The Washington times., 1926-03-16
TAX EXPERTS
i DISAGREE
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business, il being necessary for
me to. make daily trips around
the city. Can a deduction be
made for this, and how much?
Is an automobile repair bill OF
S3e deductibIe, automobile being
same as that mentioned I'm
previous question:
NY savings account amounted
10 $3.50 on January / Of this
year. not including 8 per cent
interest. 1 have a checking nc
count that does not run below
800. and I get 2 per cent on
that. Can interest be deducted,
or should it be added?
During the year I made some
bad investments that cost me,
Al together, $3.50. Two good
investments brought me in SEQ,
but lost $110 net. Is this de-
In February, 1925, I casIled
bad check for q friend who has
since. left town, and has not been
heard of since. The amount OF
Che check was SAL so. Should
this be taken out OF the return!
Secure from detection behind mis-
counterfeit hirsute foliage, the re-
porter advanced on the expert IN
the District National Bank. pass
ing Chris Gockeler and Arthur r..
Seymour in animated conversation.
Approach Is Strategic
"a friend Of mine is home. i'll,
and asked me to get authentic
answers to these questions, the
explained to the expert,
who was just finishing the case
of large, Well-fed lady taxpayer.
Then the fun began. and the
story is beginning to become In.
volyed. Suffice It to say, as the
roet hath Il. that the visits to the
I1isfrict National Bank, the Mer-
chants Bank and Trust Company,
fha Riggs National Bank, the Con-
tinenfaI Trust Company, and the
Treasury Department brought the
Following startling facts to light:
Christmas bonuses are taxable.
Christmas bonuses are mos taxaDic.
rI,risku1as bonuses are taxable only
vvIaen they are not made as gifts.
Interest on mortgages should be
deducted. That's unanimous, any
how
Now.zke come to the really In
teresting question-that of the al
lowance on the car used for bust
neas purposes, The answers are:
Deduct SO per cent for business use;
deduct IS per cent; deduct a rea-
sagaabIe amount; deduct twO-thirts
ar One.haf. as the case may be;
deduction allowable for proportion
Htsed for business purposes only.
A. the repair bill: Deduct Is
per cent: deduct SO per cent? the
bNI Is deducfibIen: deduct . pro-
norfiOnafe AMOUNT: ditto.
Interest on bank accounts, all
were agreed, should undoubtedly be
reported as income.
What's next? Oh, the invest
ments-fhey showed a net loss. The
question was: Is this deductfble2s q
Two of the experts answered plain.
" yes: one qualified his afflrma.
ton with IF properly explained
the woman expert at the Treasury
Department and Mr.. Radcliffe at
the Riggs National Bank stated
that "the year invested amount in.
vested, year soId-we are assuming
the sale was in 1925-and the sell
ing price should be given in the re.
port"
Hold Out ON Bad Check
Thus, children, we come to the
last, or final. or ultimate question
about the bad check. Is 1t deducti-
BILE? Apparently it Is. YES" re-
piled three: If uncolIectible and
properly explained" one supple
mented; '4if considered bad debt
and charged off as such," added
another.
So, you see, Arabe1la. that the In
come tax Is considerably easier than
the newspapers would have YOU