paragraph, the loss to be deducted shall in no case exceed the actual loss sustained upon the difference between amount received and the cost of such property.

Approved April 14, 1939.