River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1918-02-07
Features Of the Wisconsin Income Tax Law
Explained by Jay H. Grimm, AssessorIncOmes

6 All interest on bonds and NOR
tgages whether executed by parties
or secured by property within or
without the state
7 All dividends declared out of
profits accumulated since the 1st of
January, 1911, which have not been
taxed to the corporation distributing
the same.
s Stock dividends to the same
extent and under the same circum-
stances as cash dividends.
9 All profits derived from prop
erty located or business transacted
within the state.
10 All profits from the sale of
Wisconsin real estate or other capt.
tai assets accrued since the first
day of January, 1911.
II The reasonable value of farm
products consumed by the owner
and of all supplies from merchants
stock used by his family.
II Income from inheritances, be-
quests and trust estates.
Is Dividends from state and ma
tional banks not taxed under Wis
consin laws.
IA Dividends declared by corpor'
atoms from depreciation reserve.
Is Endowment, accident and
sickness insurance paid to the in
sured in his life time in excess of
his premiums paid therefor.
Is Dividends declared from re-
serve fund to cover depreciation or
bad accounts.
EXPENDITURES NOT ALLOWABLE
AS DEDUCTIONS
Alimouy to divorced wife.
2 Depreciation of land or of
property not procuring taxable in
come.
3 Depreciation of good will or
from oosolescence.
Depletion of mines claimed by
lessee.
Election expenses.
6 Administrators exc Gu tors
and attorneys fees in probating es-
tates.
7 Gifts and donations except
cash bonuses paid to employees.
Interest paid by corporation
in the operation of a business or
the maintenance of property not
producing taxable income.
Losses sustained in the trans
action of business the income of
which, if any, would not be taxable.
10 Uncollectable rent and inter
est not previously reported as in
come.
II Premiums paid by corpora
tions and partnerships for insur-
ance on the lives of corporate offic-
ers or members.
II Expenses incurred in the or
ganization of corporation.
Is Special assessments for street
sewer and sidewalk Improvements
IA Taxes on property from which
no taxable income is derived.
Is Wages of household servants
chauffeurs or nurses.
Is Shrinkage or depreciation in
the market value of stocks, bonds
or other securities until sold or 9th
erwise finally disposed Of.
PROFIT ON SALE OF REAL ESTAsE
This question appears to give
considerable trouble each year.
To ascertain the gain or loss re-
sulting from sale or disposition OF
property acquired prior to Jan. /
4O44J IAS ICAl LII al net v c1IQC vi 0QNL
property as of Jan. /, 1911, should
be taken as the basis for determin.
ing the amount of such gain or loss
In other words, to determine the
profits on the sale of of real-estate
which. we will assume, was pur-
chased in 1908, it is necessary to
subtract from the amount received
for the property the estimated value
of the property on Jan. 1. 1911. On
the absence of concrete inform alton
as to the value of the property on
Jan. l, 1911, it is suggested the fol-
lowing formula be used:
Assume that the property was
purchased for $1,000 in 1908 and
sold for $4,000 in 1917. We will
assume that it is property which
has been producing income and in