The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-25

which will be answered on Thursday
| morning. II
Receivers Coapeasations.
N7--R. e. A. D Are recsiverr commits.
sions or allowances considered as special
compensation and exempt from taxation!
November i. isis. and term run to April /.
1914. when he was discharged. what part Of
his a .,,, l. e.. $50. is figured As Income
"a 4 man: income amount. to sn:ies;
under the law allowed to this person IL
Does he have to pay any tax,
Answer-u) No.
CD He should include In his 1919 state.
meht all allowances which were due and
payable In the 1918 taxable period.
az In a normal year he would have
no tax to pay. as the corporations pay
1t for him. FOR 1918. however. the man
is liable for the tax on his income from
companies received prior to November I,
1913. for no corporations were required
to withhold any tax prior to that date.
II may be that the corporations will re-
imburse the bondholder In many cases
where there Is an agreement to pay the
tax. but as far AZ the Government 10
concerned the tax has not been withheld
at the source and the income from all
coupons prior to November I. 1919. should
be reported In column b, page 2, form
1910.
A return is necessary by this man
regardless OF whether he or the corpora.
ton pays the tax.
Deductions.
2te-A. NJ. d. ~ In computing income
from rented houses may ! deduct outlay for
repairs. carpenter work. plumbing. paint
IA, I. ln,cre', on notes due previou. to
hV,s VR.NA st.e A.tA
be r.skoned as income for last years
come amour, paid for hired labor. sesd..
manure. fertilizer. &c'
san Na ior SGsqs am ns ,.s psd on mote
cpai1
Answcr-n You can deduc. all
amounts paid for repairs and mainse-
nance, but no deductions are allowed for
amounts paid for permanent improve
men;s or betterments made to increase
the value Of the property.
t2J No.
3) Yes for they are necessary ex-
penses in carrying on the business
90 You may deduct amounts paid on
Interest, but not on principal.
sSo---r. l.. T. Can tru.t.. twho II also
guardian, Of an estate Of four benercia-ies
AL minors and sharing equally: in making
SuiIdiss. Owned ana oeeup,.a BY ssrd. ::
and tnsse. u Bound s'' pras. m eo:rs to
maintain q as wen as other real estate In
roo rood condition un'il /, ls turned to sene-
Answer-No. Repairs on buildings are
allowable deductions In the case Of rented
houses only.
supertaX-Divide nds.
c5i-E. r.. W. % Your answer. to aues-
tons are a boon to taxpayers So far the
questions about returns Of income from divi-
d.nts have applied 20 incomes under $40. 900.
Kindly tell me whether dividends must b.
returned when by so doing the amount Of
net ineom. on line 3 page amounts to
ca BY deductins them again on lin. 4
the amount on line Is mad. below go. 900
the same amount as when they are no, in
Inc 8 shows when there 10 an additional
tax In this case that would be on stock
dividends and thought they were exempt
Answer-D Dividends should be IN.
cluded when the net income. including
dividends. exec eds $4,000.
CD When Form 1910 was made I'D the
rulings Of the Treasury Department re-
CURED that dividends be included even
though the individual was subject only to
the normal tax. The ruling has since
been reversed and now persons subject
only 10 the normal tax are not required to
report dividends at all. They should be
Included. however. when added to the
other net income the total exceeds $4,000
The exemption Of dividends applies only
to the normal tax and not to the supertax
Iaceae Due Prisr 70 March I, 1919.
?52-F. NJ, u. A manufacturing corpora
ION did work In isl2. ehSrg.d the same on
W. so1 n ana 1sna'r,s Pun, therefor which
Of such collections to be Included In lis re-
turn as as, part Of Its gross Income" for the
Answer--No.
s5s-H, n, II. Tho following question
with reference to the income tax hs. arisen;
The lay state. that person whose In
port; ai.c q the p.r.ons Income Is in sx.
S.rvs % Dsi.S Su, n ,h.G $4,000 ana !:
III. viii be the ral. for in,. su, how about
dividsnds is eoliretrd for ISIS. but no pr o..
vision 10 made for collection Of tax on SALARY
pr,o, to Moyemb,r i.'. Is ..hsrsiore,
person whose income exceeds 81 900 but 10
exclusively from salary and divid.ndsf
Answer-For the 1913 taxable period
, the normal tax unless the net income, ex-
elusive OF dividends, amounted to 80 500
or more, For the supertax q return IL
required when the income, including diyi.
bends, exceeded $4,000,
Withholding.
2sI-L W. have a mortgage on my
writing from party holdins mortgage the,
he is exempt from income tax, 10 IL not
necessary for me to hold per cent Of intsr-
est accrued from March I to December Al
1913, and send II to Internal revenue col.
| lector?
~ so. on or before what date mus, !
send II,
Answer-It 10 not necessary for you to
wi hhold any tax ut all. for no tax 10 re-.
quired 10 he withhold until the payment
amounts to $4,000. Moreover. no tag was
required to be withheld prior to November
!, 1913, on any amounts.
Returns.
ah6--H A., 3. ~ your incoms IL less
than ~ 600 for single man and g. 900 for
Q married man are YOU obliged tn make out
income tax statement or shall You be ohiiSsS
i - sxRlN ~ L.