10 



The Florists' Review 



Febkuaby 11, 1915. 



is $18, On money invested in bonds 

 he received $300. His wife received 

 $180 in interest on bonds on which the 

 tax was collected at source; so this sum 

 is entered in column A, while her hus- 

 band 's income from bonds, which was 

 not taxed at soure^, is entered in col- 

 umn B. 



„> . , From Fiduciaries. 



at,'-- • ■.;»-■•• 



As 'Elated last year, A. F. Lorist re- 

 ceives $72 a year as his share of the 

 income from property, which, accord- 

 ing to his father's will, is not to be 

 divided until two nephews of the tax- 

 payer, orphans before their grand- 

 father's death, shall be of age. These 

 nephews are not yet 21, and our tax- 

 payer has this sum to include in this 

 year's report. Fiduciary means, in com- 

 moner language, a trustee, executor, or 

 the like. Of this $72, $20 is dividends 

 on stock of a domestic corporation 

 which pays an income tax. Therefore, 

 this sum is entered farther down, on 

 line 26, while the rest, $52, which 

 comes from another source, not taxed, 

 is entered on line 18. 



The greenhouses on the edge of town 

 did not have so profitable a year in 

 1914 as in the preceding period, and 

 the profits which fall to A. F. Lorist as 

 a partner in that enterprise are only 

 $1,COO. These are net profits, not total 

 receipts. Part of this amount was in- 

 vested in improvements in the green- 

 houses before it ever reached our tax- 

 payer's hands, but it must all be en- 

 tered as income just the same. Tho 

 Canadian corporation, in which the 

 neighbor who had moved across the bor- 

 der interested him, paid $240 in 1914, 

 which is entered on line 20. During 

 the year he perfected a piece of green- 

 house apparatus, the idea for which had 

 been buzzing in his head for some time, 



and patented it. From the construc- 

 tion concern which is making use or 

 this improvement, he received during 

 1914 royalties amounting to $342.60. 

 Finally, on line 25, he enters $110 re- 

 ceived in dividends from a corporation 

 which pays a tax on its income. 



In completing the page, he adds up 

 the columns A and B, then enters the 

 total of the two on line 24, and, includ- 

 ing the amount received in dividends, 

 enters his total income at the foot of 

 the page as $25,150.60. 



Oeneral Deductions. 



At the top of page 3, he puts down 

 the expense, $16,120, of carrying on his 

 store during 1914. Next he enters $380, 

 interest on a loan from his banker. The 

 taxes on the store property were 

 $165.76. His wife, in whose name the 

 home property stands, paid $144.18 in 

 taxes. A barn on the home property 

 burned down August 6, 1914, when it 

 was almost completed, but before in- 

 surance had been obtained. This is 

 entered on his wife 's line under losses. 

 The report this year requires the details 

 of the occasion of the loss. 



Book accounts found to be worthless 

 and charged oflf during 1914 amounted 

 to $494. His wife held the note of a 

 man who in 1914 went into bankruptcy; 

 her loss on the note was $387.56. Both 

 these items must be accounted in detail 

 on the lines following their entry. In 

 a like manner, the depreciation of prop- 

 erty must be given in detail in addition 

 to the entry of the lump sum. He fig- 

 ures a five per cent depreciation on his 

 brick store building, erected in 1909 

 and valued January 1, 1914, at $5,800; 

 ten per cent on the greenhouses in the 

 rear of his store; twelve per cent on 

 his store fixtures and furnishings, and 

 twenty per cent on his new White 



truck. Some concerns estimate the de- 

 preciation on their trucks at twenty-five 

 per cent, but the White Co. finds twenty 

 per cent sufficient on its cars. His total 

 deduction for depreciation is, therefore, 

 $1,312. The total deductions, entered 

 at the foot of page 3, are $19,203.50. 



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, the net income, are de- 

 ducted the entries on lines 23 and 27 of 

 page 2, and the specific exemption, in 

 this case $4,000, as the taxpayer is a 

 married man and lives with his wife. 

 The remainder is the taxable income, 

 in this case $1,637.10. One per cent of 

 this amount, the tax, is entered at the 

 foot of the page, and the work is done. 



If anyone should compare the sched- 

 ules filed last year and this year by 

 A. F. Lorist, he must remember in so 

 doing that last year's tax was only on 

 the income of the last ten months of 

 1913, while this year's is on the entire 

 twelve months of 1914. While, there- 

 fore, his income seems to have in- 

 creased, if allowance is made for the 

 greater length of the period covered it 

 will be found to have decreased, which 

 seems to have been the case with most 

 florists during 1914. 



Bichmoud, Mo. — Paul V. Spain fur- 

 nished the flowers for the opening of 

 the Sharp theater and the decorations 

 for the opening of the Hamilton & 

 Courtland cafe, February 1. 



Harrisburg, Pa — A large electric 

 sign in the form of a bouquet, with 

 the colors of the flowers represented as 

 nearly as possible bv variously colored 

 light globes, has been erected by 

 Charles Uttley at his store at 321 Wal- 

 nut street. 



How A. F. Loritt Figured CXit His Gross Income and Permissible Deductions for the Benefit of the Income Tax Officers. 



GROSS mcom. 



onmuL DiDDcnom. 



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