The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-26

be included in the income statement the
Treasury Department at nrst ruled that
they should be included and Form 1910
was made up on that basis Recently.
however. this ruling was reversed and
dividends may be disreGarded except by
those subject to the supertax.
,D The rulings in regard to interest
were at first confusing. The latest rul-
ing requires all interest which was due
and payable within the 1918 taxable Pc
riod TO be included as income for thai
period.
Depreciation IN Real Estate.
2ss--F y. Last month the board Of tar
commissioners reduced the assessment upon
eaa.s ., resris,ies. in Bin o oi .s,. 'n % s:.
next door my dwelling had lost IS per cent.
Doe, this come whiting tn. income ia.
rule % exemption from ioases7 "s .
aSs s ss. n ." :s been h.s S..
Ss.hni,eiy a,eertained during year covered
Answer-If you keep regular sst Of
books and make an adjustment or in
ventory each year any gains or losses re-
sulting from such inventory can BE- re-
fected IN the income statement. Other
wise you should not include any loss until
the property Is actually sold
Local Be.eats.
s9e-H What 10 tax Assessed against
by municipality such tax?
Answer--Local BENEFITS refer to i'm
provements where a part CASUALLY one
halo is paid BY tho municipality and
the balance by the abutting property
owner
A water tax IL not an allowable deduc-
ton as II probably comes under house
hold supplies
AssorlattOus-Sala pala q. a.,
vices RessereA Prior 20 March
!, 1914.
| tod c % Is inrom. and In Xix.
MM srrs The dsa.ss, s TO p: ,eskonsd fITn
j. and then a1s,l's. ,h,. 70 .R D:SsrS ss
the ,u !ca rrport.d 20 the eolisS;or,
70 n. tax. How .bou, unins orpor.ssd as,
s..ssi ..iasy :. ,.o:S srs.a 's1n' ,sseu an
Year a. The smPi HS'" could sns1a 2 pa Ssy y
aq IL .SS'. f; va. 70 e., IL ..,: 4:
understanding, however. that II the Sssi.
sppsr.n, ultimately ,has 8, vas not so; SH
20 Improve. A would re',nauish ali claim,
iaat TERI improv.a Su; both n . nSi n, n.
.mpI,cye5 ar. living in hope. tina, sasin..
Better and iha; then an insr.a:s Of pror::
viii come in this business so that the sc-
Mesnwhiis the nominI ..i, ~ Of ,ssos !.
.on'inGed' ST 6oo as "a, 9nIy been p"ssie .
year. tn. sum which . ha. actually resolves
during the past year has been credited on
What he recelves during the coming yes,
Will complete the salary Of 1903 and make
wead make ma r.;afn OF o, VIA, psy%. %"
he act uaiiy has received during 1919, though
for tax 3ny e,Ta.d 5". Or ssoaa
make a return % hi. nominal salary for 1915
rom T igSh par ' hsss: siysr' the time
Answer-r From March TO Deem
Der 81. 1919
,?)The individual associates or part.
ners are liable for the income tax only
in their individual capacity
80 II IL not necessary to include In
1913 statement money received fo- ser.
vices rendered prior TO March I. 1918.
AlIowasces-Dedu
5o:-K n. a. I'a regular allowances
from mother 70 a son paid monthly with
wi,hdrswable at her pleasure, a KIN. and
therefore not taxahl-'
"a Business snns 's sn,.1sf.s sSsn .nasa a.
astrousy and rs a result made an arrange
'r Win one ersai,Sr no, to pay the amount r.,
stalmen,s and ! am .,il making such
payments Am ! entitled to deduct them
.. S% not no" IN business out working Tor Z
\ 81 Is tho amount paid by two member,
Of q family as n contribution toward house
hold expenses, really as a payment for theil
board and lodging income and therefore
taxablef
Answer-u) Yes
CD No, but YOU can. however, deduc
any part OF such payments that repre-
sent current interest on the debt.
t3 II is really taxable income but 4
the amount received simply covers ex
penses II should not be necessary to In
elude II as income. II II Is included. how
ever. the expenses IN connection therewiti
are allowable deductions.
IL u Necessary TO Make q Returs
when . Business L. Improbable
the owner OF business which 10 unproatab BIZ
IL obliged to rle an income tax declaration
a declaration is unnecessary In view of IN,
fact that there has been no income. BY
the reverse 0 VIZ, ,os, h hSwe,s, y, IN
, coming year will show an Improvement
, Answer--No return IL necessary tunies
, the business Is incorporated), for tn
| owner is required only TO make a retur,
, as an Individual and then only when hi
net income for the 1918 taxable perio.
was 81 500 or over.
Return Tor pal3,
SOB y. I am manufacturing Jew.!le,
For year, our E E:Saiar s'9Sk;axinf time hs
year While Il 10 easy to determine tn
amount OF money drawn from my bushes
during the ten months OF the taxable perio
OF last year have no means OF determi mir
the profits accurately for this same period
e which, as take II. together with the d aft
abovs mentioned. would constitute the in
come for this period. I propose to. tax
I And ascertsined prohts as the proper amour
Of income to be shown ir my report to tn
Government Would this be correctf
Answer--We assume from your lettS
that your business IL not incorporated.
You should make as accurate an esti
mate as possible OF your net income 10
0 the 1913 taxable period and arrange l
the future to take an inventory At the en-
OF each calendar year 20 that you ca
comply with the law.
Corporations by giving the prope
notice are allowed TO base their return
on their fiscal years instead Of caienda
years, but we do not know Of any sue
r ruling In regard to an unincorporate
n business.
al RetWrus-lneooe.
seS--c 4. r. % IL 4. necessary to Al
| net income 10 less than the taIspie amount
CD Must my wife h's . ssfurn " :ns hs