New-York tribune., 1920-02-16

same and need not be included IN the 9ross
income Of the recipient
o.-W. B. B.: have retaa store. nv
taking of my erpenses / made net profit
$l.7OO. (Also my inventory shotcs the
scme) Am married and have t.Uo Children
l. DO haze to file a return?. 2. Ho.o
much "a my exemption?
A.-Assumina that your net income from
ali sources Is s1.7oO. you will not be required
70 hle a return. married IAN living with
his wife Ia required to Ale return only II
ms net income from ali sources Is $4,000 or
over.
You are allowed a personal exemption OF
$4,000 and 5000 additional exemption for
each dependent person, other than your
wife: under eighteen years Of age. or in
capable OF self-support because mentally or
support from you.
On: c. b.: an, single. no dependents: !:
income @ sl.20o. derived from solary and rent.
interest on mortgooe so reduces It that ]
What is the Federal tar io,of have been
unable to obtain blanks. Must / file re-
port? And arc exemptions the sane7
Aft your net income a. a single person
is less than $1,000 for the taxable year you
ore not subject to tax and need not file 4
return
Persons required TO fle a return must do
so on or before March Is. Returns may be
procured from the office Of any collector of
internal revenue. Exemptions are the same
as last year.
"a. H.. s.: Kindly inform mo Oh. the
follo'cin0 points:
II own stocl of United States Stee, Cor
rorat'on. or bethlehem (both comno1,), or
Ierds Company, all Of 1chich are tdrcd eat
the source" am subject to the "nor7rop'
tar on dtvsdenda received from these corpora
tions?
ara II not 30 taradle, can claim re-
fund of such normal tar paid in error IN
my return for 1887
A.-The dividends referred to are not sub
,ect to the normal tax. but only to the sur
tax. If you erroneously included them in
your income subject to normal tax for 1918
and paid normal tax on such dividends.
you are entitled to file claim for refund
Q-E. s. B.. Please answer in The Ne.o
19l6, at $74.25 a share, and sold in May.
1919. at S52 share. Market value of stock,
January |, 1919. uas $46.75 In Federal tar
report is It not correct to deduct the loss M Of
$25.2o share minus the e1cess of dividends
orer interest charges? Is it correct in state
a tas x,.t report to figure it as gain, gipino
less than selling price?
A--For purposes of the Federal tax you
show loss of $22.25 on each share of stock
sold. Interest paid for the purpose of car.
rylng such stock is an allowable deduction
L. from. gross income subject both to normal
tax and surtax, whereas dividends should be
included in the computation of tax for pur-
poses of surtax only
Under the state law. however, the amount
OF profit or loss arising from sale of stock
ACQUIRED prior to January l, 1919, is meas
ured by the difference between the selling
price and the fair market value as of that
date.
Q:LF. x: an, married man ard
$500 ,rorking home on artificial flo,rers fov
some tr7,ts of New York. Am I supposed
10 Fll ont return and pay tao on 5000?
,AA.-lnasmuch as the net income of your
sen ana wife for the taxable year is ap-
porently in excess Of $4,000. you are re-
CURED 10 file a return en- Form l64OA and
pay tax on the amount by which your net
income exceeds your personal exemption.
an. Fl. j.: The latter part of Jnnuary
1919, / lost my actte; ve had no ch1drse.
out / have continued to keep up mn home
5or my nother-in-laW. ,uho cares for same
she is some years beyond sirty, her relatives
are au dead, and she is dependent ON me-
l an, in q1londary as to ho,o the tar affects
me. and wonld thank you if you ,oould oivt
some information the matter through
Sinnh SInr eonnn aso t, is it nsesssey to f
~as about $4,000 believe.
=. A.-You are head of a family" within
she meaning of the law. and such entitled
60 personal exemption of $4,000 with an
additional exemption of 5000 for the support
Of your mother-in-sw. The balance of your
income, if any. is subject to tax. In any
event, you must file return since your net
taxable income is in excess of ST 900.
o.. F. r.: VIII you please a,,sacer the
tollowtn9 questions state and Federal in
ta1:
A. Is CirI War pension taxable?
b. My mother receives an annual income
from her fathers estate, is this torable?
A Civil War pension is subject to
Federal income tax, but is exempt frof1,
state income tax. The income which your
mother receives from her fathers estate is
taxable unless it consists of interest on
municipal bonds other exempt income.