Income Tax Law

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Personal exemption allowed.

Husband and wife.
“Head of a family."
Dependent persons.

In computing normal tax only.
Gross Income-includes..

Salaries, wages, compensation for personal service.
Professions, vocations, trades, business, etc.
Sales or dealings in property, real or personal.

Interest, rent and dividends.
Method of calculating gain or loss.
“Accrued interest"
Inventories

“Dealer in securities."

Special provisions 1918 law.
Dividends

What ones are subject to tax.
Liable to surtax.
Non-resident aliens.
Under 1913 law.
Under 1916 law.
Under 1917 law.
Under present law.

Dividends received by corporations.
Stock dividends

Definition.

Constitutionality of taxation.
Dividend received during first 60 days of taxable year....
Exempt income

Proceeds of life insurance policies.
Premiums, etc., on insurance contracts.
Gifts, bequests, devises, etc.
Income of foreign governments from

within the
United States.
Amounts received through accident or health insurance or

workmen's compensation
Income derived from any public utility or the exercise of any

governmental function, etc.
Amounts over $3,500. received as pay in the military and

naval forces in the United States.
Salaries of the President, Judges of the Supreme Court, etc.

not exempt

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sources

not

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Interest on “municipal bonds” etc. exempt.

/ Political subdivision defined..

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Taxpayer shall make return of non-taxable bonds..
United States Government obligations...

Issued previous to September 1917, exempt.
Subsequent issues when exempt.
Liberty Loan bonds-exemption of.
Federal Farm Loan bonds.

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Net income

Definition.
Items not deductible.

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Deductions allowed

Necessary business expenses.
Interest on indebtedness.
Taxes.
Losses in taxpayers' business; Loss from casualty, theft;

Losses in other transactions.
Bad Debts.
Exhaustion, wear and tear and obsolescence.
Amortization.
Depreciation and depletion.
Contributions to benevolent organizations.
Non-resident aliens.

Recent changes regarding deductions.
Full amount of realized losses allowed..
“Net Loss'
Claim in abatement, for inventory losses..
Losses after the year 1918...
Income tax paid no longer deductible.
Foreign income taxes..
Estates and trusts-how taxed..

Tax aid by beneficiary.
Return made by fiduciary.

Credits allowed estates.
Partnerships-must file return.

Not taxed as such-Members taxed individually.
Partners allowed partnership credits.
Fiscal year.

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Deduction at the source-non-resident alien individuals...

Applies to practically all American income.
Does not apply to dividends.
Amount of tax deducted.

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Owners of securities not known to withholding agents....
Deduction at the source.

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Non-resident partnerships.
Not applied to Domestic Corporations.
Where corporation declines to pay the tax.
Return of withholding agent.

Citizen or non-resident may claim personal exemption.
Information at the source..

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Regarding domestic and foreign securities,
Amounts which applied.
Requirements as to payment.
Treasury Department may require:

Brokers' records.
Stockholders' lists.
Dividend records.

License for collection of foreign payments..

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Annual return of income.
Persons required to make return.

Husband and wife.

Every individual with certain income. 9

Minors.
Guardians and other fiduciaries Returns.
Agents may make returns.
Partnerships' returns.

Farmers' schedules.
Accounting period

Period covered :

Calendar or fiscal year.

How income is recorded. 3

Changing from fiscal to calendar year, etc.
Time and place of return.
Extension of time for filing return.
Understatement

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Corporation Tax

Former corporate income tax laws.
Taxable organizations classified.
Rates under 1918 Law....
Non-taxable organizations
Federal Reserve Banks..
Exempt income

Income on so-called Municipal bonds.
Liberty Loan, Federal Farm loan, etc., bonds.

Public utility income.
Computing profit or loss on sales..
Gross income-domestic and foreign corporations..
Net income and deductions..

Expenses, rentals, etc.
Losses, depreciation.
Interest on indebtedness.
Taxes.
Amortization.
Other deductions.

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Charitable contributions not deductible.

Special credits allowed..

Salary paid employee in Army...

Miscellaneous provisions regarding interest deductions....

Insurance companies, special provisions.

Foreign organizations

Deductions allowed.

Interest on indebtedness.