Milford chronicle., 1923-02-16
new TAX WHY'S AND WHEREFORES
EXPLAINED BY INCOME COLLECTOR
Latest Regulations Make 1t Little Easier To Figure Out The Govern
ments Part-AmOst Everybody Must Pay Something
Between Now And March Is.
By FRANK K. BOWERS
Collector of Internal Revenue, New York


@ ao Ro % ye b e mpont points the ao
Of 1921 pointing Outw to mel salient features
citizen the United States wherever resident subject
his income matter what the source OF may be- Residents Of the
@ UnS ] s5 d % 'ea @ @ Sources w6 h the Uned gtates % are ~ only
residents
& % Do that the rate upon the first $4,000 shall be Der cent The
graduated
that the law this differs from the previous year The STax rates
filing returns
individuals income which derived E deducng
profits income derived from salaries compensation
interest rents dividends securities OF any transaction carried on for
policies death of the
and
before the which subject tax s5 ascertain.
things all the ordinary and paid
business merchant should keep
of goods sold is deducted receipts
d % p9 9 SE SSsq 4 oo 9e nud al the @
@ % de @ % Osses are @
profit Also losses sustained during
v insurance otherwise may
loss sustained
poses through ugh collision @ T @ ] a%Oe a @ S Sropot @ @ % losses 3
incurred in the taxpayers trade business
Bad Deductble
also entitled deduct debts owing to him which have been
aaned to be woItness ana charged & Oh g4s III S I St IN b s %
the taxpayer deduct part in
and should be- Considered carefully
ton generally $p @ G @ trade @ or BUSINESS PTopery used for the
subject to depreciation
U aV be- aIoed but the taxpyer Should bear in mind
in this connection that such contributions to Os fo%0 b 6 must ST 4 @ %
for contributions % maze maze 70 s 4uus = G i never or % %
not items which the law allows as ANY % expense e
family considered
After the taxpayer subject
Quoting his income such deduction as the law may allow ne
the Of computation Of the normal tax allowed to deduct sun f9
married not living with husband or wife the
personal s25OO Of o
which who actually supports and maintains one household % %
relationship adoption and right exercise family
$4,000 $4,000 $4,000 where the
titled credit $500 for each and 5 every dependent % TSSsRg % his chief SUP
@ 8 @ The Revenue act Of 1921 has raised personal exemption
dividends domestic
determining the to be paid by the
ed Liberty
Thus after the taxpayer
% mP bonds a an ddd5 @ he may haye he has then the
beginning of $4,000 and
amounts in excess of $4,000
Who Must Pay
The question naturally and arises as to who must make re-
ing gross
married
that Of his
what is termed nontaxabe frequently
rate @ @ return their Combined net income is IN excess Of 5000 is most
cases advisable for them file separate returns cases
should the estate trust for
deductions
$1,000
In distributes
fduci
taxable
ona
those especially exempt from taxation must file
taxed fiat rate of 12 cent The profits
Corporations having net income Of $25OO or less entitled
of
payment income tax such as labor organizations fra
building
community fund or foundation organized
charitable
of clubs operated exclusively for pleasure
statement showing their and claim
exemption.
income corporations generally speaking are
ordinary