The Glasgow courier. [volume] (Glasgow, Mont.) 1913-current, 1922-01-13

crate TO render the transaction sub
ztantizlEy equivalent 20 the dizsrlou-
ION Of a taxable dividend, In which
ease i. will be treated as such The
lew Law further provides that a taxa
bic distribution made By q corporation
10 It's shareholders shall be included
in the gross income Of the latter as Of
.he date when the cash or other prop
erty is unqualified made subject to
.heir demands.
Basis for Determining Gain or Loss.
The basis prescribed for determin-
ing gain or loss resulting from the
sale or disposition or securities and
other property in general is the cost
Of such property; but in the a S Of
property acquired before March /,
1913, the basis is the cost Of the fair
market value as of March /, 1913,
whichever is higher. in determining
gains, and whichever is lower, in de-
termining losses. If the amount real
lied is more than the cost but not
more than such fair market value, or
less than cost not less than such fair
market value, no gain or loss is rec
ognized. Where there is an exchange
Of property for property no gain or
loss shall be recognized unless the
property received in exchange has a
readily realizable market value. On
certain classes Of exchanges, specified
in the law, no gain or loss ven If the
property received in exchange has a
readily realizable market value.
Gold Mining Companies
Under section 304 (cJ Of the new
law, corporations engaged in the min
ing of gold are exempted from any
tax imposed by title II Of the revenue
act Of 1917" on income from gold, and
therefore are entitled 70 abatement of
1917 excess profits < on such in
come which have been assessed but
remain unpaid, ard % refund of such
taxes if paid. The new regulations
soon to be promulgated undoubtedly
will prescribe rules under which this
retroactive provision will be applied;
but it is assumed thai the Commission
er of Internal Revenue, under new
rules Of procedure, will authorize a.
batements and settle refunds without
waiting for the companies entitled
thereto to file claims.
Procedure
Important changes in income tax
procedure, which will result in prompt
adjustment of claims for refund and
Abatement, are expected in the near
future. The new act provides that un-
der certain conditions interest shall
be paid upon claims for refund from
the date Of the payment Of the tax
to the date of the allowance of the
claim, and efforts are now being made
by the Bureau of Internal Revenue to
adjust within six months, all claims
now pending and thereafter to keep
the work current. The Bureau an
nounced during the month Of Deem
Der that taxpayers will no longer be
advised Of their privilege of filing a
, claim for the refund Of taxes which
have been paid in excess of amounts
legally due, but instead will receive a
CeILlIiCdCc VI anu d
check in correction Of the error; or if
an assessment is outstanding against
the taxpayer for insome or excess
profits tax, the overpayment will be
applied as a credit against the assess
ment, and the balance Immediately re-
funded. This is a radical departure
from former methods of procedure,
and should be of distinct financial adj
vantage to both the taxpayer and the
Government. Taxpayers may continue
to file claims for abatement and re-
fund, but it is expected that the num-
Der Of such claims will be greatly re-
duced under the new regulations. The
Tax Simplification Board, created I'M
der the new act, is now engaged in re-
vising forms and regulations needed
for the administration of the law, and
has held a number of conferences with
representatives of various industries
for the purpose of considering sug-
gestions and recommendations made
On behalf of such industries. It is
not probable that the new regulations
will be ready for distribution before
February I, but the writer shall be
pleased to assist as much as possible
anyone interested in the practical in
depreciation of the Revenue Act of
! 1921.