Evening star., 1932-03-14
Your Income Tax
No. Is.
Deductions for Professional
Expenses.

A professional man may deduct all
necessary expenses incurred In the pur-
suit of his profession. These include
the cost of supplies used in his prac-
tice, expenses paid In the operation and
repair of an automobile used in max
ing professional calls, office rent. cost
of light, water, fuel and telephone in
his Office and the hire Of offlce assist
ants.
Many physicians use their residences
both as their offices and their homes.
In such instance the physician may de-
duct as business expense the rental
value of the rooms occupied for office
purposes if he actually pays rent and
also the cost of light and heat fur
nished these rooms. Also. he may de-
duct q, portien of the wages paid do
nestle servants whose time Is partly
occupied in caring for these rooms
Membership dues in professional socie-
ties are deductible, Physicians and dem
fists who keep In their waiting rooms
current magazines and newspapers for
the benefit of their patients may de-
duct this item as a business expense.
The cost of professional journals for
the taxpayers own use also Is o de-
ductible item.
The cost of technical books is not q
deductihle item, being a capital eXpen-
diture, but a proportionate amount for
each years depreciation of the books
may be deductsd. Insurance premiums
on Office or other professional equip
ment and liability insurance may be de-
dueted Automobile liability insurance
may be deducted only when the auto
mobile Is used wholly in pursuit OF the
taxpayers profession and the cost of
the entire upkeep may legitimately be
claimed as professional expense.
Claims for deductions for losses are
divided into three classes and to be al
lowed must follow closely the wording
of the income tax laws. Losses are de-
ductible II incurred CD In the taxpay-
er's trade, business or profession, (2) In
any transaction entered into for prefat
or go from fires, storms, shipwreek or
other casualties or by theft.
Business losses result usually from
the purchase and sale of merchandise.
Such losses usually are aseertained by
means of inventories, which are required
whenever, in the opinion OF commits
sioner of internal revenue, their use Is
necessary to determine the income of
any taxpayer.
The term transaction entered into
for profit" means any kind OF busi-
ness proposition. For example. a tax
payer purchases an automobile to be
used solely for business purposes and
which is sold at loss. As this is a
business proposition from start to fin
ish, the loss Is osductible, but II he had
purchased the automobile to be used for
pleasure or .convenienee, the deduction
would not be allowed. 1t was not q
transaction entered into for pfefit.
A loss sustained In the theft of an
automobils purchased for pleasure or
convenience Is deduetible, as 1t falls In
class .. II, because of faulty driving
but not of "viliful negligence" an au-
tcmohiie maintained for pleasure is
damaged, the taxpayer may claim the
loss sustained. as ii comes within the
meaning of the word Casualty"
Where damages result from the faulty
driving of an automobile with which
the automobile of the taxpayer collides,
the loss occasioned the taxpayer like
wise is deductibie.
All losses are dsductibis only 10 The
extent BY which they are not coWpen-
sated for by insurance or otherwise.