New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-16

scssment shaal be entertained by any
court Of the United States"
After an assessment Is made, and
before final payment Of the taxes due,
interest on. the amount would be com
puted at the rate Of per cent a year,
instead OF per cent a month, as at
present.
| Among amendments to income tax
provisions is one permitting after De-
cember 81, 1920, deduction of a net
loss from net income of the Succeeding
taxable year. If the net loss is in ex-
cess of the net income for the next
taxable year, the bill provides that the
amount of such excess shall be allowed
has deduction in computing net in
come for the taxable year following.
Another Legislative feature amends
the Liberty loan acts to make clearer
exemptions from income tax of the in
terest on Liberty bonds. but it was
stated officially that no substantial
changes in the amounts of such interest
to be exempted was made.
| With view to simplifying present
tax return forms, the bill proposes ere.
alton of 'tax simplification board" to
be composed of three members repre-
senting the public, to be appointed by
the President, and three members. Of
icers of the Internal Revenue Bureau,
to be appointed by the Secretary Of tho
Treasury, the public representatives to
serve without pay. The board would
report progress to Congress each year
and would cease to exist after Decem-
Der 81, 1924.
Under the present law losses must be
taken for the year on which a return
is made.
Exempts Stock Dividends
Another amendment, drawn to meet
specifically for the exemption of stock
dividends from taxation, but says "a
distribution made by a corporation to
its shareholders or members shall be
included in the gross income of the
distributes, as of the date when the
cash or other property is unqualifedly
made subject to their demands"
Other changes set forth that the
basis for determining the gain derived
or loss sustained from sale or other
disposition of property of any kind
acquired after February %, 1913, shall
be the cost of such property except
that:
In the case of property acquired by
gift after December 81, 1920, the basis
shall be the same as that which it
would have been in the hands of the
donor or the last preceding owner by
whom it was not acquired by gift, and
IN case of such property acquired by
bequest, devise or inheritance, the
basis would be the fair market price
or value at the time of such acquisi-
ton.
IN the case of the sale or other dis
position Of property acquired before
March 1, 1913, the basis of ascertain
ing the gain derived or the loss sus-
tanned shall be the cost of the prop
erty or the inventory value, but, if the
fair market value as of March /. 1913.
Is IN excess of such basis the gain to
be the exces of the amount realized
over the fair market price or value. If
tne falr market price or value as Of
March |. 1913, is lower than such basis
the deductible loss is the excess Of
the fair market price or value as of
March l, 1913, over the amount real
lied
Exchange of Property
In the case of the exchange of prop
erty tne Dlll provides that no gain or
loss shall be recognized unless the
property received IN exchange has \
readily marketable value, and even
then exceptions are made in several
specific cases. - o.
10 meet the terms of another deci-
sion OF the Supreme Court, the bill re-
dehnes capital gain and capital loss
declaring the former to mean taxable
gam from the sale or exchange of
capital assets consummated after De-
cenber 81, 1920" and capital loss to
mean "deductible loss resulting from
the sale OR exchange of capital assets
consummated after December, 81, 1920"
capital assets are declared to in
Guide property acquired and held by
the taxpayer for profit or investment
whether or not connected with his
trade or business), but does not in
clude property held for the personal
use or consumption of the taxpayer
or his family, or stock in trade of the
taxpayer or other property of kind
which would be included in the in
Ventory II on hand at the close of the
taxable year." Wv
In the case of any taxpayer other
than corporation whose ordinary net
income and capital net gain together
exceed $4,000, the taxes paid would
include the regular income and surtax
rates on the ordinary net income plus
10 per cent of the capital net gain
or less 10 per cent of the CAPITAL NET
loss, as the case might be.
Half Billion Notes Authorized
Among legislative features in the bill
is one giving the Secretary of the
Treasury authority to issue $500 900 900
additional short-dated securities. max
ing the total authorization for such
securities $7,500,000,00O Secretary
Mellon wrote the Ways and Means Com.
mlttee last week that this additional
authority was necessary in order to
carry out the tax revision PROGRAM
agreed upon at the White House con
ference last Tuesday and provide fur
Their for the financing of the short
dated debt"