Ogden Standard-Examiner | 1923-02-16 | Page 4 | Income Tax Facts

INCOME TAX FACTS I X No lL 17 1 In computing net Income a n ta tai e Imay flay mav deduct from gross gros Income losses lose I Incurred in his trade or t ir r I In in any transaction entered entert Into for tor I profIt or If it from fires storms ship ship- w a rock reck or other othor casualty or from theft Deductions for tor are aro permitted 1 only to the tho extent elent the they are not corn corn- com compensated om- om for by Insurance or other other- otherwise otherwise wise wlee A manufacturer may be compell d to scrap machine machinery because It has hilS dI I become obsolete He deduct the loss Joss Sustained It if he lie has hassold hassold sold or otherwise abandoned 1 the hasI ol 01 oil 1 I machinery Usually to bo to deductible as a los logs lo s the assets upon which th the I loss has been sustained must have o I completely ly ed as a resource 1 to the tho ta taxpayer jar If It a taxpayer er demolishes a building II used in his trade or business and re- re replaces replaces re replaces places it ho he ma may deduct the ios loss sub sub- su tainted Including a reasonable allo allow anco sUb sUb-I anco for tor depreciation and salvage if IC any But It if ho lie acquires as tho the site ot of a 0 ne new nest building land occupied by an anold anold old building demolition of or the old building Is not considered a loss Ut- Ut L in such connection is an In- In In Investment vestment estment of ot capita therefore pot de- de deductible de deductible I Losses connected tutu with Ith transact on ons entered Into for tor profit notto not t to with the h pa es e's trade trado o 0 business must conform closely to the wordIng of the lie statute to be bo allowed example a lawer lawyer y m purchase a 0 warehouse n with ruth Ith tho object of or de lie deriving riving an Income from the rental physician ph buys shares of ot stock out on which he ho hopes bops to make a profit Bo Both h sustain losses base upon a subsequent tale bale which tire deductible But Dut It if either should sell gell his hl residence T v at the time of ot purchase was as bought without intention of or resale the loss if It sn lin anI would rould Vo not bo be ded deductible because It ItI I as not a transaction entered Into I for pro profit tit I Similarly a los loss connected w with Ith the sale of ot an automobile bought for I pleasure or convenience of ot the ti tv- tv I payer er can not be deducted