ILLUSTRATIONS OF RETURNS On the following pages are shown illustrations of returns under varying conditions. Pages 1040-1041 1942–1044 1045-1048 1049-1052 Individual: dar year-cash basis............... cash basis......................................... Retired manufacturer (citizen), married, no normal tax, subject to surtax. Stock dividends received direct.. Merchant (citizen), married, subject to surtax. Liberty bond interest ........ ...... Married man (citizen), 2 children (under 18 years), subject to surtax, having one-half interest in partnership. In- 1918-1919 rates (fiscal year ending September 30, 1919) Married (citizen), no children, subject to surtax. Cash dividends received from domestic and foreign corpora- October 31, 1919. ................................. All income from "tax-free" bond interest......... ceived through partnership and calculation of exemp- 1053–1055 1056-1057 1058 1059–1060 1061-1062 Corporation: year 1919...... ciliation of taxable income with books of account. Calendar year 1919............................... Schedule A, Form 1126. Taxable net income, three com panies, consolidated. Calendar year 1919........... Schedule M (old form, Schedule B), Form 1120. Recon ciliation of taxable net income with books of account, three companies, consolidated. Calendar year 1919... Calculation of income tax for fiscal year ended March 31, 1919................... : Schedule showing reconcilement of book net income with net income subject to income and excess profits ta’es. 1063-1064 1065-1067 1068–1069 1070 1071-1072 SUGGESTED DRAFT STATEMENT TO BE PREPARED BY INDIVIDUAL TAXPAYER BEFORE FILLING IN FORM 1040 A 0.00 Do not report $2,500.00 300.00 $2,300.00 $ 200.00 800.00 600.00 . . . . .. .. . . .. .. .. . . .. Rents. ... $150.00 1,100.00 500.00 Interest on First Liberty Bonds, 33%....... Interest on Second Liberty Bonds, 4% (principal $15,000).... Interest on corporate bonds containing "tax-free" provision..... Total Income..:::..! Third and Fourth Liberty Bonda .54.00 100.00 Do not report Deduction for State Income Tax.. Net Income before deducting contributions ..... Amount allowable is 15% of net taxable income, viz., income as above...... 15% thereof.. I-4 729.00 J & M Net Income subject to Normal Tax.. $3.531.00 $53.34 8.00 Normal Tax at 4%... Net Tax due........ $45.24 Exempt from all Federal income tax. 'Interest is exempt owing to $10,000 Fourth Liberty Bonds being originally subscribed for and still hold. 'Interest to extent of $5,000 of principal any issue, exempt. No Fifth Victory Bonds originally subscribed for. Not included as income, as required by Art. 31, Reg. 45. See Page 414. |