New-York tribune., 1919-03-13

same mouse With me certain sum; Tor
example, $50. Am I allowed to de
duct this amount
3. paid brokers during the year S36
for carrying stock From another firm
received $50 interest on account
Should | deduct the first and add the
second?
d. (a)I had an insurance premium of
$l52 to pay on my insurance policy,
on which there was dividend Of $50,
making the actual amount paid S122 Is
any report necessary? (b) | paid in
surance company as interest on loan
the sum of $50. Can / deduct this
amount?
Answers: 1. Yes. 2. No. g. Yes.
4. (a) No. CD Yes, if not incurred to
purchase or to carry tax exempt Sc
Curitics.
QUESTION:: In addition to my wife
and children | have staying with me
niece who is attending college in the
city. Her parents pay for her tuition
and clothes but furnish her board
and many incidontals May claim an
exemption on my income tax statement
on the score Of her dependency? She
is under eighteen years of age
Answer: No.
Qucstions: Am eighteen, single,
earned about $1,000 last year. live
with parents to whom paid the ma
jority Of my income. This sum to-
Gcthcr with my fathers earnings sup
port household Of scgcn in ALL l.
Must file an income tax return -
Am / entitled to claim exemption az
head Of family'? g. Docs tho fact
that worked for the government
Brooklyn Navy Yard have any bear
ing on the subject?
Answers: |. Yes. .. You are not
the head of family unless you actu-
ally support your parents. 3..No.
Question:: A young woman for years
has been the support of both parents
and the head of household. Her sal
airy is $35, or $3.50 a year. No other
assistance or income at all is received
by parents save from her. A sister is
the fourth member Of the household,
but is able only to pay a sum equal to
her board and own expenses.
Answer: You are the head Of fam
lily and, as such, the amount of income
which you receive is exempt from tax.
However, you must file d return, since
your income is in excess Of $1,000.
Questions: am a veteran of the Civil
War and d retired minister with pen
sion for each service. Kindly advise
me whether pensions are a part Of my
income subject to tax.
Answer: Both of the pensions which
you receive are taxable. subject of
course, to your personal exemption.
Question:: I am the owner Of small
restaurant and it is not clear TO me
what my actual income really is. I
have various expenses, such as pay
ment of my employees, taxes, fOodstutfs
rent, etc. Kindly advise me what |
am allowed to deduct.
Answer: All expenses incidental to
the business. such as the cost of food
stuffs, salaries paid to employees. rent,
light, heat, etc. You are referred to
Block "a" on Form 1040 or tO4Oa for
further information in this Connection
Personal and living expenses are not
deductabie items.
Question: During 1903 I purchased
five shares in so-called Building and
Loan Association, the requirements
being that | pay the sum Of s.
monthly for a period of about ten
years when would receive total
of $1,000. In January, 1918, | made
my last payment of s. and received
from the association the $1,000 in cash
This you Will note IS about $500 in
addition to the sum invested during the
ten years and represents tho cumula-
tive amount earned. ! would be pleased
to have your opinion to what part Of
these earnings properly constitute in
come to be returned in my report for
1918.
Answer: The amount received in cx-
cess of the monthly installments paid
in is taxable income for the year 1918
Questions: % Stock bought in 1901.
1904 and 1913 was sold in July 1913 at
profit. Is all the profit subject to
tax?
ca Income from salary $4,000, from
dividends $4,000, from profit on stocks
sold 81, 900 total income $4,000; losses
through bad debts $4,000 (s2,C0 more
than the entire income). What is the
tax, If any? -. -. 80 -
Answer: % The law provides that
the fair market value as Of March I.
1913 shall be the basis for determining
gain or loss In the case of property
purchased prior to that date
~ Since your allowable deductions
are in excess of gross income you are
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