The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1915-01-21
New Income Tax Blanks Be-
ing Sent Out in Kenosha
Are of Searching" Kind
MANY IMPORTANT CHANGES

A comparison of the new income tax
blanks with those which were used
year ago will show that many import
ant changes have been made in these
| forms. This is true of the blanks is
sued by the federal government as well
as of those sent out by the state. The
most extensive changes have been
made in the individual returns and per-
sons who attempt to simply copy the
returns of last year will find them
selves confronted by many new and
f, difficult problems. The general pur-
pose of the changes seems to be to re-
| quire somewhat more detailed and
/, complete information as to certain
matters, such as depreciation, losses,
etc., in regard to which experience has
shown that the returns are quite apt to
| be defective. Some of the more import
ant of these changes are the following:
The declaration' will now be
found on the first page instead of the
last, and is made to include the income
of wife and children. The instruction
at the foot of the first page, which is
new, indicates that stricter rule will
be adhered to in the matter of repairs
and depreciation than has generally
been adopted. It is stated that any
repairs which make the property worth
more than it was at the beginning of
| the year can not be deducted under
that head, but will be treated as i'm
provements. In like manner deprecia-
tion from other causes than "use, wear
and tear" Gas, for instance, by obso-
lescence) will not be allowed, and
set against it.
The questions on the second page of
the new returns are those which were
formerly On the first, but with many
changes. Profits from the sale of real
estate are now to be prorated, but the
rule by which this is to be done is not
stated and many persons will be
puzzled as to what amount should be
stated as income. The "three year
rule'' has been abolished and the pro-
fits Cor losses) are to be prorated ac-
cording to the proportion between the
time the property was owned before
January l, 1911, and since. Thus, if
property was purchased for $4,000
January l, 1904, and sold for $4,000
January /, 1914, the total period would
be ten years of which seven years were
before January l, 1911, and three
years after, so that the proposition Of
the profit to be reported as income
would be three-tenths or $500. The new
form calls for purchase price, selling
price, date of purchase and date of sale.
The method of computing the rental
value of residence occupied by the
owner has now been extended to all
rented property in Wisconsin.
Bank deposits have been added to
the interest items and a new question
calls for "values of articles taken
from the stock of grocers and other
merchants for family consumption.
Under the head of "all other in
Gomez is now included Lights, income
from room rent and boarders.'
Under deductions the item of ere
pairs is now stricken out and losses
are limited to those incurred Sin bust
ness or trade from which the income is
derived Dividends from Wisconsin
banks or trust companies are now made
deductible. Taxes which may be de-
Quoted are now expressly limited to
those paid "upon the property from
which the taxable income was deriv-
ed thus excluding all taxes paid on
unproductive property.
A new question at the bottom of the
third page which is likely to cause
merchants and business men consider |
able trouble is as follows:
"What were your net profits in 1914
as shown by your books7"
In view of the fact that many bust |
ness men keep no books, and those who
do have varying methods, and that in |
any case the amount Of net profits is |
bound to differ materially from the
met taxable income" this question is
likely to prove one of the most diff
ficult and pulling on the return.
The second question in the form for
corporation calls for statement of the |
amount Of surplus and undivided pro- |