The Alaska daily empire., 1918-03-21
INCOME TAX
 PRIMER FOR
 BUSY PEOPLE
Continued from Yesterday

| III. IS an OrQlnary aQmlnlSlTdtOT requhe6 to renGer .nco,ne-taE re turns covering income received by him?
 | An ancilary administrator is held to be merely the agent of the domi- ciliary administrator. The former should transmit to the latter all the information as to income received by him in order that the domiciliary ad ministrator may make return GOV erng the entire income of the es- tate.
 | 11S. Have the beneficiaries of an estate or trust right to inspect in- come-tax returns rendered by fi | duciary covering the income of the estate or trust in which they are in. terested?
 An executor, administrator, or | trustee acts for his principal, and not for the beneficiaries of the es- | tate of his principal; therefore, bene- 1 ficiaries are not entitled. as such, | to an inspection of returns of income | filed by such fiduciary. 119. Who is liable for payment of | the tax assessed against the net in come of an estate or trust? liability for payment of the in come tax attaches to the person of the siGuc,ary up to and including the date O. lis discharge.
 1 120. l act as trustee of a trust | estate. A part of the net income which accrues to the trust is retained and becomes a part of the corpus of the trust estate. Am l required to render a return for and in behalf of the trust other than the fiduciary return required of me?
 If the trust itself is named as a | beneficiary and the amount of net income which accrues to it as beneficiary equals or exceeds $1,000, a return executed on Form 1040, for and in behalf of the trust, in addi tion to the return executed on Form 1041, is required.
 121 May an executor or admins trator render his fiduciary returns prior to the close of the calendar year in a case where the estate is finally distributed and he is dis charged from and relieved of his trust during that year?
 An administrator or executor may, immediately after his discharge upon final accounting, file with the proper collector of internal revenue a return covering the income and deductions of the estate for the period of Jan uary 1, to the date of his discharge. To such a return there should be attached a certificate, under seal, setting forth the fact of the final accounting and discharge of the ad- ministrator or executor, and the tax assessed against that return may be paid immediately after receipt from the collector of notice of the amount assessed and demand there for ~ 1922 An individual, now deceased, held life insurance policy in which his estate was named as the bene- ficiary Are the proceeds of this pol icy subject to income tax?
 The proceeds of life insurance poli- cies payable to the estate of the decedent. when received by his exc cutor or administrator, are, in tae amount by which such proceeds eA- ceed the premium or premiums paid by the decedent, income to the estate and are to be accounted for by the executor or administrator. 123. Where, in the case of more than one trust, the creator in each instance is the same person, and the trustee in each instance is the same, how will the trustee account for the income of the several trusts?
 The trustee should make single return on Form 1041 for all the trusts in his hands, notwithstanding the fact that they arise from different instru ments When a trustee holds trusts created by different persons for the benefit of the same beneficiary he should make return for each trust separately on Form 1041. This rul- ing is based on the identity of the creator and the identity of the trus- tee of the various trusts and not up on the identity of the beneficiary.
 124. May the expenses of admin istration of an estate be claimed by the fiduciary as deductions in com putting the estates liability for i'm come tax?
 .l. s-s<A JsVR as court costs. attorneys fees, exc cutor's commissions. etc, are charge. able against the corpus of the es- tate and are not allowable as de auctions to the estate or the bene- | ficiaries thereof ~ l l25. May fiduciary claim as a deduction the amount of depreciation estimated to have occurred in the value of property owned by the .es-