The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1922-02-02
By Ad Carter

return of gross income all fees, sala-
ries and like compensation for pro-
fessional services.
Exemption Allowed CIergymen.
Certain items are specifically exempt
from income tax In addition to the
items exempted by the revenue act of
1918, such as proceeds of life insur-
ance policies, amounts received
through accident or health insurance.
value of property acquired by gift or
devise, interest on state and certain
Federal bonds, etc, the revenue act
of 1921 provides that the rental value
of a dwelling and It's appurtr nances
furnished a minister of the gospel is
exempt from income tax, and needs
not be included in the return.
The exemption of $4,000 formerly
allowed persons IN active military or
naval service Of the United States is
repealed. Amounts received under
the war risk insurance and vocational
rehabilitation acts or from war pen
sions of the United States are exempt,
and need not pc included in the return.
The farmer is required to report as
gross income all receipts derived from
the sale or exchange of farm products
including crops and live stock whether
produced on the farm or purchased
and resold. Where farm produce is
exchanged for groceries. merchandise
or other articles the fair market value
of the articles received must be re-
ported as income. farmer who rents
his farm on the crop-share basis must
report such income for the year in
which the crops are sold. Profit de-
rived from the sale or rental OF farm
lands must be reported
Items To Be Included
Every taxpayer is required to in
clude in his return of gross income
the following items:
Interest received on notes and de-
posts in banks, including savings
banks.
Cash dividends on stock The SUI
preme court decided in March, 1920,
that stock dividends are not taxable.
Profits from the sale of such stock,
however, are taxable income for the
year in which received Only divi-
dends paid out of earnings or profits
accrued since March list. 1913, are
taxed.
Profits received from the sale of
property-rea1, personal. or mixed.
The basis for ascertaining gain de-
rived from the sale or disposition of
such property acquired after March 1.
1913, is cost. The basis for ascertain
ing the gain derived from the sale or
other disposition of such property ac-
CURED before March /, 1918, is like
wise cost, but
II it's fair market price or value rs
of March J. 1913, was in excess Of
cost, the gain IS the excess Of the
amount realized over such fair mar
ket price or value For example. A
purchased house in 1910 for $4,000:
its fair market value on March ], 1913
was $4,000 and he sold in 1921 for
$50 900. The amount to be reported
as gross income is the difference be- /
tween $4,000 and $4,000, or $4,000.
II the amount realized therefor is
more than cost but not more than its
fair market value as of March 1st. |
1913, no gain shall be included in gross
income. Tor instance. if A, in the /
above example, had sold in 1921 Tor
$4,000, no taxable gain would have I
Il the amour: realized therefor is /
ess than cost bur more than March /
!, 1913 value, there is no gain. For {
Example. II A purchased a house in
1910 for $4,000 and its fair market
falue "a OF March !. 1913. was $4,000 /
Ind ne sold in 1921 for $4,000. no gain
would have resulted.