The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-22

less the man lived WITHIN WeAkiu8 oie-
lance Of his business. would como In the
Same category ~ Communication farsa- We
do not consider for . moment however.
that the amount spent for lunches would
be considered ~ an allowable deduction.
2) We do not think thst Insurance.
premiums should be considered In the
same class - interest In the case usai-
toned. The reason that interest 10 IN al.
iowabls deduction 10 that 70 the recipient
II 10 income subject TO the tax. Thsrs-
fore. unless II was allowed - deduction
10 the mortgaeo9 II would In reality b
subject TO double taxation.
Persigu PsvtnsssAiD.
o.i,.d Hal :. !. h. us;:s ::.: : y :::s
d:ss Oh. vsis:d Ss:s.s .sss.. ..iiins
All ssisnes ssssss yrea. snd los seosun.
commission as compensstion. Must any IN.
come .ss :,stsmsnt BE- 1AAs In sseh oAss
AnswerLrhe partners ars required to
file return showing their individual In.
come from the business carried on In the
United States. No return y required BY
the partnership unless asked for BY the
collector. The agent must q courSs file
his own individual return II his income
u in excess Of $4,000 per senum. or
vs'"'N aOa sAsO ASAo tAAGoio pcfiou-
PastnersAip.
lso-.A .. C. A partnership business 10
carried on shevins net pront of about
'risUssd 20 TIRE. ss,s.m ems a. Sommis.ioa.
| snd the balance. two-hfths TO two partners,
for.isnsrs and non.residsnts:
| Must the income tag on this business be
salesmsn Be required 70 make separate -..
sqsn,, 81 tn"' income ever che personal
Answsr---No income tAx IL levied on
\ the net income OF partnerships Persons
carrying on business in partnership are
liable for the income tax only in their
Individual capacity. Partnerships are re-
! CURED to withhold the tar on all fixed and
determinabis payments made To its EN-.
pioyees when such amounts exceed $4,000
! per annum- They are NOT required to
| withhold the tax In tbs case OF commits
sions which are not dstsrminabie IN ad-
vance. The salssmen and the partners
should make individual returns.
Experimentation Required.
return Of Income for ssstsasr nom March
received By me since the tsstasor's death
Answer-The latest Treasury Depart.
ment rulings giving supplemental instruc-
tons to nduciaries state that "where a
| uieu dIter March I IN me year
1913 ana from March 1 up to the date
OF his death had a nst income Of $4,000
or more the hduciary (that 10. the ex-
ecutor or administrator should make a
| return for the decedent On Form 1910
and the income tax. both normal and ad-
ditionaL shown to b. due thereon will b.
debt against the estate Of the tdece-
dent. No other return is re-
quired TO BE- made By the nduciary until
the settlement Of the estate has reached
the stage when the benehc1artss Thereof
and thir respective interests In the In
come derived from the estate are deter
minabls and than the nduciary Is re-
l OF each year - prescribed By the reeu-
lstions.'
II the income rsoetved BY any benen-
ctary up 70 Decasnbss ~, 1919. amounted
10 $500 or over. then you would have 10
file a return also for the bensnciaries.
Income Exclusive ~ Divia< uds.
!as.s> &c. lac, year, ~ss i,sI5. as foi,sws'
FronSrcnt Of farm. .......... 49,. $50;
,.s =. ,.r a. pI p.,s a, my S.nher a.,
From Dividends from raircaA and In
) dustrsAi oorporsttea stocks. :.ss:
My WI. &. an neon: Of .Scu;
From honda Railroad and Industrial. ESQ
From o.ns ~, .,oess; .... $50
n s,oes d,y 1m 'oAn ana 'nnu.''ai 90
DO have TO make a return.
Answer-You do not have 10 make an,
return for. exclusive OF dividends received
your net income Is less than S2b00 10,
the ten months OF 1913 which the new
tax law covers
Co,nopstt~~a
With . psid up capital Of $500. Durirs la.
! year H. has done n businsss amounting (,
celyed from the in,srn.i revenue c"iisc,or
! We are compelled to state under No thu
ia. ana sn '' III: % have .,
deduct under "a all money. paid ou, b.
d. t rf" oS in III. way . Would .n.
y income Of el270, on which tax Of per cent
y: calculated: Thi. .,.,smsnt does not con
a aS... and thsr.top. F'yf;, net Income wh,sl
. income would be much lower Must We pa
tax OF per cent on ei.27of
q Answer-Accounts receivable should b
n included In gross income and account
E payable should be included In expenses.
), Allowable Deductions.
r 49,, n'mE D. D 4 NY legal ':s,a.ns: !: In
Of this arm demand. that J spend part q
\. each wsk In New York. and pay for = roor
to live in while there In addition TO . rsgula
y once space.
!. May deduct cost 81 this room and tray
. 'lling expenses from my income derived fre'
. this business
h Answer--If you maintain . home in IN
other city referred 20 we should thin
II that your travelling expenses and co'
Il Of room might be considered necessar
:. business expenses and therefore allows
r hle deductions.
~ Cttiseas II Fsreigp Countries.
ls5---G. NJ II. Having recently beeon
:. one OF your subscribers. would be obliged
"a you would answer the following questions:
I was born On tho United States
America, but have lived In Canada Z,
Vi twenty hve years. My home now 10
A. Canada. According to United States law
believe this continued foreign residence q
n fifteen years makes me an allen Is tn
Id I am a partner in . concern that man
features explosives. All Of our manufa
~ have no once or connection In this count
III whatever, but we sell some OF prod NC
to manufacturers IN this country. Am !
any way liable for income tax under Il
law
n. Answer--Whsther Or not you are liah
To taxation depends on whsther or n
" you are an American citizen. II you ha
~ become naturalissd and II you vote
Id Canada you Of course are not an Anne,
n can citizen nnd do not come under 4