Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-04-09
WHAT TO DO TO HEDUCE
YOUR INCOME TAX FOR 70
Keep Accurate Record of
Amounts of Money Received
From Each Source.
MrNIclr,h noNps ARM pNEMrr
lntcrrnt Paid In Dcductnblc, and All
Taxes with II Few Exceptions Arc
Allowable Deductions, No Keep
Your Rccurdn.
by II. A, Conkcy,

by Il. A. Gunkcy,
The time FOR nling individual iu-
rome tax returns for tho calendar
year 1921 has just passed, and no
doubt most OF us will give the sub
tect little thought again until tho
time comes when we Will have to
Ale our returns for 1922
The purpose OF this article Is to
Impress on the minds OF taxpayers
the Importance OF keeping some
Kind OF record OF their taxable IN
comes and allowable expenses for
the year.
Often taxpayers would be right
fully entitled to deduct for their
gross income amounts spent during
the year for certain Items. but they
nave no records OF the amount of
the item and hesitate to claim the
deduction for fear they NAV be
amount claimed.
called upon to substantiute the
rms. of course could not be done
without some record OF the transac-
ton. II some simple record were
KEPT. the item could he conscientious
~ Claimed and result in Il saving
of tax To the taxpayer.
another great advantage where
records are kept is that the task
OF making up the return is simpli-
fled and results in saving OF time
10 yourself and the person assist
ing YOU
1t is also important to the tax
payer that his Items OF income ar.
clearly anaiazed. as certain kinds
or income are entirely EXEMPT from
the lax. some are subject to both
normal and surtaN. and others are
only subject Ia the surtaX.
foii"winS are few suggestions
as TO items OF which records should
be kept:
Salary-A record shoold he kc,,
or the amohnt received from each
source
Interest on bank dcpori,s notes
mortgages and corporation bonds-As
certain corporation bonds contain a
'"N-iree covenant clause and "A por
''oh OF the normal tax is assumed
y! the debtor corporation. Tho
amount OF this interest should n.
N'P' separate, as YOU arc allowed
as credit the amount Of tax maid
i"r you by the corporation.
interest on municipal bonds is OK
c"'p' from the tax and need 10, he
,rP"''ed' interest on Liberty ana
victory Bonds is entirely eycmn,
from Inc normal tax. but in ccrtoin
uses Is subject to the surtay and
therefore "A record should be knn, NJ
" amount or interest received from
each issue.
rents and Royaltics-If YOU own
property. a record should he
kept OF the amount of rent rernivod
expended for repairs and
other expenses
BUSINESS
oros should show the totaI rrcoi,,t :,
rom the business and cwll-itcm
'"cu INST or the business cxpcnsos
"t'c OF real estatc-lf Won sail
rt"I estate during tho year notn
the year in which IL was ncnujrcd
cost price. March /. 1919. value. if
''I"ir," prior to that date, cost of
subsequent improvements, amount
oil depreciation claimed i'm former
years and the sale price
sale of stocks and honds-If van
sci! stocks or bonds during the vcar
,o'e ia" year acquired. cost price,
Na'ch j. 1913. value. If acquired
prior 10 That date, and the sale price
blvidendS-lf YOU receive diyi-
"ehGS ON stocks of domestic corpora-
''"hs' the amount should be kent
separate as they arc no; st,bicct ia
'hc normal tax: and If your net in
''''H ''iiS NlNlNrntS does
exceed $4,000 they do not enter into
your computation.
interest baldwin a very few cy-
c"r'ionS all interest paid is an al
I""ahlc deduction ands therefore a
careful record OF the amounts raid
should be kept.
IaNcs paid-All taxes, with "A few
exceptions. arc allowable deductions
ana record of the kinds and
amounts should he kept. one item
OF taxes. which very few people
keep any record Of. is the luxury
t"N: this is AN allowable deductions:
ana n" doubt If you would jot down
IN" dates and amounts as YOU pav
them. YOU would be very much sur
pTiscd at the end of the year to see
how they had accumulated
C"ntrihutlons-Gifts TO organized
charitable. religious and educational
institutions are allowable deductions
and record should be kept OF the
names of institutions with the
amounts given to each.
Losscs-If you suffered any loss
during the year from fire. storm.
theft. etc, make Il note OF cost on
March l. 1913, value, depreciation
previously claimed. salvage value and
insurance received
II Is not necessary that the aver
age individual keep a set of double
entry books, hut some simple form
OF record should lie Kept Even q
vest pocket memorandum will do.