| OCR Text |
Show ; : Taxable Income Not Cash Alone In filing their income tax returns I for the year 1921, taxpayers must remember re-member that taxable income is not I necessarily cash. Where services are paid for with something other than money, the fair market value of the I thing taken in payment is the amount am-ount to be included in income. For example, the value of merchandise received by a clerk of a grocery store as part payment for his services must be reported as income. Compensation Compensa-tion paid an employee of a corporation corpora-tion in shares of stock is to be treated treat-ed as if the corporation sold the stock at its market value and paid the employee em-ployee in cash. Promissory notes received in payment pay-ment for services and not merely as security for such payment constitute income to the amount of their fair market value. Living quarters and meals furnished as compensation for services are to be reported as income. in-come. A hotel clerk given a room and his meals as part payment for his services is required to report as income the amount he would have to pay for board and lodging elsewhere. else-where. The value of quarters, light and heat furnished army officers, whether wheth-er stationed at an army post or paid from funds allowed for such purposes pur-poses when officers are stationed elsewhere is taxable income in an amount equal to the cost to the government gov-ernment of furnishing such quarters, j etc. Where an officer or enlisted i man is allowed certain commutation in lieu of quarters, light and heat, the entire amount received for such purposes for the taxable year must, be included in gross income. Where living quarters, food, clothing, etc., are provided for an employee solely for the convenience of an employer, the value thereof need not be included in the income of the employee. For example, where because of location and nature of the work, it is necessary that employees em-ployees engaged in fishing and canning can-ning be furnished board and lodging by the employer, the value of such board and lodging may be considered consider-ed as contributed for the convenience of the employer. The value of board and lodging furnished employees of hospitals as part compensation for services is to be reported as income. If, however, an employee of a hospital is subject to immediate service on demand at any time during the twenty-four hours of the day, and on that account ac-count is obliged to accept quarters I and meals at the hospital, the value of such need not be reported as income. in-come. If, the employee is on duty a certain number of heurs, and could, if desired, obtain meals and lodging elsewhere than at the hospital, and at the same time perform the duties du-ties required of him, the ratable value val-ue of the board and lodging furnished furnish-ed him is considered additional compensation. com-pensation. The value of quarters, subsistence, laundry, heat and light furnished officers of-ficers and employees of the public heath service constitutes income and must be included in their returns for the year. To avoid penalty, returns must be filed on or before midnight of Mar. 15. |
