SUGGESTED DRAFT STATEMENT TO BE PREPARED BY INDIVIDUAL TAXPAYER BEFORE FILLING IN FORM 1040 · PARTNERSHIP PROFITS FOR NINE MONTHS ON ACCOUNT OF CHANGE IN ACCOUNTING PERIOD $1,000.00 Do not report $8,000.00 7,000.00 200.00 2,800.00 $18,000.00 B - Col. 4 Salary from firm... Profit on sales of stocks. E. Col. 3 - Col. 7 Rents..... $400.00 1,800.00 400.00 Do not deduct Taxes account opening of new street..... $50.00 Interest on First Liberty Bonds, 3% 3%... $350.00 Do not report $1,800.00! Do not report 8212.50% Do not report $1,245.00$ Do not report 13 (d) SCHEDULE & ITEM 16,000.00 $15,000.00 Do not report 14,000.00 Interest on corporate bonds containing "tax-free" provision...... 2,000.00 G -1 Interest on corporate bonds containing no "tax-free" provision....... 1,600.00 Interest on bank deposits. ...... 200.00 As partner, distributive share, not including partner's share of dividends and interest on U. S. obligations received by firm (Jan. 1, 1919, to Sept. 30, 1919). ... 45,000.00 Total Net Income. $106,000.00 G-3 $200,00 General deductions not claimed above: Deduction for interest on loan. ... Third and Fourth Liberty Bonds. ..... . ........................................ 675.00 1,375.00 Total Net Income (before deducting contributions)..... $104,625.00 I - 4 Amount allowable is 15 per cent of net taxable income: ..$104,625.00 15,693.75 888,931.25 Credit cash dividends direct.... ... $16,000.00 Credit cash dividends-received through partnership (Jan. 1, 1919, to Sept. 30, 1919)... 24,000.00 40,000.00 L & 15 K (a) K(a) Interest is exempt owing to $30,000 Fourth Liberty Bonds being originally subscribed for and still held. 25 Amount subject to tax at 4% (not over $4,000).. Balance subject to tax at 8%..... $88,931.25 Total Tax.. Balance of Tax due....... 12 Not included as it.ccme as required by Art. 31. Reg. 45. See page 414. INDIVIDUAL TAXPAYER RETIRED MANUFACTURER (CITIZEN), MARRIED. NO NORMAL TAX. SUBJECT TO SURTAX. STOCK DIVIDENDS RECEIVED DIRECT. FORM 1040 & ITEM Cash from Trust Fund ..... Profit from Sale of Property: June 30, 1919...... $ $50,000.00 6,000.00 D - Col. 3 854,500.00 60,000.00 82,500.00 Selling price..... Net Profit from Sale of Property ..... Rentals from apartment house, 6 months.. Net Income from Rents.... From bonds held in Trust Fund... ......................... 8700.00 900.00 400.00 400.00 ..................................... 2,400.00 $100.00 2,000.00 $4,500.00 100.00 ....... $4,400.00 Other Income: Interest on bonds (not tax-free), mortgages, etc ........ ................................. . دیا 250.00 300.00 250.00 :: Total Other Income..... I-1 8500.00 1-2 ............ ....... .............. Total Net Income from above Sources... Interest on all personal loans. ... $2,000.00 200.00 30.00 of net income without this deduction... bondholders of this class—cost.... 2,230.00 300.00 6,917.25 D 5,000.00 J & 22 K (a) Total General Deductions ........ a loss designated by minus sign ..... Received directly..... Total Cash Dividends Received ..... $41,000.00 45.00 K (a) L - 15 There is no normal tax, as Item J represents a loss. This taxpayer, however, is subject to surtax. |