The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1938-02-03


nesota income tax reports, the follow
ing questions and answers are given:
The questions are those most fire.
quently asked and relate to the subject
of exemptions for necessary expenses
Under the state law, nearly everyone In
Minnesota will be compelled to make a
statement. The new taxes are expected
to net about $12,0O0,OO0.
The appended questions and answers
have been prepared by the Minnesota
Tax Commission, Income Tax Division
and are supposed to cover the more in
.tricate points in the law
If the questions and answers do not
apply to your particular case and more
information is desired, we advise you te
contact the department. The list is as
follows:
@. I am married but support my
mother who lives with me. She re-
ceives her entire support from me. ]
own and maintain a home and pay all
Expenses. Am entitled to credit OF
$50 as head of household and also the
90 credit for dependent?
A. Yes.
Q. Is the amount of payments for
hospital and surgical services limited in
any way?
A. No, not in amounts, but it must
be taken on a paid basis. Accruals of
expenses of this nature will not be al
lowed as deductions.
| @. (a) When must personal in
come tax returns be filed for 1887? Cd
Is this the same as corporations?
A. (a) BY March Is, 1888. CD Yes.
Q. During the year 1887 I paid in
terest on loan on my life insurance
policy, of $4,000. 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 income
shall include every kind of compensa-
ton for labor or personal services of
every kind from any private Or public
employment office, position or services,
whatsoever; 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, property; income derived from the
transaction of any trade or business !;
and income derived from any source
whatever. Items of gross income in
cludable within said definitions shall be
deemed such regardless of the form in
which received. Items of gross income
shall be included in gross income of
the taxable year in which received by a
taxpayer unless properly to be ac-
counted for as of different taxable
year under methods of accounting per-
mitted by Section 9, except that ID
amounts transferred from a reserve or
other account, if in effect transfers to
surplus, shall, to the extent that such
amounts were accumulated through de-
auctions from gross income during any
taxable year, be treated as gross income
for the year in which the transfer oc-
ours, and CD amounts received as re-
funds on account of taxes deducted
from gross income during any taxable
year shall be treated as gross income for
the year in which actually received"
Q. am physician and use my car
for both pleasure and business. The
car is used for business purposes 500.
Can I deduct depreciations, tires, re-
pairs, gasoline, oil, etc.? If so, how
much?
A. You can deduct 500 of the en-
tire cost of running the car, including
500 of the annual depreciation charge.
! @. I receive a pension from the
United States under the Railway Re-
tirement Act. Is this pension subject
to tax?
A. No. (same for pension from state)
| Q. loaned John Doe $5,0O000 in
1886. In 1887 this loan was deter
mined to be uncollectible and a total
loss Is this loss subject to the limit
alton provision in Section 20 (b) of
81 100000 or is the entire loss deduc-
table? My only other income is a
salary of $4,000 and I had no other
transactions of any kind.
A. The entire amount of 100000 is
deductible as it is not deemed to be a
loss from sale or exchange of a capital
asset.
@. Can 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 separate
or joint returns at their own election
Q. Are amounts deducted from the
wages or salaries of employees by en-
ployers under a voluntary or compu-
sorry plan of unemployment insurance
includable in the gross income of such
employees?
A. No.
@. My wife has net income of her
own. Can I attribute any portion OF
my income to her and each Of us file
separate returns?
A. No.
Q. The gross income of our partner
ship is less than $4,000. Are We re-
quired to file a partnership return?
A. Yes.
Q. Can you give me an example Of
the computation of state income ta2
where a person if married, has severa
different kinds of income listing at least
. ten different kinds of deductions ant
. credits. The person has four children
|. ages from to Is. All attending school
A. Gross Income
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