New-York tribune., 1919-03-01


Business News Bureau, 154 Nassau
Street, New York City.
Questions. A. Ny gross 1918 in
come was Sa,l2o. After deductions nre
inude the net income is 81 ,0l3 10 |
pay q per cent or t. per cent taN
b. Through inheritance receive
every three months from England iho
sum Of S22. being . t. per cent interest
on about 81, ,35O consols. Before send.
ing me this money Tho Bnns Of Eng
lhnd first deductA tho NriiiBh incone
tax Of shillngs III the pound. go
thhl instead Of receiving 500 / receive
only flb (nbout $7bl Must include
lhla hngliah lncomo among my Amor-
can Income If 80, do put down the
gross amount Of the yearly income.
say $50 about $1,000, or the net amount
received (nb5ut g3OOl2 If am tnxod
only on the net amount would be still
taxed twicn ON the same income. nj
though not by the same guvernmont
Doean't the Federal income tnx lnv
make some provision nH regards taxes
already paid to foreign govornmonts7
g. Can life and fire inauraneo. water
rhto. house repairs. loss IN hellng Lib
cfty bonds. b" figured M deduction
Answers; A. You viii nay tas On
your net income in cHceaa Of credits
NJ The rate of u per cent
Is. We nsnume that YOU nre a citizen
OF tho United States. hence the income
which You receive through Inheritance
~ subject to tax on the same basis ms
income derived from sources within the
United States. You must reDort the
total amount of such income without
deducting the British income tax on
same. However, the new law provides
mat the income tax of a citizen of the
nited States shall be credited with
lhe amount OF any income, war profits
and excess profits taxes paid during the
taxable year to any foreign country
upon income derived from sources
therein.
{. Amounts paid as premiums on life
insurance and on fire insurance on nron-
crty personally occupied by the owner
and repairs on the same are not de-
ductible. Amounts paid for fire insur
ahce and repairs not in the nature of
improvements on property which the
owner uses in his business mr. from
winch he derives profit in the form of
rents are deductible. Deduction NAV
also be taken for losses incurred in
seiilng Liberty bonds. Water taxes are
not deductible EXCEPT on rented nr
business property.
Question: Last year [ paid (per-
sonally) over 81 900 tax ON NV income
Tor 1917. Part of my income for 1917
was invested in stocks, and during 1918
one company in which | invested went
INTO bankruptcy, so that the entire
amount invested is lost beyond any
doubt '''
] do not buy and sell stocks as a
source OF income, so have had no
profits of this kind for 1918 to amount
to much.
What wish to know is, am en-
TITLED to deduct the loss from nv 1918
income?
Answer: Under the new revenue bill
,nc right TO deduct losses outside of
business Is not limited TO the amount
OF proflts received from similar trans
actions: If 1t was definitely deter
mined In 1918 that the stock was n TO-
ta' loss, the entire cost thereof ia de-
ductiblc. If in the distribution Of tbe
assets Of the bankrupt corporation The
stockholder receives any payment on
account OF his stock. the difference be
tween the cost of his stock and The
amount received Is the amount of loss
deductible.
Question: For moro than forty years
We" 9t'hoEIHDnPi IN the courts ct (
the state Of New York Then | wns
retired and my retrcd pay Is ~ 800
per hnhum. In addition receive a
pension from the United states for nv
army services during tho war for the
uhion' amounting 10 Gi56 yearly This F
makes my total income $225d am a
Wldowtr. My two unnarrit I daueh-
Yrs i've with Mo and | pi do for
'hcn'. own thr house ~ whir,. | live.
ana my tax for the current ypst on
suei real esthte s Approximately 500 +
70 what eXlent am | liable under Tho /
ihcoMe lhY iaW7
Answer The renaion which sou re-
tel'" rom The State nf Nav Nuth Ia I
nhi subject ~ Income tas, but tho pe,i-
siol, received from tie United states
government ts Hmhiert to tnk, IinW- F
ever since YOUR nai lnsnble income
Tails shnrt Of the personal exemption
tn which YOU are entitled, Yuu need not
hIe return ar pay any tax,
Question VIII you kindly lot me
know If II person having an income
Of over 4 900. and has mother who /
depends upon her MS we'll as soma
ether members Of the family for sun
port, Ia exempt for $500 Ia paying ia
come tnSY
AnHwef=A taxpayer In entitled to
ah additional exemption Of 1900 far
il person other Than husband ar wife.
upOy[tirt hlitt GounuI.ut ua..ns,