New-York tribune., 1920-02-09

Of, r; X: WIN YOU kindly advi'e y
dactio,e IN filling out the Federal tdn return
OF On indtvidudl tchOse income Is derived
from, salary and dipidends:
Local (hone) real estate tao, local (peT-
sonal property tar. Ncw York State fnosi-
resiaem3 income taa. state automobile reg.s-
and ,par tar included IN price OF automobile.
Also the fonowimo deductions: Church.
Masonic tcar and re''ef fund, Eks' Christmas
charity tnnd, loca! fto'onS .Uar, chest }und;
Hospital Fand, French Heroes Lafayette
Fund, Roosevet Memorial Fund and Boy
Scouts drive.
A,,,Your personal property tax is de- de-
extent that 1t does not represent assessments
made against local benefits.
Since the first tax under the New York
State personal income tax law will be paid
subsequent to january. 1920. such tax will
not be deductible until next year. Amounts
paid for automobile licenses are considered
taxes within the meaning of the Federal
law. war tax included In the price of an
automobile is not deductible by the pur-
chaser.
Under the Federal law. contributions made
within the taxable year to corporations.
,crganized and operated exclusively for re-
ligous. charitable. scientific or educational
purposes. or for the prevention Of cruelty
to children or animals land no part of the
net earnings of which inure to the benefit
OI any private SCOCknOlOer or lndlVidual), or
to the special fund created by the vocational
rehabilitation act. are allowable deductions
to an amount not in excess of Is per cent
OF the taxpayer 3 net income. as computed
without benefit of such deductions If the
organizations which you have named satisfy
the requirements of the law. the contribu-
tons made to them are deductible.
A taxpayer is required to state in hI
roration 10 which contributions were made
and the amount paid to each.
&C. II. L.: Please advise in the matter
OF paying a Federal income tar With thu
Jacts as follo.vs:
during the gear Of 1915. w During o. that 's time
! left my business in charge of Junior
brother and sister. my brother taking my
place at the head of the family
ceeds $4,000. Neither I. my brother nor ais
ter dreac aceckly salary so as to help
finance the business. II I deduct the amount
OF TIE salaries due. the profit is less than
SO, erhat form do use and Uhcre do l
obtain same?
A.-Unless you keep your books on an
accrual basis, salaries deductible only
count. and thereby made available to him.
If you are the sole owner of the business
to which you refer. or if your share of the
profits exceeds $4,000. if you were married
II
1913; or are in excess of $1,000 if unmar-
RED. or married and not living with your
wife on that date. you are required to file
q return. If your net income is more than
$1,000 you should file Form 1910, otherwise
l040-A.
The forms may be obtained from the COL
lector of internal revenue for your district.
o.. a. NJ: In making report for Fed
eral income tar of the sale Of property Ia
a,ssyeuino3 the form apparently calls for
apparently Increasing the profit on the sale,
schem. as a matter OF fact. such deprecia-
tion has been made good by &C nal repairs
since property Was purchased by me, mn
actual profit being decreased by the entent
Of the. cost OF these repairs instead of in
creased. DO not such expenditures for re-
pairs Offset the item, "depreciat;on subse-
quently attained"? Do theY not belong
under the stem OF "improcements"?
A:-For the purpose of determining profit
or loss from the sale of the property. il
the repairs which you have made are in
the nature of improvements or betterments
and offset depreciation, the cost thereof. az
shown in Block 3D." Column 6. of Form,
fair market value as of March /, 1919. if
acquired prior thereto. as shown in Block