The Alaska daily empire., 1918-03-19
INCOME TAX ......'. '.....
 PRIMER FOR : BUSY PEOPLE
Continued from Yesterday

104 Under what condition and at what rates may depletion due to the removal, of natural product from oil or gas wells, mines, quarries, etc, be claimed? 3.. -,.s. .,, Paragraph of section 5 of the act of September 8, 1916, as amend ed by the war-revenue act of Octo- Der 3, 1917, states how the amount of depletion allowable as deduc tion is to be ascertained, but as so many factors are to be considered iE computing depletion, an answer which will be applicable in all cases where depletion occurs can not here be given. Such factors are. covered in considerable detail by Treasury De- cisions 2446 and 2447 and the Reg , ulations, copies of which may be ob- tained from the collector of internal revenue for your district, and where these decisions and regulations do not afford all the information neces- sary in your particular case de- tailed statement covering all the facts anu liBuIC5 III yOul SooC ohCQiu b0 forwarded to the collector, with a request for ruling.
 Contributions and Gifts to Religious, Charitable and Scientific Organizations, Etc.
 105 With reference to the ninth I paragraph of Section of the act of September 8, 1916, as amended, how am l to determine to what contribu- | tions or gifts made to corporations or associations, organized exclusively | for religious, charitable, scientific or educational purposes, societies for l the prevention of cruelty to animals or children, may be claimed as de- duction?
 You should first ascertain what your taxable net income would be were you not entitled to a deduction on account of contributions or gifts made to such corporations, associa- tions, or societies, and then if the aggregate of your contributions and gifts made during the year to such organizations does not exceed 15 per cent of your taxable net income so computed their aggregate amount may be entered in the space provid- ed therefor under General deduc- tions' on a personal return form. If | such aggregate amount exceeds b per cent. of your taxable net income | so computed, the excess can not be claimed
 For example: Your total taxable net income amounts to $20,000. Dur ing the year you have contributed to l the National Red Cross $1,000, to the 1 Young Mems Christian Association, 1 $1,000 toward the construction of a new church $1,000. and to the As l sociated Charities of your home city | $500. total of $3,500. Fifteen per 1 cent. of your total net income amounts to $3O00, therefore this lat l ter amount may be claimed as de- duction and the balance of your con- tributions and gifts may not be claim ed.
 l In claiming a deduction on account of such contributions or gifts there 1 should be shown on the return of in come ta) the name and address Of ] each organization to which contri-
 button or gift was made and (b)
 the date and amount of each such
 contribution or gift.
 1 Where the contribution or gift was
 other than money the basis for calcu-
 lation of it's value shall be the fair
 market value of the property given
 at the time of contribution or gift.
 106, During 1917 contributed $100
 toward the support of, needy fam fly. May this contribution be claimed
 as a deduction? Contributions or gifts made to in
 dividuals do not constitute allowable deductions.
 s.. Partnerships
 l07. Are partnerships subject, as
 such, to the Federal Income Tax and required to render annual incOme-tax
 returns?
 No. Section 8 (e) of the act of
 September 8, 1916, as amended by
 section 1904 of the war-revepue act
 provides that: M Persons carrying on business in
 partnership shall be liable for income
 tax only in their indivual capacity,
 and the share of the profits to which
 partner would be entitled if the
 same were divided. whether divided
 or otherwise, shall be returned for
 taxation and the tax paid under the
 provisions of this title.
 This section further states how the
 distributive share of partnership
 earnings or profits. which is taxable
 in the hands of the individual mem-
 bers, is to be ascertained.
 | While annual returns are not re-
 quired of a partnership for income
 tax purposes, the Commissioner of
 Internal Revenue or any district col
 lector is authorized to request at any
 time that true and accurate re-
 turn of a partnerships earnings