The Cape Girardeau Democrat. (Cape Girardeau, Mo.) 1876-1909, 1895-03-30
of $4,000 is clearly intended to cover


evading the income tax, include the
separate income of his wife as a part
Of said losses. When the wife has a
separate estate. producing an income
above the taxable limit, under her con.
troll, she must make a return for the
same and of the profits derived there.
from, without regard to the business
losses of her husband.
NO INTEREST IN FAMILY QUAERELs.
where a trustee makes return and
pays the tax for a wife. making a de-
duction of 81, 1000, the husband is not
allowed to make another deduction of
$4,000 in making return for himself
and family, and should be required to
SO adjust the returns that one
deduction should appear on the
eturns of the aggregate in
come of all the members
of his family, including that of
his wife. The manner in which they
may adjust the deduction or amount
paid for taxes as between themselves
is one in which the government has no
interest.
where a trustee distributes a tax
able income to beneficiaries he must
make a return for each of said bene-
ficiaries, as the taxable interests ap-
pear at the place of his residence,
without regard to the location of the
beneficiaries."
From the foregoing opinions it will
be seen that every disputed point
where the wording has given any oc-
casion for doubt. has been construed
favorably to the government. Through
out the entire series, for instance, it
will be observed that the family is
considered as a unit, the incomes of
wife and minor children being added
to that of the father, and but
one deduction of 81, 600 allowed from
the aggregate sum in estimating the
2 per cent. tax. If the husband in
any one year, however, sustains bust
ness losses the amount of which would
wipe out the tax. the wife's income
must not be included, as otherwise.
Her separate estate is allowed one
deduction of 81, 900, and the tax must
be paid on the income above that
amount.
ODDITIES OF THE LAW.
Again, a wife might have an income
OWL name and the other as trustee.
But one deduction would be made for
this-that of the trusted portion by
the trustee. According to a strict in
depreciation of the opinion rendered
no further ,deducation would be al
lowed the family in this in
stance. The father would have
to pay the tax on the aggregate
amount of his income and that
of the free portion of his wife's estate,
and the opinion CURLY states: THE
manner in which they may adjust the
deduction or amount paid for taxes as
between themselves is one in which the
government has no interest"
There would appear to be an advan-
tage in reaching ones majority under
the income-tax law, as the rulings ap-
pear to relieve one Of the burdens of
taxation at that period. Until 81, men
women form a portion of the family
unit, and the aggregate income of all
is subject to but one deduction in COM
putting the tax. The moment one comes
in possession of property the $4,000 de-
is applied to each individual
and reducing the base reduces
the mount of the tax.
Another feature of the law, as inter-
preted, which will attract attention,
is the opinion relative to gift. The
donor must pay the tax on his gross
income, including the amount of his
If the income of the per-
sons benefited is thus raised above the
limit of taxation, he, too. is liable for
the tax. The opinion as to the assess
ments of stockholders to make good de-
.ficiencies will attract a great deal at
among investors. Under or
circumstances financial men are
accustomed to regard such as business
in the common acceptance of
the term, but the government will
permit no deduction for such pay
nentS.
REPAIRS AND BETTERMENTs.
There is a narrow line between money
expended for repairs for buildings and
or betterments. The law permits a
deduction from the taxable income for
one, but not for the other. A man NAV
,ause 4 pane of glass to be put in his
,ld-fashioned window sash, or 10 for
hat matter, and deduct the expense
rom the taxable income. If he has 4
lew sash put in with two panes of
slass it's a betterment, and not de-
luctible. This is possibly an extreme
.ase, but it clearly illustrates the beau
iful application of the law.
The penalties provided under the
are extreme. For a failure to
make the proper IA return, without
.Xcuse, the collector shall add so per
ent. to such tax" I'm the case of
return of a false or fraudulent list
# valuation intentionally, he shall
id 100 per cent. to such tax" This
with equal force to residents
nd nonresidents, and the collector
an enter premises, examine witnesses
nd books and accounts or estimate
he amount of the income to the best
f his knowledge and belize. and add
he snug little amount of :, per cent.
o the tax, CIR 100 per cent. if the re-
urn seems fraudulent.
Mr.. Crosse expressly stated: The
aw IS on the statute books, and it is
ay duty to execute it. If there are
ny non-residents whose houses are
roperiy in nv district, and who fail to