Evening star., 1921-08-16

beverages in bottles for the pres
ent 10 per cent manufacturers TAX
clares that after determination and
assessment in any case where the tax
payer has. without protest. paid In Who'll.
or part any tax. and an agreement
payer and the commissioner with ap-
proval of the 6ecretary Of the Treas.
ury. the case shall not be reopened
and mo suit OF, action to change such
determination or assessment shall be
entertained by any court OF the oniteo
After an assessment is made and
before final payment OF the taxes due,
interest on the emount wouldSPe COM
puted at the rate of 6 per centsa year.
present.
Income Tax Amendments.
Among amendments to income tax
provisions is one permitting after De-
cember 81. 1920. deduction of net
loss from net income of the succeed
ing taxable year. If the net loss Is in
taxable year the bill provides that the
amount Of such excess shall be allow
ed as a deduction in computing net
income for thei taxable year follow
ing. Under the present law losses
must be taken for the year on which
q return Is made.
Another amendment. drawn to meet
a Supreme Court decision. provides
specifically for the exemption of stock
dividends from taxation. but says a
distribution made by corporation 70
its shareholders or members shall be
distributes as of the date when the
cash or other property is unqualinedly
made subject to their demands"
Other Changes.
Other changes set forth that the
basis for determining the gain derived
or loss sustained from a sale OF other
disposition Of property Of any kind
acquired after February %. 1918. 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 1t
would have been lin the hands OF the
donor or the last preceding owner ny
whom 1t was not acquired by gift, ana
in case of ch"property acquired py
beauest, 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 l.. 1918, the basis of ascertain
ing the gain derived or the loss sus-
tanned shall be the cost OF the prop.
the fair market value as of March l.
1918. is in excess Of such basis the
gain to be included in the gross in
come shall be the excess OF the
amount realized over the fair market
price or value sas Of March l. 1913. is
lower than such basis. the deductfble
loss is the excess of the fair market
price or value as of March l, 1913 over
the amount realized.
In Cnse Of Exchange.
In case of the Exchange Of property,
the bill provides that no gain or loss
shall be Recognized unless the
property received in exchange has a
readily marketable value, and even
then exceptions are made in several
specific cases. N,
To meet the terms of another deci-
sion of the Supreme Court the bill
redennes capital gain and capital loss.
declaring the former to mean taxable
gains from the; sale of exchange of
capital assets consummated after De-
cember 81. 1920 and capital loss to
mean .'deductfble' loss resulting from
the sale or exchange of capital assets
1920" o.
Capital assets. are declared to in
clude property acquired and held by
the taxpayer for profit or investment
whether or. not connected with his
trade Of busineSs). but does not in
use or consumption Of the taxpayer
or his family Or stock In trade of
the Taxpayer or other property of a
kind which ,wo4H be included in the
inventory II on hand at the close of
the Tn tdxap.e az ns.s sea t.x,.v.r ot,.r
than a corporation whose ordinary
net income and capital net gain to-
gether. exceed $4,000. the taxes paid
would include the regular income and
surtax: rates, on the ordinary net in.
come. plus Is per cent of the capital
net gain; or. less. Is per cent of the
capital net loss. as the case might be.
=. LeGislntfve Features.
Among legislative features in the
bill is one giving. the Secretary of the
Treasury auth ority to issue $500. 000,-
900 additional short-dated securities,
making the: total authorization for
such securities 1880, 100000. secre-
means committeeman week that this
additional authority was necessary
''in order tor carry out the tax revi-
sion program agreed upon at the
White House conference last Tuesday
and provide further for the financ-
ing of the hort-dated debt"
| Another Legislative feature amends
TIE liberty loan. acts to make clearer
exemptions from income tax of the
interest on libdrty bonds. but it was
! stated officially that no substantial
changes in the amounts of such in
, terest to be exempted were made.
With q view te simplifying present
i tax return. forms. the bill proposes
/ creation Of TAX simpiification
board" to be composed of three mem
| bers representing the public, to be
appointed by the President, and three
members, officers Of the Internal rev.
enue bureau. to be appointed by the
Secretary Of the, Treasury. the public