The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1912-04-04
STILL WORK ON LAW
State Tax Commission Men
Explain Meaning of In
come Tax Provisions.
HITS HARD AT CORPORATIONS

All corporations must make sworn
Ereturns Of the properties owned by
them, and if their property is not tax
able the facts and the reasons for it
must be included in the returns to the
commission, said K. X. KEENAN,,
supervisor Of income assessments, in
! a discussion of the new income tax
law before large gathering of mem
bers of the Merchants and Manufact-
urers Association in Milwaukee.
This was only one Of the answers
made by Mr.. KEENAN,, or Prof. P. f.
Adams of the Wisconsin State Tax
Commission, to one Of the many ques-
tions asked by business men. It was
evident that these were in great doubt
as to the construction of the law on
many points and Prof Adams had
been called in for the purpose of solv-
ing sections Of the law considered m
certain or confusing.
The returns, it was announced, can
ibe made up to May |, In all cases
where good reasons are given for the
delay this year, and longer extensions
may be granted in exceptional cases.
Bond issues by Wisconsin corpora
lions and held by non-residents, will
be assessed against the local corpora
ton, Mr. KEENAN, explained. Bonds
issued in another state and owned by
Wisconsin residents, which are already
taxed under the personal property law,
will be exempt, he said.
Losses in incomes caused through
speculation in the stock market will
not be recognized in levying the as
sessment and tax under the new il
come tax law.
Under the Interpretation placed on
the Law by Prof. Adams and Mr.. Ken
nan, individual stockholders Of cor
porations that have been assessed
are exempt from income taxation.
The question Of legitimate losses,
which corporations and individuals
are entitled to deduct from the act
income Of the corporation or firm
were considered.
2'Would the tax commission, in the
event that a man is carrying on two
businesses one of which was loss and
the other gain, deduct the loss from
the income in levying the assess
ment?, was a question asked
eff the loss is legitimate" respond
ed Mr.. KEENAN, sBut not if the man
earned $4,000 in his business and
then lost it on the stock market
.'The law allows reasonable al
lowance for depreciation of property
from which the income is derived, y
added Mr.. KEENAN,.
Another interesting point was that
all non-resients of the state who
have summer homes within the state
are chargeable for the rentals of the
property, while residents of the state
will only be chargeable for the rentals
on city property and their country
homes are not included under the
income tax law.
The telephone company pays tax
into the state treasury and is therefore
exempt under the income tax law, but
Its dividends secured by its stock
holders in the state are assessed under
the law.
Foreign corporations doing bust
ness in Wisconsin must pay the tax.
If it does not assign part Of its in
come to the Wisconsin division, then
Lit must compute its net earnings and
apply the propoi ton to the business
being done here.
eff the business received no income
for 1911, within or without the state,
then it has no tax for 1917
Losses must have been incurred in
the year to entitle one to deduction
from the income tax. oN
For sale-Farly and late seed pota-
toes including Red River grown and
early Ohios. Strong vigorous seed. Ben
Jensen, r. +. D., No. "a, Kenosha,