The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1938-02-03
QUESTIONS, ANSWERS
DEAL WITH TYPICAL
CITIZENS PROBLEMS

were not r6QulTeu GllllSl W LII
out a return blank or pay an in
come tax will find themselves
struggling with tax forms and
writing checks to the state under
a rev law inacted by the state
legislature.
The Minnesota Tax commission,
st. Paul, will supply blanks to
persons not already on its list, up
on request, and has prepared the
following questions and answers
to aid in filling out returns:
@. 1 am unmarried but / sup
port my mother who lives with
me. She receives her entire sup
port from me. own and maintain
a home and pay all expenses. Am
/ entitled to credit of $50 as head
of household and the SIS credit for
a dependent?
A. Yes.
@. Is the amount of payments
for hospitals and surgical services
limited in any way?
A. No, not in amounts, but it
must be taken on a paid basis. Ac-
cruals of expenses of this nature
will not be allowed as deductions.
@. (a) When must personal in
come tax returns be filed for
1887? CD Is this the same for cor
poratiOns?
A. (a) By March Is, 1888 : (b)
Yes.
@. During the year 1887 1 paid
interest on a loan on my life in
surance policy, of S318. The loan
was used to build a home. Is this
an allowable deduction from gross
income?
A. Yes.
@. What is meant by the term
"grOss income" which is used in
the Minnesota income tax act?
A. "Sec. 1.-THE term gross in
come shall include every kind OF
compensation for labor or personal
services of every kind from any
private or public employment, Of
flee, position or services, Whatso-
ever; income derived from the
ownership or use OF property;
gains or profits derived from
every kind of disposition OF, or
every kind of dealings in, proper
ty; income derived from the trans
action of any. trade or business;
and income derived from any
source whatever. Items of gross
income includable within said de-
finitions shall be deemed such re-
CARELESS of the form in which re-
ceived. Items of gross income shall
be included in gross income of the
taxable year in which received by
a taxpayer unless properly to be
accounted for as of a different
taxable year under methods of ac-
counting permitted by Section 9,
except that Cd amounts transfer
red from a reserve or other &C
count, if in effect transfers to sur
plus, shall, to the extent that such
amounts were accumulated
through deductions from gross in
come during any taxable year, be
treated as gross income for the
year in which the transfer occurs,
and (2) amounts received as re-
funds on account of taxes deduct
ed from gross income during any
taxable year shall be treated as
gross income for the year in which
actually received"
@. am a physician and use my
car for both pleasure and business.
The car is used for business pur-
poses SO per cent. Can 1 deduct
depreciation, tires, repairs, gas
oline, oil, ETC.? If SO, how much?
Al You can deduct SO per cent
of the entire cost of running the
car, including so per cent of the
annual depreciation charge.
@. 1 receive pension from the
United States under the Railway
Retirement Act. Is this pension
subject to tax?
A. No (same for pension from
state).
@. loaned John Doe $1,000 in
1886. In 1887 this loan was deter
mined to be uncollectible and a
total loss. Is this loss subject to the
limitation provision in Section 20
(b) of $4,000 or is the entire loss
deductible? My only other income
is a salary of $1,000 and had no
other transactions of any kind.
A. The entire amount of $4,000
is deductible as it is not deemed
to be a loss from sale or exchange
of capital asset.
@. Can a married woman living
with her husband make a separate
return of her own income or must
she include her income with that
of her husband in the return of
her husband?
A. The taxpayer may file separ-
ate or joint returns at their own
election.
@. Are amounts deducted from
the wages or salaries of employees
by employers under a voluntary
or compulsory plan of unemplOy-
ment insurance includable in the
gross income of such employees?
A. No.
@. My mother lives with me but
she has no means of support. / pay
all upkeep of the home including
taxes. The home is in her name.
Are these taxes deductible as such
on my return?
A. No.
@. My wife has no income of
her own. Can I attribute any por-
ton of my income to her and each
of us file separate returns?
A. No.
@. The gross income of our
partnership is less than $1,000.
Are we required to file a partner
ship return?
A. Yes.
@. Can you give me an example
of the computation of state income
tax where person is married, has