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Show 00 INCOME TAX FACTS More liberal allowance for deductions deduc-tions for contributions is made by th revenue act of 1S.2 1 than was provided provid-ed by the revenue get of i:mi. a new provision is that, in computing net income, in-come, a taxpayer may deduct from gross income contributions or gifts made during the taxable year foi ex-elushely ex-elushely public purposes to the United States, my state or territory, an political po-litical subdivision thereof uiy. county, coun-ty, town or hamlet) or the District of Columbia- Other allowable contributions con-tributions aro those made to an corporation cor-poration or community chest, fund or foundation operated and organized exclusively ex-clusively for religious, charitable, scientific, literary or educational purposes. pur-poses. Including posts of the American Ameri-can Legion, or women's auxiliaries of such poets, or tor the prevention of cruelty to children or animals, no part of which Inures to the benefit of any private stockholder or individual; also to lbn special fund for vocational rehabilitation re-habilitation Such contributions are allowed to an extent not in excess of 1 " per cent of the taxpayer's net in-come, in-come, computed without the benefit of this deduction. GIFTS l DEDUCTIBLE, GlftM made directh to an individual are not deductible, but if made to an Organl tion of Iho kind described ma bo deducted even though the organization organi-zation distributed h funds anion),' individual in-dividual be ne fie 1:1 ries. Deductions for contributions are not allowed corporations or partnerships The members of a partnership or personal per-sonal service corporation may take credit in Hi. ir individual returns for their proportion of su, ;i gift. pro-Vided pro-Vided the pro-rata part, when added to the individual contributions, does not exceed 15 per cent of the taxpayers' taxpay-ers' net Income. However, donations made by cor-poratlone cor-poratlone to charitable Institutions, hospitals or educational Institutions, which legitimately represent a consider consid-er 11 11.11 for .1 benefit flowing directly to tho corporation as ag incident of its business arc allowable deductions as ordinary and neces-sary expenses. For example, a corporation may be-duct be-duct donations made directly to a hospital 1 onducted din ctly or indirectly indi-rectly for the benefit of lis employes or their dependents as a business expense ex-pense Deductions for contributions for political po-litical campaign purposes aro expressly express-ly prohibited by treasury regulations. Amounts expended for lobbying pur-OSes, pur-OSes, the promotion or defeat of leg-islation. leg-islation. tho exploitation of propaganda propa-ganda including advertising other than Hade advertising, are not deductible. Deductions for contributions are allow al-low .-ri only for the year in which actually ac-tually made. Promises to make fu-ture fu-ture contr ibutions should not bo considered con-sidered by the taxpayer. 00 |