El Paso herald. (El Paso, Tex.) 1901-1931, 1919-08-23
Business MenAndF Farmers Alike Find
Income Tax LaUs PuzzIing; Accounts
Help Determine Money Due u S.

/ citation on MS farming implements,
[ tractors and other farm machinery,
barns and outhouses and WORK stock.
/ No depreciation is allowed on FENCES.
| but he may claim actual repairs anu
requirements. He is also Above de-
I probation On his drainage ditches- In
addition to depreciation. repairs OF H
minor nature are allowed on his I'M
plements, barns, outhouses and farm
machinery.
A farmer makes return Of income on
his crops, other produce and livestock
when they are actually sold
During the year 1918 all partner
ships were reuired to file reports, re-
gardless Of the amount OF their in
come The partnership Itself was not
subject 20 tax as a partnership. but
had to make returns on their shares
OF the distributable income. whether
distributed to them OF not
A partnership Is entitled to the same
business deductions as an Individual.
with the exception that contributions
ious and educational Institutions ale
not allowed as deductions. The men,
bers OF the partnership made returns
in the same manner as other indiViu-
Itself should state specifically the
items Of gross income. the business
deductions allowed by the law. anu
should include the names and ad-
dresses OF the individuals who COM
pose the firm, together with the
amount Of the distri0utivs share or
each.
Personal Service Corporations.
Personal service corporations are
required to make return on the same
basis as q partnership These are
corporations whose Income Is TO be
tscribed primarily TO the activities OF
the principal owners or stockholders
ENGAGED in the active conduct Of the
affairs OF the corporation. and in
which capital whether invested or
borrowed is not a material income
producing factor. Law. medical. ac-
counting. engineering and architect
ural corporations come within this
class)
AL corporations, except those speci- /
ficaliy exempted under the law. must
make a return regardless OF the
amount OF income Income accruing
or received by a corporation. whether
domestic or foreign, must be reported I
foreign corporation. however. Is |
taxed only its income from sources ]
within the United States The gross l
income, for the purpose OF the tax, in /
general, includes and excludes the /
same things rs the gross income OF an /
individual II embraces not only the 4
operating revenue, but also gains, 1
profits and income from all other 4
sources. such as rentals. ROYALTIES. in i
terest dividends from stock In other 4
corporations and profits from the i
sales OF capital assets.
Corporations are not allowed to de-
duct charitable contributions. Dona- 4
tions. however, when made by a cor
Doration for purposes connected with \
the operation OF Its business. when l
10 charitable Institutions. hospitals or
educational Institutions conducted for /
the benefit Of its employees or their
iependents, are a proper deduction as .
ordinary and necessary expenses. Do
nations which legitimately represent /
2 consideration for a benefit flowing
directly 10 the corporation. as an in
'ident OF its business. are allowable
deductions from gross Income. Ex-
1enseS Incurred by a corporation IN
ldvertlsing and promoting the sale OF
iberty bonds and war savings stamps
lver the corporations name are de-
Status Of Aliens.
As there has been a great deal Of
.rgument about resident and non
'esident aliens. u Is wei 70 define
iere the status OF the alien Individual
nd the requirements fn7osed n<nfm
" the income tax law. A nonresident
lien is en- individual Whose stay In
MS country Is merely temporary. or
curse OF a journey through the
Tnited States. sometimes performing
abor. sometimes not; or one who en-
ers the Tinted States intending only
o stop long enough to carry out
ONE purpose. object or plan not in
diving an extended stay
An alien who comes here with the
Intention Of STAYING Ions enough 10
mass a considerable sun OF money in
his country and then DEPART for bis
wn country. Is classed as a nanresi-
ent. provided his eTnrctatinn in this
eeard NAV eas0nahlv. CONSIDERING
he rate OF his Swings. be FULFILLED
Ti-hin 4 cn-nn7 ratively short time
It Is heid that the nl7~e wh@-e =
ian hos his frue. fixed and nermanent
ONE and PRINCIPAL establishment. and
o which. wherever he is absent. he
- the Intention Of returning. and
hitch indirates Dermanencv ~ orcu-
alton as distinct from LODGING or
oardi~e. or temnarTrv occunation. Is
iassed ss his residence: and, there
IRE. II Is haId that where business
urn0se OF Otherwise an alien Is so To-
ated in the Tinted States. he is
lassed as a resident alien and must
iake his retrrn on the R~~-e basis as
nv citizen OF the United states.
onresifent allen makes return only
hts income from sourras within
he Tinted States a~d resilient alie-
iateS ret-rn OF bis income from ail
nurces. whether domestic or foreign.