New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-03-02
(9ribune
09axSerViCe
You must make your first
payment on the income tax on
or before March Is TO take adj.
vantage of the instalment plan.

THE Federal revenue law, undcv
Il Which 1918 income is taxed, is in
some respects a highly technical docu-
ment; and ii aciU be further conn., ticatcd
6y rulings and Interpretations of the
TREASURY Department. The taxpayer may
find it hard to ansacer such questions
US hoW much tar must be paid, hoiU TO
pay the tar, hoW to fill IN the forms on
Whlch returns mast DC made, 10 qohdt
extent If any, an income ia crempt from
the tery etc. The corporation may find
1t equally difficult to solre problems
connected 1c.th he income, qccr and
excess profits ;mposts.
The Tribune has therefore Drorided
thts TGr Scruice Department. Throuoh
the courtesy of the Guaranty Trust
Company Of Ne,0 York,
Morris F. Frey,
Tar Consultant of that institution and
q leading authority on tho subject, toiU
nns'cer questions submitted to him
thorough this department relating to H.
diVidudi. corporation or partnership in
come torres. or about tcdr profits aud
c1ccss profits tares.
You may therefore ten uour tar
troubles to The Tribune ,cith tie oss1tr-
ance that they tcl recetre expert con-
alteration. Those questions schich arc
Of general into5 est ,uiU be answered in
this column. Names ,ciN not be used.
AH other questions tciH be answered bu
mai. AU comt1un,cuttons toiU be re-
Gdrded as highty confidential.
You tciU fduor us and expedite the
reply If You acil please observe these
requests.
State your questions as corcIsely as
possible, but be sure that no essential
information is withheld.
Write on one side Of paper only.
lnclose stamped addressed envelope
Tor reply In case questions arc not an
swcrcd in the column.
hddrass at correspondence 10
Tax Service Department. 'rribunc
business News bureau. l5t Nassau
Street, New York City.
Question: A married man having no
children, with I'M income OF $500
salary, lives in his own bono on which
he has n mortgage of $1,000 at per
cent. His taxes are $3.50 VIII he
nave to pay an income tax, and on what
amount, if any?
Answer: Assuming That you have
paid $3.50 interest on your mortgage
during the year 1918. your net taxable
income Is $1,000; hence, you must file
return, but you are not subject to
tax.
Question: Ais there any differ.
cnce i'll the amount Of tax to be paid
on similar incomes by an American
citizen and British subject residing
IN the United States?
BIZ piece of property is sold Mt
a profit, can deduction be made of
the brokers' commission and Of any
other necessary expenses in connection
with the transfer?
Answer: A-Ctizcns and residents
of the United States are subject to tax
at the same rate.
b-Brokers' commissions and other
necessary expenses incurred in con-
nection with the sale of property are
allowable deductions from profits de-
rived therefrOm
question: On August changed my
position, which would make nv salary
a year $1,000, or 500 a month. Effec-
tive September |, my salary was in
creased to $1,339.92, or 81 sc a month.
All OF this money is given to my
parents.
On what basis, if any. should fig
ure my income tax? With my age
being eighteen years would this make
any difference?
Answer: An individual under twenty
one years of age or under the statutory
age or majority where he lives, what
ever IL may be, is required to render
return of income if he has a net in
come OF his own of $1,000 or over for
the taxable year. If the aggregate of
the net income of a minor from any
property which he possesses, and from
any funds held in trust for him BY a
trustee or guardian, and from any
earnings for his own use, is at least
$1,000, return as in the case of any
other Individual must be made bv him
or by his guardian or some other per
son charged with the care of his per
son or property for him. IT. however.
minor is dependent upon his parent
VINO &ppr0priatcs or may appropriate
his earnings, such earnings are in
come OF the parent and not of the
minor. for the purpose Of normal tax
and surtaX. In the absence of proof
10 inc contrary, parent will be as
sumed not to have emancipated his
MINOR child and must include in his re-
turn any earnings Of the minor"
QUESTION:: My salary for 1918 was
81 1900 and as | am living with NV
wife. am entitled to a reduction Of
$1,000, leaving S12.40O liable to income
TAX. Please let me know what the
amount of this tax is. and also how if
is arrived at
Answer: The following is a computa-
ton of your income tax:
HrOSS income ...... S1A 400
Personal exemption 1000
Net income subject to
normal tax. ....... $4,000
Tax on $4,000 at go 49,. $40
lax on $500 at 1925 1.Oos
Total normal tax S1.,Is
Surtax on 81 1000 ............. 3l4