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1953-54 Theatre Catalog, 11th Edition, Page 352 (314)

1953-54 Theatre Catalog, 11th Edition
1953-54 Theatre Catalog
1953-54 Theatre Catalog, 11th Edition, Page 352
Page 352

1953-54 Theatre Catalog, 11th Edition, Page 352

property they are deducted on line 23. The remaining net profit (or loss) is entered on line 24 and is carried to line one, Schedule C Summary, on page two of Form 1040.

Form 1040

In addition to your net profit recorded on Form 1040 from Schedule C, you must list the following items of income on page two:

a) Schedule Aelncome from Dividends, designating the name of the corporation.

b) Schedule B - Income from Interest, designating the name of the payor.

c) Schedule DeNet Gain or Loss From Sales or Exchanges of Capital Assets. The details of these transactions are recorded on separate Schedule D, and only the net taxable result shown here.

(1) Schedule EeIncome from Annuities or Pensions.

e) Schedule Felncome from Rents or Royalties. If you are a landlord show here the income and expense applicable to the building, including fuel, insurance, salaries, etc.

f) Schedule G eIncome from Estates and Trusts and Other Sources. On line two of this schedule record any other income not reported elsewhere.

The total of all the above items is then

entered in line three. The remainder of page two consists of the following:

a) Schedule H-Depreciation shown on line 16 of Schedule C and in Schedule F above.

b) Schedule I- Explanation 0f other expenses. List here details of Line six-Other Costs, Line 17eRepairs, and Line 20 - Other Business Expenses of Schedule C, and Column four # Repairs, and Column five -0ther Expenses of Schedule F' above.

c) Schedule J -Exemptions for Close Relatives. This section is for an unmarried person claiming special exemption as head of the household in which certain relatives live, if he contributes over half the cost of maintaining the home, and if he was not a non-resident alien at any time during the year.

Page one of the return requires you to furnish information concerning your wife and children. If you worked for an employer during the year his name and address are shown in section two, as well as the salary you earned from him and the income tax he withheld from your pay. The total of your salary and the figure shown on line three are added and stated in line four. The total, known as adjusted gross income, is then carried back to line one of page three in the Tax Computation section.

On page three you do two things, (unless you wish to take the standard deduction of namely, list your deductions 10% of line one, not in excess of $1,000), and compute the tax.

If your personal deductions exceed 10% of line one you must list them. They are itemized under the following six headings:






Contributions. Payments made to individuals are not deductible. Payments must be made to non-profit organizations formed for charitable, educational, scientific, etc., purposes, and to governmantal bodies. Donit forget to include old clothing or other property contributed to the Salvation Army, Red Cross, etc. Your contributions cannot exceed 20% of your adjusted gross income.

Interest. Here you list interest paid on loans, on your home mortgage, etc. You may not deduct interest paid for someone else unless you were legally obligated to make the payment. I

Taxes. In this section list state income tax, state gasoline tax, city sales tax, cigarette tax, auto licenses, real estate tax on your home, personal property tax on your furniture, unemployment tax, state stamp tax on security transfers, etc. Federal taxes on gasoline, admissions, telephone and telegrams, social security and gift taxes are not deductible. If you are assessed for street improvements, such as sewers and sidewalks, the assessment is not deductible. If the assessment is made to pay interest on bonds issued to finance the improvement, or if made for street maintenance and repairs the assessment is deductible. Payments made for hunting and fishing licenses, dog license, water bills, parking meters, etc., are not taxes and are not deductible. You cannot deduct a tax you pay for someone else, (because it is not imposed on you) unless you have an interest in the property on which the tax is paid. Losses from Fire, Storm, or other Casualty, or Theft. In this section you will show losses from theft not recovered by insurance, damage to your house caused by a Windstorm, etc. Losses to your car caused by your own negligence (such as drunken driving) are not deductible, nor are payments made by you for damage to someone else's property nor payments made for personal injuries. The latter, however, may be deductible as medical expenses. Medical and Dental Expenses. Expenses in excess of five per cent of adjusted gross income are deductible up to $1,250 per person with a maximum allowance of $5,000 for four or more persons. If you are 65 years old, or more, the deduction is allowed on all expenses up to $1,250 for you. Hospitalization, health, and accident insurance premiums are included as deductible medical expenses in addition to medicines, eyeglasses, wheel chair rent, crutches, arches, dentures, braces, toothbrushes and toothpaste, doctors' and nurses' fees, ambulance hire, etc. Traveling expenses to see a doctor are deductible. The traveling expenses of a parent in accompanying a child are also deductible, as well as room and board,

provided the parents presence is necessary because of the childis condition. If you go to the beach or the mountains to recuperate you cannot deduct the expense unless you go to a specific place as directed by a physician. You should be at a hospital, nursing home, or sanitarium, not at a hotel. Medical expenses must be reduced by the amount recovered from an insurance company. If the recovery is made in a following year and exceeds the deduction, the deducted amount is income. If the deduction exceeds the recovery, the recovered amount is income.

F) Miscellaneous. In this section you are allowed to deduct sundry expenses such as the following:

1. Rent and tax of safe deposit box.

2. Cost of special clothing, uniforms, and tools required in your work.

3. Accountantls fee for preparation of income tax return.

4. Expense of entertaining customers (by an employee).

5. Alimony paid to a divorced spouse.

6. Cost of services.

investment advisory

7. Dues paid to unions and professional groups.

8. Subscriptions paid for magazines pertaining to your occupae tion.

Some of the above items will be listed on Schedule C as business expenses; otherwise list them here.

The total of the six sections just explained is carried down to line two and deducted. If the total deduction is 10% of line one you should omit the itemizing of the deductions and use 10% of line one instead. However, this 10% deduction cannot exceed $1,000.

On line four deduct $600 for each exemption claimed on page one. The remainder is the basis of your tax computation. For a joint return of husband and wife, enter half of line five on line eight (a), compute the tax and enter it on line eight (b), and double the amount and enter it on line eight (c). This is the amount of your tax, unless you have deductions for taxes paid to a foreign country or U. S. possession or paid at source on tax-free covenant bonds.

The total tax computed on page three is then carried forward to line five (A) of page one. On line five (B) enter your self>employment tax as computed on Schedule C-a, line 31.

On line six (A) enter the tax withheld by your employer if during the year you Were employed. On line six (B) you enter the total tax that you have paid on your quarterly estimated payments. The two amounts are added, then deducted from the total tax. The balance is the amount you owe the government (which must be paid in full) or the refund to which you are entitled if you have overpaid. On line eight you indicate whether you want the overpayment refunded to you or credited on the following year's estimated tax.

1953-54 Theatre Catalog, 11th Edition, Page 352