Every evening, Wilmington daily commercial., 1921-12-06
GRAHAM EXPLAINS
TAXATION CHANGES
Outlines New Features Embod-
led In Din Affecting Many
OelaWaroans.

IN svursing the changes Effected
~ lVdvral taNation by virtue of tho
rassase ~ the Revenue act OF 1891.
'ollec,ur ~ Internal Revenue II. r.
Graham outlined the new features
which the hin embodied regarding all
scrms "f tn>. The changes are of
widespread interest. Affecting as they
n, "a great number OF Dclawarcars.
The ,ollc,tor pointed out that any
mlnu,rly detailed account OF the re-
Visions could not be given until many
Treasury decisions had been rendered
establishing the status of par,icu-
inr question. The statements OF the
revenue collector showed that the
sainc principle OF taxation had boon
sdher,d 10 in tho 1891 act as In the
Revenue net of 1918.
The now income tax law win tend
ir d'crcas, tho taxes on individuals
WI. have q married on head OF tam-
lN'aiatuc.' The exemptions for this
lass vi taxpayers have been lncrcas-
"a from $1,000 plus 5000 for each de-
pond,nt. To- $1,000. plus 500 for each
dependent. This section is TO become
elective January I, las. operating
fctloertiNoly against ie2i. The re-
uultcmrnin FOR illlne wcrc not changed
under The new act This fact. Collector
tahnm emphasized, H. important 20
note siurc ivis St,ll necessary for in
dlNlduAls With married or head of
Wiully status 60 mako n return when
She lncunio ~ $4,000. Although no tax
may hc due, penalty must be as
a,tifd unless the return ls made.
nf aH great interest 10 many tax
Mayors 40 the increase IN the cxemp-
uuns iH the provision embodied in
paragraph iht thl. which viii permit
the distribution uf a loss over period
ui AeniH M Vase the net Ices is in cS-
cess ~ The net Income, Tor example.
"a was pointed out, ne; lose OF sib.-
600 sustained in 1890. when the net
lncomc to,allcd only $4,000. could be
divided 10 take up $4,000 of the loss
and cnrry forward the remaining s6.-
ouo 10 charpc on In tho next succoed-
ihs year Tho fairness and Justice oi
ihlf provision was commented by the
collector who called attention 20 the
tarahilily OF thus cduailiging profits
over mere than one year.
Nv Graham pointed out as of sig
hiilrancc to The iargcr taxpayers. the
fh't that the revised surtax rates d.
lot take effect during the coming IN.
iug period. but apply on incomes re.
t'i,cd during the next year. tho cal.
tndar YEAR. 1899. This feature OF ,h,
law whH little noticed until after IN,
MASSAGE uf the act Witch ~ cutitio,
Nn act 90 reduce and caualize tax
ton, 80 provide revenue and Cor othel
purposes"
u Was also pointed ont that man,
'loNsrs' sustained on stock marke
transactions would be- sgbvcrtcd by
nsw provision which was writ.
iyn into the law 20 prevent recurrence,
vf 1870 diillcullics when stock was
fpld nnd loss charged cn whcr
Transaction was OF a nominal rather
ihHn an actual loss. sustained by In,
whole double turnover of tho stock
With scarcely a ioss OF ownership
thir method OF sustaining w.s prac.
Herd hN sale and immediate no
nuiohsey Vt the stock al the reduced
nrurc. However" tho collector stated
"a provision ~ follows contravvnos
repetition cf this practice. In thi.
regard the act rcnds "No deduction
thsil be allowed under this paragraph
iuf any loss claimed g have be .