Determination of net worth.
Section 2
SEC. 2. Determination of net worth.—The term "net worth" as used in section 1 of this Act shall mean the value of assets, including real and personal property and/or cash in banks (exclusive of amounts received during the period from December 8, 1941 to February 26, 1945 as proceeds of life insurance policies issued on or before December 31, 1941), credits interests and rights (exclusive of war damage claims and other claims against the Government of the Republic of the Philippines and foreign governments, or their instrumentalities), less liabilities incurred in carrying on a trade or business or in acquiring property: Provided, however, That should a taxpayer subsequently receive payment on account of such war damage claims or other claims against the Government of the Republic of the Philippines and foreign governments, or their instrumentalities, the amount or value of the payment received by him shall be considered as part of his assets on February 26, 1945. The term "value" shall, in the case of real property, be construed to mean the assessed value. In the case of personal property and of real property not yet assessed for taxation, the term "value" shall be held to mean the fair market value: Provided, however, That property, real or personal, acquired on or before December 8, 1941 and still held by the taxpayer on February 26, 1945 shall be declared at the same value in the inventories of assets as of December 8, 1941 and February 26, 1945, except that improvements made on the same property during the said period shall be included in the inventory as of February 26, 1945 at their fair market value; And Provided, further, That where title to property acquired on or before December 8, 1941 passed after that date to another person by way of gift or inheritance, such person, or any other person taking title to the property through a series of acquisitions by the same mode, shall be deemed to have acquired the property on or before December 8, 1941.