The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1919-02-05

IN H|N ~ IEI
The commifeIuner 81 Internal rev
enus. ever since ihe imitation 81 the
Income tan law. haf beet conslaient
o. Ms Insistrnrr mat mrrrhrndlae IN
trnfurirn be ifken a. cost The iIfat
renaftafe from TIE unilolm practice
~ he ccmmIssloners offlce vas an
eula ~ ~ 1911. This deeiaon.
Inventories q supplies. raw ma.
Itsrlals ~ert IN process 81 production.
and ulHod Herchnndisa. must he
faNen eifHef 80 nt cost ~ 10 Al cost
lof market pficc. w~blchsvcr ~ lower.
provided that Tie method adopted
must be adhered 10 IN subsequent
~ ne commissioner " internal rev
euue."
A~crerAinK Il Treasury Decision seas.
lNeue0 Jan. %. 1915. the commlasIuncr
informs the public that 'the legality
~ fhiH authorization ct. ~ lsnal hav.
ut been questioned. the matter WAS
reteucd 20 the attorney general who
aeir~a inst M fenerai principle ~
issue a. Involved IN eases pendlnr In
the supreme court Of nv United
state. and that AZ early decision
may BE- reasonably expected. pending
THIS decision returns made upon the
basil. o. D. feos WI BE- Tentatively
Accepted.
Under date Of July !. 1918. Treasury
Decision iIf8 wae issued n readf
a. follows;
As question has arisen a. 20 the
legality " the authorization hy Treas
ury Decision 1909 OF returns Tor in.
come ana excess profits Ox purposes
upon the basis % inventories taken
az cost or market value. whichever
y lower the matter vas referred TO
ne attorney general. The attorney
Fcnerai has adylFed upon the basis
Of a recent decision Of the supreme
court lpuyie y Mitchell nrothera. DO.
cided May 90. laril. that the methods
of taking inventories authorized Iy
Treasury Decision gGos are permir-
aihlt. That decision there.
fore continues 10 stand ~ "a reguia-
ton " The department
While DO not believe that The case
~ Doyle v Mitchell nrothrrs has any
hearrg upon T ID. 1909. ueverthaless
permission 20 take i%nvcntoglss at cosi
or market D. In accordance with the
f~eeulauonH of The treasury depart
ment
Next Friday I shall discuss h ap.
phcAton Of T. D. .sHe 10 present mar
kct conditions and refer specifically
20 that much discussed clause of tho
raid decision. provided that the
method adopted "A be- adhered 20 In
auhsuuuent year. unless another b.
authorized BY the Commissioner Of
Internal revenue
Tax QUESTIONS and Answers.
Readers are Invited e. submit their
taS problems 20 he editor. Communi.
cafiUar u be signed. hui names OF
correspondents Will not De published.
Answers viii appear IN m. order OF
receipt 81 inquiries. address Tax
Editor. care ~ Albuquerque Herald
u. a. G-May I request You 10 cal.
Culate tho taN to b. returned hy a corr
poration organised on Oct y. 1919,
with an Investment % $50. 900 and a
net lncorfc u -. 600 Tor October. No.
tcmbcr aud December The corpora
ton D. e. continuation OF n concorR
That ncttfd ~ per cent pru-uhr period
AuaNef-ln order a. answer your
question u viii De uOrrHauH a. nHrrf.
tain the pre-war peflod earnings in
amount and hot in per cent and
also 70 learn what capital change
tool place during 1915 Upon receipt
81 this Information ! shall De- riud
to give further consideration TO your
inquiry.
\. G-I 81 one u he partners Of
a C~oparturrshlp. We have just closed
out books Must each one 90 ua nls
his individual income tax returnf
Where can I Eet the necessary forms
and full Information for nnlng the tax
return
Answer-Undor provisions OF the
new bin. which may be- changed. each
partner must file a personal return II
hil gross Income amounts 90 $1,000
OF more The commissioner % lntSr-
nal revenue will probably require. for
Information only, a partnership re-
turn.
Forms, regulations and information
are moi now available. A. SOON as
ready for distribution, notice viii ap-
q Ia these columns
WALL. sTKEET-f read 70 recent
rows Item which stated that TaN Cone
missioner Roper would not permit mo
deduction 81 losses resulting from the
sales 81 stock between Christmas aud
the end 81 the year Was the newapa-
pcr currectT
Answer Commissioner Roper re-
ferrsd a. wash sales Under the sN-
lntinE law. bona nde nles resulting loo