The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-01-02
MANY TANelfS flCt
NEW TAX IkfoRNERS
INFORMATION TO REACH ALL
10 . Msn stnsie for Taxation Purposes
when He Pays AIinlony Is One Of
tbs Funny Situation Thaa Arise.
newalaxsosa Suggested.


whan they begin their work Of edu.
eating the public on their duties wNsn
preparing the returns FOR Collector
Monaure's once during the next tw1
months A number Of these instruc-
tors viii be placed a. various points
throughout the efsss. and for sew yll
weeks, they hsve been fort'fyinE
themselves on the pniats Of the ne1v
law. This new futellse acs corps
whose infos nation will 80 In reach
OF @~eTy man whose income excef is
tia sTsfnptiors allowed are now pre-
pared to DO their work. and ire places
whsre they wifi hs stationed will "a
pnklishsd later.
Such questions as whssaer naku
becomes sansfe sxa4n FOR the purposes
of taxation when Re fs paying hand
some a1Ifncny. or wheths5 N ist ~r
wa hare 60 include ffs his report The
amount OF rent ne would have 10 paw
III the parsonage VS. not %urrisasc
70 him free by the church. ar~
Thoroughly worked cut hv this intel
lswsnce coEps. who will &c on duty
within the next fsw days. Ths blay KS
fer these rsfurns r1ES row De had ct
she collectors offca, and must be iiled
cut s-curatiy and turned into his Of
fee by the Hrs4 tsy az March.
A few Of the following stster1@uts
give an idea of the tsrgles that the
.sforrns~s ars to unrAvel and snos-
tiers that they must decide.
II has for years been customary for
TIE small merchant 20 make out r
sssni-annusl INVENTOR, taking IS q
bxass Of nis calculations the Rnnant
the goods cost him, II he has Shoes
tlrAs cost him - 60 ana the value AT
the present had risen Tn ~ 30 he can
turn tn the inventory AZ ths cost price.
recesftiv ths treasury HAnErtETfsEft
made a new ruling 4. which = rave
ghe merchant the option Of taxing
s{Shes the cost price or ,he arket
vaire depending on wh'rfl - the low
or. RI he paid $500 for et1T of ~oods.
and they are today worth s40s he can
rive in the value AT s<o0 In figuring
tn the merchants tr come the gross
profits are calculated IN the follow
fng manner. suprose Sne inventory
wrAs - geo and the amour purchases
during the year was IS 600; this would
make. . total of $1,000 worth -
material that ne fad err pievsd In h's
business. Now hts ssles according
20 HIS books show a total OF $1,000
Ian mssunrptfcn) which added TO the
5000, inventory. brings the totsi M
to tfa 500. The difference between
tis.Bte and s1f.0ea--s2 500 would
Be the gross income and cub
jest 10 income tax on that portion that
IN not sxer, pied
Frers this amount the merchant is
permitted to take Off salaries wa gss.
rent for store hghts had forts a~f
other similar items These aues ons
WIN m have TO re gone over by the
deputy informers. including thu tacer,
fa faF .sA~s -.
ana says Here, make 80 600 or
st.e6o~ and That sall tsh figures he
has.
That class Of people who Se not
keep Inventories including LAWYERS
doctors. and engineers must account
for ali OF those fs@a that they have re-
o0ived. Ea1aried men that eypect A
bonus must count that bonus as an
income and be taxed accordingly
since the treasury oepartnr eult has
ruled that bonuses are legitimate de-
duct&cns as an expense Of any corn
grafton or Arm Dayinn n. Form cry
bonus was considered a GIFT, and
K4fts are not taxable. hut the recent
ruling has cha nFeS that
Some in addition &c tfsir salary
ret q home in which to 1--we. Tor
sxanpie q minister OF "A church Will
have q home for which the corsrsfsa-
tt0n pEyB. He must account - In
cems for the rental value OF that
house that Is gwen to him. SaIesmen
selling on commission are wub3e It to
tax on these eommfss ons provided
that they exceed the allotted exemp-
lion All of the fees that a preacher
earns are taxable This Includes fees
for maria ses, funerals baptisrns, and
saying masses, The only unta1s BILE fee
that he receives Ia that Of moneys
o4ven him at Christmas az Christ
mass prssents
NAR< OF mans home 10 per-
o0na expense, and IN therefore etIh-
3oct 70 TAXATION. However II that
man h a doctor and uses part ~ his
home ~ an once that part of the
homo used xs an ofsco is exempt 4
from the income tax. On stocks that
have gained In value since their pur-
chase. and bought before the income
tai law came into effect. thu value
on which the tax is rated is tho value
Of those stocks ~ th~ time that the
law came into effect. March l. 1919.
A husband who paws ai'r1nrv is not
permitted to deduct from hts RroH~ tn
come. A wife who receives slfnory
need not account for II as income A.
man who Is separated from his wtTe
II NOT permitted " dEduCl WHAT he
pays her. and further than that he
ceases TO be g. member OF the $4,000
or S2.eoo exemption class and he be
comes q single man again for the pur-
poses OF taxation
A man who receives a pension from
the United States government. which
In addition 20 other earnings brings
him n the income t1< class. such p@n-
eions are taxable and u1ugt ne inclnd-
"A ~ fncop1e The Same thing APP
rifles 10 d pension which e. man re-
csfves from a corporation Surh "a
man would also ne tRveh'e upo-1 that
pension as Income, provided he came
within tire iocore tar class citv
EN- ploye in receipts Of pension would
not be taxed upan thar araourt be
cause city. state md municipal en-
pioyes are not taxanle upon their
salaries ar other income they get
ROYALTIES are also taxable a song
writer who ts receivtrp p ROYALTY from
q concern that publishes his aNng r7ust
pay income sAx on thf rova Ities -
must an author upon royalties that
he gets.
The following S~w Years reeo'u-
"A q a n