The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-24

hiSo ti aiioWdNle ueuuctlOn III your Iafm
Is primarily operated for proht.
CD You are allowed to deduct taxes,
but we do not think you are allowed to
deduct the expense OF a caretaker.
Withholding Tax o. Salaries.
?S0--N " y. submit the following
income tax questions for your kind solu-
% \ salary Ia $500 per annum. Should
pny On cn ,Pansn,y .ass.s
x,hS Ss Until ss s sSss o"
s%srs "S %shhsl cent ssc on psy ins
SSSm agn each month and The smnloyes
tsl should the proceeds OF bond coupons
payable March !. 1913 be included In 1913
Answer-(1) Tho tax can Be withheld
In any manner that the company sees NJ.
The company is liable for the tax on the
full amount unless the employee fies with
II Il certificate OF exemption thirty days
prior 20 the time when the return Is re.
quired to be filed.
The company IL free to pay the en-
p!oyee the full amount up to this time II
IL wants to take the chance that q claim
for exemption will eventually be fled, bat
IL a claim Is not filed by that time the
company thereafter becomes liable for the
tax.
CD Yea
supertax.
come Tor tho purpose e' of iSe sadd,,ons, ' or
supertsS laid under subdivision Q, paragraph
If shS r 81 Ss0 on od law :ss si
SnS Sn BE e.. or sh'
as a whole. j; seems to Us that In. exeinp.
ZION e intended for he super.ax a. well as
nal, as doe. psfasrspS D. which SeriSs:
remainder Of said ne, income"
Form 1910 seems to contemplate that the
nSraa TAX "" only fer Il the .seapo no
plies also to the supertax then line Of
page I Is Incorrect and line 8 o., page |
tons on page Q. Is the form incorrect?
Answer-The exemption applies only in
connection with the normal tax. The
statute as a whole refers to the normal
tax. The only provisions relating TO the
supertax are contained in paragraph A.
subdivision 9.
Professors % Universittes.
3D., a. M. 81 Doe: the salary of
pensation of all officers and employees of q
OF Form 1910 under gross incoms?" There
seems no space on page for deductini
(Sl When after making the general de
dIeuons' allowed the net income 10 below
g. 900 is !, necessary to MI out and return
Answer-1) II the professor receives
his salary from funds supplied by the
States We should think his salary wa
| exempt from taxation. Only to the extent
however. that the compensation OF suci
professors Ia borne by the state can the,
at all lie considered as employees of thu
State.
(a) II il not necessary for employees
, OF Il State TO include their salary in theiI
! return at all II they have no other In
come. no return Is necessary.
(3) No.
Payments Made o. Notes.
:3s--w. j. NJ viii you kindly give m
| your opinion on the following case undo
the present Income tax law; ,u..n.
| partnership. borrow q sum OF money in No
yemSer. isi: for the pnrposs Of ~ l.et s;i,,
! ness. In May 1918. they pay on this note
CaA this sum be. included IN the Hat OF de
q lsis| lot 'u''"e'' 'A''" '0' '"' '@-
| Answer-No. This liz u capital charg
and not an expense charge. Tho interes
OH such note which was due and pay
able during the 1913 taxable period is
however. an allowable deduction.
Attorney Employed ~ state.
.a,-B @. +. During tn. las, ten month
of the year 1919 I was einployed as at
torney FOR two. OF the state departments 9
legal s.rviee. in regard 10 which the.
state departments are authorized TO emplo
Of fees. per diem compensation and dis
bursements based upon the special service
no nxei salary. Ny Income from 9th.
sources during the period mentioned woul
n hs sn1n s1 re 1 from ,.s. Sta;
departments my Income probably would e.
HS n as % %Sh
In computing net income there shall b
excluded the compens.tion % al oiii once
ana employees Of state, &C. SHOULD
make II return?
Answer--we think that your fees fror
the state would be exempt and that there
fore you would have to make no return
Withholding.
ana should IKE answers to the foilow,n
questions regarding the income tax Law
4 eopar,n.rship Of snEinser.-thers az
professionai services. As copartnerships a
is not from coupon: or registered int.rss
,c. showing n SO ay q ,SS in cor
Quoting the business OF raid ifm be MED
May the balance OF 5000 OF such retain.
holding the tax. on each partners Min
a certificate on form No. 1000. claimir
DEDUCTION OF Ss.aa3.a3 each. under para
graph c. section .. each partner havir
equal interest In the hrm?
Answer-We do not think that any IN
~ required to be withheld In such cas-
The law requires that the tax be will
held only In the case OF fixed payment
made to individuals
Income Of Faraers.
23s-H W. C. Will you kindly infor
me through the columns Of your valuab
paper how q farmer IL to make out h
, iitome tax return under the foilowir
The farmer and his wife and family
four children live on the farm and work
The children consist Of two boys one 10 yea
81 age. one IT years ~ ssa. and two srl
one le years OF age and tho other 10 yea
, of age. The farmer and his two sons woi
the farm. His wife. with the assistan,
! OF her two daughters. taken care Of Il
milk. makes the butter. cares for the poult
, and eggs and raises the young chicken
and assists with the gathering and pr
par!ng. Of the fruit, and vegetable: {
work in the raising and preparation OF Y
farm products. The living Of the FAINT
comes largely from the garden and q
pork and poultry raised upon tho far,
Under these circumstances the net proil
at the end OF the year exceed $4,000, b
would not n tho farmer had been obhS'
to pay wages for the services perform'
by his wife and children.
; Under such circumstance 10 this farm