Henderson daily dispatch. (Henderson, N.C.) 1914-1995, 1943-02-10
YOUR FEDERAL
INCOME TAX
No. 33
DEDUCTIONS FOR TNNES.

/ TaNcs are. IN general u d,1.t,l.iI.
! item IN anIIVnnr At net Ii,uHl, fa.
Federal .uCume taN purpose. III i..,
/ case -! tINeS incurred III CunuvCl!.r
with trade or profession. He
amount Is shown in SchCdul, II g..
arrive At net profit tor lusSD ir.;.
| business Or profession entered =,
item 3 OF the return Form iuiU,.
taxes on rental property should Ice
shown III Schedule b. while other
taxes deduciIble should br shown 10
item II OF Deductions Taxes shown
in item ii must also be Supportcu
by an explanation Gin Schedule G.
OF the deduction.
The deductibility of taxes is sub
ject IL four general limitations.
!. Taxes are generally dcGuCt!b.-
| only by the person upon whom thcy
are, by law, imposed;
2. Federal income. war profits, and
excess profits taxes :nc not deduct
| Iblc iUr Federal income tax pluDusc~:
3. Taxes Tor local benefits such a.
| assessments Tor street. sidewalk. -
age and other local improvements
which tend 10 enhance the value Of
| the property taxed are not deduct
| lDic except amounts .liUCabl" tu.
| !. The tax must be- u tix ion pun
nc purposes. Charges tor government
| tai services such a municipal water
| bills. parking motor charges. service
] Lees. and the like are not dcduciib I,
..> axes. but are d"ducilblc -, cX-
s."u,es II incurred 30 Il trade 81 hus,-
| 't..S.
In The case OF State and local
aleS IaXes." if the amount Of the
| 'tN Is measured by the price ui line
| r:l"lr Old. 81 bV - sum per UuIi Oi
| i.l. article sold. and Is seYIIntoi|
| .tItrd, the amount paId is deductlhir
| ~ the purchaser.
| The Frdt raj tax on gasoline /.
| levied upon the producer ur !mpor-
| Ter. and consequently is moi drduc;-
| Ole bv the individual consumer tex
| ,,pt hat III the case ui Gtrrliilr IT,
| 81 iuI usInrsS purpose. Il u.I. nr
! included ~ IT." cost of the a.. u!.II" g.
| 4 business cXpcnac).
Federal duties and "%,l., 'U."s
| 1Ir. IN general. imposed tpuu 'hc
| manufacturer, importer. uI dealer.
and consequently are moi d,H.riiul"
| he consumer. on lcndrr lha NJ
| lie to the Federal c&cI~r to. .u tp-
| .,upLiles. tires. lubrIcatiug u... H"-
| :'Ianr"al leirIgeratur.. radio. Ir,i
| ,'her commodities. dS well 3D.. - the
| luxury taxcs" ON Perfume. '..l"f
| ~ epai atiunS. iewclry. and tn, '.,.
II also applies To- the ta% on "irr'rou
energy. liquor. tobacco. ri.rIr'',...
playing cards. and IT," like.
Taxes imposed hS tn" turr"l
States Government On the iull..r.t
items may be deducted Nduu,..r..
club dues Telephone and l"i"u. .ul
services, safe deposit buEo,. n.u..-
portation Of persons and property.
use of motor vehicle ur boat. and
documents.
Federal employment take. r"uilr-
ed To- be paid by an employer a."
deduCtiblc. but the amount Of .uCh
taxes required To- be withheld by 'h"
employer from the compensation IF
employees as payments are mad" D.
not allowable Us deduction hv the
employee Tor Federal income taX
purposes.
In the case Of ad valorem property
taxes. the deduction is allowed only
to the owner of the property. Thus.
If man and his wife are filing sep
arate returns. and the home IS own
ed bv the wife. then the property
taxes on that home are dcduCtiJlo
only in the wifc'S return.
State income taxes paid arc allow
able tax deductions in the Federal
income tax return.
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