12 



The Florists' Review 



Fbbbdahy 17, 1916. 



lUuttratinff the Income Tax Return of a Florist of Many and Diversified Interests 



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on line 16. Wife's interest on $500 

 she keeps in the savings bank against 

 a time of need was $18. On money in- 

 vested in bonds he received $300. His 

 wife received $180 interest on bonds 

 on which the tax was paid at the 

 source; so one amount goes in column 

 B, the other in column A. 



The taxpayer receives $72 per year 

 as his share of the income from prop- 

 erty which, according to his father's 

 will, is not to be divided until two 

 nephews become 21 years of age. Of 

 this $72, $20 comes from a corporation 

 that pays an income tax, so it is en- 

 tered farther down, but $52 comes from 

 a mortgage, and is entered on line 18, 

 fiduciary being a general name for ex- 

 ecutors, trustees and the like. 



Greenhouse Profits. 



In years gone by A. F. Lorist has 

 invested part of his profits in a part- 

 nership wholesale growing establish- 

 ment on the edge of town. These 

 greenhouses did not pay so well in 

 1915 as in the past. After the active 

 partner had drawn a salary for his time 

 there was only $2,500 as profit on the 

 total investment. But before it was 

 seen which way the cat would jump 

 it had been decided to build another 

 greenhouse. It cost $2,000. So the cash 

 for each partner is only $250. It is 

 necessary, however, to schedule the en- 

 tire profit, "whether distributed or 

 not." So $1,250 goes on line 19. 



Some years ago this taxpayer made 

 an investment in stock of a Canadian 

 corporation; it paid him $240 in 1914, 

 but in 1915 it cut its dividends in two, 

 80 $120 goes on line 20. 



A greenhouse building firm is pay- 

 ing our friend a royalty for the use of 

 a patent he obtained in 1913, but in 

 1915 this did not amount to quite so 



much as in 1914; $298.75 goes on line 

 21. On line 25 he enters $110 dividends 

 received on some stock in his bank, 

 and all his income is accounted for. 

 The footings are simple. 



General Deductions. 



At the top of page 3 he puts down 

 the expense of carrying on the store 

 during 1915, $15,025.15. This florist 



ffOVERY now and then a well- 

 *9 pleased reader speaki the word' 

 which is the means of bringing a 

 new advertiser to 



Such friendly assistance is thoroughly 

 appreciated. 



Give us the name of anyone from 

 whom you are buying, not an adver- 

 tiser. "Wt especially wish to interest 

 those selling articles of florists use 

 not at present advertised. 



FLORISTS PUBLISHING CO. 

 530-60 Caxton Bldg. Chicago 



discounts all his bills and for that pur- 

 pose sometimes borrows money of his 

 bank, but such interest charges go into 

 the expense account of the store. On 

 line 30 is entered $320 interest paid on 

 the mortgage on the store property. 



The taxes were $169.75. The home 

 stands in the wife's name and her 

 taxes were $146.25. During the year 

 there were two losses at the store; the 

 plate glass window was broken, the loss 

 being $35 more than the insurance, and 

 a fire started from the heating ap- 

 paratus in the basement, entailing a 

 loss estimated at $150 on wearing ap- 

 parel not covered by the insurance. So 

 $185 goes on line 32, with subjoined 

 description. 



Before this taxpayer charges any ac- 

 count to profit and loss he turns it 

 over to a collection agency. In 1915 

 the agency returned as uncollectible 

 $388.75 in accounts. Entered on line 

 33. He figured five per cent deprecia- 

 tion on his brick store building, ten 

 per cent on the conservatory in its 

 rear, twelve per cent on the store fix- 

 tures and twenty per cent on his White 

 delivery car, the total being $1,325. 

 The total deductions then, are $16,- 

 759.90. s^riidjig the Balance. 



The totals of each of pages 2 and 

 3 are entered on page 1, on lines 1 

 and 2, and the difference computed. 

 From this amount are deducted the en- 

 tries on lines 23 and 27 of page 2, 

 also the exemption of $4,000 given a 

 married man who lives with his wife. 

 The remainder is the taxable income, 

 in this case $4,559.72, which, it will be 

 noted, nearly all comes from the for- 

 tunate investment in stocks. One per 

 cent of the taxable income is entered 

 at the foot of the page and the return 

 is ready for the signature before a 

 notary, a place for which is provided 

 on page 4, 



Schenectady, N. Y. — Marvin P. Cham- 

 plin has disposed of his business to W. 

 H. Shomers. 



