New-York tribune., 1919-03-16
C5ribune
CodXSCrVlCC
By Morris F. Frey
Ia" ConsuItant, Guaranty Trust
Company of Neac York;

Questions: 1.-During the taxable
year 1917 l sustained loss Of S25. 900
On transaction not connected with my
aeguiar sn trade or business, which
amount was not deducted on nv re-
turn of income for that year, and l had
no no gain to Offset. During the year
isio have made a gain of substan-
tiaily the same amount. May | have
the benefit of my loss in 1917 to offset
my gain of 1918?
Z. Are the following deductions al
Iowable: Depreciation on my own
mouse, occupied by me; ordinary re-
pairs on same?
Answer: 1. No. 2. No.
Question: Ny salary is s2,s4o; saw
lngs .ng oank interest, ST.; total income for
1913, S2,347. Am married and entitled
to the $4,000 exemption. Must I nav
tax on the odd S347. If not, must fil
out blank and make a return?
Answer: You must file return and
pay tax of per cent on S347. or
$20S2 VI
question: Can partnership make re-
turn as partnership under section 33O
on March Is and then Incorporates nrior
to July l and substitute return on basis
Oh corporation?
Answer: Under section $50 partner
ship may make return on March Is and
then incorporate before July / and
substitute corporate return for part
nership return already filed.
Questions: 1. If one has a gross ir-
come of about $1,000, but expenses of
carrying on the business, as fuel, in
0erest on mortgage, necessary help,
| ETC., reduce income to about 5000 net
must he make return or report?
Z. Is interest on mortgage on the
house that one owns and lives in de-
ductible?
Answers: 1. No.
2. Yes.
question: am married and my sal
ary in 1918 was $1,80O. My wife dur
ing same time earned $1,100 salary. |
pay all household expenses and am in
doubt as to whether l should paw a tax
on $500, the excess over $4,000 Am
liable for the total amount, or should
1T be prorated?
Answer: A joint return should be
made, including the salary of both your
self and wife. AS married man you
are entitled to an exemption of So, 900.
",
S54.
Question: l am single and during
1918 had salary of 1859, which was
the only income | had besides about
$40 interest on bank account.
spent $3.50 for Liberty bonds and SIS
on War Savings Stamps during the
year 1918. Is allowance made for money
contributed toward Red Cross, War
Work. etc. =? If so | spent about SIS in
this way during 1918.
Answer: Income invested in Liberty
bonds or War Savings Stamps is not
exempt from tax. Contributions are
deductible if made to recognized organ
izattons, such as the Red Cross, etc,
In an amount not in excess of 1921 of
the taxpayers net income as computed
without benefit OF such deduction.
Your tax will be 1924.
Question: | am widow. NV salary
per year is $1,24S, with a bonus Of
$3.50. | am keeping house at the same
time for three daughters. They are all
elf-supporting but contribute nothing
to the home. | gave S18 to the Red
Cross and 81 to the United War Fund.
Answer: Your tax is $2s.56.
&uesltou. IL partnership earns q
profit for the year Of 1918 of $5, 1000 and
uses this profit to purchase new ma
chinery and stock, is this profit tax
able?
Answer: Yes, to the individual part
neSs.
Question: My husband is in Serbia
and Greece with the American Red
Cross at q salary of $4,000 Is his in
come taxable? He has two depend
ents-a son and mother-in -in-law Ode
. pendent in part). He has stocks and
| bonds to the value Of perhaps $35, 900
in normal times, but at the present
time much reduced in value. Does he
make out his own income tax blank or
do l attend to it for him?
| receive an allotment from my hus-
bands salary of S225 a month for the
support of the above mentioned de-
pendents. I also have an income of
my own--my living and $75 a month.
Am | subject to tax because of my own
earnings or my earnings plus my nus
bands allotment? This would seem to