New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-03-06
INCOME TAX RULINGS.
A DECISION Az TO LAWYERS AMI
PHYSICIANS
,,,sp.xn,s LOSSES CANNOT BE CHARGED Up TO
WIFEs INCOME-AMoUNTs PAID FUN FINE
INSURANCE. MAY BE DEDUCTED

wIEE.'S INCOME-ANOtNTS PAID FUN '''
INSURANCE MAY BE DEDUCTED
OTHER QUESTIONS ANSWERED.
Tho circular issued by the Commissioner Oh III.
formal Revenue 10 the collectors s''"'o uaoh
the extension OF time for ming re'"'"' 49,. - ,,
N April Is. contained TWO other po'i'N -
.onna IN taxpayers II is ordered that III 0o'''
putting incomes under the income 1,a,od In This
Maid for fire insurance may be heuuu ,. =, ,hs
r. .c,ion Of Edward Crosse, the cohec'oi "a 20
Third District is approved IL Is iur'".i 49,
that corporatons. in making returns u ~,
comes need not give the names anu $40 10
Moves This does not mean that shi"''' =
arr. I'm. II relieves the corporations o"'S 49,
giving names OF their eihpio!e' ~
maid 10 them individually. . vi.
Tho fact that a part Of the city OF -Ne" ~ ~,
lies within the Fourteenth Collection D.s''i0' 80
causes some confusion The COLLECTION ohl'e vi -
Fourteenth District Is at Albany the co''ew'o'
Ing louis W Pratt. The Twenty-third ana i"e",'
fourth wards OF the city OF New-forH are ia .e
t-ovr,aen,h District and many residents OF tha'
mart OF the city are Of the opinion that the.i ~
turns must be made to Collector LOUIS '"
at Albany. In this they are wrong i"''
uavs been a deputy-collector for the south ehd
OF the Fourteenth District, who mas a''e"ueN ~
tho collection OF Government taxes. Al the pres
ent time D. T. Hawkins is acting IN thd' caPa''''
but r,r the collection OF the income TAX 'oh'S."
Pratt has appointed another deputy whose o"'Ce
IS OF No "a Willis-ave, where all returns s"o"''
be made and where taxpayers may receive piah"s'
The question raised By some people as 10 the
legality Of collections made by deputy collector 10
not regarded with any concern by the COLLECTORS
Mr. Crosse said that he thought there would he
no trouble that score.
III | find il necessary" he said ito deputize
person 10 represent in the matter of collecting
the income tax and II that person acts under my
instructions | being responsible for his oftcial
acts. there should be doubt as TO his compe-
tency."
In answer to questions sent TO the Commissioner
al Washington the collector Of the Third District
received the following interpre stations or the law
which will be read with much interest:
Firs-The gift Of a person to his grandchild or 10
any other person not a member OF MS Lamiiy IS
from the income Of the person who Sc the same
and is therefore subject TO taxation IN ms ninHs
clear,y az a gift and II such gift. with his other
sources OF income. places MS income ABOVE ths
taxable limit. he is liable 10 a tax upon al 'he
second-If the father pays tax upon his nome
and the income OF all the members % his family
hd shouid not soap aXation whether computed
ing return for the aggregate income OF all the menu
Third-Pronts realized from the sale Of stock. .,
other personal property made prior TO me year isst
prior 10 said year. not to be treated as taxaole
income, without reference to the time Oh pay
Fourth-Iosses sustained by exchange Of real es-
the property remains in the hands OF the original
parties and is therefore not Geiuctlble rom IN
come. Profits and losses arising from sales Of real
estate purchased prior 10 December 81, nv cam
not be considered in any income return.
FIfth-ln cases where lawyers or physicians. or
other persons refuse to make their returns ID COM
plla nee with law and regua tons, or refuse 20
return income FOR which they liable under Sal1
law and regulations. or render any returns when
arc false within the meaning OF the law ard regu-
latous collectors should make said return. ana add
the prescribed penalties thereto
Sxth-The instructions as TO the trustees income
return by trustees must he held 10 mean as x
states that the sum received from trustees by the
benenclar,es should be returned taxable m
come" The same should b", however. noted IS
income or deducted amount upon which me
tax has already been paid The instructions ref-r
practically to cases Of beneiciares who nave IN
come In addition to that received from trustee,
and are intended 10 prevent escape or income from
taxation. , .t.
Seventh-No deduction can be allowed FOR rent PAD
for residence where persons live In rented houses
The exemption OF 5000 is clearly intended 10 cover
such expenses. ,
EiChth-When A husband engaged in business sis-
tans losses In OF his income. he cannot for
rho purpose OF evading income tax include the sep
arnte income OF his wife a part OF said losses
When the wife has a separate estate producing an
income above the taxable limit under her control
she must make a return for the same ana or me
profits derived therefrOm. without regard 10 the
! business losses OF her husband