Federal Taxes For 1921 |
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Author:
| States, United |
ISBN: | 978-0-217-47441-2 |
Publication Date: | Aug 2009 |
Publisher: | General Books LLC
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Book Format: | Paperback |
List Price: | USD $19.99 |
Book Description:
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Purchase of this book includes free trial access to www.million-books.com where you can read more than a million books for free. This is an OCR edition with typos. Excerpt from book: and 219, but at the rates and in the manner provided in subdivision (b) of this section. This is a relief measure not granted to corporations and confined to capital gains arising from transactions consummated after December 31, 1921. Therefore, it is not effective prior to January 1, 1922. Under the...
More DescriptionPurchase of this book includes free trial access to www.million-books.com where you can read more than a million books for free. This is an OCR edition with typos. Excerpt from book: and 219, but at the rates and in the manner provided in subdivision (b) of this section. This is a relief measure not granted to corporations and confined to capital gains arising from transactions consummated after December 31, 1921. Therefore, it is not effective prior to January 1, 1922. Under the provisions of this section capital gains may be offset by capital losses and capital deductions and capital net gain may, at the option of the taxpayer, be taxed as ordinary net income or at the rate of 12i per cent., provided that the total tax is not less than 124 per cent. of the total net income. For example: A taxpayer (a single man) sells a property which he has held as an investment for more than two years at a gain of $15,000 and during the same taxable year sells another investment property (real, personal or mixed) at a loss of $5,000, both sales made during 1922. His capital net gain is $10,000, provided that there are no capital deductions chargeable against either property. He also receives during the same taxable year a salary and other ordinary net income amounting to $50,000. His total net income is, therefore, $60,000. Under the 1918 Act his total normal and surtax liability would be $12,670. Under the 1921 Act his tax liability for the year 1922 would be computed as follows: Total net income $60,000.00 Less capital net gain 10,000.00 Ordinary net income $50,000.00 Normal and surtax on $50,000 ordinary net income at 1922 rates $ 8,720.00 Taxed at 12 i% on $10,000 capital net gain 1,250.00 Total tax liability for 1922 $ 9,970.00 This capital gain provision is only applicable to gains derived from the sale or exchange of capital assets, that is, gains arising from the sale or exchange of property acquired and held by the taxpayer for profit...