The Washington times., 1922-02-07
INCOME TAX
IN NUTSHELL
Furnished bp u. S. Internal

Rep6Hue bureau.
WHO? Single persons who. had
net income Of $1,000 or more.
Or gross income Of 5000 or
more. Married couples who had
net income Of Sc 900 or moro, or
gross income Of 5000 or more.
WHEN? March Is, 1872, Is final
date for filing returns and max
ing first payments.
WHEREf Collector Of Internal
revenue for the district in which
the person lives, or HAS his pxin-
clpal place Of business.
Howl Four per cent normal tax
on taxable income up to "a, 900 In
excess Of exemption. Eight per ,
cent normal taI on balance Of
taxable income. Surtax from ]
per cent 10 IS per cent on net
Incomes over 5000 for the year
1891. - .
INCOME TAX FACTS.
More liberal allowance for deduc-
tons for contributions is made by the
revenue act of 1921 than was provided
by. the revenue act of 1918. A new
provision rs that in computing net
income a taxpayer may deduct from
gross income contributions or gifts
made during the taxable year for ex.
clusively public purposes to the
United States, any State or terri
tory. any political subdivision thereof
(city, county, town or hamleO or the
District of Columbia. Other allowable
contributions are those made to any
corporation or community chest, fund
or foundation operated and organized
exclusively for religious. charitable,
scientific, literary or educational pur-
poses, including posts Of the Ameri' =
can Legion, or women's auxiiaries OF
such post, or for the prevention OF
cruelty to children or, animals. no
part of which inures to the benefit of
any private stockholder or individual;
also to the special fund for vocational
Such contributions are
allowed to an extent not In excess OF
Is per cent OF the taxpayers net In.
come, computed without the benefit
Of this deduction.
Gifts Not Deductible.
Gifts made directly to an individ-
ual are not deductible, but IL made
to an organization Of the kind de-
scribed may be deducted even
though the organization distributed
it's funds among individual benefi.
Charles.
Deductions for contributions are
not allowed corporations or partner
ships. The members Of a partner
ship or personal service corpora
ton may take credit in their ind.
vidual returns for their proportion
of such gifts, provided the pro-rata
part, when added to the individual
contributions, does not exceed 10
per cent of the taxpayers net in
come.
However, donations made by cor.
porations to charitable institutions,
hospitals or educational institutions.
which legitimately represent. con-
sideration for a benefit flowing di-
rectly to the corporation as an Incl
dent of its business are allowable
deductions as ordinary and neces-
sary expenses.
For example, corporation NAV
deduct donations made directly 10
a hospital conducted directly or in
directly for the benefit of its EN-
ployes or their dependents as q
business expense.
Deductions for contributions for
political campaign purposes are ex.
pressly prohibited by Treasury reg
ulations. Amounts expended for
lobbying purposes, the promotion or
defeat of legislation, the eXploita
ton of propaganda, including ad
vertising other than trade adver
Using, are not dsductible.
Deductions for contributions are
allowed only for the year in which
actually made. Promises to make
future contributions should not he
considered by the taxpayer.