The Washington herald., 1921-03-06
TAx:DEDUcrlOlE {:
UNDER REVENUE
ACT EXPLAINED
Nunsereus Inquiries Re
ceived BY Collectors. Rec
ords Must Be Shown.

In making out my income tar
return Tor the year. 1890. what de-
daetioes Am I allowed pndsr ths
head ~ taxesT Numerous inauir-
ies Of fi1is sort have reached eoiiec-
tors q Internal revenue.
Thesrevenue act Of 1918 provides
for the deductions Of taxes on real
estate and personal property. but
expressly excludes deductions Of In
come. MAR profits and excess profits
taxes and. taxes assessed against To-
cal benehts Of q kind tending to in
ereasesthe value Of the property ns-
sessed. Various items of taxes
ievisd= " the revsnue act OF 1913
such as taxes on admissions and
dues. stfansportation. soft drinks.
etc. ate allowable deductions Tax
payers claiming such deductions.
however. must keep some record Of
such taxes paid; . mere estimate
will notbe Sufficient.
Another deductible item is the
tax % certain businesses. such as
those assessed upon brokers, ship
bFokers. eustomhouse brokers. pro-
prietofs of amusements and concert
halls, cIrcuses and other public ex-
hibitiens. bowling alleys, billiard
-ooms,ahd shooting galleries. riding
acade D tes. passenger automobiles
for hire, brewers. distiiiers and
liquorrdealers. manufacturers OF to-
bacco And manufacturers Of tobacco.
.eigarsf and eigarets.
ssne Articles speeihed.
Tnesexeise tax levied upon manu.
faeturers, producers and importers
OF ceftain articles Is deductible.
NSome 6t the articles taxed are au-
tomobilss and accessories, pianos.
phonogtaphs and records. chewing
gum sad candy. sporting goods.
camer1s. Aims and plates, portable
eiectrfe fans, thermos bottles. au-
tomato. slot devices Weighing and
veudipg machines. articles made of
fur. MEASURE boats, canoes. yachts
and motor boats. and toilet soap and
toilet : powdsrs- These taxes are
paid gysthe manufacturer. producer
or inborter and are not deductibie
by the Individual purchaser.
Thessales tax on jswelry and on
works Of art is levied against the
dealers and he alone Is entitled TO
the beffeft of the deduction
The tollowing are among the taxes
deductible by the purchaser: The
tax on riuxuries," men and women's
wearing apparel. trunks. valisss.
fans. phbrsllas. etc, and taxes on
amouttk paid for perfumes and toi-
let prfparations, and the stamp tar
on patent medicines.
Autsmobile license fees are ordi-
ha-ily taxes. and as such may be
deductea from gross income.
Income tax imposed upon the In
come OF individuals by States may
be dedacted by sueh = person on
his Federal income tar return.
Records Necessary.
Import or tariff duties are de-
ductibie as taxes provided they are
not added to or made part Of the
expenses OF the business OF the
cost of the articles Of merchandIse
with ekpect TO which they are paId.
On certain classes of merchandise
the excise tax Is levied against the
manufacturer, producer and i'm
portes ION other classes of mer-
chapdtse II Is levied against the
vendor who sells for consumption
or uSes and on still others It 10
levied against the producer. In de-
termining which is entitled to the
deduction for taxes so levied, ana
which, haye been paid on the pur-
chase Or sale of merchandise, the
taxpayer must be guided in an
} by the general ruling that ths
person against whom the tax is
ievied s entitled to the benefit of
the DEDUCTION therefor.