Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-03-13
BY JOSEPH A. BLONDELL.
Treasurer of the Baltimore Sun.

| Treasurer of the Baltimore Sun.
Persons in compiling income tax re-
| turns for the year 1921 may find the fol-
lowing helpful, also the article in last
! Sundays Sun.
| Returns for the year 1921 are due in
the hands Of the Internal Revenue De-
partment on or before March 10, 1922.
If you have not received a blank for the
purpose, go to your bank, trust company
! or to the Bureau of Internal Revenue
| and get one.
| RESIDENTIAL PROPERTY.
Don't deduct an amount of depreciation
on property used by you as your resi-
dence. Neither should this be figured
| (if you sold your restdence) in arriving
| at the gain or loss for taxable purposes.
Don't deduct cost of repairs to prop
erty used by you as your residence. If
you own residential property and rent IT
to another, then you may deduct all nee
essary expenses, including depreciation,
taxes, maintenance, etc. The income,
however, from such property Is to be re-
ported
Don't deduct a loss sustained in the
sale of property occupied by you as your
residence. profit, however, must be re-
| ported for income tax purposes.
| Don't deduct expenditures for additions
or improvements to property, whether oc-
! cupied by you or not as such Items are
! treated as capital expenditures. A tax
payer should, however, keep a record OF
such improvements for his own benefit.
| Especially will this be beneficial in ar
irving at the gain or loss in case the
property Is subsequently sold. DO not
! confuse improvements with repairs.
! Don't include as income interest on
! any per cent or Az per cent Liberty
/ bonds If the holdings are under $I3OVOO'
/ If you hold $4,000 OF the October "A,
! 1918. issue Of Liberty bonds, then you are
( allowed q maximum exemption or $loO-
! coo before any tax Is imposed. NO nor
NAL tax is imposed, but only the surtaX'
/ This does not include the Victory "A
! per cent notes.
! Don't amply any exemption to the VIC
tory AZ per cent notes. The interest on
Victory 4% per cent notes is exempt OF
the normal income tax, but is subject to
the surtax, provided your income is Suffi-
Gent to put you In the surtax brackets.
CONTRIBUTIONS OR GIFTS.
Don't deduct contributions or gifts IN
an amount in excess Of 10 per cent OF
your net income. Arrive at the 10 per
cent maximum before deducting contriou-
tions and the personal exemption. say
your net income before deducting contri-
buttons and the personal exemption IS
| As 10 per cent Of "a 900 is 5000, then you
NAV deduct 5000 and not $3.50
Don't overlook to deduct contributions
or gifts made for the construction OF
church.
DON'T overlook in claiming daduc-
ton for contributions to include the
American Red Cross, Jewish Re.lei'
Young Mems Christian Association
Young Women's Christian Association,
Associated Charities or other charta pie
organizations and the Society for the
Prevention of Cruelty to Children or
Animals. or any religious, educational
scientific. literary or other charitable or
ganization operated exclusively for pur-
noses mentioned Re sure no part OF the
Earnings Of such organization insures TO
the benefit Of any private stockholder OF
individual
Don't deduct contributions or gifts to
needy families The department does not
recognize gifts to individuals.
Don't deduct gifts to needy relatives.
, II the relative is physically unable to
work and is solely dependent upon you
for support, then you may claim and e6-
emption Of 1900 under the heading FOR
dependents. Don't deduct the 500 under
the heading OF contributions.
Don't deduct contributions or gifts
made for political campaign purposes,
Don't deduct cOntElbutlSuS maui A"~
lobbying purposes for the promotion or
defeat Of legislation.
Don't deduct contributions or gifts TO
q social club.
Don't deduct IN your partnership re-
turn contributions made by the partner
ship. The individual partners, however
may deduct in their individual returns
their proportion Of such contributions
made by the partnership.
Don't deduct If you are corporation
contributions or gifts. The Treasury De-
partment. however, states that corpora
ton may deduct as a business expense
donations made directly to hospital
conducted directly or indirectly for the
benefit of its employees or dependents.
Don't deduct under the heading OF
contributions, gifts or bonuses awarded
employees as additional compensation Tor
services rendered, as a reward for past
endeavOrs or to further promote enthu-
siasm In the discharge OF their duties.
Such bonuses should be deducted under
heading Of Business Expenses Salaries
Paid" The individual receiving such
bonus Is to report il as income.
OTHER ITEMS.
Don't deduct loss sustained in the
sale Of an automobile which was used
for pleasure purposes, nor an amount
for depreciation.
Don't think because you are an en-
uloye of the Federal Government that
your salary is exempt. State, city and
county employees salaries are exempt,
but the exemption does not apply to
Government employees. This includes the
President Of the United States. judges
Of the courts and all other Government
employees.
Don't deduct wages paid domestic
servants, such as maids, Wallets and
chauffeurs of pleasure cars.
Don't include in your income or bother
about supper money received during the
year due to working overtime.
Don't forget to deduct loss sustained
in any transaction which was entered
into for profit. II makes no difference
whet her or not IL was connected with the
trade or business Of the taxpayer For
example, say you purchased in 1920
railroad bond for $500 and In 1921 sold
the bond for $500, then you may claim
the loss Of $l00.
Don't forget if you pay State income
taxes to deduct such taxes from your
gross income. This does not mean
United States Government income taxes
Don't deduct as an expense transporta-
ton cost to and from work. AS an ex-
ample, say you reside In the suburbs and
your place Of business is in the city and
YOU commute each day. The cost Of such
travel or Communication ticket is not de-
ductible.
Don't forget that amount received as a
war pension from the United States are
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