Yerington times. [volume] (Yerington, Nev.) 1907-1932, 1922-03-01
INCOME TAX NOTES

In. filing their income tax returns for
the year 1921, taxpayers must remem-
T Der that taxable income is not neces-
sarily cash. Where services are paid
for with something other than money
the fair market value of the thing taken
i'll payment is the amount to be includ-
ed i'll income For example. the value
OF merchandise received by clerk OF
grocery store as part payment for his
services must be reported as income.
Compensation paid an employee of a
corporation i'll shares of stock is to be
treated as if the corporation sold the
stock at its market value and paid
the employee in cash.
Promissory notes received in pay
ment for services and not merely as Sc
curities for such payment constitute
income to the amount of their
fair market value Living quarters
and meals furnished as compensation
for services are to be reported as i'll
come. A hotel clerk given a room
and. his meals as part payment for his
Services isrequired to report as income
the amount he would have to pay for
board elsewhere. --s
il The value Of quarters. light and
| heat furnished army officers, whether
stationed at any army post or paid
from funds allowed for such purposes
when officers are stationed elsewhere
is taxable income in an amount equal
to the cost to the government of furn-
ishing such quarters, etc. Where All
officer or enlisted man is allowed GER
tain compensation III lieu Of quarters,
|. light and heat the entire amount re-
ceved for such purposes for the tax
able year must be included i'll gross
income.
Where living. quarters, food. cloth
ing. etc. are provided for an employed
| solely for the convenience of an en-
| ploycr, the value thereof need not be
T
included in the income Of the employee
/ For example. where because OF the To-
cation and nature OF the work, it is
necessary that employees engaged in
| fishing and canning be furnished board
and lodging by the employer, the value
of such board and lodging may be
considered as contributed Tor the con-
venence OF the employer. Board
| and lodging tfr,'iSr9d ssaineu in addi-
ton to tho;r .compcr al on is held to
| be furnished for tic convenience o.
the employer, and the value thereof
need rot be reported in the returns
! of such employees Uniforms. "a
tons and medical or hospital service
afforded enlisted men or seanlcn need
not be reported as income. These
are furnished by the Government for
its own purposes, and are not com.
pensation for services.
The value of board and lodging fur
nished employees of hospitals as par,
compensation for services is to be re.
ported as income. If, however, ar
employee of hospital is subject to
immediate service on demand at any
time during the "a hours of the day
and on that account is obliged to &C.
cept quarters and meals at the hospital
the value of such need not be reported
as income. If the employee is or
duty a certain number of hours, ane
could, if desired, obtain meals ane
lodgings elsewhere than at the hospit
al, and at the same tiine> perform tn.
| duties required of him, the ratabl,
value of the board and lodging furnish
ed him is considered compensation.
The value Of quarters. subsistence
laundry heat and light furnished off
GERS and employees OF the Publ,
Health Service constitutes income ane
must be Included IN their returns TO
the year
TO avoid penalty. returns must b'
flied ON or before March IS.