New-York tribune., 1919-03-10

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|Oribl1\o OK Service


Wlf"A not Income Ia y 900 from diyi-
nhndh paid ~ domestic cOrporntions
hnd AN nddilIonnI rs 600 from other
sources The husbnnd having deducted
the exemption Of 81 900 for the pur-
pose OF the RurtnX, must $1,000, the
@4oOo the WHO'S income, or should the
YAK be computed upon the income Of
the husband and the wife as separate
lndivlduhls, except that only one may
claim the exemption of $4,000?
Second qucstion: A brother dying
lelt Will IN which he directed that an
annual payment OF $4,000 be made to
ms nephew during the remainder Of
his lifetime in equal monthly payments a
generally out Of his estate without re
gard TO whether 1t came out Of the
pflnclpal or the interest. Ia this cX-
cmpt because of being gift and be
quest? Does it make any difference
whether the gift consisted Of annual
payments instead of gross sum?
Answers: You and your wife should
file separate returns. The personal
exemption Sf $4,000 may be claimed BY
either or divided between yourself and
your wife.
your brothers. nephew during the year
which represents income on the prin-
cipai of the bcqucst is taxable income.
distribution OF principal is not tax
able.
Question: Upon retirement from the
Philippine civil service, the writer
last year received from the Philippine
sum and based upon length of service
and salary.
Is the amount of such pension de-
ductlble from total income exempt
from income tax. The writer is now
living here and subject to the United
States income tax.
Answer: No.
Question: My brother-in- raw is in
the Rcd Cross service in France. He
is single and has no dependents in the
United States, and the amount of in
come that he receives in France is not
known by me. The amount of his in
come deposited in the United States
during 1918 exceeds 81 900. Is it nee
essary that a report for any part Of
his income be filed with the Internal
Revenue Office
Answer: y citizen or resident of the
tn'tcd States, if single, is required to
HE return if his net income s 81. 900.
or over, aud to pay tax on the excess
however, the regulations grant an cx-
tension Of time for filing returns for
'9iS IN the case Of citizens absent
abroad for period not exceeding nine
ty days after the Presidents nrocla-
nation of the end Of the war.
question: The form for making in
come tax return provides for a deduc-
ton OF 2 per cent from the normal tax
on account OF interest on corporation
bonds containing "tax-frce" covenant
on which tax of per cent was paid
py me debtor corporation. | have a
number OF bonds in which the debtor
corporation pledges itself to pay the
normal tax up to per cent lnforma-
ton IS cIucstcd as to whether ncr
cent is all that the corporation is al
lowed TO pay
Noting that the normal tax for 1919
IS TO bc less than that for 1918, infor-
nation IS requested as to whether there
IS to be any difference in the surtay for
the two years.
Answer.-Thc new revenue law
makes no provision for withholding in
inc case OF "tax-free" covenant bonds
at rate in excess Of per cent. The
surtax rates for 1919 arc the same az
for 1915 Nd
QUESTION:; am widovcr. having
lost my wife last summer. I have a
napy less than one year old who is
dependent wholly upon me for sun
port. board and pay extra for the
support of my child. Am I entitled to
exemption of married man or sim
gle man?
Answer: AS You were married dur.
ing part Of the year. and under Treas
ury regulations would be considered
as the head of family" for the bal
ancc OF the year, you are entitled to
a personal exemption of $4,000, plus
$500 for your child.
question: | own my house in which
| live To keep in condition it costs
a certain sum every year Am I al
lowed deduction of that sum or a
deduction Of any amount on the value
of the house? J refer to the net cost
oil the housc, not of the land.
Answer: No.