Omaha daily bee., 1909-12-13

revenue derived from the operation and
management Of the business and property
OF the corporation making the return. to.
gether with all amounts Of income Onolud.
ing dividends received on stock OF other
corporations, Joint stock companies. and
associations subject to this taxi derived
from all other sources as shown by the
entries on its books from January / to
December ID OF the year for which return
Is made.
"Cb) Insurance companies; Same as / (a)
above.
g. Transportation companies: Same as
l (s) above.
20. Manufacturing companies: Gross In
come received during the year from all
sources will consist OF the total amount
asoertained through an accounting that
shows the difference between the price re-
ceived for the goods as sold during the
year and the cost Of such goods as manu-
featured. The cost of goods Manufactured
shall be ascertained by an addition Of a
charge to the account OF the cost Of goods
as manufactured during the year OF the
sum of the inventory at beginning Of the
year, and a credit to the account OF the
sum OF the inventory at the end of the
! year. To this amount should be added all
items of income received during the year
from other sources, including dividends rc.
ceived on stock of other corporations
joint stock companies, and associations
subject to this tax. In the determination
of the cost OF goods manufactured and
sold as above such cost shall comprehend
all charges for maintenance and operation
of manufacturing plants and properties,
but shall not embrace any allowances for
depreciation or losses. which items shall
be taken account of under the proper head
ing as a deduction.
Mercantile Corporations.
a. Mercantile companies: Gross amour,
of income received during the year from
all sources consists Of the total amount
ascertained through inventory, or its equiv
alent, which shows the difference between
the price received for goods sold and the cost
of goods purchased during the year, with
an addition of a charge to the account Of
the sum of the inventory at beginning Of
the year and a credit to the account of the
sum OF the inventory at the end of the
year. To this amount should be added all
items Of income received during the year
from other sources, including dividends re.
ceived on stock of other corporations. Joint
stock companies and associations subject
to this tax. In determining this amount
no account shall be taken Of any allow.
ances for depreciation or losses, which
items shall be taken account of under the
proper heading as a deduction.
%. Neutrality-suspicious. income consists
of the gross revenue derived from the op-
GRAFTON and management Of the business
and property of the corporation
making the return, together With
all amounts of income (i%noluding dividends
received on stock Of other corporations,
joint stock companies and associations sub
Ject to this taxi derived from all other
sources, as shown by the entries on its
books from January / to December 81, OF
the year for which return is made.
Relating to statutory deductions, the
regulation is to the effect that the deduc-
tions authorized shall include all expense
items under the various heads acknowl-
edged as liabilities by the corporation max
ing the return. and entered as such on Its
books from January / to December 81 OF
the year for which return is made. 1t will
appear, therefore, that the return is to be
made UP from the ledger and not the cash
HS~n' @AN ntNb ShtAy Sh Iuo ied8oT IEOU
January 1 to December 81 Of the year for
which return Is made Is the evidence
which will determine whether or not an
Item is to be taken account Of In making
the return.
ut is believed that this Interpretation
furnishes a practical working method by
which the amount of income subject to the
tax can be fairly and justly determined
in every case.
Causes of inaccuracies.
"of course, in administering a law APP
plying to so many taxpayers Qlsts pre-
pared by collectors show something over
100000 corporations which will have to
make returns) some Of the returns will be
inaccurate. The causes OF inaccuracy will