The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-19

$4,000 the matter be taken up with W.
II. Osborn. the Commissioner Of Internal
Revenue, Treasury Department, Washing
ton. n. c
Tax Free Coupons.
ia n q. u. man deriving income from
the interest on corporation bonds. the ,as
on same being paid oy corporation issuing
contained j. 'He amount Of sale Interest
received by the holder u the bonds con-
ditionl fpr the purpose VI the income tax!
II So. IN" tax having been paid BY the
issuing corporation, would II not be double
taxation?
Answer-No. Such coupons cannot b.
taxed twice. Corporations were not re.
CURED to withhold any tax prior to No
vember l. 1913. aud therefore whether the
tax Will be- paid by the corporation ON
coupons paid before that date will depend
on the covenant in the indenture or the
attitude Of the corporation As far as the
Government IL concerned all such coupons
should b. reported as income upon which
the tax has not been withheld at the
source and entered in column u. page ..
form 1910. Such coupons paid after No
vcinber l. 1913. should. however. he en-
tered IN column \.
C"ps rtn-r.hips-Priva Boarding.
school.
u you can s.v. me any Information on the
fo,i9~inS po,n ,.;, :. ,-,,s, ,o.,,,o.
school operated BY copartnershlp. May
Ne make the following deductions from our
Rent for buildings and ground. used ex-
clusivey for school purposes.
Salaries to instructors.
Wages to help.
Heat. iixht and water
Food.
Fire Insurance ~ on buildings tD on
equipment
.AcTertisins.
Commissions to agents.
t.) We conduct one business in larry
town for ten months of the year and another
at Port Henry for two months. both ia New
York state Is IL necessary to file two differ
ent returns or viii one cover both incomes
besides the one that Is illed for the business
.Auswer-I These ARE all necessary
expenses IN carrying on your business and
therefore allowable deductions
90 No return is required b. copart-
nership. Each partner must make an in
div.dual return and should include income
from all sources for the taxable period.
M Return IL Necessary.
lgo-w. T.. II from March TO December
81 1914, my gross income from salary, divi.
on loans amounts 10 ,s,sSo and my total
losses In trade amount TO -, 400. leaving n
n from sS,. S or o,. S.ndsp nd
thus leave balance OF s?.55o. which renders
not liable 30 taxation!
II must file return?
Answer--You are not liable to taxation
and neither is II necessary for you TO
max. return.
Gifts.
l.l-W r. L. % Mrs. A widow and
NE tenant, has sros, ,neoms OF ,n ss;USs
agreement. Does either one have to make a
return
t:I Mrs. u widow has an income OF
fi5.O mostly in bonds which the \.
she gives one half the income TO three chill
s., 500 Do children have to fle returnf
Answer-t From your question We
assume that the amount paid to the
daughter is merely n gift on the part OF
Z the mother. In this ease the widow
should make a return, but the daughter
does not have to.
/ for the full amount. Gifts are not con-
sidered income and therefore the childrel
| would not be required TO file returns.
Is = R-tur" Necessaryf
,i;;: oSG s party ha; s Ss' ,nSG.
of dividends on corporation stock, is It
necessary for him Ia make a return?
Answer--No. II is not necessary to IN
clude dividends In the return. The bal
ance is less than $4,000 and therefor,
no return is necessary even II this liz tho
the law covers.
Insurance Pre- mi u ms-water Rent
1873. c. +. own my home, therefore
kindly tell me II fre Insurance. aud water
taxes are an allowable deduction
Answer-No,
Income Of Phystcian.
lat. c. y. ~ Is a doctor who between
March and December 81. 1913. Is pal,
| for professional services rendered In 1911
and 1914 required TO include a statement o
the amount thus received In his return snc
to pay "a tax upon II ,..
Of services rendered between March l ane
| December 81, 1919 for which he has no
as yet been paid and possibly never ma,
| Answer-r No.
| t2) Amounts which are due and paya
BILE for services rendered during the 1871
taxable period should be included Az In
come even though the money has not beef
paid. II later 1t IL found that the bill
are uncoilectibie they may be deducted
az worthless debts.
lgS--J, L. T. % II a married woma,
living with her husband has an income o
$4,000 per annum from her father which 1
, income tax does she likewise pay a taSy
tO II she does not must she nevertheless
make a return on form io<0'
Answer-U No. Gifts are not taxa
BILE
Income for Services ReHdered Prt0
- March I, 1919.
Of q corporation earned IN isii was not PAL
until after March I, 1913. owing to lack Q