Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1918-01-07
intevsst;ng Points
Concerning Complex
Income Tax Ld,l


swering all questions, finished weary
day with the declaration that they
didn't know 90 many questions could
be framed. Many times they were
called upon to explain what income
really IL.
II own stock which pays no divi-
dends. So far as I can md out 1t Is
valueless, tho have put much money
into 1t. Must I pay an income tax
on it?" Is a sample OF what comes
often.
Some Of the Problems.
Inquirers are told that II there Il no
income then, naturally, there can not
be income tax. Below are some of the
individual problems answered by gov.
eminent experts:
Q.-Are dividends received from life
insurance companies. but used in pay
ing premiums, to be considered as in
conner Ayes.
OH a minister supplies \ church
at some distance and is paid for the
services and expenses. railroad fare,
ETC., is the latter a part Of income to
be returned? Ayes.
Q.--Are sums OF money. $500 or
81 1000. received purely as a gift from
relatives to be listed as income? A.
No. The donor pays the tax in these
Pension 10 Taxable.
Q.---Does person. income $4,000,
without counting pension, have to pay
income tax on PENSION? nave always
been told that pension, g-wing on.
of the civil war; car. not be attached fos
debt. "A pens on Is taxable in
come.
Q.--Is borrowed money, returned
during the year. a part OF ones IN
come. A.-No.
Q.-How should the tax on stock
that has become absolutely worthless
be reckoned? We know it to be worth
less from the fact that It can not be
OF in any way and realizes
nothing. May the total amount paid
for the stock be deducted from the
amount reported? Ain transactions
entered into for profit but not connect-
ed with his business or trade, the
losses sustained therein during the
year to an amount not exceeding the
profits arising therefrom. can be de-
Quoted.
Q.--Does a salarted man with
yearly income Of sl.1oo have to declare
that income? Ayes. ifssingle: no II
He pays per cent on 800
single
Who's Head o. Famiiy1
Q.-My sister and support my
mother, my father being dead. Are We
he head Of the family Jointly? A-No,
The mother Is the head Of the family.
Each is allowed $1,000 exemption.
Q--Are regular quarterly Dividends
n cash, received on stocks Of the net
Of domestic corporations re-
,arded as taxable income? Ayes.
Q-Can the amount Of lie Insurance
premiums and premiums paid Tor hre
insurance upon my residence property
De claimed as exemptions? A-No.
hese are held items Of personal ex-
,ense. Premiums covering farm build
ngs other than your dwelling and prop
,rty used for business purposes are !
allowable as deductions.
GA tenant, under the terms OF
ease. is Obliged to pay a certain cash
entail and all taxes assessed against
he property and keep 1t insured. May
re claim as a business expense the
aggregate amount Of rental, taxes and
insurance premiums paid? Ayes, II
he property Is used by the tenant for
business or trade purposes ana not as
| home for the year during which 1t Is
paid.
How Lose 10 Figured.
GA store or other building mas
,utlived It's usefulness and the owner
ears 1t down to make room for build
ne Of improved type. Can the value OF
he old building. at the time Of destruc-
ion, be claimed as depreciation or loss?
Mo: losses due to voluntary re-
noval or destruction Of buildings. ETC..
Incident to improvements, are either
proper charge to cost OF new additions
,r to depreciation already provided, as
he facts may indicate, but in no case
8 II a proper deduction in determining |
let income. II it IL destroyed before |
he close OF its natural lifetime q /
proper proportion Of its cost may be
considered part OF the cost OF the
amount OF gain or profit derived from
he sale Of the latter.
o. own stock in corporation
which in 1917 assessed each Of Its
stockholders $50 on each share held. |
Can the amount paid by me be claimed
IS deduction. A.--No; assessments
ire regarded as further investments In
/ case Lire this.
o. rent farm on shares. When
8 my share of the crops and stock TO
re taken into consideration? A-Only
Tor the year in which sold.
Room and Board income.
Off an employer agrees to pay an
,mploye a certain stipulated salary and
furnish him with room and board are
he latter items to be considered In
computing income tax liability? A.
Yes, fair value should be placed upon
he room and meals furnished and re-
ported as income OF employe. II serv-
ces Of employe are used in employers
BUSINESS or trade the latter may claim
Induction a. business expense.
Q-Last year my pocket was picked
and lost 5000, an entire month";
wages. Must include that 5000 in
my income? Ayes.
During the last seven years the
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