Evening star., 1951-02-09

expenses-like charitable contri-
buttons, medical care, or interest
on a home mortgage-and bust
ness expenses of professional man
or a man in business for himself
The man in business for himself
must list his business deductions
and personal deductions. He lists
the latter on form 1040, Page g.
So he uses both Schedule c and
Form 1040.
A person who is an employe OF
someone else uses Form 1040 and
If his deductions are larger than
the standard deductions allowed
anyone for personal expenses, he
itemizes them on Page 8.
Thus reporter working for a
newspaper may want to deduct
interest on his mortgage or what
he paid for professional supplies
he needs In his work. He'd list
those deductions on Page 8.
Personal Deductions.
All that follows deals entirely
with personal, not business deduc-
tions:
You may deduct for medical and
dental expenses. but only that
part exceeding S per cent of your
income. (This is treated more fully
at the end of This Story.)
And you may not exceed IS per
cent Of your income in deducting
for contributions to charitable,
religious, fraternal, veteran and
scientific organizations or to non-
profit hospitals and educational
institutions and societies like those
for tuberculosis, cancer, heart
disease.
But here are deductions you
may claim without limit:
State income and personal and
real estate taxes, except those
which, like paving assessments,
tend to improve the value Of your
property.
Dues to a Labor Union.
Also, dues to a labor union, in
terest on your personal note to a
bank or individual, interest on q
mortgage on your house, interest
on delinquent taxes, interest on
installment purchases (but not
carrying charges).
You may deduct State or local
retail sales taxes. auto license fees
(but not auto inspection fees),
poll taxes, and State gasoline
taxes Except in California. Flor
ida, Louisiana, North Dakota,
Utah, wyoming and Hawaii.
You may deduct for loss Of your
property from theft. fire, storm or
other natural causes; and for an
auto accident If you weren't will
fully at fault and did not get paid
for the damage.
And you may deduct for use Of
your car for business, entertain
ing for business purposes, sub
scriptions to professional jour-
nails, books and magazines bought
for use in your profession; equip
ment, tools and instruments used
on your job, and cost of work
clothes and uniforms when they
can't be used to take the place Of
ordinary clothes.
Non -Deductible Items.
Here are things you may not
deduct:
Gifts to relatives or friends or
other individuals. or to propa-
ganda organizations. political or
ganizations or candidates, social
clubs, labor unions or chambers
of commerce.
And, unless you paid out the
money for business purposes. you
may not deduct for Government
excise taxes, such as on tele-
phones, kilograms, railroad or bus
tickets. And you may not deduct
for Federal excise taxes on furs,
3ewelry or cosmetics.
You may not deduct for your
social security tax, for property
lost In storage or transit, animals
or plants damaged or destroyed by
disease. hunting licenses, water
taxes. or taxes paid by you for an
other person.
Here's income which must be
reported and. therefore, Is taxable: !:
Wages. salaries, bonuses, COM
missions, tips, gambling winnings.