Returns of information not required Recoveries, 321 Sickness, exempt, 223 Torts, unliquidated claim for, 237 Date (See also "Due Date," "December 31, 1920," "March 1, 1913") Day Nursery, Exempt, 25 Dealers, Installment sales, test for "regu- Dealers in Foreign Exchange, Deductions Death (See also "Decedent," "Husband and Local taxes assessed after, not deductible, Transfer of property in contemplation of, Debenture Bonds (See "Bonds") Debtors, Returns of information at source, Debts (See "Indebtedness") Bad (See "Bad Debts") Decedents (See also "Estates and Trusts," Accounting basis continued, 1230 Accrued interest on notes deductible, 802 Decedents-(Continued) Estate in process of administration, in- Income collected but not given to, 1230 688 Income to estate during administration, Inheritance tax never deductible, 824 Interest credited to by insolvent corpora- Net losses not deductible, 894 Former procedure, 1281 Payment of tax by executor or adminis Personal exemption, 120, 121. Credit for dependents, 118 When not required, 1267 Stock rights owned by, 1234 Valuation of securities owned by, 523 Gifts and transfers in trust after, 460-464 U. S. Board of Tax Appeals, index to Declaration of Intention, Foreigner having Deductions (See also "Credits Against In- Allowed (See also subheading below under Accounts receivable purchased, found Advances to salesmen written off, 937 debts, 891 Deductions-(Continued) Allowed-(Continued) Bonds, worthless, 920 Former procedure, 920 Bonus paid for early delivery, 790 Business, contributions must relate di- Business expenses paid from salary, 723 Commissions in advance to trustees, 772 Cost of changing accounting system, Cost of mistakes, 751 Cost of patent infringement litigation, Damage from freezing water pipes, 882 Demolition of building, 860-863 Depreciation, 747 (See also "Deprecia- Discount on bonds sold, 800, 885 Dues paid to labor unions and benefit Employers' liability award, 777 Estate's income accumulating for char. Expenditures for benefit of employees, Expenses because of additional assess- Fees paid to secure employment, 789 Field officers, Internal Revenue Bu- Fire loss, 883 Application of one year's to succeeding Application of, to surtax and normal tax, Authors, 578 Banks (See "Banks, Deductions") Business expenses (See under "Business Business losses, 864-879 (For detailed in- Capital contributions of members of syn- Capital, definition, 561 Capital net losses (See "Capital Net Carrying charges, 439 Casualties, 879-883 (For detailed index China Trade Act corporation, 125 Deductions (Continued) Deductions (Continued) Corporations (See "Corporations") Certain dividends received, 112 Former procedure, 112 Dividends, 4 From gross income, 4 Losses, 885-891 (For detailed index see "Corporations") Deductible in year other than that in Depletion (See Table of Contents, p. 1063) 940) (See also "Depreciation") Accommodation sales, 855 Alterations and improvements, 745 Automobile used for daily trip to office, Bets, 879 Bills left by absconding contractor, 884 Building collapsing while under con- Campaign contributions, 786 Cancellation of insurance policies loss, Cavalry officers' club dues, 737 Compensation for personal services, Cost of copyright and plates, 753 Cost of drilling unproductive wells, 753 Cost of installing machinery, 749 Damages from accidents, 880 Damages for personal injury, 882 Debt paid after discharge from bank- Disallowed-(Continued) Estimated expenses, 721 Exhaustion, making good, 720 Expenses because of personal additional Expense defending title to oil lands, Fines, 798 Freight reserves, 794 Goodwill payments, 754 774-778 (For details see Insurance agencies' reserves for antici- Insurance costs, 774-778 (For detailed Interest on loans to purchase certain Losses resulting from illegal seizure of Losses voluntarily assumed, 877 734 Moving expenses on change of employ- Payment to receiver, 797 Personal or living expenses, 720 Property transfer:ed by gift or inher- Real estate brokers' commissions, 772 Rent, excessive, because of location of Reserve against rejections, 781 Safe deposit box, personal, 723 Sale of treasury stock at less than cost, Stock Exchange listing fee, 745 Taxes assumed by purchasing corpora- Taxi fares. 725 Tickets given customers, 718 Title to property, perfection cost, 749 Traveling expenses in search of work, Deductions (Continued) Disallowed-(Continued) Traveling expenses on employment in Unless made in year expenses are in- Voluntary assessments, 852 Wages paid minor children, 729 Wash sales, 856 Dividends (See "Dividends") Estates and trusts, 1241-1249 (For de- Computing net income, 686 Expenses (See Table of Contents, p. 715) Fiduciaries, income collected by guardian, Foreign corporations, 1187 (See also Portion not allowable as credit, allow- Former procedure, 146 Subsidiary, not allowed as credit, not From gross income, Business, 314 Differentiated from exemptions from Estates and trusts, 697-701 From income, 152 General considerations, 713 Gifts (See Table of Contents. p. 1132) Income accrued during administration pe- Individuals, losses, 842 Installment sales, 538 Interest (See Table of Contents, p. 799) Life insurance companies (See Table of Losses (See Table of Contents, p. 841) Non-resident alien beneficiaries, 703 Obsolescence (See Table of Contents, p. Ordinary, definition, 562 Former procedure, 562 Overlapping items, period in which in- Partnership, information needed for, 675 Differing from period in which income Property losses, 845-864 (For detailed in- Deductions-(Continued) Rent as income (See "Rent as Income") Taxes (See Table of Contents, p. 810) Theft or embezzlement, 883-884 (For de- Deeds of Trust, Containing tax-free cove- Deferred Assets (See "Assets, Deferred") Deferred Income, Lawyer's fee in advance, Deferred Payments (See also "Installment Depreciation of property subject to ex- Real estate, 544 Commissions, etc., included, 547 First payment over 25%, 546 Deficit, Depreciation deduction in case of, Delinquencies (See "Failure to File Re- Demand (See "Notice and Demand") Department Stores, Inventories, change of Dependents (See also "Husband and Wife," Chief support of, personal exemption, 114 Date determining exemption, 118 Earnings of minor child included in Father paying mother alimony not en- Father supporting child in custody of For, change of taxpayer's status, 118 Resident alien for dependents abroad, 113 Returns for fractional part of year, 118 Depdenency, test of, 117 Exemption from withholding, non-resident Living abroad, credit allowed resident Minor supporting, credits, 114 "Discovery" restricted to mines, 433 Distributions from reserves, 651 Are capital distributions, 653 Adjustment on termination of lease, Applicable to advanced royalties, 576 Former procedure, 1099 Net loss computation must consider ex- Oil and gas wells, 520 Allowance fixed, 433 Former procedure, 433 Basis changed, 1064 Computation of net loss affected by, 896 Former procedure, 1107 Limitation on aggregate deductions re- Reserves, distribution from, 653 Timber lands, 1065 (See Table of Con- Deposit, Certificates of (See "Certificates Depositors, Insolvent bank, as preferred Deposits, Interest, Deductible, 801 Non-resident aliens, 1166, 1191 Not distinguished from interest on in- Reserves, Insurance, 778 When deductible, 778 Estates and trusts, 1260 Disallowed, deduction for fire loss in- Distributions from reserves, 651 Equipment for specific contracts, when de- Equipment purchased on rental plan, 748 Extraordinary obsolescence when merged Farm buildings and machinery, 1314 Fractional part of year, 957 Leaseholds, 953 Life insurance companies, 1292 Machinery, accelerated, 962 |