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Form 1040 0.8. INTERNAL REVENUB
INDIVIDUAL INCOME TAX RETURN | Do Not Write in These Specta
2. S. Spangler.
(Cashier's Stamp) 444 Liberty
(Street and number, or rural route)
Cash Check M. O. Cart. d Ind.
Trading OCCUPATION, PROFESSION, OR KIND OF BUSINESS. 1. Are you a citizen or resident
2. If you filed a return for 1923, to Yog
3. Is this a joint return
Pittsburgh of the United States? ... what Collector's office was it sent?
of husband and wife? ...Xes... Were you married and living with husband
8. If not, were you on the last day of your taxable year supporting one more persons of wife on the last day of your taxable year?
Yes living in your household who are closely related to you by blood, marriage, or adoption? & If your status in respect to questions
7. How many dependent persons (other than husband or wife) under 18 years of 4 and 5 changed during year,
age or incapable of self-support because mentally or physically defective were state dato of such change... receiving their chief support from you on the last day of your taxable year? .....
(tolnia Babedule 1. Salaries, Wages, Commissions, etc. (State nate and addrie of person from whom moeived) Salary (Spangler and Bowman, Pittsburgh, P8.). $. 5250.00....
525000 Compensation as Trustee (G. L. Spangler Estate). 500.00 86.75
413 25 Directors' Fees
913014891 19. Earned Income (see Instruction 19).. $ 2.000.0.1.00. 30. Net Income (Item 18 above).
41. Normal Tax (2% of Ite.. 37)..
80.00.. 20. Less Personal Exemption And Credit
31. Loss Dividends (Item 5436375
290000 for Dependente.......
42. Normal Tax (4% of Item 39)......
160 po 32. Interest on Liberty 21. Balanco (Item 19 minus 20)
43. Normal Tax (6% of Item 40).......... 389.3.11 22. Amount taxable at 2% (not over
44. Surtax on Item 18 (co Instruction
2500bo 4000100 33. Personal Exemption...
30) the first $4,000 of Item 21) .....
281.75.12 23. Amount taxable at 4%. (not over
40000 3100100 31. Credit for Dependents.
45. Adjustment for Capital Gain or Loss the second $4,000 of Item 21)..
(1243% of Column 9, Schedule D). 24. Amount taxable at 6% (balance None
35. Total of Items 31, 33, and 34..... over $8,000 of Item 21).
46. Total of Items 41 645
s 32308 21 25. Normal Tas (2% of Item 22).. 8000 26. Balance (Item 30 minus 35).
72885016 47. Less Credit of 25% of Tax on Earned
52 bo 28. Normal Tax (4% of Item 23). 124 100 37. Amount taxable at 2% (not over
400000 the first $4,000 of Item 36)
48. Total Tax (Item 46 minus 47) s 3225721 27. Normal Tax (8% of Item 24)......... None
6888516 49. Less Income Tax paid at source.
38. Balance (Item 36 minus 37) 28. Normal Tax on Earned Net Income
50. Income and Profits Taxes paid to a (total of Items 25, 26, and 27)... 204 00 39. Amount taxable at 1% (not over
400000 the second $1,000 of Item 36)
foreign country or U.S. possession 30. Credit of 25% of Item 28 (not toer.
51. Balance of Tax (Item 48 minus 51 og 40. Amount taxablo at 6% (balance
Items 49 and 50)..............
32257 21 ceed 25% of Items 41, 42, and 43). S
over $8,000 of Item 36) An amended return must be marked "Amended" at top of return
Checks and drafts will be accepted only if payable at par
(Reproduction of Page 1 of Return)
SCHEDULE A-INCOME FROM BUSINESS OR PROFESSION (See Instruction 2)
1. Total receipts from business or profession (state kind of business).
Cost or Goods SOLD
OTHER BUSINESS DEDUCTIONS
of "Labor," reported on Line 2,
in table provided therefor at foot of page)
on separate sheet)
theplanation of deductions Glamod on Lines 5 and 16.
Explanation of deductions claimed in Column 7..
3. AMOUNT RECEIVED PREVIOUSLT ALLOWED
& VALUE AS OY
7. BONSEQUENT 6. Cost
MARCH 1, 1912 IXTROVEMENTS
1. ECOND OT PROPERTY
& NET PROFIT (Enter as Itam )
Btate hor property
7. VALUE AS Or
MARCE 1, 1913
No. Day Year Mo. Day Year
State how property
SCHEDULE E-INTEREST ON LIBERTY BONDS AND OTHER OBLIGATIONS OR SECURITIES (See Instruction 8)
PRONCEAL 1. OBLIGATIONS OR SECURITIES
2. INTEREST RECEIVED
& AMOUNT OWNED
DX RECESS or
& INTEREST ON AMOUNT IN EXCES
or EXEMPTIONS (Eator w Itata 8)
$5,000 (6) Liberty 4% and 48% Bonds...
2 DATE ACQUID
4. VALUE 13 OF 5. SCASEQUENT 6. DEPRECIATION 7. INSURANCE AND
IXPROYEVENTS PREVIOUSLY ALLOWED SALYAOE VALGE
SCHEDULE F-EXPLANATION OF DEDUCTIONS CLAIMED IN ITEMS 1, 12, 14, AND 15
86.75 Item 12: Taxos - Property. 3590.29 - Luxury... $126.90 . club. Dyes...$39.. 33.
755.62 Item 14: Bad Debts Fitten Off During the Year
550,00 Item 15: Contributions to Educational and Charitable Corporations
22967.45 AFFIDAVIT I swear (or aflirto) that this return, including the accompanying schedules and statements (if any), has been examined by me, and, to the best of my knowledge and belief, is a true and cotaplete return mado in good faith for tho taxabie year as stated, pursuant to the Revenue Act of 1924 and the Regulations issued under authority thereof..
INCOME TAX QUESTIONS AND PROBLEMS
1. Distinguish between allowable deductions and credits and explain how each should be classified in the Income Tax Return for an individual.
2. An analysis of the accounts kept by Henry Cameron shows that he has received dividends during the taxable year as follows:
(a) A cash dividend received from the American Steel Company, a domestic corporation, which is itself subject to the income tax. . $1,400.00
(b) A stock dividend received from the Wheeler Manufacturing Company, a domestic corporation, which is itself subject to the income tax...
800.00 (c) A cash dividend received from the Canadian Milling Company, a foreign corporation, which secures more than 50% of its income from sources within the United States.. 1,750.00
(d) A cash dividend received from the London Express Company, Ltd., a foreign corporation, which receives no income from sources within the United States...
$4,350.00 How should each of these dividends be classified on Mr. Cameron's Income Tax Return?
3. Under what condition may interest received from obligations of the United States be taken as a credit in computing the normal tax?
4. Under what conditions is a taxpayer entitled to the following credits ?
(a) A personal exemption of $1,000.00?
6. (a) Is it necessary for individuals who have an income in excess of the credits allowed by Law to pay a normal tax?
(b) What amount of net income is an individual entitled to receive without becoming liable to the surtax?
7. If H. C. Hewitt has a gross income of $1,600.00 for a period of nine months, what is the amount of his annual income under the Income Tax Law?
8. When should the income tax be paid?
9. If Mary Whitaker files an Income Tax Return for the current calendar year and elects to pay the tax on an installment basis, on what dates will it be necessary for her to pay each installment of the tax?
10. What is the purpose of an Income Tax Working Sheet?
Irwin Bell is a married man with three small children. His gross income for the current year amounts to $4,000.00 while he claims $1,500.00 as allowable deductions. Should he file a return? If so, what is the amount of his taxable income? If any tax is to be assessed compute the amount. 12.
George Vine, who is a married man, has a net income of $4,500.00 for the current year. His wife has an income of $1,450.00 from services. His daughter, who will be eighteen years of age next March, earns $940.00 as a stenographer. Assuming that the husband and wife unite in filing a single joint return, compute the amount of tax to be paid.
Charles Springer is a single man and has a net income of $5,000.00 per year. His father, who is totally blind is dependent upon him for support. Anna Springer, his fifteen year old sister, is also dependent upon him. Both live with him. What exemption can Charles Springer claim in filing his Income Tax Return? Compute the tax.
14. A widowed mother died, leaving three children under 15 years of age. Herbert Esser, an unmarried uncle, took charge of the children on January 1, of the current year, and supported them during the year, maintaining them in his own household.
Mr. Esser's Income Consisted of:
4,000.00 Total Income.
Prepare Mr. Esser's Income Tax Statement.
15. Harry Greber, a single man, has a taxable income of $30,000.00 for the current year. He also has the following expenses: Taxes on Home....
$ 210.00 Interest on Mortgage.
16. I. S. Sunday is cashier of The Fort Wayne National Bank. He is a married man and has a child seven years old. He keeps no books, but from such information as is available, he submits the following statement of cash receipts and expenditures:
$3,800.00 Interest on First Liberty 372% Bond (500 par)
17.50 Interest on Third Liberty Loan 474% Bonds (1000 par)
37.50 Interest on Fourth Liberty Loan 474% Bonds (1000 par) 47.50 Bonus from The Fort Wayne National Bank..
30.00 120.00 35.00 40.00 200.00
On a basis of the facts given above, prepare a Statement of Mr. Sunday's Income Tax for the current year.
17. Mr. Richard Roe, a married man, requests you to prepare his Federal Income Tax Return. Owing to a change in his taxable period, it is necessary for him to file a return for a period of ten months ending December 31 of the current year. The following information was ascertained from an audit of his books.
Income Received During the Year
$5,000.00 Directors' Fees..
105.00 Rent of Property (net).
7,596.54 Interest on Investments.
1,648.32 Dividends on Bank Stock...
2,500.00 Dividends on Stock Held in Industrial Companies.
11,500.00 Dividends on Stock of a Corporation Organized and doing Business in a Province of Canada.....
1,500.00 He Has Paid Out: Interest on his Personal Indebtedness..
2,500.00 Taxes on Income-Producing Real Property
1,600.00 Taxes on Real Property not Producing Income.
400.00 Personal Household Expenses..
2,500.00 He Also Reports: Loss of a Dwelling House, by fire, from which he had received Rents, no Insurance being carried...
1,200.00 Judgment rendered against him in his suit to collect on
the past due note of Harry Hanson:
320.00 Legal Expenses..
150,00 2,470.00 Prepare statement showing computation of tax.