The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1913-12-25

| ttic and educational corporations, bust
ness leagues, boards Of trade and civic or
| ganiza tons are not subject to the tax
They are clearly defined in the Law. go
! that other corporations may not use these
| exceptions as a loophoae.
Tax Returns.
o-what individuals are required 30
make tax returns3 A.-Evcry person OF
lawful age subject to the tax having a net
income of 5000 or over for the taxable
year In addition, all guardians, trustees
executors. administrators. agents, recefv-
ers and conservatorS must make a tax re-
turn for the person for whom they act
Q.-Suppose there are two or more
guardians, trustees. executors. Stn. must
each make q return? A--No: return
made by any one in sufficient
Care there any individuals who need
not make tax returnf A--Pers0ns hav-
ing net incomes not exceeding So 900, per-
sons for whom the return Is made by an
employer or by q guardian, trustee, eK-
ecutor, etc, and who have no other in
come, and persons whose income IS de-
rived solely from dividends on stock In
corporations which pay tax and whose net
income does not exceed $4,000
Q.-Does a copartnership have 10 A1e q
return? A--Hos only II required by the
commissioner or collector; each partner
must make an individual return.
Q.-What corporations must MAKE re-
tax.
Q-when must the return be n1ed7 A.
individuals and corporations must fse the
return on or before March 1.
Q.-For what period is the tax levied?
A-For the calendar year, except IN 1918,
when it is levied from March i. 1913. only.
Q.-Suppose corporation has a fiscal
year which does not correspond with the
calendar year: must It make It's return for
the calendar or for its fiscal year? A
~ ~
filed for the calendar year. but the corpo-
radon may designate and use the last day
of any month as the day for closing It's
fiscal year. provided It gives thirty days'
notice to the district collector. The tax II
then levied Tor the fiscal year. and the re-
turn must be fled within sixty days after
the close OF the fiscal year and the tax
paid within 40 days after the elese of the
fiscal year.
Q.-where must the return DO nIed3 A.
An Individual must file the return where
he resides or has his principal place OF
business: corporation or a nonresident
must file where the principal place OF
business is located. and the trustee, guard
ian, executor. eto. must file the return
where he resides where the instrument
under which he acts is recorded
Q.-what must the return oontafnf A.
The gross income and certain deductions
and allowances which will be explained
shortly.
Q.-Must the return be sworn tor A.
Yes In case Of q corporation the cath or
affirmation Is made by an Offacer.
Gross Income.
O.-what does gross income mean under
the income tax law? Across income Is
defined IN the statute as gains, profits and
income derived fron salaries, wages or
compensation for personal service or from
professions, vocattons, businesses. trade.
commerce or sales dealings in real or
personal property growing out OF the own
ership or use OF or interest in real or per-
sonal property, also interest, rent, diyt-
dends, securities. or the transaction Of
any lawful business, or gains. profits and
income from any source whatever.
Q.-Does gross income include property
acquired by gift or by will? A-Eo. but
1t includes the income from such prop
erty
o.-wm proceeds of life insurance poll
cies paid upon death or paid upon the ma
turity OF a term or upon surrender OF a
policy be included as income7 A-No.
Rates of Taxation.
Q.-what is the rate of taxation? A.
The normal rate Is per cent Of the net
income. and this applies to corporations
az well as to individuals. In the case OF
individuals having a net income exceed
ing $4,000 the law provides for an addi-
tional tax.
tax against incomes OF individuals? A
One per cent on amount by which income
exceeds $4,000 but does not exceed $4,000;
9 per cent on amount by which income sx-
ceeds $4,000 but does not excaed ST. 900:
3 per cent on amount by which income ex-
ceeds SIC. 900 but does not exceed 800, 900;
per cent on amount by which income ex-
ceeds 100000 but does not exceed s250o0o:
5 per cent on amount by which income sx-
ceeds SEQ. 900 but does not exceed SOC 600;
nfSrfr iF1rA
ceeds $4,000.
o.-Are corporations ever liable for the
additional tax? A.-Nsver.
GIN calculating net income for the ad-
ditional tax, are the same deductions
made as in calculating net income for the
normal tax of i per cent? Ayes, with
the exception that in calculating net in
come for the additional tax neither divi-
dends nor amount Of income on which tax
is withheld at the source viii be deducted.
Exemptions and Deductions.
o.-Is there any exemption allowed TO
taxable person? Ayes. $4,000: and II the
person Is married and his wife lives with
him the exemption Is s.. 900 more, making
$4,000 in all The same provision Is made
II the person making the return is a mar
ried woman whose husband lives with her.
Q.-Can husband and wife each deduct
the additional 81. 600? A.-No. Only one
deduction Of $4,000 shall be made from the
aggregate income Of husband and wife
when living together.
Q.-Can guardians, trustees. executors.
etc. deduct the exemption Of $1,000 for
the benefit OF the person for whom they
act? Ayes.
Q.-what deductions can be made by an
individual for expenses. ETC? Al. Neces-
ssry expenses actually paid in carrying
on business. g. All interest paid on in
debtedness. All national state. county,
school and municipal taxes. l. All losses
actually sustained IN trade or arising
from fire. storms or shipwreck and not
compensated by insurance or otherwise.
5 Debts due and found worthless and
charged OF. 9. Reasonable allowance for
wear and tear 7. Dividends received from
corporations which pay income tax s.
Amount OF income on which tax is paid
or withheld at the source, provided such
income does not exceed $50 or is irregu-
lar as to time and amount g. Interest
obiigations of the United States a state