The Alaska daily empire., 1918-03-20
INCOME TAX PRIMER FOR
 BUSY PEOPLE
(Continued from Yesterday
Fiduciaries


 ies?
 The term "fiduciary" is one that applies to all persons or corpora tions that occupy positions of pecul- far confidence toward others, such as trustees, executors, or admins tax purposes is any person or cor poration that holds in trust an es- tate of another person or persons.
 There may be fiduciary relation ship between an agent and the prin- cipal, but the word agent" does not denote a "fiduciary" within the mean ing of the income-tax law.
 A fiduciary relationship for the purpose of the income tax can not be created by power of attorney. An agent having entire charge of property, without authority to effect and execute leases with tenants en- tirely on his own responsibility, and without consulting principal, paying taxes and expenses and all other charges in connection with the prop erty out of funds in his hands from collection of rents, merely turning over the net profits from the prop erty periodically to his principal by virtue of authority conferred upon him by power of attorney, is not "fiduciary" within the meaning of the income-tax law. In all cases where no legal trust has been ere ated in the estate controlled by the agent and attorney the liability un- der the law rests with the principal A deed of trust must be absolute so far as the conveyance of title IS concerned, and irrevocable by the donor Otherwise the income from the property in question will be held for income-tax purposes to accrue to the donor and must be accounted for by him.
 Ill. Is the duly appointed guard ian of a minor, or the conservator' of an estate of an incompetent per son, required to render personal re- turns for and in behalf of his word? Yes, under the same conditions as would the ward if competent to act for himself. and in so doing the personal exemption to which the | ward is entitled may be claimed. 112. Is the duly appointed admin 1 istrator of an estate of deceased I person, who died during the tax year. required to render a personal hnh nf ! ceased, and also his estate?
 If the net income of the deceased l from January 1 of the year during which he died to the date of his death equaled or exceeded $1,0OO, in l the case of an unmarried person, or l $2,0O0 in the case of a married per son, the administrator should file a personal return, executed on Form | 104O, for an in behalf of the de- 1 ceased. and a return executed on the same form will also be required | of him for and in behalf of the es- tate, if it remains in process of ad- ministration and it's net income from the date of decedent's death to De- cember 31 equals or exceeds $1,000.
 The administrator will be required i to pay and will be held liable for any amount of tax which may be assessed against any such return rem dered by him.
 | 113. Is the trustee having charge of a trust estate, the net income | of which is regularly distributed among the beneficiaries. required to | render a return?
 Yes; if any one of the beneficiar- 1 ies is unmarried and his or her distributive interest in the net income
 of the trust equals or exceeds $1,O00.
 Yes, also, if all the beneficiaries are married and the distributive interest ]! of any one equals or exceeds $2,OO0. Otherwise, no.
 | It should be understood, however. that this answer is applicable only in a case where all the beneficiaries are citizens or residents of the Unit ed States. If any portion of the net income of an estate or trust is dis ! tributed to a nonresident alien bene- 1, ficiary a return is required, and the normal income tax of ? per cent. is to be deducted and withheld from so much of the amount remitted to 1 such beneficiaries as was not derived from dividends or from net earnings of corporations. joint-stock companies etc, subject to a like tax, or has been subject to the withholding of the normal tax at the source.
 IA. In a case where an estate is in process of administration and the fiduciary renders returns covering the income and deductions of the es tate. and pays the amount of normal 1 and additional tax assessed thereon
 will the net income be subject tc tax in the hands of the beneficfaries
 when received by them?
 No. The estate during administra ' AA