New-York tribune., 1920-02-20

&c. v: made ny des0htsr q birthday
Must she. in addition to tho income on thess
bonds and any other income which she nsdv
as inco,ne for the rear7
A.---Under the Federal law neither the
donor nor the recipient of gift becomes
subject to income tax on account OF the
transfer.
Under the State law, however, the donor
is subject to tax on the difference. IL any.
between the value Of the property disposed
Of and Its cost or fair market value IA Of
Of ssE 5oa IN n iss $751; 5sns fs ss@ tss 'stsy ssry
part Of the vear loaned $3.50 to d friend,
,vho promised to pav the tollowinq month.
oeen "mable to do so. AZ the prescnt time
Also haze no proof Of this loan. Personally
have charged it up to profit and loss.
Am I alloWed to deduct this money as a
iosa, When / hdvo no proof of the loan?
Alt you have definitely ascertained that
the amount which you have loaned is un-
collectible, you may deduct the same from
your gross income for the year Of determina-
ton.
Q.-J. S., + umderstand that BY recent
ruling railroad Employed (,uorhln0 for a
ruaroad controlled BY the United States Rail
e.n,nent sn,ploysss. and arc exempt from
paying income tan. Is this 80?
BIT 80, does It apply to Fsderal Income
tdr or state ftconte tar?
C--Is money received bu National
Guordsmar as pay for drilling each geek to
be considered as income?
A.--The salary Of railroad employee
when paid by the United States government
from Federal tax.
The same rule applies with reference to
amounts received as pay for drilling by a
Nationa! Guardsman. if such amount is paid
by the Federal government.
Q.-A. E. j.: Wal you kindly dduise as to
hofD much man man deduct tchose tUife
dfed Novem1er 9, 1919?
A.-FOr the purpose of the Federal re-
turn, you are entitled to personal exemp-
ton determined by your marital status on
December 81, 1918; hence. you are entitled
only to personal exemption Of $1,000
Fer the purpose Of the state income tax
however, you are entitled to the highest per-
sonal exemption determined by your marital
status on any day of the year.
Q.--W. L. NJ: haze made az q personal
loan, secured bD bond and fnortUa0e, and Aa
an act Of friendship. the sun, of $4,000.
hare not received any interest payment for
taco gears and can sec prospect of getting
It, and should not care to Joreclose. Mast
though not paid?
Aft you report your income on the
basis Of cash receipts and disbursements las
l presume you do), you are not required to
include IN your gross income any of the in
tercst to which you refer until it is actually
received credited to your account, and
thereby made available to you.
If you report your income on an accrual
basis, you are subject to tax on all interest
accrued during the taxable year 1919.
Oh. c. K: am a single lady and oaon
nine lots, three in NeV York, sir in Ne,c
Jersey. Is the sam pap on these lots as
tares subject to exemption from both Fed
eral and state tar?
Aft you are a resident of the State of
New York all the taxes which you have
PAID during 1919. unless they are in the
nature OF assessments against local benefits
which tend to increase the value Of the prop
erty. are allowable deductions for purposes
OF both the Federal and state tax.
"a: X. Q. TYr: A man dies in October,
sole bcnc cfciayy.
On December 81. 1919, SHE has not net
been discharged as erecutrir.
HoW mast she, as erecutrir. make the tar
returns to the Federal government mn to
December 81. 1919?
Mast she report erecutrir the income
If the estate from the date of her husbands
has not been discharged as erecutrir at De-
cember 81. 1919? II so, aUhat form is to be
used?
II she need not report the income iron,
date of the decth to December 81, 1919. is
che to include this income in the report OF
her personal income for the pcar 1918?
T. Hon. soon after the erecutrir recetues her
discharge must she file final return as fda;-
cidry?
A. The executrix is required to file a re-
turn for the decedcnt on Form 1910 or
lV4oA. as the case may be- covering the
period from the beginning of the taxable
year to the date of the decedent's death, and
pay the tax due thereon, if the decedent was
living with his wife at the time of his death
and his income for such period euualed or
exceeded So 900. For the purpose of this re-
turn personal exemption of 50. 900 should
be taken If there were no dependents other
than the wife.
In addition to this return. q return on
Form lO4O or 1O40A must be filed covering