The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-02-14

As preliminary TO answering
readers questions regarding the income
tax law TUE SUN calls attention to sew
erel changes that have been made since
the collection Of the first tax last March
Charles w. Anderson, Collector OF In.
terual Revenue for the New York dis
trct, was asked yesterday 20 summarize
these changes
Previous to July 5, 1914, when
Treasury decision zoos was made"
said Mr. Anderson, tho Interpretation
given to the law was that all losses
could be charged OF by an individual,
whether they consisted OF losses in Sc
curities real estate and the like, and
whether or not they we're incurred in
trade.
"Since Treasury decision zoos has
been issued further decisions in this
connection lave been made-Treasury
decision 1000 under date of December
"a. 1914. and Treasury decision 2l3j
under date OF January 80. 1915"
In essence Treasury decision zoos was
that man shall list as income and
pay taxes upon any money made ION
the side'--iu buying and selling a block
~ stock or a piece OF land. At the
Same time he is not allowed to deduct
from his income any money lost In this
way. Treasury decisions 2090 and 2135,
to which Mr.. Anderson referred, eN-
lund and sustain this ruling and the
attest, No. 2l3J. even gives an example
which removes not only the last lnger-
.ng doubts but the last vestlgo OF hope.
Count Fronts, Not Losses.
This decision quotes some one I'M
named as asking: "a person not a rec
ognized or licensed dealer in stocks and
bonds makes $1,000 profit during the
wear on a stock purchase and sale, and
makes a loss during the same year on
a stock purchase and sale OF $4,000. Is
Z correct TO return this difference of
81. 900 in gains, or should tho entire
$1,000 be returned as gain?"
The Treasury Department appends
thls answer
This Office holds that the profit OF
5000 10 income 10 De included Ia 4 &c
. turn OF income and that the $4,000 is
not such a loss as may be deducted in a
return of income. for the reason that II
is not incurred in trade within the ac-
cepted definition OF that term"
In spite Of this there will doubtless be
many questions on this point, all OF
which by arrangement will De handled
for THE SUN by Babson's Statistical or
ssnization, economic engineers, of which
Roger W. Babson, the statistician, /:
president.
Mr.. Anderson also pointed out tina
the certificates which should accompany
coupons, dividend checks and so fortf
have been entirely revised since las
year. Form 1870, the individual ta'
return. and Form 104l, the fiduciary re
turn, have also been revised.
Choice of Place of Filing.
"On Form 1890" Mr.. Anderson said
"a notation appears that the return
should be filed In the district In whicl
the individual resides, but this Is incon
sistent with the law in that under tn
act OF October 3, 1913, 1t is stated tina
An individual may file his return in tn
district in which his residence is locate
or In the district in which his principa
place OF business is located"
The first answers to questions aske
THE SUN will appear In a few days an
thereafter from day to day as fast a
received. No personal replies by ma
or telephone are possible; Inquiries ca
be answered only in these columns, /
the order received