The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-23
If You Live in Your Own House. Put
No "Rent' in Income Tax Return

furnish the party paying interest With .
sa,sm eh ina. , tss has been eo"se'eu ~
t0 u party receives salary from
s s,,snl, ana nnLnisnss ,,'I ,u',., .na
general deductions shall corporation pay
TAX on such income. takins into considers,
BY general mean interest on mortgages, &C.
Ansver-D No tax IL required to Dc
withheld when Interest Is paid to a cor
poration. Therefore In this case no GER
tincate OF exemption is necessary. When
interest is paid to an indiyid dual the tax
on the full amount must be withheld When
the amount paid amounts TO $4,000 In any
year unless the individual files with the
payer a certificate OF exemption When
such a certificate is filed the tax Ia with
held only on such amounts as are paid
in excess OF the exemption.
CD II the employee files with the cor
poration a complete statement OF his In
come and deductions the corporation "a
then only required to withhold the tax
on amounts paid In excess OF the ex-
emption plus the general deductions.
Returns BY Cseesseps.
5000. E. ". where executors have colt
Der /, 1919 and have paid over such incoms
70 benehciaries prior to November I, 1914,
are the executors responsiois Tor or required
TO withhold any tax?
ca II the executors have paid over no
Ger. isl i"e ars 'i the, obliged TO withhold any
tax for the year 1si3r In other words. IL
ne executors do not pay OYER any o, par,
20 oithhold Or pay any tax for isisi
ca The law requires executors to make
A return the same as individuals. The ex-
eeutors hav. received a considerable amount
OF income prior to November l. which inc ON
tssy paid over prior 20 NSv, s.,S.n s.cau,s
he does not know hos much Of the incorn
is derived from coupons: how much from
tat 49,. 49, ,sh a.
n the executors make no return, no return
can be made; ~ the executor does make a
hss collected and paid over before Noyem-
Der ! h. now has no funds from which
to r,.shoid me nor nS,m'' TAI
(3D The executors should make q re-
turn II the income received by any bene-
fcary during the 1913 taxable period
was $4,000 or over. Otherwise no return
need be made The beneficiary must OF
course make a return IL he receives In
come from other sources which combined
with his income from the trust fund
amounts to $500 or over for the 1915
taxable period
Dividends.
ioi.-w q. q. IL tho tar on dividends
paid by the corporation or by the individual
stakeholder on the following Pennsylvania
corporations; Ere Insurance companies
brewery companies. paid up stock in Il. 4 l.
Association. proceeds OF sale OF store leass
OF drug company distributed as profits &c
pei the corporation to pay same. or u
the corporation does not pay same mus
the iudlviduslY
Ans~er-All dividends are exempt frorr
taxation, az the corporations are required
to pay tax OF per cent on their ne
income. II Is not even necessary 10 In
clude in the income statement the In
come received as dividends.
observation-disclosures Pre- miu m ..
,o.--A. c. p. ~ am told that car
deduct from my tAIAbls income the incom,
tax paid by a national bank In which | owl
''0G s IN Sani ES n. assn Of the s.''
before "A notary administered IL IL necesssr,
TO hsv; The VII. present an ard make assent,
OF the time In his business for that par
time can he claim an Allowance Tor IN,
90 Il ,:s s .,Sr.9ss iss p:
tn. dividend. and do no, taxa Il but pa,
ne $50 c dn: no. d. d, enter ~ In III
esim.a that a. "S lid no, r.csiv. ,ss div,
told me to "ns il up hes, YOU can sri
smother clerk said enter the $50 only a
90 We hav. 1870 blanks with imprin
on margin Of bank or banker who get
them 81 the collector and has their name
printed on. one clerk at the collector
office said not TO use them. another cleri
sad use them Is u right to use 'ho'
,sD In returning savings bank incom
payable apriI ! ana october / no
on 81" ,hos. dates as as the TAXABLE ineoms from
the savings bank deposits for the year,
Answer--The internal revenue depart
ment has ruled that individuals subjec
to the normal tax need make no return
OF dividends and that such individual
may enter as a deduction the persona
property tax which bank pays on the!
holdings OF It's stock without a CORE
spending entry on the other side OF IN
return.
t2) According TO a recent ruling this /
not necessary II the wifes income /
small
CD Yes.
80 We do no, think the premium o
the dividend should be considered on tn
return at all
90 We should think that such blank
would be accepted. but II would perhap
/ be better 20 use the blanks furnished b
/ the collector.
! 90 Yes.
Helps with Tneome Tax Knots, on Monda,
more than -. 900 bu, less after having IN ad
! deductions allowed by the Law must MAX
! a statement. The New York Herald" o
| Sunday, February g. said that william
| Osborn. Cornmissisner OF Internal Reyenu.
| had issued a regulation on Saturday. Fer
ruary I. stating Just the opposite from you
| answer. according to my reading Of III
! article. l mean where only the normal 10
| IL due.
q. wish that you would also sdvi,
me what people living In the country al
| 10 DO. As there are no authorised agent
| appointed so far. 10 my knowledge, do W
| have TO send our returns to wsshinsto,
| New York. Albany or Poughkespsie.
! 1--we IN Dutchess county!
Answer-CN The reply to the auestio
referred to should have been a little MOI
explicit A statement should be mad
II the net income 10 $4,000 or over. {
s25 for the 1918 taxable period
the deductions allowed bring the net II
come below these amounts no return
necessary.
90 You should file your return wit
the collector OF Internal revenue for yo,
district Cyrus Durey. Albany. y Y
Income of children.
?0&-J. r. Ny income is $500 year ar
have two daughters earning 800 q YET
each, which money, however. they rsts
for their own personal use. They purcha
their own clothes. but contribute nothit
whatsvsr toward the household expenses.
Am TO consider this an incomef
Answer-No