ANSWERS TO CORRESPONDENTS

Patea Mail, Volume XLIII, 1 August 1919, Page 3

ANSWERS TO CORRESPONDENTS

SOME INCOME TAX QUERIES

C.H.—Yes, algebra may bo used in figuring your return. Personally we employ trigonometry, although many prefer calculus and a couple of lawyers.

Taxpayer —Your problem is as clear as a Chinese laundry ticket. Simply deduct the net profit of losses (plus inventories at end of year) and add income from salaries, wages, bonuses, director’s fees and pensions. Nothing to it I

J.J.C.—Refer to Table 113 on Page 11, Section 28, Part IV. of return. Then if Item 86, Schedule V., line 7, exceeds the sum stated in Item 21, Page 9, Schedule Z, get another blank form.

Confused. —No, you should have figured the amounts in Items 34, 60, and 6!) as net losses from Wear and Tear. Obsolescense and Depletion Charged Off (sec K [2] on Page 8 of Instructions) before entering total in Item 9-1, Schedule 0. It’s perfectly simple.

L.F.—Don’t worry about your 1920 tax. You may not‘have any income.