The Alaska daily empire., 1918-03-09
CLASSIFIED ADVERTISEMENTS

l should be included in the dealers personal return rendered for that year. For example piano which i cost the dealar $300 is transferred 1 to another under contract calling for 20 monthly paymen of S20 each, 8 total of $400 Each monthly pay ment represents a return of capital I amounting to $i5 and q profit of $5, and multiplying this latter by the number of payments received during tEe year yields the amount to be re- turned as income for that year. When there is a lapse or default in pay 1 ment and the dealer becomes pos se5sed of the article. the entire amount there ofore paid and credit cd to principal from date of contract ! to date of default is income to be l included in a return of income, Tor the reason that it is held that such an amount constitutes rental for the use of the article. In case of such default a reasonable allowance may be claimed as deduction to cover such depreciation as may have actual | ly occurred in the value of the re | possessed article by reason of it's l use.
 37. have two children we live at home and are regularly employed. One is F years old; the other 21 years old Am I required to include the amount of income which accrues to each during calendar year in my own personal return?
 As the first child has not reached it's majority and is still legally under your control, the amount of it's in come is to be included in your per sonal return and is subject to tax in your hands. The income of the child which has attained it's major ity is not to be included in your re- turn and is only subject to tax in the hands of that child.
 38. Must I include in my personal return the amount of interest 1 re ceive on Liberty Bonds, or is that interest exempt from tax?
 All interest derived from the Lib cry Loan 3h per cent. bonds issued under the act of April "A, 1917, is exempt from both the normal and additional income tax.
 Interest derived from the Liberty Loan per cent. bonds issued under the act of September "A, 1917, is exempt from the normal income tax; but so much of the interest as is de rived from such bonds, the principal of which exceeds 5000, is subject to the additional income tax; that is if you hold $S000 of Liberty Loan 4 per cent bonds the interest from $5 900 or $200 is exempt from tax and the balance of the interest, or S12O, is subject to the additional tax
 39. I held an endowment life in surance policy upon which l paid premiums for 20 years. In 1917 that contract matured and I received its face value, of $1,0O0. Must I return the entire amount received?
 No. Return only the difference be tween the aggregate amount of pre- mium paid and the amount received upon maturity~sof the contract.
 40. Are commissions on renewal premiums on insurance policies sub ject to income tax?
 Yes; such commissions received by insurance agents on account of business written are taxable income for the year in which received.
 Al. A" who is the employee of a corporation was injured and under the laws of the State in which the accident occurred he received $5,00C on account of the injury he suffered Must the amount thus received be reported as income?
 Yes. Any amount received under an employers liability act or work mems compensation act, or any other similar act, or as the result of a settlement or compromise for pain and suffering" is held to be such income as is subject to the Federal income tax. This ruling is also ap plicable to any amount received un der the terms of an accident insur ance policy. AZ. 1 purchased per cent. $l0o coupon bond at it's face value, plus $15O, that is, three months accrued interest. Three months lated 1 de tached coupon therefrom and col lected $3 interest. Must the entire amount of interest received be re turned as income? No Report only so much interest as accrued after the date of your purchase. It is the sellers duty to report the balance. 43 Do the pensions and retired pay of ex-officers, and men of the United States military and naval forces constitute items of taxable in come?
 Yes.
 A. I own stock in bank which under a State law, is required to pay the taxes assessed against such stock How is this matter to be handled for income-tax purposes?
 The proportionate part of the en