New-York tribune., 1919-03-17
15rlbune
09aXSerVlCe
By Morris F. Frey
Tor Consultant, Guaranty Trust
Company of NeaO YORK.;

Questions: l. Early last year my
wife died leaving me with three chill
dren, all under eighteen years. While |
have been living with ~ brother-in-
have been living with my bother-in-
law and his sister. On October 26, 1918,
| remarked. My present wife's income
last year was S1,190, and mine was
$16o0. Am | required to file report =?
Should we file joint report, or should
my wife make report of only her in
come; and what is her status, she
having been unmarried during the first
nine months of the year?
.. Are corporations required to re-
port indivdual> salaries of their en-
ployes? If so, over 5000 or ever 81, 900
Answers: I. The Commissioner of
Internal Revenue has recently an
nounced a ruling whereby the amount
of taxpayers personal exemption is
determined by his status on December
81. 1918. You should file return in
Guiding your wife's income therein
You may take a personal exemption of
$4,000. This will leave $4,000 subject
to income tax.
2. $1,000.
Question: Should I pay an income
tax, and if so how much? ] am mar
ried, no children?
Salary for 1918. $1,969.oO
Dividends from stock . 1876
Total $2,126.56
Loss in value of stock during 1918
$2S5.
Answer: You are not subject to in
come tax.
QUESTION: For 1917 filed an income
tax return at Los Angeles, Cal. That
collectors Office has sent me blanks
for 1918, but my total income for last
year amounted to only $500. Do have
to file a return, ard, if so, with whom ?
| am now a resident of New York
Answer: You are not subject to in
come tax, and need not file a return.
Question: Is the amount paid by an
individual for income tax in 1917 a
proper deduction under the head of
taxes pail in 1918?
Answer: No
Questions: In 1900 inherited
Butte, Mont, mining shares, counted
to me in my part of the paternal
estate of S1,540.40. In 1913 the ajor-
ity stockholders sold this mining
pIOpeTJy, my snare OIL SAFE price DoinS
S666.66. Can l deduct the resultant
loss of sS73.72 from my total 1918 net
income?
2. In 1915 I deposited (out Of my
income which paid U. S. income taxi
sum of money with my Paris lawyers.
Out of this sum French state, income
and municipal taxes for 1918 were paid
in 1918. May l deduct their amount
at item do, form 1040, page I?
3. Of $5,073.25 cash dividends re-
ceived in 1918 directly from United
States corporations. $3,11450 we're ac-
cumulated in 1918 and $1,958.75 were
accumulated in 1917.
Must | enter SO, 3,114.50 at K (a) page
., calculating surtaX thereon at item
SO, and must l enter S1,95S.75, IL (a),
page /, calculating surtaX thereon un-
der item 81? Or must the S5,073.25
be calculated at the 1913 surtax rates
Answers. You may deduct the
loss sustained through the sale Of this
property. The fair market value of
the property as of March l. 1913, shall
be the basis for determining the
amount of loss.
2. The income tax may be credited
against the tax on line 40. The other
tax may be deducted from income.
3. The regulations Of the Treasury
Department provide that cash divi-
dends received in 1918 are taxable at
1918 rates. All such dividends should
be entered on line tx (a)."