Henderson daily dispatch., 1937-03-01

duct every penny paid the State in
the form of registration and other
special fees, including taxes paid while
travelling through all but thirteen
states, from their Federal returns,
there are no deductions permitted on
these items on State income tax re-
turns.
Even on federal returns motorists
may not deduct Federal gas taxes of
other Federal excise levies.
In Uncle Sans 1887 model income
tax return, conventional in design al
though slightly restyled to meet mod
ern requirements, most Of the old fea-
lures have been retained and several
new schedules are making their first
bid for popularity.
Exemptions and deductions are
much the same as before Mr.. Roberts
said. Owners and operators of motor
vehicles may deduct taxes paid, I'm
compensated loss to their vehicles. in
terest on financed loans, and expens-
es incidental to the actual business
use of behicles, subject to iron-clad
restrictions and possible review by the
collector of internal revenue.
Even though the State of North
Carolina will not permit the deduc-
ton on State income tax returns fleet
owners of passenger cars and trucks
in the State will save thousands of
dollars by taking the State gasoline,
registration, sales tax, drivers licens-
es, and other special fees off their
Federal returns, the Carolina Motor
club points out. Last year there were
$4,000 vehicles registered in North
Carolina and gasoline tax collections
set new peak.
Full deduction may be made for the
| following items, according to the
| Carolina Motor Club:
(a) Registration fees paid by the
taxpayer under taxes paid, which is
| item 3, schedule h, on form 1O4OA).
CD Operaor's license fees paid by
the taxpayer both \ for himself and
members of his family if he foots the
| bill Qtem 81.
(c) Gasoline and oil taxes paid in
states where local laws impose these
taxes directly on the purchaser and
not on the dealer. Deduction NAV be
made for fuel taxes paid in Connecti-
cut, Delaware, District of Columbia
Indiana, Kentucky, Maine, MARYLAND
Massachusetts,, Michigan New Hamp-
shire, New Jersey, New York, North
| carolina, Rhode Island Vermont Vir-
glnia and West Virginia. This group
is also deductible under Item 8 (Form
! 1O8OA).
No such deduction is allowed how
ever, in Pennsylvania, Ohio South
Carolina, Tennessee, Georgia, Florida,
California, Colorado, Nebraska, Wash
lngton, Utah, Wyoming or Alabama.
The Federal tax of one cent a gallon
on gasoline cannot be credited.
| (d) Loss by accident is deductible.
except when the owner has been com
pensated for the loss. This applies
only to damage sustained during 1886.
regardless of whether proper credit
was taken in making the return for
the other years. This item covers
damage to the vehicle in traffic ac-
cldents, total or partial loss by fire
| or theft, or even such a loss as dam
age by freezing. In figuring the
amount of loss, the taxpayer is linn
lted to ordinary and necessary repairs.
Total loss is fixed at the market value
OF the property at the Gate of loss.
Deduct under Losses Ite2n TO- Sche-
| dule j..
+ le) Interest paid on personal lndebt-
neAses, including finance company
loans Consult your finance company
| for the exact rate of interest Deduct
| under INTEREST Gtem 9, Schedule y
No other deductions are allowed to
a taxpayer who uses hiscar for pleas
ure purposes only. No allowance is
ado For fhQ 1f
costs paid for violations of the motor
laws, nor for mney paid to others in
settlement of damage claims. No Gre
dit may be taken for operating ex-
penses unless the car is used in bus
mess.
| Vehicles operated entirely or in part
| in the business of the owner entitle
| him to certain additional credits
! These deductions may be grouped I'M
| der one head as expenses paid"
| Schedule ABB and titled Automobile
business USE" and deducted from
the total amount of income declared
Schedule A-2). If the taxpayer re-
ceives an expense account from his
employer for the use of his car in
business, the total declared income for
Inc year llUSL luClOUG ILLS uIC.
Business use" deductions have been
reviewed with great care by the gov
eminent and the taxpayer must be
ready to explain them in detail on de-
mand. Records and memoranda
should preserved to provide the
figure declared. Use of the car in
business covers actual operations for
advancement of some business inter-
est, and does not include travelling to
or from work, or any other use which
appears to represent convenience rath
er than necessity. Entertainment of
business guests is usually rejected as
a business expense.
If the vehicle is used partly for
pleasure, the taxpayer may deduct as
business use" the proper proportion
of his total operating expense. Thus,
if the car is used for business 80 per
cent Of the time, he may take credit
for 80 per cent Of the total operating
expense for 1886. Proper items for
consideration under this head include:
Cd Operating Cost covering a. full
cost of fuel CD maintenance and re-
pair costs, Co garage rent, I'D insur-
ance premiums (net) and (e) motor
club dues. In states wher the fuel
L