The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1914-02-10

- anu answers VI general application
one or may be apportionsd sstwssn
In case the husband or wife has
coupons or other income subject 10
deduction at the source. he or she
should, before Ming certificates claim
ing exemption. arrange with the 9TH
er a. to-the proportion OF the $4,000
exemption To be claimed by thsm re-
spectively, so as to prevent oVar-
claiming and resulting penalty
"a. When must widows or widowers
nle returusf
A. When the net income amounts
TO 5000 or over The exemption al
lowed IN this instance is but $4,000
u. From Jan. 1, 1918. 40 Dee. 4. 1913.
my net Income amounted to $4,000. but
from March 10 the end or the cal
endar year. such income amounted 10
$500. Must 1 file returnf
\. There Is 40 express provision OF
the statute OF regulations on this
I point. For 1914 and after, no return
| would be required. but in view OF the
/ fact that for the year 1919. your In
/ come IS computed for only nve- siXths
| OF the calendar year, and that fvo-
blNths only or the exemption or $4,000
= e $500 IS allowed for such year,
We consider that a return should DO
Med where the income from March /.
1913, amounts 70 So 500 or over FOR
a single person, including widows or
widowers and married persons living
permanently apart
Va Nhnt Income must be included
In an Individuals returnf
A. The statute provides that in
come shall include gains. profits and
income derived from salaries wages
or compensatlon for. personal service
OF Whatever kind and Ia whatever
FORM paid. or from professions. vo-
cations. business. trade. commerce or
safes or dealings in property, whether
real or personal, growing out OF the
ownership or Use or or Interest in
real or personal property. also from
interest rent dividends. securities or
the transaction OF any lawful bust
ness carried oA FOR gain or profit, or
gains OF profit and income derived
from any source whatever. including
the income from but not the value OF
or descent"
( The statute exempts the proceeds
from lie insurance policies. salaries
or certain public OFFICERS, and also
interest upon obligations or the Cnited
states government and OF any state.
city. county town or village Such
Items need not DO included IN the re-
1 turn.
"a. purchased 100 shares OF stock
la April, 1913. at 500 per share, and
sold the sumc tn November, 1913 nt
500 per share. Must,I include the pro6f
ns Income.
A In view Of the broad wording
OF the statute, this would be held an
item OF Income
a. purchased 100 shares OF stock
In April, 1913, at $40 per share. and
ON December 81, i9I3. the market value
ot tue stock In found 10 have appreci-
ated to SO3 per share. Dust 4 include
the Increase In value ms income.
4. No.
a. D purchased house I'm 1909 for
$4,000, and se,d 10 In November. 1913.
return the total profit made or Gun
npporfion itf
I a. We consider that where the
pront Is made upon the sale OF proper
I "a Ia
such profit should be apportioned ac-
cording t. the number OF years thu
property was held. unless IL can bel
established what profit. ir any, accrued
subsequent 10 March ]. 1918 Where,
property Is purchased after March l.
1913. and sold several years suboquent-
/ ~. the pront made viii be considered
\ proht for the year in which the prop
/ erty was sold, unless an annual est
\ mated Increase shall have been includ-
/ ed In the return FOR each year as re-
cases
a. own my own residence. Must
l include fan my gross Income the fair
rental vai"e OF the residences
a. received during the year a.
Legacy OF $4,000 under the viii of my
uncle. Must include this amount In
my returnf
| a. Gifts are not taxable under the
/ statute and YOU VIII not have to In
\ clude the $4,000. but any interest on
! tHis sum must De lncIuued IN your re-
I turn
( a. what can he deducted In an In
dividuai's returnf
A Q) Necessary expenses actually
/ paid In carrying on any business. not
including personal living or family or
! partnership expenses.
! 90 Interest on indebtedness
tS) Taxes. not including assess
ments for local benefits
90 Losses actually sustained Ind
| trade or from fires, storms or ship
ance or otherwise
90 Debts due TO taxpayer actually
! ascertained 10 be worthless and
| charged Off during the year
GO reasonable allowance for
depreciation
% Dividends upon the stock orE
any corporation or association tax
able upon Its net income tNot deduct
! ible In determining additional taxi II
90 Amount or income upon which
! tax has been deducted or paid at 4
source
90 $4,000 OF income or. In case OF
married people living together $4,000.
q. Cnn 1 deduct personal, living or
family expenses,
You cannot
q. own my residence which II
mortgsged for $4,000. Can Z deduct In
terest on the mortgage, repairs, ire In
sursnce premiums and taresY
\. You can deduct interest and
taxes, but not the cost OF repairs or
fire insurance premiums.
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Why Not?
Zoology Teacher-Edgar, what is
the highest form OF animal life?