Evening star., 1922-02-19

the family by dividing the family's
net income into a number of parts.
tbl By giving to a member of the
| family property which had been ac-
and which at the time of the making
OF the Gift showed a great apprecia-
ton In value.
II the donee. the recipient of the
gift. Immediately thereafter disposed
| not be subject to any tax, because
| under the earlier revenue acts the
| recipient would not have any taxable
income resulting from the sale OF the
gift. unless the proceeds of such sale
were greater than the value OF the
by the donee. Congress knew. Of
course, how the legislature of the
state of New York had endeavored to
deal with the problem. The reader
may know that the New York state
income tax law endeavored to spell
! the assumption that the difference be-
tween the cost. to the giver for its
January l. 1919, value If acquired
prior thereto and the greater value OF
I the gift at the time OF it's giving was
| a gain to the donor.
In two test cases decided by the
appellate division Of the supreme
court, May 4, 1921 (People ex rel. NJ.
Orne Wilson vs.. Wendell, and People
ex rel. Robert S. Brewster VS.. Wen
delD, the right of the state of New
York to tax donors on the aPprecia-
tion OF value between January 1.
1919, or cost, and the time when
given away. was denied. The tax de-
partment of the state of New York
decided not to appeal these decisions.
Congress decided on quite a differ.
ent method of taxing gifts. What
Congress diu will be reserved for dis
cussion in tomorrow's issue.
:. QUESTIONS AND ANSWERS.
G. (77)-Referring to your answer
to Q. 20. which appeared in Article
g. t26)-1n; 1921 had an income
Of $2.e17.s2. l lost about $500 in
deal. am married, but have no chill
dren. How do 1 stand in regard to
income taX?"
Should. it not be: -.-.-
Income come::'..::.:...........sss'SSdaoo'ss22 Sao 81
Amount to be taxed. 1892
, besides tn emoney lost on a deal, If
entered into for profit. 1t would be
nothing on which tax should be COM
A. You are correct; $2,5oo is the
amount of exemption. I did not con-
slider the deal" as a transaction en-
tered into for profit; if my assump-
ton was wrong. your answer is cor
rect.
q. Gsl-Up to the middle of oc-
stenosrapher IN New York state.
Then was married and moved to
Washington. whore We expect to
ca Will you please advise me if it
will be necessary for me to make an
income-tax return and pay income
taxes to the !state of New York. as
well az pay federal income taxes?
duct from my 1891 federal income tax
return the amount Of taxes which l
paid to New York state in March,
1921, covering my 1920 income?
A. (a) Your federal tax liability
does not depend upon your place Of
residence.
6. ,(7sI-ta) During 1921 I earned
about $500. Am living with a sis
ter and am to all intents and pur-
poses the head Of the family. May
! deduct $4,000 from D federal and
rs During same period my sister
earned about $3.50. May she deduct
$1,000 from it ~ federal and (2)
state returnP
(o) II both cannot mako the above
0SQuCI1VuS, uIdy / AUo 4lCI AAS0Alo ~
mine. making but ono return and de-
Sd) During September, 1890, I loan
sd 800 cash, which has never been
returned and probably will never be
returned. May I deduct this as a
loss ON az federal and (2) state re-
turn? II so. should show name and
address Of borrower?
(a) No: only $1,000.
(o) Yes.
.,o) No.
id) Yes, if ascertained to be worth
less in 1871
q. (so)-I married during the lat
ter part Of September. In this case
am entitled to a married or single
mans exemption?
A. You are entitled to the exemp-
ton allowed married man.
@. {8l)-Kindiy inform me if you
have complete set in pamphlet form
Of the series Of explanations of the
federal, income tax law as appearing
in this paper. Also price.
A. Apply to the circulation man
aeer. know Of no other way to
obtain a complete set Of these articles.