The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-23

Change N the NsIs~ Of stocks.
iso--F X The answer to correspondent
IN to-dsys paper who asked II Increase In
ss.s; Of building .aa loan 'tscs should M :.
-. contrary to ruling. upon this very sub.
i~-t? A. understand the ruling II Is that
~ returned income. would say the
Increase In withdrawal value would be .
ssirer measurement OF earning than book
ysiue
Answer-The Commissioner has ruled
that IL the taxpayer will keep a regular
- Of books and will each year make an
Adjustment or inventory Of his property
The gain or loss shown by such An ad-
iuAtrnent or inventory may be reflected In
hlD income statement. Otherwise he should
not report appreciation or depreciation
IN the value OF securities until they are
actually sold.
All Corporations Make Return.
ISL H. ~ Il an Institution incorpo-
rs;sd but not a stock company required 20
make return II is net income Is less than
$4,000 per annumf
Answer--All corporations are required
70 make a return and are required to pay
. tax Of per cent on their entire net
income. Corporations are not entitled l,
any exemption.
Rental value ~ Ones Residence.
IHZ-J. NJ W. ouHht I credit my income
acroun. with fair rental value OF the
house which 7 own and occupy, The taxes
ana interest on tn. mortgage. I understand.
are exempt.
Answer-So. You can however, de-
duct from your income all taxes and in
serest paid within the taxable period In
dguring your net income.
savings Ba.k Interest.
tss-G. J. : read In your Federal In
come tax answers the other day that In
'erest IA savings bank. remaining there for
months interest must be Included in one ,
r.surn: 80 When ! vent 20 ne revenue
shonld De r.ekoned for 1918 return and 81,
months for iaiI return and twelve months
tor 1918 return. Can your expert reverse
himeeif on that
Answer-Only the interest on your saw.
ings bank deposit which was due and
payable between March and December
II. 1913. should be- Included in your 1871;
statement The whole ten months in
tsrest should be Included II II was du,
and payable within that period. In fac
he interest which accrued prior to Marct
I. 1919. should be Included In the 1871
statement II Il was due and payable or
NJ after March /. 1918. according to tn.
latest rulings OF the Commissioner.
Losses--Disi d~ nd-Interest.
ist-p. s \ party having a salary -
ss,seo and income from real estate Of ta.Sot
s M los, a. IN rssy e2,mpan 3, OF III n's w,p
he have to paw the tax
ca party holds shares paying dividend
on March 81. June, september and January
DoSs he pay on the yearly dividend or onll
on the nrst three;
IN January and July be deducted In f,Sl %
for only the proportion paid during the la
psr)od Of ten monthsg
Answer-You do not advise in enough
Dot t,, vI to n ne relif
company. II It was a Ioas due TO trans
actions which took place In the 1919 taxa
BILE period In the stock OF the realty com
pany IL Is an allowable deduction and yo
do not need to make a return. IL 1t Is
loss on property purchased prior TO Marc
4, 1913. and sold after that date yo
cannot deduct the full loss from your In
cone. but should ngure the deductih7e los
on the assumption that the decrease 4
value was constant between the time tn
property WAS purchased and the time
vse sold
f2) Dividends are exempt from tax
ation and II is not necessary to includ
them In yonr return.
90 Only the portion paid within IN
taxable period.
House Rented Daring summer.
isSE D. II own tn. house in ~hic
I live and last summer rented same n
live somewhere else and a. the end OF tn
We aEursd we we're aoou, 1900 to the Sooc
Nov the question Is: Do l have TO pa
,ncorne tAx on the n'-oo or On the s'0
Gained by renting;
Answer--As your living expenses ar
not an allowable deduction We think ths
you should include the entire $1,000
your income statement. OF course 20
can show as deduction expenses fo
maintenance. insurance. water rent, &C
incurred for the period that the hous
was rented.
1861. Hs. An attorney advises tina.
recent ruling OF tho Treasury Departmei
exempts from taxation salaries of e1,si
received by an unmarried man from March
isi3. 70 December 81. 1919 Is this informi
tion correcti
Answer--We do not know OF any sue
ruling. IL an unmarried man received
salary Of over 32.5oo between March
and December 81, 1913, we think that
is liable for a tax on all in excess
$4,000 and that he should file return c
or before March l.
Citizen of . Foreisn Country.
1s7-P =, I am a citizen Of Germany ar
states Is In the form Of dividends of co
,orstions and in interest on bonds Of Il
% sac 900 should make a return to Il
collector and II so, TO which ons'
Answer-You do not have TO make
return. Dividends are tax exempt ~
the tax on bond interest Is deducted
The source
Returns.
iss-E. l.. r, In regard TO the incon
,sx l am Informed that ! must make
report this year anyway. I have an ineon
- about $4,000 or $500 for the year isi
which Is under the amount that II require
.or me to come under the incoma tax, Kind
inform me II ! am compelled to make
report this or any other year so long
ny income 10 less than $4,000. being
married man and living with my wife
49, Aas income outside Of our busins
Answer-If your net income was Ia
than $500 for the period March
December 81. 1914. you are not requlr
70 make . return. II. however,
amounted to $500 or over for that :
r,od u is necessary for you 70 mako
eesurn.
voehhslAtpS--Classa 6ssoptlG
H. a. u sn. Bays tntsr,
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