The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-22

with the company a further claim for sx-
emption on account Of allowable deduc-
tons. but above the sum OF these two II
10 necessary for the company to with
hold the tax.
Real Esaase Trsnsactsoss.
,es-w. A. n Reel estate eousht over 2
received above equities above mortgages vas
Tor IN. properly ~.s sofa y Tor less n cost,
Is the - 500 omitted or included as Income,
Answer-The $500 should not be con.
sdered income. for it's simply the pro
cecds from the sale OF assets. Tho loss
on the sale ls an allowable deduction
II the proportion OF the loss falling In
the 1918 taxable period IL figured on tho
assumption that the decrease In value was
constant from the time the land was pur-
chased until IL WAS sold.
school Teachers.
is.-M. y, $; New York city public
he exempt from paying the income tan
Answer-Yes.
Losses ON Farmins Business.
ISL, N a. am . physician With an
me liable for the tar. but own farm
The farming business IL incorporated and
nj. so1 al two ,ns Ss h1ss Vst %ens DOWN I'm
my professional Income seriously. IL this
. iet,!i,ns'e Offset. or u i redused me below
at all' Your income tax column Is provin 9
gres, success. should say but then all
SuN movements always are.
Answer--The loss sustained by your
farming business could not be deducted
from your individual return. II YOU made
up the losses out OF your personal income
presumably this would he IN the nature
Of loan to the corporation II the bust
mes. was not incorporated you could de-
duct the losses. but in the care Of a cor
poration this Il not possible. II you keep
set OF books showing your personal
financial transactions and make an in
/ ventory or adjustment each year the prof
/ it's or losses from such an adjustment or
inventory may be reflected in .oIr iIcome
| statement II your corporation, IN losing
! money and the stock has deprecated in
value you may, as stated above. adjust
your books in accordance with the value
OF this stock and show the resultant loss
in your individual return.
A return should be made for your farm
ing business as a corporation but as II
has no net income IT is not liable to
taxation.
Husband ana Wife.
lss-F. b p. Will you kindly inform m.
y II Is necessary for me TO make an income
: Income from March 1 to December II. 1913
Salary $4,000 per year payable
October 500 .........!,, -. ,H,Seo.os
,o geo pc. year so,, 1913 IL
MY rro.. income .........s sa5ss
wife.s INCOME from March ! to Dscembel
DI,!dsnds from United STATE.
S'eel and railroad stpcks. .-... 1915 -
Bonts tnon-taSahle'. Jlue and
n,,.t. -, .n
Bonis ,non'ts1sblel' July ,ioo
s%nd. 'g rom ~, AIxss, 5000
not settled for year ....,...... +osl5
Ny wife's gross income ...s i.iIOso
Ny wife received during the year from he
fathers unsettled estate altogether 32,S5o
1s,s Hhsn IA ' ~ Sspr. %f 'ne .,sp
from taxation and 1N.sS was reported Ia,
Nv yearly school snd city tax amount
Answer-You are not required to maxi
n return, for neither YOU nor your wifi
has separately an income of $4,000 70
the 1918 taxable year and your com
bined income was less than f3,333.33.
II II were necessary for you 10 make
return you would not have to includ
the dividends from stocks and II IL ques
tionable whether or not the rent OF you
house should be figured as income
Income From Estate.
ls7-S NJ where man dies leayin
an estate the annual income from wbic
VI, vii say Is 900 and p.ssyIiAissS int;
annually TO The widow. Who IL the executri,
. | a,,Sor %, ~. .nn,nrt n,aintensnc. an
education Of fouf minor children may. IN
, i,"n,. 81 80 ~. axern,,,nn ..na,s,sIv AZ
: shonia escb make "a retirna
, ." -. l., ,, .
Ahswer-ii inc man "hi'h ~ ps'u
, the widow for the support or the chi
,ireu ia according to the terms OF IN
LII MA 90 w. n, avacu,,,x nv ,,,a ,dI.
VIM pan W Ho' as ~ t"aI " :
, or the children II should be considered
. income OF the children, and AZ the shar
I OF each child would be only sl,25O no r.
turn would DE necessary
: The income OF the widow would be COZ
4 sidered $4,000 and II would therefore
necessary for her to make a return.
: II the income from the estate com,
Y from sources In which II Is necessary
n claim exemption in order to prevent Il