New-York tribune., 1920-02-23

A.--No.
Federal income taa: In family Of three.
mother and ttUo daughters. mother the home
keeper. daughters WaGe ear',rs, has one
daughter the right to claim exemption 1000
A.-No unless she is the chief support of
the mother. The Treasury Department has
ruled that divided responsibility preclutes
the taking of additional exemption as head
hold.
Q.-"In Doubt: l am, IN doubt as to
mhcther or not hare to file an income tar
return, my case being the touowino:
nv sister. ,rho earns 1892 Il year. and
OF our household. hare brother, but he
's IN France and does not contribute toward
tho home. Nv mother il at home and does
rot rorh only in the home.
A.-Ihe Treasury Department has recently
ruled that a taxpayer is entitled to n per-
sona exemption of $1,000 as the head of a.
family only if he is the sole support of an
individual whom he supports in a household
which he maintains.
Since you both contribute to the support
OF your mother. you do not appear TO be
the head of Il family" within the meaning
OF the law. and consequently are entitled
only to personal exemption of $1,000 each.
In any event. you should file a return, since
your net income is IN excess of $1,000
Or. ". B.: a British subject un-
married, and hare been living continuously
IN the Unlted States for eight gears. | an
taon this summer, aud shall rctu,n TO thus
country IN the jail. NJ enplouer aduises
me that taking this cdcation ,v,u make me
NONRESIDENT alien at a tao rate OF S per
from thus that l am to pay per cent on
every dollar l earned (db0ut 81 2OO)
do not hnow get mhether | shall be obic
to 90.
SO suppose that Is mn legal residences Has
THAI anything to do ,oith uherc the tar has
10 be paid? Netv York uould be the
h0nd,est for me.
Ali you expect to return to the United
States in a short time the fact that you are
spending your vacation in England will not
cnange your status to that of a nom res ident
alien. 1t is possible. however, that before
you san the treasury Department may re-
cure you to pay Il normal income tax at
the rate OF per cent of the full amount
OF your income (without benefit OF any per-
s@nal eXeinpton), subject to readju tment
upon your return to this country.
You may file your Federal return in the
district IN which IS located either your resi-
dence or principal place Of business.
Q.-inqniror: Q) Ny gross Federal income
iuS amounts roHghtD to $3.50. Mdp | deduct
"''NeN't'
n'y taLes on club oues clothing and theater
tscEets?
(2) paid sos for an orercoat and sos
tor sutt IN September. The tailor said
nothtn0 about tdG. / assume 1t 1oas copeYed
IN these amounts. Hoqr much ,couM such
tao be on eoch, and l entitled to deduct
Il from the $l35?
A.-l) No. You may however, deduct
from your gross income for the purpose of
ascertalnlng your net income the amount of
any so-caiied luxury taxes paid by you on
club dues. articles OF clothing and theater
tickets.
CD There is no tax on overcoats and suits
Q.-R ". K: and B are partners
Dn}hg 1918 the partnership buys $4,000
Chaced States ccrtsRcdtes OF indebtedness IN
ne spring and later $4,000 more When
these certificates are sold AS profit is $392. IS
and BIS $lS6.44. Il makes has personal re-
port on Form 1910. Should he shoau this
amount on page l OF the return umder No.
- on tlne te) column 4, and ii so, what
amount Of maximum obligation should be
shown IN column 3, ii being uaderstood that
d share OF these certificates is one-third OF
the total. The $20, 900 certificates tUcre held
i9o ouys and the $4,000 certificates tpere
Aetd fWentD-ttco days.
A.-B should show on line (e), column s.
Of block l3. his proportionate share of the
$4,000 invested IN United States certificates
Of Indebtedness, and on line (e), column 4