New-York tribune., 1919-03-14

treasury Department. The taxpayer may
Fnd 1t hard to ansioer such Questions
as hoW much tar must be paid, hotc to
pay the tar. hoso to fH in the forms on
Which returns must be made. to sohat
sTtent, II any, an sncome Is erempt from
the leVy, etc. The corpoyatton may find
1t equally difficult to solvs problems
e1cess profits smposts.
=, ING Tribune has therefore provided
thts Tar Service Department. Through
the courtesy Of the Guaranty Trust
Company of Ne'o York.
Morris F. Frey.
Tar Consultant Of that imstitution and
leading authority on tho subject. soilI
amswer questions submitted to him
through this department relating to en-
d'v'dudt, corporation or partnership sn-
come sdres, or about Vdr profits aud
eIcess profits td9es.
Yon may therefore tell youy tas
troubles to The Tribune ,0;th the assur-
once that they soiH rcceiue expert con-
ssderatton. Those questions s0hich are
o. general infe, est aoilI be dnsUeyed in
THIS column. Names ,oiil not be used.
Au other questions tcili be anspered BY
mail All Communications wili bs re-
garded as highly confidential.
lom sciN favor us and expedite the
reply If you acil please obserps these
requests.
State your questions as concisely as
possible, but be sure that no essential
information is withheld.
Write on one side OF paper only.
Inclose stamped addressed envelope
for reply In case questions are not an
swered in the column.
Address all correspondence to
Tax Service Department, Tribune
Business News Bureau, 154 Nassau
Street, New York City.
Question: I sold goods for $4,000
during 1918. Cost of goods, salaries
paid and rent was $4,000. Do I need
to fill out return? l am single.
Answer: No.
Question: I am not g citizen of the
United States, although / have been
living in this country for number of
years. l have no one depending on
me, and although there is property at
hand, bought with savings, my salary
up to few weeks ago did not amount
to the yearly sum subject to tax.
Please mention what l should do to
comply with the law.
Answer: You are an alien resident
of the United States and as such are
subject to tax on the same basis as a
citizen.
Questions: /. I bought railroad
bonds in March, 1907, for $4,000. The
road was sold under foreclosure and
in May, 1918, / received $3.50 for my
claim. What deduction am I allowed?
2. Where on Form 1,040 is to be entered
such cash dividends Con stock) paid
from earnings of 1917? 3. What is the
normal tax on such dividends?
Answers: I. The difference between
the fair market value as of March 4,
1918, and $3.50. 2. Line X "a" 8.
Dividends from domestic corporations
are not subject to normal tax.
Question: / receive $500 the first
relative. Is it subject to tax and how
much?
Answer: No.
Question: Several years ago l sold
house and lot for $500, located in
Pennsylvania. Received $1,000 cash
and judgment note for $500 signed by
both purchaser and his wife. Some
interest was paid me on the note; in
fact enough to keep it renewed How
ever, no interest has been paid during
the past four years. The property has
been sold by foreclosure of mortgage,
which was entered ahead of tie note;
therefore, there is nothing left to col
lect from. December last | charged it
off as bad debt by receipting the note
and mailing it to the maker, asking
him to have it satisfied of record
When filing my income tax. return can
claim exemption of the $500 and
deduct 1t from my income?
Answer: Yes.
Question: l have one-half interest
in partnership which showed a profit
of $4,000. Out cf this each partner
drew for living expenses s3,500. What
would be each partners tax on his
share of $1,000; also would we have
to pay excess profits tax? Each part
ner devoted his whole time to the
business.
Answer: Assuming that the indi-
vidual partner is married man with
out dependents and that he has no
other income his tax would be $780,
individuals and partnerships are not
subject to excess profits tax.
Question: l am married, my wife
has no separate income and | have no
dependents. My entire income, amount
ing to $4,000, comes from dividends
upon common stock in United States
corporations, chiefly coal and iron. I
have made about 5000 for various SER
vices rendered. l have deductions in
interest paid, losses on sales of stock,
ETC., amounting to s.. Do | have
to file return or pay tax?
Answer: The amount of deduction
as stated in your letter is illegible;
hence, 1t is impossible to calculate your
tax. If your income In excess of your
deductions is $1,000 or over you must
file return, and if over 5000 you must
pay surtaX according to the amount of