The Alaska daily empire., 1915-01-20

eorDorate or associated existence, and not apoa the receipt of Income
 c.ezens are requested so read mo dirBcioag carefully before attamplias so GIT out the blanl, Foturns and .o nlN observe m the instructions that are printed thereon X compliance uith ths request which would result in returns bains correctly rendered lh ,ae first instance. win aoyo eospore- dons and individuals limo annoyance and cxpense. as faulty og neompi3se returns cannot be accepted. Income tex s.atements not prlma iacie 70 or der win either bc returned foy cor lection or complete amended returns wul loo required,
 -corporetioas and individuals eiiiSe arc urged not .o defer the prepara, don and 0gRg of heir returns uutii the last moment Liability to spee.nc asnaHies will be assorted in ell cases whcro returns are not received within lhe stamatory period either oy tae collector at Tacoma or by his aepp' ties al. Seattle or spokane.
 Parties acting in g fiduclary ca- paclty paying net incomo Of Ss'O0V or over for tho year 10 any beneficiary nnder their trust should apply direct To tho collector at Tacoma for proper blanks upon which to make Che re cuired return.
 Changes From Last Year
 aThe internal revenue bureau has made important ohangca in its rulings on the subject Of retuvnablo Income and deductibie losses, which changes are summarized as follows:
 Returnable and taxable income IS that acnally realized during the year that is. chat which is evidenced by the receipt of cash or its eQuiyalent Hence, any appreciation In the value of assets due to appraisal or adjust. ment and taken up on the books or the individual or corporation IS aeio not to be Income within the meaning of Che lRw until such appreciation. as the result Of completed, q closed transaction. has been converted Into cash or its equivalent Go and part oi the tung.ole assets Likewise. losses are not actually sustained until as 9 result Of completed, closed trans lcHou thoy buye been definitely ascer- .ained and the amount their repre- sent has irredeemably disappeared from the assets.
 Tn the preparation ot returns to the government, therefore mere book en- tries of appreciation or depreciation n che value of capital assets win be ! disreearded.
 Reaeonable Allowance.
 "This ruling win in no wise affect i the reasonable allowance. for derecia- ton. # any but such reasonable ol- lowagce will be confined 10 amounts properly written off and charged ! against income 10 measure the loss ! due to wear and tear exhaustion and obsolescencc of physical property. Re turns. adjustments and asaessments made in accordance with previous rui- ngs will not in any manner be affect. ed or reoponed by tho foregoing in- structions.
 Losses. to be deductiole must have been sustained during the year Tn .rode. the term =l trade as used In Inc law is held 60 mean the trade or business in which tho party making tao return is engaged. that is. in which he has invested money otherwise than for Che purpose of being employed in isolated transactions. and to which he devotes at least part of his time md attention. A person can be en- gaged in more than ono business and deduct losses incurred in an of them, but it must be clearly shown in such eases that be is actually engaged in one or more lines of recognized 6usi- ness before losses cen be claimed with respect 10 either or more than one line Of business.