New-York tribune., 1919-03-10
You musi make your first
payment on ihc income lax on
ar before March Is 10 take nd.
vantage of The insinImcnt plan.

or before March - 10 take nd.
vantage of The insinIrncnt plan.
YWE Fcdcrdi reuenne law, under
phloh rms income Ia tdIed, "a IN
some respccta n higilV technicdi doou-
mont, ana il hoa been {,Vihor complicated
~ ,W'n0a oDd interpretations Of the
Trcos"Ty Department. Tho tdrpdpc, s1ov
as No10 much tar mart 10 paid, hoD TO
poY the idr. ho,o TO pm il the forms on
Which RETURNS must be mddc, 10 'Ohdt
ertent. II oHV. on income ss orcmpt from
ho teen, etc. Thc corporation may fnd
u cQunuy dihcuW To solvc problems
connected W1Nl ,he ,ncono. ,ony and
e2ceea troffs amposts.
u, ?1c Tr'b""e has therefore, pYopidcd
this 7nn ScyVice Ncportm1nt Throuoh
the courtcey Of the Guaranty Trast
Company Of No'o York.
Morris u. Frey,
Tar Consultant Of Mat dnstitution and
leodim0 authority ON the subject. qOiN
Hnsicef questions submited to him
fhrou0h this department relating to in
daoiduai, CORPORATION or partnership in
come tares, or about 4nur profits and
enceSs profits tones.
or ".ay therefore ten your tos
tron6'es TO The Toibnnc ,0ifh TIE ossur
dncc tat thoY aOill receive expert con-
siderotion. Those questions a0hich are
OF general interest anil be 0ns1oered IN
this column. names qcill not be used
Au other questions aciN be anstoored bv
mail. AL Communications aOU be re-
gardcd as highty confidential.
You aoiN tacor as and expedite the
reply If you aoiN please observe 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.
lnclose stamped addressed envelope
for reply in case questions are not ar
swered in the column.
Address oil correspondence to
Tax Service Department., Tribune
Business News Bureau, l5i Nassau
Street, New York City.
Questions: | am married man. no
children or others to support, other
than wife.
Plcasc answer the following. How
much tax on this income?
Wages and bonus 19lS).-. 5000
interest on savings. ......... 1873
interest on Liberty bonds M
Total ............... $2,22S
Please give exact amount Of tax /
owe. How soon shall | pay it? Where
shall | pay it? Can you send me or
whore can | get two forms.
Answer: Your fax is $3.50. You
should file Il return with the Collector
of Internal Revenue for your district
on or before March IS. 1919
The tax may be paid in full at the
time of filing the return or in quar-
tcrly instruments.
QUESTION:: A. Is the salary Of a
public school teacher exempt from
Income Tax? B. If have a private in
come Of less than $1,000 in addition
to my salary as a public school teacher
IS it taxable? c. If the answer TO B
ss IN the negative is it required that
make any return.
Answer: A. Yes. B. No. c. No.
Question If the owner of real prop
orty. on which there was originally at
the time OF purchase a private dwell
ing house. alters the house by putting
IN small apartments at an expense, say
OF $4,000, has he the right to charge
or this sum spent for alteration, say
IN five or ten years. on tho assump-
tlon that the value OF the property is
not materially enhanced, although the
income is incrcascd9
II the owner has neglected to charge
this depreciation in past years, may
he start now, and f SO, may he charge
off anything for past depreciations in
this respect, accumulating it for the
present year?
Answcr--Amounts expended in addi-
ri hnIt torn, t,fe Ia,
an increase in capital investment and
add 20 the value of the property are
not proper deductions. Repairs which
neither add TO the value Of property
nor appreciably prolong its life, but
Keep il in ordinary operating condi-
ton may be deducted as an expense
The rate of depreciation allowable dc
pends on the probable life of the
property. Depreciation is a proper
deduction only during the taxable
year in which sustained.
Questions: J. We understand that
the government has ruled that an alien
IS not entitled to any exemption on
his income. Is this a fact? Does
this apply regardless of whether the
man is single or married?
.. The tax return asks if any Nom
Der Of the family has received any
interest during the year from Liberty
bonds. However, ZIP to a certain
amount it is our understanding that
they are exempt. What is this amount? {?
Does it make any difference Of what
issue as long as the total does not cx-
coed the amount exempted?
3. am married and my income dur
ing the past year amounted to moro
than $4,000. During the year [ paid
$95 in interest on borrowed money,
none Of which, however, was used for
the purchase of Liberty bonds Am
| allowed TO deduct this from my in
come? Part Of this money is in
vested in stock of corporation which
has not paid any dividends for two
years.
4. In the case of a corporation cap
italized at 100000, which earned
$4,000 last year, all OF which was
used to pay off Indebtedness, is there
any tax TO be paid?
Answers: l. A resident alien is al
lowed Il personal exemption similar
to that allowed citizen of the United
States. A nonresident alien who is
citizen or subject Of a country which
imposes an income tax is allowed such
exemption only If such country allows
similar credit to citizens of the
United States not residing in such
country.
.. Liberty bonds should be entered
ns called for in block 13, page |, of