The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1937-03-04
MINNESOTA INCOME TAX
PROBLEMS


mortgage on property located out
side Of Minnesota a deductible ex-
pense from an individuals income?
Answer: No. Regulations at Ar
ticle 200 reads: Interest paid on
mortgage on real estate having its
situs without Minnesota is not de-
ductible".
Question: Is interest paid by an
individual taxpayer to finance a
home within this state a deductible
expense?
Answer: Yes. Regulations at
Article 200 reads: Interest in
Cured on loans made by a tax
payer to finance the purchase of a
home is deductible."
Question: Are taxes paid for
street assessments a deductible
expense?
Answer: No. Regulations at Ar
ticle 210 reads: Taxes assessed
against local benefits such as
street, sidewalk and similar i'm
provements do not constitute al
lowable deductions" (This applies
to both corporations and in
dividuals)
Question: Can a corporation on
an accrual basis, deduct back Min
nesota real estate taxes paid in
1896?
Answer: No. Article 210 reads:
Taxes paid or ACQUIRED within the
taxable year are deductible." How
ever, a taxpayer on an accrual
basis. must accrue taxes each year
and therefore is not allowed q de-
duction for same years taxes at
the time Of payment. (This APP
plies also to individuals on an ac-
crual basis).
Question: Are Minnesota school
teachers, city, county and state
employees required to file an in
come tax return to the State Of
Minnesota?
Answer: Yes, if the individuals
income exceeds the exemptions or
if the gross income exceeds $1,000.
Regulations at Article 80 reads:
Salaries of officers and employees
of the State of Minnesota, it's poll
teal or other subdivisions, it's in
strumentalities and agencies, are
required to be included in gross
income"
Question: Are refunds of taxes
Including Federal income taxes)
taxable?
Answer: Yes. Regulation at Ar
ticle Is reads: Refunds of taxes
which were originally deducted
from gross income shall be treated
as gross income for the year in
which actually received, regardless
of methods of accounting employed
by the taxpayer"
Question:: What farm expenses
are deductible from gross income?
Answer: Regulations at Article
208 reads: Necessary expenses in
clude all amounts actually expend-
ed in carrying on the business of
farming by anyone who operates
farm for profit. If a farm is
operated for recreation or pleasure,
expenses in excess of receipts, are
personal expenses" land not de-
ductible)
Question: Is stock received as
salary bonus taxable?
Answer: Yes. Law at Section
II reads, 1.-The term gross income
shall include every kind of COM
pensation for labor.
Question: Who is required to
file information returns?
Answer: All corporations, part
nerships and brokers. Regulations
at Article 2006 (Revised) requires:
"All corporations and partnerships
which are required to file income
tax returns with the Tax Commits
sion shall also file returns of in
formation Forms TO and I-9X,
covering payments made to resi-
dents of Minnesota of salaries,
wages, fees, commissions, bonuses
rents, royalties, interest, and divi-
dends. These forms shall be filed
by March 18th Of each year and
shall always show payments for the
| preceding calendar year, even in
cases where the taxpayers records
are kept on fiscal year basis
Organizations which are exempted
from taxation under Section 5 Of
the Income Tax Act are required
to file in the same manner. 'Brok
er or other agent Is required t.
make return of information or
form I-10'
Question: When is an inventory