The Courier News from Blytheville, Arkansas on January 1, 1953 · Page 2
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January 1, 1953

The Courier News from Blytheville, Arkansas · Page 2

Blytheville, Arkansas
Issue Date:
Thursday, January 1, 1953
Page 2
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?A"01! TWO BLTTTIEVIMJS (ARK.) COURIER NEWS Y«nr Income Tax Primer— Handling Income from Dividends BT RICHARD A. MUI.I.EKS JS'EA Income T»i Expert Today millions of people own bonds, stocks, and other securities and receive millions of dollars ns dividends or interest each year. Most dividends and Interest are taxable and have to be reported as Income. Some, however, are hot taxed and do not have to be reported. This article tells what dividends «nd Interest are not taxed and how to report those that are. It also covers income from a business or profession. Here are pavm«nU you may receive as k storkholik-r which DO NOT have to be reporlrrl as Income: A return of capital invested In the company. Payments from earnings accumulated prior to March 1, ]0I3. Stock dividends or stock riuhts which do not chunge the stockholder's proportionate share in the corporation. When a corporation makes any of the above distributions to its stockholders, it will Rencrally Include a statement telling stockholders that the distribution Is non- taxuble. Most dividend payments arc. madf out of & corporation's earnings and must b« reported as Income on line 3 of Form 10IOA or on Schedule A of Form 1040. Additional Information Is found on page 6 of Die official instructions. All taxable Interest received by you must be reported In Schedule B of Form 1010 or on Hue 3 of Form 1CHOA. Most Interest is taxable. However, If you own any bonds or securities issued by a city or stale, the Interest on these Is not taxed. The interest on many United States bonds Issuer prior to March 1. 1941. Is wholly or partially tax- exempt. If you, have any such bonds, read the Section under "Interest" on page 6 of the official Instructions. You must report interest on BRV- Ings arid deposit accounts when it is credited to your account evon though It has not been entered In your bank book. Interest represented by a bond coupon should be re• ported in the year when the coupon Is due and payable even though you don't clip and cash it. Vnu can report the Interest on Defense. War and Sa"lnirs bonds' In ellhtr of two ways. These are the bonds (hat nay you J4 for every $3 you Invest If they are held to m»- turilj. First way: Ignore them until you cash them, snd then report n.s Interest the entire difference between what you get and what you paid Tills Is the easiest way. •Second way: Report tut- Interest each year as It accrues. The amount of accrued interest can be determined from.the (able on the back of the bond. It is the difference between what you paid and what vou could cash the bontTfor on Dec 31 1952. Subtract from this any Interest you reported from these bonds on previous returns, and report the rest year. Once you start uslnn this method you cannot'ehanee without first getting permission from your collector - Income from s business or profession Is reported on a separate Schedule O which la fH e d with Form 1040. Schedule c nlso has n section to use If you must pay the •elf-employment tax which went ,. Into effect Jnn. 1. 1351. The next article of (he Primer will tell you how to fill out the section on self- emnIo3Tnent tax. Onir persons In business iy them- •elvts should DM Schedule C ,Thl« meant the man who owns his own shop or nrmctlccs « nrofrsslon by Wmself. no noi'tiM Schedule C to report income from a partnership or •W payment* received as in em- ploye. Even though you are an employe, you may also operate a separate business on the side. In that case, report - your employe Income on page 1 of Form. 1040 and your business Income nnd expenses on Schedule C. Icome tnx primer Gal 2 Thurs... If you have to use Schedule C, read over the Information on page 1 of the official Instructions under "Business or Profession." Then refer to a copy of Schedule C as you read the following helpful tips. Line 1 colls for your total receipts. This Is largely a matter of keeping adequate records throughout the year. If you made any allowances for returned goods, rebates, or discounts, subtract such amounts from your tohil receipts before entering the amount in line 1. . If you produce, buy or sell merchandise, use lines 2 to 10 to compute nnd deduct the cost of the goods solrt. The Important thing in this compulation Is to show the correct amount ot Inventory on hand at Jan. 1, 1952, on line 5. and the inventory on hand nt Dec. 31, 1052, on line 8. The official instruc- (fo-is tell how to figure Inventory. Tile main problem in filling out Schedule C in In determining wh'rh Dxuenscs you may rlprlurl on the various lilies provided. !)nliirtlr>ns must mt^l fh« following Ihrce requirements: 1. Expenses must be Incurred in your trade or business, 2. Expense must not be for a can- Hal Item. This means that if you buy something which would oriii- narilv last more thnn one year or if you ijnnrovc vour nrooerty, such on expenditure is not deductible ex- ceiit through dcorcclatlon spread over the life of the proncrty. 3. The expense nvst be ordinary and necessary In the carrying on of your business. Do not deduct expenditures from your business tor your own personal or fnmlly comfort. Deductions arc allowed to professional and bU5lnc"s men for expenses Incurred In attending business conventions. If it turns out that your 'deductible expenses exceed your business Income, you will e"d up with n net loss on line 23 of Schedule C. Tills loss can be deducted from vour 'other Income reported on Form 1010. If the los.s exceeds your other Income, you have a net operating loss which can be used to olfscl In-oinc In other vears. The neit article will tell you what to do If you have a net onerallni: loss In lor>Z. It win also show how to comnle.te tlie self-employment tax section of Schedule C fox Primer Q & A— Q. I cashed rnr S100 War bniir) »nd received $90. How much ll tunable? A. Only the Interest. Since you paid $75 for it and got $00, the Interest is $15. Q. I have some U. S. bonds, the Interest of which In subject to surtax but exempt from normal'tax. What does this mean? A. Federal 'income tax Is actually part normal tax and "part surtax combined Into ono tax to make computation easier for the vast majority ot taxpayers. The normal tux rate is always 3 per cent whereas the surtax rate KOCS up as Income Increases. Therefore, if you have Interest exempt- from normal tax, you can subtract 3 per cent of the Interest from your tax computed in the usual way provided you file on Long Form 1040 and Itemize your deductions. ( Q. I own itncV In a corporation (h»t dtclired • dividend on ntc. 15, 195Z. I got the dividend check In January, 13J3. Do I report ih« dividend In 195Z7 A. No, since you received the check in 1953, the dividend Is In- come for 1953.. <J. I do « lot of entertaining which' It partly business and partly social. C»n I deduct Hie expense from my builness Incnme? A. You can deduct the business portion. TJils might lake some estimating on your part. Keep In mmd that your expense must lie reasonable In relation to the typo of business you arc In, 19-Year-Old Draft Is Given Okay WASHINGTON im — State selective service directors throughout the country arc tree to draft any 19-year-old needed to fill qiiotas. •Selective service hc-iulcmarters made that clear Tuesday, saying that ,no further Authorization' was needed by states which have exhausted the pool of men 20 or older. An official snlil "several" states- he did not know how many—would have to call 19-year-olds to meet the 53,000-man February quotn Reds Are Bothered BKKMN f/P> —' Russian officials have repeated demands for the immediate dissolution of West Berlin anti-Communist groups which the Soviets accuse of sabotage and spying In Ear,t zone territory, the Soviet-licensed news agency ADN reported. • Rend Courier News classified Acts JAN. i, GOP So/ons Complaining— They Can't Get Line on Jobs By KIHVIN B. HAAK1NSON WASHINGTON «1—Some Rcpub- lican congressmen complained bitterly yesterday they have been un- nbte to get a complete, authentic list ol government Jobs available for deserving Republicans. Forget Washday Drudgery, Send Us Your Laundry! LAUNDRY -CLEANERS After 20 years of Democratic presidents and administrations, these Republicans say they arc having a tough time even learning what Jobs are open to political patronage. Several who dftln't want to be quoted by name said the new Republican Congress, as one of Its first steps, should pass a resolution direct n'i the Civil Service' Commission to supply a list of the thousands of government Jobs that may be filled through political patronage. Sen. Dworshak' (R-Idaho) told reporter: "So far it seems (hat everything has been .done to confuse the situation and make it appear that except for a very few top-level Jobs, Songbirds Note: No Moon dust on Moon - It's Dirt PASADENA, Calif. (ff>> — Writers of love songs take note: The moon. IB not covered with moonduat, Many astronomers »ni geophysl- clst* have backed the «ongwrlters In the theory that the moon was covered with a thick layer of dust. However, Dr. Konard J. Buettner, UCI^A space expert, told the American Physical Society Tuesday that hte observations show that Instead of dust, the surface of the moon is covered with » spongy honeycomb of rock-and dirt. This, he explained, Is caused by heavy cosmic rays from the Bun and distant stars bombarding the moon for a million or more years. Read Courier News Classified Ads. everything U covered by civil service." The Civil Service Commission said Dec. ! that 170,382 jobs were open to political replacement and said many of these were loiv-pald. The federal payroll is slightly over 8ii million. A check of several Republican senator's disclosed that not one had been able to get what he regarded as a complete list of government Jobs where Democrats could be ousted and Republicans installed. It Is known (hat o/flcinls of the Republican National Committee have been attempting to assemble such a list. The task has been assigned to Rep. Albert Cole IH- Kanl. who was defeated for reelection. New Year's Resolutions Just Folly? NEW YORK W - Before ?«n worry about any New Year's resolutions, you might like to he»r tflir Psychologist Ralph Hefferllne of Columbia University Bays they tit » "phony solution of problems—Just word magic. They don't work for most people and even If they do they may not be wise. "Consider what a person does when he makes a resolution to get rid of what h« calls a bad habit," said the professor Just before New Year's Eve. "In doing this, It's as though on* side of his personality sels up rules for the other side. So he really makes two people out of himself. He creates a Situation somewhat »ke a combination of his childhood, when he was defiant and rebellious of rules. "Now he has taken over the p»rt his parent had. That's the part inat. makes resolutions The other part is still resistant and usually manages to sabotage the resolution sooner or later. "What people call bad habits, ar« often Just ivnys of relieving tension -of getting rid 'of anxiety. These things are like safety valves and unless you substitute more adequate ways for them, you might have a situation that recalls what happened In the old steamboat races on the Mississippi when a man would sit no the safety valve to get up more steam pressure. Sometimes the boat blew up." FAMILY SHOE STORE 1312 W. Main; IPhone 23421 TREMENDOUS SAVINGS! LADIES' Fall & Winter Shoes Calfskins — Suedes — Patents Hrnken I,ots in famous names . . . Red Cross, Town & Country, Koot Flairs, American Girl and Debs. Wonderful values! Come in early for • best selections. VALUES TO 11.95 PAIR MEN'S Oxfords & Loafers 286 PAIRS IN BROKEN LOTS *. VALUES TO 15.95 Now Only BOYS' Saddle Oxfords IN BROWN & WHITE and Brown Loafers Sizes 3 to 6—^A to D Widths PAIR Women's Casuals LOW HEEL STRAPS, SUEDES & SMOOTH LEATHERS 2 00 PAIR 2 Pairs for 3.50 Children's Oxfords and Straps Broken Lots Sizes 8 to 3 2 00 PAIR Women's House Slippers & Slipper Sox Values! Values to 2.99 1 39 PAIR Infant's Slipper Sox Values! Age 1-2-3 Now Only 1 00 PAIR Sa/e Starts 8:30 a.m. Friday! Sorry, No Refunds or Exchanges!

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