Table C.-PROVISIONS PERTAINING TO CAPITAL GAINS AND LOSSES UNDER THE INDIVIDUAL AND FIDUCIARY INCOME TAX LAW, 1944-521 Federal tax law: Rev Revenue Act of 1951 (Oct. 20, 1951). Revenue Act of 1950 (Sept. 23, 1950). Individual Income Tax Act of 1944 (May 29, 1944). For income years 1922-43, see Statistics of Income for 1950, Part 1, pages 330-331. Revenue Acts passed after Feb. 10, 1939 (the date of the enactment of the Internal Revenue Code of 1939) are not complete taxing statutes in themselves, but consist of amendments to the Code. There is no one effective date for all provisions of each act; some of the provisions are retroactive, others apply to the current tax period, while still others are effective for future taxable years. These treatments apply to the net amount, that is, the net gain or the net loss, of each taxpayer, resulting from the sales of all capital assets in a similar category. "Property used in trade or business" includes real property and depreciable property not inventoriable or held primarily for business sale, all held more than 6 months; excludes items (1) (f), (3) (b), Net loss from sales of capital assets resulting from the combination of net shortand long-term gain and loss is allowable as a deduction for the current year to the extent of $1,000 or the net income (computed without regard to capital gain or loss), whichever is smaller. The amount not allowable in the current year is the "net capital loss" to be carried forward as a shortterm capital loss in each of the five succeeding years to the extent that such carryover exceeds the total net capital gains of any taxable years intervening between the year in which the net capital loss arose and such succeeding years. If tax is determined from optional tax table, adjusted gross income is substituted for net income for the limitation on capital loss deduction and for the computation of net capital gain." and (3) (e) in the table; includes cutting of certain timber (also coal, beginning 1951) disposed of by the owner under a contract by which he retains an economic interest in such property; certain unharvested crops for taxable years beginning after 1950, and livestock held for draft, breeding, or dairy purposes for 12 months or more (6 months, for taxable years beginning before 1951). Effective for transactions made after Nov. 19, 1951. 25 percent for taxable years beginning after Oct. 19, 1951, and before Nov. 1, 1951. "Net capital gain is the excess of (1) the sum of the gains from sales or exchanges of capital assets, plus net income of the taxpayer (computed without regard to capital gains or losses) or $1,000, whichever is smaller, over (2) the losses from such sales or exchanges. Table D.-REQUIREMENTS FOR FILING RETURNS AND TAX RATE UNDER THE SELF-EMPLOYMENT TAX LAW, 1951-52 1 Acts containing amendments to the Internal Revenue Code enacted Feb. 10, 1939. There is no one effective date for all provisions of each act; some of the provisions are retroactive, others apply to the current tax period, while still others are effective for future taxable years. 2 Net earnings from self-employment is gross income derived from trade or business less allowable deductions attributable thereto plus share of partnership income (or loss). Excludes income from services as public official, railroad worker, minister or member of religious order, or employee, and income from farming, certain professions, interest and dividends received from securities and real estate rentals except those of dealers, and gain or loss from sale or exchange of capital assets and from disposition of other property. Net operating losses and business property casualty losses are not allowable deductions. Net earnings of less than $400 are excluded from self-employment income and not subject to tax. Dollars Dollars Percent 400 3,600 214 Beginning 1951, a citizen or resident of the United States, or a resident of the Virgin Islands or of Puerto Rico, having net earnings from self-employment of $400 or more is required to file a return. The amount of income for which married persons are required to file a return is the separate net earnings of husband or wife. The self-employment tax of husband and wife filing a joint return is the sum of the taxes computed on the separate self-employment income of each spouse. Returns are permitted for a fiscal year other than that ending Dec. 31. Members of the Armed Forces may defer filing returns under certain conditions. (Sec. 53 and 3804 of the 1939 Code.) 'Self-employment income is the amount of the net earnings from self-employment not in excess of $3,600 minus any wages received from which social security tax has been withheld by the employer. Form 1040: Individual Income Tax Return Schedule C (Business).. Schedule D (Capital gains and losses). Form 1040A: Employee's Optional Income Tax Return... 94 Page 95 BU 111 115 117 119 -- Please Attach All Original W-2 Forms Here Your income ing stepchildren and legally adopted Enter number of children listed. D. Enter number of exemptions claimed for close relatives listed in Schedule I on page 2 .... E. Enter total number of exemptions claimed in A to D above .... 2. Enter your total wages, salaries, bonuses, commissions, and other compensation received in 1952, before payroll deductions. Persons claiming traveling or reimbursed expenses, see Instructions. (Before figuring your tax, see Schedule J for "Head of Household." If you claim such status, check here.) How to IF YOUR INCOME WAS LESS THAN $5,000.-Use the tax table on page 4 unless you itemize deductions. The table allows about 10 percent of your income for charitable contributions, interest, taxes, medical expenses, etc. If your deducfigure tions exceed 10 percent, it will usually be to your advantage to itemize them and compute your tax on page 3. the tax IF YOUR INCOME WAS $5,000 OR MORE.-Compute tax on page 3. Use standard deduction or itemize deductions, which Tax due or refund ever is to your advantage. 5. (A) Enter your tax from table on page 4, or from line 13, page 3.$ Enter total here ➡ 6. How much have you paid on your 1952 income tax? (Refunded) $..... Enter total here ➡ (Credited on 1953 estimated tax) Do you owe any prior year Federal tax for which you have been billed? (Yes or No) .... Is your wife (or husband) To which director's (formerly collector's) office did you pay amount claimed in item 6 (B), above? I declare under the penalties of perjury that this return (including any accompanying schedules and statements) has been examined by me and to the best of my knowledge and belief is a true, correct, and complete return. |