The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-26
EMPLOYEES OF FOREIGN BRANCHES OF y. S.
CORPORATIONS NOT SUBJECT TO INCOME TAX


and the stock diSidsnI distributes By the
STANDARD on Company Of New York ia par.
y ard aS. 'sGSS r.. The aa%Sss
of shares received?
.n For service, rendered . corporation
s.ld il f.S%usiy. us. such .%suss being
claim that as coon a: voted d. amour.
my .. sSan!s'd NAT pa. .i,Sesss s r.s.i!:d
turned ~ income Am rish;F ~
~ H. the rish; 70 prcrate interest," and
cruins. in part or in whole prior thereto.
limited TO eorporatons and othsrs sespins
thus prorats dependent upon the bookksep.
ine system employed. rather than upon an
The above are no, Hypothetical questions;
but are practical questions upon which
have been asked TO express an opinion.
Answer--ti) The latest ruling in re-
gard to stsck dividends Is as follows:
III stock dividends are based upon the
surplus Of corporation set UP prior 70
March 1, 1918. such dividends will not be
considered income TO an individual for the
taxable period In which paid. but II
such dividends are based upon the I'M
divided profits OF a corporation which had
not been credited TO surplus by the cor
poration prior to March I. 1919. then
these dividends for the purpose Of the
additional tax only must 10 accounted
for as income by the Individual receiving
the same for tho year In which re-
ceived''
So far as the normal tax IL concerned
stock dividends need not be reported
t2) We think that you are right
t3) Coupons due and payable between
are considered income regardless OF the
period for which they accrued and re-
CARELESS OF whether one keeps q regular
set OF books or not. Dividends need not
be reported and IL In therefore not neces-
sary to consider them n. however tbs
individuals income Ii In excess OF $50. o0G
and he In therefore subject to the super.
tax the. same rule applies. namely. that
dividends due and payable within the
taxable year should be included as in.
come for that year.
DiviAenAs-sapevt
; a,ria.na r. are, 1 Ms-.s ecr'cs, sS ss,a.s s
sppi,.d on ns ..fnihss Of n. year isi,
Is the Individual receiving his portion Of
such diy,dend REQUIRED to declare the sam.
jee,.d to IN. .ap.r,.S :. the amour, +
ne, !nenme 10 exceed sas'ooc! ''' cause III
| t2p What amount Of tAS does . man hav,
company of $4,000. this being HE entire
, income.
| Answer-G) Dividends declared out o.
earnings derived by the corporation priol
to March I, 1913. should be included II
the 1918 statement II they were no, du,
and payable until March I. 1913. or there
after.
90 He would be required TO pay
supertax OF per cent. on s10o0oor 800
Retsr.s.
.'s--w: V. X. % am trustee for A ana I
III: s.' i'm .a: .u9s ssr' A for n.s s1an
R y rsurn a tfu sss' s0G .ter n
,s:oms p.ysSi. to p II ! mS ., refer Z !,
.uf,eien, for me 10 stat. that the income o
r q e. the other beneficiary under tn
Mach Is G and p.sss for me Period S''~ee'
S sH: D. sS., S s@ds5 en-
and under the second Will to Abou, N.:o
per annam Seed ! make 49, return .,1, win vi.
estates. In view Of the fact that they az
srs.a.ssu over s:os0 per annum, Under n
dciaries. whereas. under the second viii.
1" the s col. b,n:.aS,sry. .,,,. .,,,,. q,
a; referred 70 IN question az above an
]
in isoi a, 8. E. $3.50 Wh.S mad
a ADVISES ns '" than these bonds WEI. worm I;
l. =, t,.25o. and l marked them down I
is ss A IN. aoa On S sasH :aa
and the interss. Of all bondholdep excep
s aS.s w ss 1sln:d the pess is
was absolutely wiped out, In other words
The bond. became Aesolut.ly vais.is;: !
necessary to pay 135o per bond. which
s Sn being my 0 actas, loss. in socordsns
with my Inventory valuation on January
1911, which there wa. no reason to chang
isis ana March i. i,i,f
re ssn 81. Tor T husband and VIZ. living to
gether to nle separate returns. e. IN
turn with references to nj. income and VII
20 hle and Ss,hy sepat:ts rstarn ,,, wau
,sJ II husband and WIZ. make Join
return must the income Of such be ftemiss
separately
Answer-(1) You do not have - re
port the income payable to Il.
Il CD You should make return X 70
the ten months of 1913 the income frov
either will amounted to S2.5oo or oveI
You should not combine the income fror
the two Wills in order to determin
whether or not a return In necessary.
CD You should withhold the tax whe
the amount paid TO the beneficiary equal
or exceeds $4,000 unless said benefciar
files with you Form 1907 claiming ex
emption: then only the tax on sue
amounts as exceed the exemption
% Yes.
(5) They may hie separate returns
the wife has . separate income OF $500
or more per annum.
CD Yes
.73-E : made In Actual businss
( about $50. 900 during the year 1914.
on other ent.-pr1aes Into which ! 81
tered I lost during he year about eso,eo
Would this in itself absove mo from PAL
ing any income tax?
cary " ..n on nj: % ns M,
year, II my profts In 1914 do not come Y
TO the balance OF loases of lsia7
In other words. can I deduct my loool
which ] sustained In 1913 from my futus
profits. until they are all deducted?
Answer--You should deduct your entiI
losses in the year IN which they are sui
tanned.
Local Ta1es.
s7.-c. X. My annual STATE. county On
ISIS smountins TO about ysco In ASsa
, and following months school taxes vel
levied ana paid by me In various distrtc-
. amounting TO about $3.50. About Decsmb'
81. 1918. or early In January, 1914. the mel
annual general taxes were levied tpaid