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

exemption and tho allowable deductions,
Or when the claim If fled with the col
ector tho latter will Immediately furnish
our employer with q statement OF the
deductions claimed. The employer would
not have been required to withhold any
thing on your salary In 1919. as the
paid In November and December
did not exceed $1,000.
go II you keep Il regular SET OF books
and make an adjustment every year tho
appreciation or depreciation In securities
may be reflected In your income
statement Such losses are allowable de-
ductlons and should be reported in the |
same manner as outlined In ca.
90 See answer TO your second question |
90 Yes. |
Claiming Exemption.
2ss-w. II. II. a. Returns 'or tAe year
IVA Does q corporation paying a salary
rate Of $1,000 monthly withhold $40 each
month. starting with January 81:
,a,ary Of 81. 800 a month Withhold $50. start.
ing February rs and Withhold 80 at the
end Of each month therester' ,.., a..
90 Do the recipients OF these salaries ne
exemp tion forms No. 1907 at the time @:
each deduction. tina; 10. a. the end Of every
20 Are these forms No. 1907 II filed with
forwarded to the ofnce % the collector o:
Internal revenue Immediately or are they
held until the end OF The year!
80 when IS Form No. io.c supposed TO
- hiled out by the corporation, a; the end
o: each month or ct ,aG END .: ine year.
lector OF internal revenue only at the end o:
the year ere the Forms No. 1907 which may
attached to the Form No, ioi2 when h!ng.
Answer-O) and (2) See answer TO
No. go o..
60 Only one certificate OF exemption
IL necessary and this may be fled AZ any
time. but should be filed at least thirty
days prior to the time when the return
to the collector Is required.
90. 60 and Co II Is no. necessary 20
file the return until March ! for the pre-
ceding taxable year and the certificate Of
exemption filed by the employee should be
attached TO the return. Unless tho en-
ployer secures this certificate Of exemption
he is liable for the tax on the full amount
paid the employee.
:ss--o. 9. IN 100; owned $500 tpAr
value) Of trust company stocE. bought at
l2o TIE same year circumstances com.
gsisd the o SSnpa.s 20 qnd is. Ana 9ui
ing trustee 70 pay oil liabilities except those
received variil! payments
ON April I:. ieia. rtoekholders received
the ninth ana final psyment. making an as
Sas. ho IS n VIXEN !Ss ,rasi.e, n. Pa
por; showed the asse,s exhausted. which re-
port was approved and the trustee dis
May / asapss AL 9, any part Of my loss
Answer-We should disregard mis- loss
entirely when making out tho return
c.O-E. c. acquired two parcels Of
M in RiChrnond ,irder rAS<rAe'a
deed. subject to taxes Of several years In
Taxes were paid by me after March !.
Can ! dsdae. .r.,ear taxes against Income
Answer-No. You can deduct only
current taxes.
s4i--w. O. $. One of my cii.nts nnds
tina, her net Income for the ten months to
| December 81. 1919. was slS925.bb. AS sl9.-
dividends on corporate stocks she is MOI;
subject TO the norma! tax, out ! am not
clear rresariing the supsrtss; Is the limit
amount, ss.6s6.s7g II the latter eho would
BE- required g make a report and pay the
Answer-Ths supertax 10 figured on
all income over $4,000 for the 1913 tax
able period.
DlviAends.
r.piS. to Nos. "a. - and lis I notice ; You
.ss !; G ys
''y i this q new rnl. Of recent dat.7
divid.ndS must b. made. but could be de.
ss- LAD ", S... sHv % s ss out
sioe In addition - my other Income from
san,Iy &C; .m wSai1 to Ss0a, m;eS
my exemption being only S2.5oo for ten
months.
Answer-This was ruling made about
February z. The law specifically states
that dividends need not be reported, but
the Treasury Department at first required
them to be included. Later as stated
above this ruling was reversed and 1t IL
now not necessary to include them.
Il . Return Necessarily
seeding tho exemption but dedue,ing sx-
exemption, 10 Ii required that an Internal
revenue income tax return should be mad
showing tho same?
Answer--If your net income for the
ten months Of 1913 after making all al
lownble deductions was less than $4,000
II Is not necessary for you to make re-
turn.
Corporations.
Nt-R. II. n. Under the old corporation
tax law corporations were allowed to de-
duct dividends received from other COM
panies, whereas under the new. Federal in
come tax law they cannot How would yev
report for a company when they received
10000 In diyidends during January and
to December stf ] understand they esnuet
deduct any part OF the former spsciae ss'
emption OF 5000. Does this same rule ap-
ply ~ to dividends rscsivsdf T,l7'