The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1922-02-28
TAXABLE INCOME
OTHER THAN CASH
Board and Lodging Received as Part
Payment Must Be Reported
In Return.

In filling their income tax returns for
the year 1921, taxpayers must remem-
Der that taxable income is not nsces-
sarfly 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 q
clerk Of grocery store as part pay
ment for his services must be report
ed as income. Compensation paid an
employe of g. corporation in shares of
stock Ia to be treated as IL the cor
poration sold the stock at its market
value and paid the empioye 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 10 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.
ne Nd1ue Oh diiU
heat furnished army officers, whether
stationed 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 fur
nishing such quarters, etc. Where an
officer or enlisted man is allowed GER
tain Communication in lieu of quarters,
light and heat, the entire amount re-
ceiyed 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-
pioyer, the value thereof need not be
included in the income of the employee.
For example, where because of the To-
cation 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 considered as contributed for the
convenience of the employer Board
and lodging furnished seamen in ad-
dition to their other compensation is
held to be furnished for the conven-
fence Of the employer, and the value
thereof need not be reported in the re-
turns of such employees. Uniforms, ra-
tons and medical or hospital service
afforded enlisted men or searnen need
not be reported as income. These are
furnished by the government for its
own purposes, and are not conpensa-
tion for services.
The value of board and lodging fur
nished employees of hospitals as part
compensation for services Is to be re-
ported as income. If, however, an en-
ploye of a hospital is subject to i'm
mediate service on demand at any
time during the twenty-four hours of
the day, and on that account IS obliged
to accept quarters and means at the
hospital, the value of such need not be
on duty certain number of hours.
and could, il desired. obtain meals and
lodging elsewhere than at the hospital
and, at the same time perform the du-
ties required Of him, the ratable value
OF the board and lodging furnished 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
may be included in their returns for
the year
To avoid penalty, returns must be
filed on or before midnight OF March
Is.