Accounting Principles Underlying Federal Income Taxes: 1924 - Eric Louis Kohler - Google Books

Books

TAX-FREE INCOME-SUMMARY.

Insurance. Illustrations of exempt interest. Property acquired

by gift, bequest, devise, and inheritance. Dividends and interest

from building and loan associations. General summary of income.

DEPRECIATION AND OBSOLESCENCE

Intangibles. Basis

Basis of depreciation. Rates of depreciation. Testing deprecia-

tion provisions. Reserve for depreciation.

for computing obsolescence.

AMORTIZATION AND DEPLETION.

Amortization. Assets acquired or amounts expended before April

6, 1917, not subject to amortization. Depletion of mines, and oil

and gas wells. Depletion of timber.

INTEREST AND TAXES

Interest on loans to purchase or to carry tax-free securities.

Methods of computing non-taxable interest paid. Taxes.

BAD DEBTS AND LOSSES.

Bad debts. Deduction of bad debts: the reserve and non-reserve

methods. Losses from trade or business, from transactions

entered into for profit, and from casualty or theft.

NET LOSSES AND CONTRIBUTIONS..

Net losses. Losses under 1918 act. Losses under 1921 act. Con-

tributions in general. Donations to religious, charitable and

educational institutions. Gifts to cities. Contributions may be

money or property. Proportionate shares. Valuation of con-

tributions. Amounts paid into pension funds not deductible

by corporations.

INSURANCE-TRAVELING AND OTHER EXPENSES.

Insurance premiums as a business expense. Traveling expenses.

Compensation to employees. Rent. Professional expenses. Mis-

cellaneous business expenses.

THE VALUATION OF INVENTORIES.

Taking the inventory. Pricing. Cost basis. Market-raw ma-

terials and goods bought for resale. Market-goods in process.

Rules applicable to certain businesses.

NON-DEDUCTIBLE EXPENDITURES

Non-deductible expenditures in general. Personal expenses. Cap-

ital expenditures. Non-allowable deductions of corporations.

General summary of deductions.

INVESTED CAPITAL

INVESTED CAPITAL: CAPITAL STOCK-PAID-IN SURPLUS..

Theory of invested capital. Present importance. Effect on tax

payable, 1919-21. Illustrations. Capital stock. Status of un-

paid subscriptions. Values in excess of par value of stock;
paid-in surplus recorded and not recorded on books.

INVESTED CAPITAL: EARNED SURPLUS-INTANGIBLES.

Earned surplus. Deductible and non-deductible reserves. Addi-

tions to earned surplus. Intangibles: limitation thereon.

INVESTED CAPITAL: CHANGES DURING YEAR-INADMISSI-

Changes in invested capital during year. Additions and deduc-

tions: Federal taxes, dividends, stock sold and retired. Inadmis-

INVESTED CAPITAL:

REORGANIZATIONS SPECIAL CASES-

Reorganizations and invested capital. Reorganizations prior

and subsequent to March 3, 1917. Special cases. Abnormal

conditions affecting the income or invested capital of a cor-

poration. Summary.

RATES OF TAXES AND RETURNS

WITHHOLDING AND INFORMATION AT THE SOURCE-CREDITS

General significance of withholding at source. Credits allowed:

Individual normal tax, individual surtax, corporation normal

tax, corporation excess profits tax.

RATES OF TAX-FISCAL YEARS-CREDITS FOR FOREIGN

Normal and surtax rates for individuals. Corporations. Credits

for income and war profits taxes paid to a foreign country.

Fiscal and partial years.

INDIVIDUAL AND CORPORATION RETURNS

Payment of taxes. Extensions granted by collector and by Com-

missioner. 1923 individual and corporation tax returns illus-

APPLICABILITY OF INCOME TAXES

INDIVIDUALS SUBJECT TO TAX-FARMERS-ESTATES AND

Individuals liable to tax. Joint and separate returns of husband

and wife. Income of minors. Returns of executors and admin-

istrators. Taxability of trusts. Incidence of tax on trusts and

estates and their beneficiaries.

PARTNERSHIPS-PERSONAL SERVICE CORPORATIONS

Taxation of partnership profits. Credits taken by partners.

Returns necessary. Taxation of personal service corporations.

Corporations classed as personal service corporations. Cor-

porations partly personal service.

RESIDENT AND NON-RESIDENT ALIENS AND FOREIGN COR-

Taxation of income of resident aliens. Determination of who is

a resident alien. Income of non-resident aliens and foreign cor-

porations. Residents of Mexico and Canada. Income from

possessions of the United States.

ORGANIZATIONS SUBJECT TO THE CORPORATE TAX-IN-

SURANCE COMPANIES-CONSOLIDATED RETURNS.

Powers of a corporation determine its exemption. Agricultural

and horticultural organizations, mutual savings banks, fraternal

beneficiary organizations, building and loan associations, ceme-

tery companies, community chests, funds and foundations for

religious, charitable, scientific, literary and educational purposes.

Business leagues, civic leagues, and social clubs. Mutual insurance

companies, cooperative associations. Insurance companies divided

into three groups for tax purposes. Requirements for consoli-

dated returns. Retroactive provision of 1921 act.

REVIEW OF RETURNS-CLAIMS-PENALTIES

Audit of returns. Hearings before field divisions, Income Tax

Unit, and Committee on Appeals and Review. Claims for

abatement, credit and refund. Nature of appeals and briefs.

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FORMS

I.

Chart used for computing corporation income and excess
profits taxes 1919-21
...between 220-221

2. Income taxes applicable to individuals (1921-23) and
corporations (1922-23)

222

3. First page of Individual Income Tax Return... .. 229 4. Page 2 of Individual Income Tax Return...

230

236

5. Certificate of Inventory attached to Individual Return. 231 6. First page of Corporation Income Tax Return....... 235 7. Page 2 of Corporation Income Tax Return. 8. Page 3 of Corporation Income Tax Return.. 9. Page 4 of Corporation Income Tax Return.... Schedule G attached to Corporation Income Tax Return 239

10.

II.

...

237

.. 238

Certificate of Inventory attached to Corporation Re

turn..

240

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