페이지 이미지
PDF
ePub

This pamphlet prepared by our Counsel, Breed, Abbott and Morgan, is the fifth edition of “Practical Questions and Answers" covering the Income Tax Law. It also contains a digest of all of the Federal Tax Laws now in force affecting individuals, partnerships and corporations, except the tariff law, the tax on distilled spirits and certain other internal revenue tax laws of limited application that have been on the statute books for many years.

For a list of Irving publications, any of which will be forwarded upon request, see the final page of this booklet.

[blocks in formation]

12-8-27m.v.P.

CHARTS

1 Income Tax.....

2 Liberty Bonds.

3 War-Profits and Excess-Profits Tax.

4

6

53

APPENDIX
1 Text of Income Tax Act......
2 Text of War-Profits and Excess-Profits Tax Act.........

90
125

4%

4%

32%

INCOME TAX CHART
This chart and notes show total Income Tax, under the Revenue Act of 1918, payable for
the year 1919, by the head of a family or a married person living with husband or wife and
with no other dependents.
DETAILS OF COMPUTATION

DETAILS OF COMPUTATION
TOTAL Percent of Amount of Percent of Amount of

TOTAL Percent of Amount of Percent of Amount of
Normal Normal Surtaz Surlar

Normal Normal Surtat Surtaz
INCOME TAX

TAX
Tas

INCOME
Tas

Tas

Tas
$1,000 None Exempt None Exempt None 56,000 11,170 8% 4,160 26% 7,010
2,000

None Exempt None Exempt None 57,000 11,520 8% 4,240 27% 7,280
3,000 $40 4% $40 Exempt None 58,000 11,870

8% 4,320 27%

7,550 4,000 80 4% 80 Exempt None 59,000 12,230

8% 4,400

28% 7,830 5,000 120 4% 120 Exempt None 60,000 12,590

8%

4,480 28% 8,110 6,000 170

160 1%

$10 61,000 12,960 8% 4,560 29% 8,400 7,000 270 8% 240 2%

30 62,000 13,330 8% 4,640 29% 8,690 8,000 370 8% 320 2%

50 63,000 13,710 8%

4,720 30% 8,990 9,000 480 8% 400 3%

80 64,000 14,090 8% 4,800 30% 9,290 10,000 590 8% 480 3% 110 65,000 14,480 8% 4,880 31% 9,600 11,000 710 8% 560 4%

150 66,000 14,870 8% 4,960

31%

9,910 12,000 830 8% 640

190 67,000 15,270 8% 5,040

32%

10,230 13,000 960 8% 720 5% 240 68,000 15,670 8%

5,120

10,550
14,000 1,090 8% 800 5% 290 69,000 16,080 8% 5,200 33% 10,880
15,000 1,230 8% 880

350 70,000 16,490 8%

5,280 33% 11,210 16,000 1,370 8% 960

6%

410 71,000 16,910 8% 5,360 34% 11,550 17,000 1,520 8% 1,040 7% 480 72,000 17,330 8%

5,440

34% 11,890 18,000 1,670 8% 1,120

7% 550 73,000 17,760

8%

5,520 35% 12,240
19,000 1,830 8% 1,200 8% 630 74,000 18,190 8% 5,600

35%

12,590 20,000 1,990 8% 1,280

8% 710 75,000 18,630 8%

5,680 36% 12,950
21,000 2,160
8% 1,360 9% 800 76,000 19,070 8% 5,760 36%

13,310
22,000 2,330

8%
1,440 9% 890 77,000 19,520 8% 5,840

37%

13,680
23,000 2,510 8% 1,520 10%

990

78,000 · 19,970 8% 5,920 37% 14,050
24,000 2,690 8% 1,600 10% 1,090 79,000 20,430 8% 6,000 38% 14,430
25,000 2,880

1,680 11% 1,200 80,000 20,890 8% 6,080 38% 14,810
26,000 3,070 8% 1,760

11%

1,310 81,000 21,360 89 % 6,160 39% 15,200 27,000 3,270 8% 1,840 12% 1,430 82,000 21,830 8% 6,240

39%

15,590
28,000 3,470

8%
1,920 12% 1,550 83,000 22,310 8% 6,320

40%

15,990
29,000 3,680 8% 2,000 13% 1,680 84,000 22,790

8% 6,400

16,390 30,000 3,890 8% 2,080 13% 1,810 85,000

23,280 8% 6,480 41% 16,800 31,000 4,110 8% 2,160 14% 1,950 86,000 23,770 8% 6,560 41% 17,210 32,000 4,330 8% 2,240 14% 2,090 87,000 24,270 8% 6,640 42% 17,630

6%

8%

31%

8%

33,000 4,560 8% 2,320 15% 2,240 88,000 24,770 8% 6,720

42%

18,050 34,000

4,790 8%

2,400 15% 2,390 89,000 25,280 8% 6,800 43% 18,480 35,000 5,030

8% 2,480 16% 2,550 90,000 25,790

8%

6,880 43% 18,910
36,000 5,270 8% 2,560 16% 2,710 91,000 26,310 8% 6,960 44% 19,350
37,000 5,520 8% 2,640 17% 2,880 92,000 26,830 8% 7,040 44% 19,790
38,000 5,770

8%
2,720
17%
3,050 93,000 27,360 8% 7,120

45%

20,240
39,000 6,030

8%

2,800 18% 3,230 94,000 27,890 8% 7,200 45% 20,690 40,000 6,290 8% 2,880 18% 3,410 95,000 28,430

8% 7,280 46% 21,150 41,000 6,560 8% 2,960 19% 3,600 96,000 28,970

8%

7,360 46% 21,610
42,000 6,830 8% 3,040 19% 3,790 97,000 29,520 8% 7,440 47% 22,080
43,000 7,110 8%

3,120 20% 3,990 98,000 30,070 8% 7,520 47% 22,550
44,000 7,390 8% 3,200 20% 4,190 99,000 30,630 8% 7,600 48% 23,030
45,000

7,680 8% 3,280 21% 4,400 100,000 31,190 8% 7,680 48% 23,510
46,000 7,970 8%

3,360
21%
4,610 125,000 46,190 8%

9,680 52% 36,510
47,000 8,270 8% 3,440 22% 4,830 150,000 61,190 8% 11,680 52% 49,510
48,000 8,570 8% 3,520 22% 5,050 175,000 77,190 8% 13,680 56% 63,510
49,000 8,880 8% 3,600 23% 5,280 200,000 93,190 8% 15,680 56% 77,510
50,000 9,190 8%

3,680 23% 5,510 250,000 127,190 8% 19,680 60% 107,510
51,000 9,510 8%

3,760 24% 5,750 300,000 161,190 8% 23,680 60% 137,510 52,000 9,830

8% 3,840 24% 5,990 400,000 232,190

31,680

63% 200,510 53,000 10,160 8%

3,920

25% 6,240 500,000 303,190 8% 39,680 63% 263,510 54,000 10,490 8%

4,000

25% 6,490 1,000,000 663,190 8% 79,680 64% 583,510
55,000 10,830
4,080 26% 6,750 1,250,000 845,690

99,680 65% 746,010
NOTES, INCOME: The “Income" referred to in first column means NET INCOME arrived at as per following example:
Salary.

$2,000
Business Expenses..

$110 Dividends on Stocks.. 300 Interest Paid.

20 Dealings in Stocks. 100 Taxes Paid.

30 Profits from Business.

1,800 Losses..

10 Interest, Liberty Bonds, if subject to surtax.. 100 Bad Debts.

80 Partnership Profits—your share.. 1,000 Depreciation.

130 Other Taxable Income.. 100 Gifts to Charities.

20
$5,400

$400
400
Net Income.

$5,000
Non-taxable income, i. e., gifts, interest on state and city bonds, certain nationa Ibonds, etc., is not required to be reported. See page 6
or status of interest on Liberty Bonds.

ADDITIONS TO THE ABOVE TAX:--If you are gle and without any dependents as described in the Statute, your exemption from the
4% tax is $1,000, instead of $2,000 as shown in the chart, and the 8% normal tax will begin to apply at $5,000 instead of $6,000. The same applies
to a married person not living with wife or husband and without such other dependents.

DEDUCTIONS FROM ABOVE TAX:-(a) If you have dependents as described in the statute, your exemption from the normal tax is
increased by $200 for each dependent, resulting in a reduction of your normal tax as above computed by an amount not exceeding $16 for each de-
pendent, according to the size of your income.

(b) If your income includes dividends, your normal tax as above computed will be reduced by 4% or 8% (according to the size of your income) of the amount of your dividends.

(c) For status of interest on Liberty Bonds see page 6. Such interest, if subject to surtax, must be included in gross income, but is exempt from normal tax of 4%-8% as in the case of dividends.

8%

8%

LIBERTY BONDS AND VICTORY NOTES

TAX EXEMPTION TABLE Normal Income Tax.

Interest on all Liberty Bonds and Victory Notes without limit as to amount, is exempt from Normal Tax, until maturity. Surtaxes, Excess-Profits and War-Profits Tax.

Interest on Liberty Bonds and Victory Notes is also exempt from Surtaxes, Excess-Profits and War-Profits Taxes to the extent shown below.

The exemptions mentioned in the last four groups are in addition to those mentioned in the second group. Description of Bonds

Exempt from 1st Liberty 372%, 1947

All Surtaxes, Excess-Profits and WarVictory Notes 334%, 1923

Profits Taxes until maturity.

1st Liberty Conv. 4%, 1947
Ist Liberty Conv. 474%, 1947,

of Third Loan,
1st Liberty Conv. 474%, 1947,

of Fourth Loan 2nd Liberty 4%, 1942 2nd Liberty Conv. 474%, 1942 3rd Liberty 474%, 1928 4th Liberty 444%, 1938 Treasury Certificates War Savings Certificates

Surtaxes, Excess-Profits and War

Profits Taxes on interest on aggregate of $5,000 of bonds (described in this

group), until maturity. Maximum for this group, $5,000 of

bonds.

1st Liberty Conv. 414%, 1947

of Fourth Loan 4th Liberty 474%, 1938

Surtaxes, Excess-Profits and War

Profits Taxes on interest on amount of bonds not exceeding $30,000 of each issue (described in this group), until two years after the date of the close of the war, whether originally subscribed for or subsequently acquired. Maximum for this group, $60,000 of

bonds.

Ist Liberty Conv. 4%, 1947
Ist Liberty Conv. 474%, 1947,

of Third Loan
1st Liberty Conv. 474%, 1947,

of Fourth Loan 2nd Liberty 4%, 1942 2nd Liberty Conv. 474%, 1942 3rd Liberty 474%, 1928 4th Liberty 474%, 1938

Surtaxes, Excess-Profits and War

Profits Taxes on interest on aggregate of $30,000 of bonds (described in this group) until five years after the date of the close of the war, whether originally subscribed for or subse

quently acquired. Maximum for this group $30,000 of

bonds.

« 이전계속 »