The Daytona daily news. [volume] (Daytona, Fla.) 1903-1926, 1922-01-11
BY r. A. coNkEY.

BY r. A. cONkEY.
Question 19-What amount of Lib /
ertv bonds can be held free from sur 1
tax?
Answer 1-Five thousand dollars
] of principal of bonds Of the second.
third and fourth Liberty loans and
all certificates of indebtedness and
war savings certificates.
i ~ Thirty thousand dollars of first
81, per cent bonds converted at time
OF issue Of the fourth Liberty loan
t3y-One hundred and twenty five
thousand dollars OF 4 per cent and "A
per cent Liberty bonds
The first " per cent and Victory
81, per cent bonds are exempt from
all normal End sur-tax. There is no
exemption from sux-tax in case OF
the Victory AZ per cent bonds.
c. 2n--Are dividends from domestic
corporations subject to both normal
AMI sur-tax?
A=No they are only subject to sur
tax. as the corporation paying the div
idend pays normal tax On its earn
ings which are later distributed as
dividends.
g 21-When can one claim exemp
ton as head Of family?
Aft you actually support and
maintain in one household one or more
, persons who are closely connected
] with You by blood relation. marriage
or aioption
@ % What date governs the per
sonal exemption
+ A Your marital status on the last
| day Of the year. or the taxable pc
Rod. governs the exemption.
c @. 23Are gains from gambling
taxable2
A.-Ys. all gambling gains and il
legal profits made in violation OF
criminal law or public regulations are
taxable. Losses from such sources
are not allowable deductions.
q. "a Does a taxpayer have to re
port 10 the government amounts OF
income paid to individuals
A Yes. if You pay to any person
during the year salary. rent. interest
commission or other income amount
ing to 81 900 or more you are required
: ~ file return Of information SHOW
: ing the amount and the name ana al
a dress Of the person to whom paid
il Proper forms for this return can bf
! secured from the collector for tolii
) district
n g % What rate If depreciation car
r be claimed on buildings
! 4 The rate Of depreciation now
i generally recognized by the govern
i ment IS per cent on brick buildings
/ and ; per cent on frame buildings
This is an annual allowance nas.ss
!, on he cost Of the hulsling only
!. This deduction can only he clAimet
j, IS not allowed on residence in which
the taxpayer lives IT is allowable
however on residence which he rent
), to another person.
q IS John Smith conducts 4 bard
s. ware store. On Dec 81. 1929 his III
: ventory was $1,000 During The yea
- he purchased s95.oeo worth Of good
:. ana his sales for the year were SO coo
= On Dec. II, 1921, his inventory wa
= s1T.oaa. How do these items enfe,
into Smith's income tax feturne
! A-The inventory at the beginnns
! Of the Year. $4,000. is added to th4
i purchase. $4,000 making s59.aoo
from which the inventory At the END o
= the Year, $1,000. is deducted leag ia.
: $4,000. which represents tbs cost .
goods sold This. deducted from tn,
i the gross profit from the business
j FL addition he can deduct his genera
a expenses. losses. depreciation etc Il
determine his net income
K @ = An individual owns az apart
& nent house and lives in one ~ IL,
I. apartments with his family The "a
tire building IS heated hY one Ii n4es
and owner furnishes heat. light water
and Jantor for the entire bioek liaN
should the apartment figage in ths
owners return2
A-Tbe owner must determjae naN
ntach Of the cost Of heating. Hght5W4
ese.. i attributable 81 bis own apart
alent. and the balance pf s3Fh cost.
/, may be deducted from gross income
an expense Depreciation shoatt
he apportianed in the same manner
Tho rental valAc Of his own apartment
need not hs Included IN efoss income
Z but the entire amount of rent received
= from the other apartments must h.
n returned
g 3 IN attorney Supporting
family owns an automobile used eati
for business ana pleasure He egu.
8 nleNS an assistant An stenagra plel
IN his Office. lie paws elab dues sub
setaes to legal publications aud books
and donates 10 charitable organize
= ipRs. How should these items b
Treated in his retufny
y. The part Of The automobile ex
pense anportioned ia the fj.Ha II +.
q used Tor business IS an allowable TX
+, pense The salaries ii she assistant
u and snosrapher arc 5asinass *
sff ..tl -5|f =