Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1918-03-10

come derived from a trade or busl-
ness having no invested capital or
only a nominal capital.
All salaries, wages, commissions,
fees. and brokerage which are de-
rived from personal services This
would include professional salaries.
such as physician, attorneys, archi-
tects, accountants and all other sal
aries paid TO individuals by individ-
uals, partnerships or corporations,
(B) Under this classification
come incomes or profits derived
from any trade or business having
an Invested capital
Profits from any trade. business
or transactLon requiring invested
capital, where a purchase or sale Is
made by partnership or corpora
ton, come under this heading. ss in
come from every source derived by
a partnership or corporation 10
deemed TO be RECEIVED from their
business
In the case of an individual tho
terms trade or business comprehends
one or all of his activities for profit
or livelihood, which are entered into
with sufficient frequency or occu-
pies sufficient portion OF his time
~ N''''hANFNN - AfNfNNANhi W wv hie
uon.
No doubt the question viii arise at
times as to whether the profits re-
Cctved from transactions entered into
tp indtViduals outside OF their ,prin-
ciple business, viii come under Class
or class II, for II may he difficult
10 determine whether several outside
transactions would be considered
sufficient to constitute a vocation.
The Intent Of the law. no doubt. Is
that an individual may be engaged In
ono OF dozen businesses and that
the profit tfcrived from all these
businesses might come under The
war excess profits tax.
individuals and partnerships are
given the right 60 pay themselves
n reasonable salary and deduct Il AS
an expense before computing the in
come and war excess profits taxes.
partner is also allowed to deduct
interest paid on a bona fide loan to
the company. In making up their
individual salnry and interest. and
In case An individual total salary
exceeded $1,000. he would be rc-
quired to pay an excess war tax OF
s per cent on the amount above the
5000.
I nc law also requires an l0dlNld-
ual or partnership who has deducted
salaries IN computing 1917 returns
10 include the same amount OF sal
airy In computing the pre.war per-
CcntaEes.
4 return viii be made by part
nerships covering the war excess
profits only The individual In max
Ing their income tax return will re-
port their share OF the gross part
nershtp profits and will be allowed
further In the report to take as
deduction their share OF the war ex-
cess profits tax.
Kindly remember that the income
tax, normal and surtax, and the war
excess profits tax Is an entirely diff
terent tax
The treasury department has is
sued regulation absolutely pro-
hibiting partnerships teRr corpora
lions from using any OF the 1917
profits In computing Invested capt.
tai. However. they are silent on that
point in regard to individuals There
fore IL Is possible that individuals
could take their average years prof
It's for 1917 and increase their in.
vested capital
The treasury department has just
issued a regulation prohibiting in
divtduals who have to pay an excess
war tax OF 8 per cent on salaries
over $4,000 from deducting interest,
taxes etc, to which they are entitled
TO under the income tax.