The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-02-28
INCOME TAX HINTS

In filing their income tax returns
for the 1921, taxpayers must remem-
Der that taxable income is not neces-
sarily cash. Where services are paid
for with something other than money,
the fair market value of the thing
taken in payment is the amount to be
included in income For example, the
value of merchandise received by a
clerk of grocery store as part pay
ment for his services must be reported
as income. Compensation paid an en-
ploye of a corporation in shares of
stock is to be treated as if the cor
pOratiOE sold the stock at its market
value and paid the employe in cash.
Promissory notes received in pay
ment for services and not merely as
security for such payment constitute
income to the amount of their fair
market value. Living quarters and
meals furnished as compensation for
services are to be reported as income
A hotel clerk given a room and his
meals as part payment for his services
is required to report as income the
amount he would have to pay for
board and lodging elsewhere.
The value of quarters, light and heat
furnished army officers, whether sta
toned at an army post or paid from
funds allowed for such purposes when
officers are stationed elsewhere is
| taxable income in an amount equal to
the cost to the government of furnish
ing such quarters, etc. Where an Of
ficer or enlisted man is allowed Ger
tain Communication in lieu of quarters,
light and heat, the entire amount re-
ceived for such purposes for the tax
able year must be included in gross
income.
Where living quarters, food, cloth
ing, etc, are provided for an employee
solely for the convenience of an en-
ployer, the value thereof, need not be
included in the income of the en-
ploye. For example, where because
of the location and nature of the work,
it is necessary that employees engaged
in fishing and canning be furnished
board and lodging by the employer,
the value of such board and lodging
may be 'consider as contributed for
the convenience of the employer.
Board and lodging furnished seamen
in addition to their other compensa-
ton is held to be furnished for the
convenience of the employer, and the
value thereof need not be reported in
the returns of such employees. Uni
forms, rations and medical or hospital
service afforded enlisted men of sea-
men need not be reported as income
These are furnished by the govern
ment for it's own purposes, and are
not compensation for services.
The value of board and lodging
furnished employees of hospitals as
be reported as income. If, however,
an employe of a hospital is subject to
immediate service on demand at any
time during the twenty-four hours of
the day, and on that account is obliged
to accept quarters and meals at the
hospital, the value of such need not be
reported as income. If, the employe
is on duty a certain number of hours,
and could, if desired, obtain meals and
lodging elsewhere than at the hospital,
and at the same time perform the
duties required of him, the ratable
value of the board and lodging fur
nished him is considered additional
compensation.
The value of quarters, subsistence,
laundry, heat and light furnished of
ficers and employees of the public
health service constitutes income and
must be included in their returns for
the year. -
To avoid penalty. returns must be
filed on or before midnight of
March Is.