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Show TX (),:!: TAX FACTS ; ""reqiiont imiuiries are received by ; '''dlcctor-- of internal revenue from : -'torekeepers ami other business men J as to whether the taxpayer in busi-,!:mss busi-,!:mss for himself may deduct from his gross earnings an amount of sal-;::r- paid to himslef. Wages or salary i drawn by a taxpayer from his own jbnsiness arc- more in the nature of a charge out of profits than a charge : against profits. If deductible they ;'"-o',ild merely be added to his income and the effect would be to take mon- ey out of one pocket and put it in j anoth-r. Therefore, claims for such 'baim-tions are not allowable. Salaries paid to minor children emplovoi! in the conduct of a tax-paver's tax-paver's business are not allowable deductions. If. however, a son or daughter has aTtained majority, or ?. allowed fro- use of their earnings without restriction. a reasonable amount paid as o-.iprni ation for their services may be c'a-.med. A farmer who employes a man to assist ln the epilation of his farm may deduct from gross income the amount paid for such scrvioes. Like-if Like-if ',e employs a wofl' frhose "ntire lime is occupied in' taking "".'e of the milk, cream, butter, and cnurns. of if her services are devoted "ntirely to the preparation and serv-;ng serv-;ng of m-eel? furnished farm laborers and in caring for the rooms, the 'nmpeiisaiion paid her is an allowable allow-able deduction. If. caring for the 'armer's own household no deduc- "f '.in no maue. In arriving at net income upon which the tax is assessed, deductions may lie made for ordinary and neces-"nry neces-"nry business expenses. The revenue act specifically prohibits the deduction deduc-tion of pr-rsonal expenses. Such ex-nenses ex-nenses includ e' rent for a home, wages wag-es of servants, cost of food and clothing cloth-ing for the family, edication for the children, "and all items connected with the maintenance, well-being, and nleasnre of the taxpayer and his fam il.v." |
