UNITED STATES. Page INDIVIDUAL INCOME TAX RETURN 1937

Transcription

1 UNITED STATES Page 937 INDIVIDUAL INCOME TAX RETURN 937 Do not write in thi pace (Auditor' Stamp) Treaury Department (FORM 040) Internal Revenue Service FOR NET INCOMES FROM SALARIES, WAGES, INTEREST, AND DIVIDENDS OF MORE THAN 5,000 AND INCOMES FROM OTHER SOURCES REGARDLESS OF AMOUNTS For Calendar Year 937 or Fical Year File (ode Senal N umbel Do not ue thee pace beginning, 937, and ended 938 File thi return not later than the 5tlt dav of the third month follow ine the cloe of the taxable vear PRINT NAME AND ADDRESS PLAINLY (Sec Intruction E) (Cahier Stamp) (Name) (Both huband and wife, if a joint return) (Street and number, or rural route) Cah Check M. O. Firt Payment Item and intruction No INCOME. Salarie and other compenation for peronal ervice (from Schedule A) \. 2. Dividend from dometic and foreign corporation 3. Interet on bank depoit, note, mortgage, etc 4. Interet on corporation bond 5. Taxable interet on Government obligation, etc. (from Schedule B) 6. Income (or lo) from partnerhip, yndicate, pool, etc. (furnih name and addre): (State) 7. Income from fiduciarie (furnih name and addre): 8. Rent and royaltie (from Schedule C) 9. Income (or lo) from buine or profeion (from Schedule D) 0. Gain (or lo) from ale or exchange of property (from Schedule F) Other income (tate nature; ue eparate chedule if neceary) 2 Total income in item to (enter nontaxable income in-schedule H). DEDUCTIONS 3 Contribution (explain in Schedule G) Interet (explain in Schedule G) Taxe (explain in Schedule G) Loe by fire, torm, etc. (explain in Schedule G) Bad debt (explain in Schedule G) Other deduction authorized by law (explain in Schedule G) Total deduction in item 3 to 8 Net income (item 2 minu item 9). 2. Net income (item 20 above) Le: Peronal exemption (from Schedule I) Credit for dependent (from Schedule I) Balance (urtax net income) Le: Interet on Government obligation (item 5) 26. Earned income credit (from Schedule J) 27. Balance ubject to normal tax COMPUTATION OF TAX 28. Normal tax (4% of item 27) 29. Surtax on item 24 (ee Intruction 29) Total tax (item 28 plu item 29) 3. Le: Income tax paid at ource 32. Income tax paid to a foreign country or U. S. poeion 33. Balance of tax (Item 30 minu item 3 and 32) NOTE.-One form marked "DUPLICATE COPY" mut be filed with thi original return (5 will be aeed if duplicate copy i not filed)

2 Pat- 2 Schedule A. INCOME FROM SALARIES AND OTHER COMPENSATION FOR PERSONAL SERVICES. (See Intruction ). Name and Addre of Employer or Nature of Income 2. Amount.. 3. Expen>e (Itemize) 4. Amount * Total column 2 minu total column 4 (enter a item. page ) Schedule B. INTEREST ON GOVERNMENT OBLIGATIONS, ETC. (See Intruction 5). Obligation or Securitie 2. Amount Owned at Lnd of Year 3. Interet Received or Accrued During the Year 4. Interet Exempt From Taxation SJ 5. Interet on Amount in Kxce of Exemption Ui) Obligation of a State. Territory, or political ubdiviion thereof, or the Ditrict of Columbia, or United State poeion S AH (</) Treaury Note. Treaury Bill, and Treaury Certificate of Indebtedne (e) V. S. Saving Bond and Treaury Bond (/) Obligation of intrumentalitie of the United State (other than obligation to ig) Total (enter total of column 5 a item 5. p;nv ) Schedule C INCOME FROM RENTS AND ROYALTIES. (See Intruction 8). Kind of Property 2. Amount 3. Depreciation (Explain in Schedule E) 4. Repair None 5. Other Expene (Itemize below) 6. Net Profit (Enter a item 8. pajze ) Exp ; on of deduction cl.d in column 5 Schedule D. PROFIT (OR LOSS) FROM BUSINESS OR PROFESSION. (See Intruction 9). Total receipt (tate nature of buine or profeion) 2. Labor COST OF GOODS SOLD 3. Material and upplie 4. Merchandie bought for ale 5. Other cot (itemize below) 6. Plu inventory at beginning of year. 7. Total (line 2 to 6) 8. Le inventory at end of year, 9. Net cot of good old (line 7 minu line 8) Enter "C\ or "C" or "M". on line 6 and 8 to indicate whether inventorie are valued at cot, or cot or market, whichever i lower. Explanation of deduction claimed on line 5 and 6 OTHER BUSINESS DEDUCTIONS 0. Salarie not included a"labor" (do not deduct compenation for yourelf). Interet on buine indebtedne. 2. Taxe on buine and property 3. Loe (explain in Schedule G) 4. Bad debt ariing from ale or ervice 5. Depreciation, obolecence, and depletion (explain in Schedule E) 6. Rent, repair, and other expene (itemize below or on eparate heet) 7. Total (line 0 to 6) 8. Total deduction (line 9 plu line 7)_ 9. Net profit (or lo) (line minu line 8) (enter a item 9. page I) Schedule E. EXPLANATION OF DEDUCTION FOR DH'RECIATION CLAIMED IN SCHEDULES C AND D. Kind of P-o&erty (If Building. Slate Material of Which Contructed) 2. Date Acquired 3.Cot or Other Bai 4. Aet Fully Depreciated in Ue at End of Year 3. Depreciation owed (or owable) in Prior Year 6. Remaining Cot or Other Bai to be Recovered 7. Life Ued in Accumulating Depreciation 8. Etimated Remaining Life From Beginning of Year 9. Depreciation owable Thi Year 4-

3 Schedule F GAINS AND LOSSES FROM SALES OR EXCHANGES OF PROPERTY. (See Intruction 0) I. Reference Letter 2. Date Acquired Mo. Day Year j. Date Sold or Exchanged Mo. Day Year -LTime Held (Year. Month)? (iron Sale Price (Contract Price) 6 Cot or Other Bat* 7. Lxpene of Sale and Cot of Improvement Subequent to Acquiition or March. ]yi.l S. Depreciation owed (or owable) Since Acquiition or March. 93 (Furnih detail) 0. Gain or Lo (a) (b) (c) (d) (e) (f) (a) (h) L_ ] _ J...J "- J... (i) 0) Decription... L I L LI L. L_L I_ Combine amount in column 9 by group according to time held, into total; and enter ame on line (w) of the ummary table below. Indicate by G or L whether entry i gain or lo. Period of Time Held (w) Total gain or lo from column 9 above I tear or Le Over Year But Not Over 2 Year (x) Percentage applicable 00% 80% 60% (y) Gain or lo applicable (line (w) time line (x)) L_ [ S [ Enter item (z) a item 0 on page ; but if item (z) i a net lo, do not enter over 2,000. Give here decriptive detail not hown above: Over 2 Year But Not over 5 Year L_ Over 5 Year But Not Over 0 Year 40% I. Over 0 Year 30% ITEM(Z) Enter Below Net Applitained by Combining the Item on Line (y) L... State here whether any item above wa () acquired other than by purchae, or (2) wa old or tranferred to purchaer having relationhip to you: Schedule G. EXPLANATION OF DEDUCTIONS CLAIMED IN ITEMS 3,4,5,6,7, AND 8

4 Pago 4 Schedule H. NONTAXABLE INCOME OTHER THAN INTEREST REPORTED IN SCHEDULE B. (See Intruction, 2). Source oflncome 2. Nature ol"income 3. Amount S Schedule I. EXPLANATION OF CREDITS CLAIMED IN ITEMS 22 AND 23. (See Intruction 22 and 23) ia) Perona! Exemption th) Credit tor Dependent Statu Single, or married and not living with huband or wife Married and living with huband or wife Head of family (explain below) Name of dependent and relationhip Number of Month During Year in Each Statu Credit Claimed Name ol Dependent and Relationhip Reaon for upport if 8 year old or over Schedule J. COMPUTATION OF EARNED INCOME CREDIT. (See Intruction 26) Number of Month During the Year Under IS Year Old Over S Year. Old Credit Claimed r _, (tf) For Net Income of S3.000, or Le (/>) For Not Income in Exce of 3,000. Net income (item 20, page ) 2. Earned income credit (0% of line, above). State your principal occupation or profeion 2. Check whether you are a citizen fj or reident alien [~J 3. If you filed a return for the preceding year, to which Collector' office wa it ent? 4. Are item of income or deduction of be. nuband and wife included in thi return? (See Intruction B). Earned net income (Not over 4,000).. 2. Net income (item 20, page ) 3. Earned income credit 0% of line or 2, above, whichever amount i maller, but do not enter le than 300) QUESTIONS 5. State name of huband or wife if a eparate return wa made, and the Collector' office to which it wa ent 6. Check whether thi return wa prepared on the cah Q or accrual Q bai. 7. Did you at any time during your taxable year own directly or indirectly any tock of a dometic or foreign peronal holding company? (Anwer "ye" or "no") If anwer i ye, attach chedule required by Intruction M. AFFIDAVIT. (See Intruction F) I /we wear (or affirm) that thi return (including any accompanying chedule and tatement)! - been examined by me/u, and to the bet of my/our knowledge and belief i a true, correct, and complete return, made in good faith, for the taxan: year tated, puruant to the Revenue Act of 936 and 937 and the regulation iued thereunder. S Subcribed and worn to by before me thi day of, 93- (Signatureand title of officer adminitering oath) A return made by an agent mut be accompanied by power of attorney. (See Intruction F.) (Signature) (See intruction F) (Signature) If thi i a joint return (not made by agent) it mut be igned by both huband and wife and worn to before a proper officer by the poue preparing the return, or if neither or both prepare the return then by both poue. AFFIDAVIT. (See Intruction F) (If thi return wa prepared for you by ome othe....ron, the following affidavit mut be executed) I/we wear (or affirm) that I /we prepared thi return for the peron or peron named herein and that the return (including any ac chedule and tatement) i a true, correct, and complete tatement of all the information repecting the income-tax liability of the p whom thi return ha been prepared of which I/we have any knowledge. nanying jr peron for Subcribed and worn to before me thi. of, day (Signature of peron prenaring the return) (Signature of peron preparing the return) (Signature and title of officer adminitering oath) U. S. GOVERNMENT PRINTING OFFICE (Name of firm or employer, if any)

5 UNITED STATES 937 INDIVIDUAL INCOME TAX RETURN 937 Do not write in thi pace (Auditor' Stamp) Treaury Department (FORM 040) Internal Revenue Service FOR NET INCOMES FROM SALARIES, WAGES, INTEREST, AND DIVIDENDS OF MORE THAN 5,000 AND INCOMES FROM OTHER SOURCES REGARDLESS OF AMOUNTS For Calendar Year 937 or Fical Year beginning, 937, and ended,938 File thi return not later than the 5th day of the third month following the cloe of the taxable year PRINT NAME AND ADDRESS PLAINLY (See Intruction E) (Name) (Both huband and wire, if a joint return) (Street and number, or rural route) DUPLICATE COPY IMPORTANT One duplicate copy mut be tiled with orignal return. (5 will be aeed if duplicate i not tiled.) Item and Intruction No. INCOME. Salarie and other compenation for peronal ervice (from Schedule A) *_ 2. Dividend from dometic and foreign corporation 3. Interet on bank depoit, note, mortgage, etc 4. Interet on corporation bond. 5. Taxable interet on Government obligation, etc. (from Schedule B) 6. Income (or lo) from partnerhip, yndicate, pool, etc. (furnih name and addre): (State) 7. Income from fiduciarie (furnih name and addre) 9. Income (or lo) from buine or profeion (from Schedule D) Taxe (explain in Schedule G) Rent and royaltie (from Schedule C) Gain (or lo) from ale or exchange of property (from Schedule F) Other income (tate nature; ue eparate chedule if neceary) Total income in item to (enter nontaxable income in Schedule H) DEDUCTIONS Contribution (explain in Schedule G) Interet (explain in Schedule G) Loe by fire, torm, etc. (explain in Schedule G) Bad debt (explain in Schedule G) Other deduction authorized by law (explain in Schedule G) Total deduction in item 3 to 8 Net income (item 2 minu item 9) COMPUTATION OF TAX 2. Net income (item 20 above) 22. Le: Peronal exemption (from Schedule I) 23. Credit for dependent (from Schedule I) Balance (urtax net income) Le: Interet on Government obligation (item 5) 26. Earned income credit (from Schedule J) 27. Balance ubject to normal tax 28. Normal tax (4% of item 27) 29. Surtax on item 24 (ee Intruction 29)., 30. Total tax (item 28 plu item 29) 3. Le: Income tax paid at ource 32. Income tax paid to a foreign country or U. S. poeion 33. Balance of tax (Item 30 minu item 3 and 32)

6 Page 2 Schedule A. INCOME FROM SALARIES AND OTHER COMPENSATION FOR PERSONAL SERVICES. (See Intruction ). Name and Addre of Employer or Nature of Income 2. Amount _ 3. Expene (Itemize) \ mount ' Total column 2 minu total column 4 (enter a item. page ) J c. Obligation or Securitie 2. Amount Owned at End of Year 3. interet Received or Accrued Duriim the Year 4. Interet Exempt From Taxation 5. Interet on Amount in Exce of ' \einption {a) Obligation of a State. Territory, or political ubdiviion thereof, or the D' of Columbia, or United State poeion X v\x (/') Obligation iued under Federal Farm Loan Act. or under uch Act a amended xxxxxxxx (c) Obligation of United State iued on or before September. 97 {d) Treaury Note. Treaury Bill, and Treaury Certificate of Indebtedne II \" (e) U. S. Saving Bond and Treaury Bond if) Obligation of intrumentalitie of the United State (other than obligation it be reported in (b) above) ig) Total (enter to column 5 a item 5. page ) Schedule C INCOME FROM RENTS AND ROYALTIES. (Set m. ruction 8). Kind of Property 2. Amount ; Depreciation (Explain in Schedule E) 4. Repair 5. Other Expene (Itemize below) 6. Net Profit (Enter a item 8. page ) Explanation of deduction claimed in column 5 Sche. t- D. PROFIT (OR LOSS) FROM BUSINESS OR PROFESSION. (See Intruction 9). Total receipt (tate nature of bun..> 2. Labor COST OF GOODS SOLD 3. Material and upplie 4. Merchandie bought for ale 5. Other cot (itemize below) 6. Plu inventory at beginning of year _ 7. Total (line 2 to 6) 8. Le inventory at end of year _ 9. Net cot of good old (line 7 minu line 8) :>r profeion) OTHER BUSINESS DEDUCTIONS 0. Salarie not included a'*labor" (do not deduct compenation for yourelf). Interet on buine indebtedne. 2. Taxe on buine and property 3. Loe (explain in Schedule G) 4. Bad debt ariing from ale or ervice 5. Depreciation, obolecence, and depletion (explain in Schedule E) 6. Rent, repair, and other expene (itemize below or on eparate heet) _ 7. Total (line 0 to 6) Enter "C". or "C" or "M". on line 6 and 8 to indicate whether inventorie are valued at cot, or cot or market, whichever i lower. Explanation of deduction claimed on line 5 and 6 8 Total deduction (line 9 pi v o line 7)_ profit (or lo) (line minu line 8) (enter a item 9. page ) Schedule r. Kind of Property (If Building, State Material of Which Contructed).'' LANATION Or 2. Date Acquired 3.Coi or Other Bai UCTION <rt D 4. Aet Fully Depreciated in Ue at End of Year PRECIATION CLAIMED IN SCHEDULES C AND D 3. Depreciation owed (or owable) in Prior Year 6. Remaining Cot or Other Bai to be Recovered.. Life Ued n Accumulating Depreciation 8. Etimated Remaining Life From Beginning of Year 9. Depreciation owable Thi Year

7 Schedule F GAINS AND LOSSES FROM SALES OR EXCHANGES OF PROPERTY. (See Intruction 0) ^. Reterence Letter 2. Date Acquired Mo. Dav )car x Dale Sold or F.x changed Mo. Day )t-ar 4Tmie Held (Year. Month) 5. Gro Sale Price 6. Cot or Oilier Bai 7. hxpene of Sale and Cot ol"improvement Subequent to Acquiition or March. 4? 8. Depreciation owed (or owable) Since. Acquiition or March. 9? (Furnih detail) 9. Gain or Lo. (a) _.L. L._. J I J (b) Decription (c) <d) (e) Decription r~" (0 i (a) I i (h) (0 G) i... L L LI LI LI L. Combine amount in column 9 by group according to time held, into total; and enter ame on line (w) of the ummary table below. Indicate by G or L whether entry i gain or lo. i Period of Time Held (w) Total gain or lo from column 9 above (x) Percentage applicable (y) Gain or lo applicable (line (w) time line (x)) i Year or Le 00% L _ Over Year But Not Over 2 Year 80% Over 2 Year But Not over 5 Year 60% L _. [... Enter item (z) a item 0 on page ; but if item (z) i a net lo, do not enter over 2,000. Over 5 Year But Not Over 0 Year 40% _ Over 0 Year S 30% L ITEM (Z) Enter Below Net Applicable Gain or Lo Obtained by Combining L_ Give here decriptive detail not hown above: State here whether any item above wa () acquired other than by purchae, or (2) wa old or tranferred to purchaer having relationhip to you: Schedule G. EXPLANATION OF DEDUCTIONS CLAIMED IN ITEMS 3, 4,5,6,7, AND 8

8 Page 4 Schedule H. NONTAXABLE INCOME OTHER THAN INTEREST REPORTED IN SCHEDULE B. (See Intruction, 2). Source of Income 2. Nature of Income 3. Amount.. Schedule I. EXPLANATION OF CREDITS C! IED IN ITEMS 22 AND 23. (See Intruction 22 and 23) (a) Peronal Lxcmption (/)) Credit for Depe tdent Statu Number o\' Month Dim in: Year in Kadi Statu Credit Claimed Name ot Dependent and Relationhip Number of Month Dunne the Year Under 8 Year Old Over IS Year. Old Credit Claimed Single, or married and not living with huband or wife Married and living with huband or wife Head of family {explain below) Name of dependent and relationhip. _. Reaon for upport if 8 year old or over Schedule J. COMPUTATION OF EARNED INCOME CREDIT. (See Intruction 26) (u) For Net Income of 3,000. or Le. Net income (item 20, page ) 2. Earned income credit (0% of line, above). State your principal occupation or profeion 2. Check whether you are a citizen Q or reident alien Q 3. If you filed a return for the preceding year, to which Collector' office wa it ent? 4. Are item of income or deduction of both huband and wife included in thi return? (See Intruction B). (/>) For Not Income in Exce of 3,000. Earned net income (Not over 4,000) 2. Net income (item 20, page ) 3. Earned income credit 0% of line or 2, above, whichever amount i maller, but do not enter le than 300) QUESTIONS 5. State name of huband or wife if a eparate return wa made, and the Collector' office to which it wa ent 6. Check whether thi return wa prepared on the cah Q or accrual fj bai. 7. Did you at any time during your taxable year own directly or indirectly any tock of a dometic or foreign peronal holding company? (Anwer "ye" or "no"') If anwer i ye. attach chedule required by Intruction M. U. S. GOVERNMENT PRINTING OFFICE

9 937 INSTRUCTIONS FOR FORM 040 UNITED STATES INDIVIDUAL INCOME TAX RETURN 937 Taxpayer will find it helpful to read General Intruction (A) to (M) before commencing to fill in their return, and to read Specific Intruction in connection with filling in the item or item to which they refer. (A) Who mut ue Form 040. individual, except nonreident alien, required to make return () whoe net income, regardle of ource, i more than 5,000, or (2) whoe income, regardle of amount, include any item other than alarie or other compenation for peronal ervice, divident, and interet, or (3) who make return on an accrual bai, or (4) who make return for a fical year. other individual, except nonreident alien, required to make return hall ue Form 040A. Nonreident alien arc required to ue Form 040B or 040NB. (B) Who mut make a return. Every citizen of the United State, whether reiding at home or abroad, and every peron reiding in the United State though not a citizen thereof, whoe gro income for tfie taxable year i 5,000 or over, or whoe net income i (a),000 or over, if ingle or if married and riot living with huband or wife; (b) 2,500 or over, if married and living with huband or wife; or (c) Equal to or more than the peronal exemption allowable if taxpayer wa married and living with huband or wife during only part of the taxable year. If the combined net income of huband and wife i 2,500 or over, or if their combined gro income i 5,000 or over, including in each cae the earning of minor children, if their parent have the legal right to the ame, all uch income mut be reported in a joint return, or in eparate return of huband and wife. In the abence of proof to the contrary, a parent will be preumed to have the legal right to the earning of a minor and mut include uch earning in hi return. In order for a joint return to be filed by a huband and wife, both mut have had ome income or deduction in the year for which the return i filed and the return mut include the income and deduction of both. A joint return of huband and wife may be filed only if they were living together at the cloe of their taxable year. (C) Return of income of decedent. If the net income of a decedent to the date of hi death wa,000 or over, if unmarried, or owed to in exce of the credit allowed him by ection 25(b) () and (3) of the Revenue Act of 936 (computed without regard to hi tatu a the head of a family), if married and living with poue, or if hi gro income for the period wa 5,000 or over, the executor or adminitrator hall make a return for him on Form 040 or 040A. The return for a decedent hall include all item of income and deduction accrued up to the date of death regardle of the fact that the decedent may have kept hi book on a cah bai or kept no book. Return of income of etate and trut mut be made on form 04. (D) Period to be covered by return. Calendar year 937 or fical year beginning in 937 and ended in 938. The etablihed accounting period mut be adhered to for all year, unle permiion i received from the Commiioner to make a change. An application for a change in the accounting period hall be made on Form 28 and forwarded to the collector prior to the expiration of 30 day from the cloe of the propoed taxable year. (E) When and where the return mut be filed. On or before the 5th day of the third month following the cloe of your taxable year with the collector of internal revenue for the ditrict in which you live or have your principal place of buine. In cae you have no legal reidence or place of buine in the United State, the return hould be forwarded to Collector of Internal Revenue, Baltimore, Md. Your home or reidential addre hould be given in the pace provided at the top of the firt page of the return. If you nave a permanent ouine addre, that addre may be given a the principal or mailing addre, provided that the complete home or reidential addre i alo given. (F) Affidavit. The affadavit mut be executed by the peron whoe income i reported or by hi legal repreentative or agent. The return may be made by an agent () if, by reaon of illne, the peron liable for making of the return i unable to make it, or (2) if the taxpayer i unable to make the return by reaon of continuou abence from the United State for a period of at leat 60 day prior to the date precribed by law for making the return. Whenever a return i made by an agent it mut be accompanied by a power of attorney on Form 935, or, in the cae of huband and wife, on Form 936 (copie of which may be obtained from the collector of internal revenue.) Where the return i actually prepared by ome peron or peron other than the taxpayer, uch peron or peron mut execute the affidavit at the foot of page 4 of the return. The oath will be adminitered without charge by any collector, deputy collector, or internal revenue agent. If an internal revenue officer i not available, the return hould be worn to before a notary public, or other peron authorized to adminiter oath, except an attorney or agent employed to repreent the taxpayer before the Department in connection with hi tax liability. (G) When and to whom the tax mut be paid. The tax mut be paid ir, f,,u,v,on tv.p return ic filph nr in four pnnal intallment a GENERAL INSTRUCTIONS follow: On or before the 5th day of the month, on or before the 5th day of the ixth month, on or before the 5th day of the ninth month, and on or before the 5th day of the twelfth month, from the cloe of the taxable year. If any intallment i not paid on the date fixed for payment, the whole amount of tax unpaid hall be paid upon notice and demand by the collector. The tax may be paid by ending or bringing with the return a check or money order drawn to the order of "Collector of Internal Revenue." Do not end cah by mail, nor pay it in peron except at the collector' office. (H) Penaltie. The law impoe evere penaltie for failing to make a return or for making a fale or fraudulent return. Penaltie are alo impoed for failing to file a return on time. (I) Received or accrued income. If your book of account are kept on the accrual bai, report all income accrued, even 'though it ha not been actually received or entered on the book, and expene incurred intead of expene paid. A to diallowance of deduction for unpaid expene and interet due to certain peron, ee Specific Intruction 4. If your book are not kept on the accrual bai, or if you kept no book, make your return on a cah bai and report all income received or contructively received, uch a bank interet credited to your account and coupon bond interet matured, and report expene actually paid. (J) Item exempt from tax. item of income received and claimed lo be exempt from tax hould be explained in Schedule H, except nontaxable interet to be reported in Schedule B. The following item are exempt from Federal income tax, except where otherwie indicated, and hould not be included in gro income; Ui) Amount received under a life inurance contract paid by reaon of the death of the inured: whether in a ingle um or in intallment (but if uch amount are bed by the inurer under an agreement to pay interet thereon, the interet payment hall be included in gro income): (/») Amount received (other than amount paid by reaon of the death of the inured and interet payment on uch amount and other than amount received a annuitie) under a life inurance or endowment contract, but if uch amount (when added to amount received before the taxable year under uch contract) exceed the aggregate premium or conideration paid (whether or not paid during the taxable year) then the exce hall be included in gro income. (c) Gift (not received a a conideration for ervice rendered) and money and property acquired by bequet, devie, or inheritance (but the income derived from uch property i taxable and mut be reported): ((/) interet upon () the obligation of a State, Territory, or any political ubdiviion thereof, or the Ditrict of Columbia, or United State poeion; or (2) obligation iued under the proviion of the Federal Farm Loan Act or under uch Act a amended); or (3) the obligation of the United State; or (4) the obligation of intrumentalitie of the United State (other than obligation iued under the Federal Farm Loan Act or under uch Act a amended), uch a Federal Farm Mortgage Corporation bond. Home Owner Loan Corporation bond, etc. The interet on United State Saving Bond and Treaury Bond, owned in exce of 5,000, and on obligation of intrumentalitie of the United State (other than obligation iued under the Federal Farm Loan Act or under uch Act a amended) i ubject to urtax if the urtax net income i over,000. Such interet hould be reported in Schedule B (ee alo Specific Intruction 5); (e) Amount received through accident or health inurance or under workmen' compenation act, a compenation for peronal injurie or ickne, plu the amount of any damage received, whether by uit or agreement, on account of uch injurie or ickne; if) The rental value of a dwelling houe and appurtenance thereof furnihed to a miniter of the gopel a part of hi compenation; ( ) Compenation paid by a State or political ubdiviion thereof to it officer or employee for ervice rendered if uch compenation i contitutionally exempt from Federal taxation. (/?) Penion and compenation received by veteran from the United State and penion received from the United Stale by the family of a veteran for ervice rendered by the veteran to the United State in time of war; and (/) Amount received a earned income from ource without the United State (except amount paid by the United State or any agency thereof) by an individual citizen of the United State who i a bona fide nonreident for more than ix month during the taxable year. The taxpayer in uch a cae may not deduct from hi gro income any amount properly allocable to or chargeable againt the amount o excluded from hi gro income. (K) Treatment of depreciation and depletion. A reaonable allowance for the exhaution, wear or tear, and obolecence of property ued in the trade or buine may be deducted. deduction for depreciation mut be explained in Schedule E. If obolecence i claimed, explain why the ueful life i le than the actual life. The amount of depreciation on property acquired by purchae hould be determined upon the bai of the original cot (not replacement cot) of the property and the probable number of year remaining of it expected ueful life, except if the property wa purchaed prior to March, 93, it will be computed on the fair market value of uch property a of that date or it original cot (le depreciation actually utained before that date), whichever i greater. If the property wa acquired in any other manner than by purchae, ee ection 4 of the Revenue Act of 936. See ection 23(m) and 4 of the Revenue Act of 936 and Regulation 94 with repect to additional form and information required if a deduction i claimed for depletion. (L) Information at ource. Every peron making payment of alarie, wage, interet, rent, commiion, or other fixed determinable income of,000 or more during the calendar year 937, to a ingle peron, a partnerhip, or a fiduciary, or 2,500 or more to a married peron, i required to make a return on Form 096 and 099 howing the amount of uch payment and the name and addre of

10 Page 2 each recipient. Thee form will be furnihed by any collector of internal revenue upon requet and mut be forwarded to the Commiion of Internal Revenue, Sorting Section, Wahington, D. C, in time to be received not later than February b, 938. (M) Stock owned in dometic and foreign peronal holding companie. If at any time during your taxable year you owned directly or indirectly any tock of a dometic or foreign peronal holding company, attach to your return a tatement etting forth the name and addre of each uch company and the highet percentage of the total number of hare of each cla of outtanding tock owned by you SPECIFIC INSTRUCTIONS The following intruction are numbered to correpond with item number on page of return:. Income from alarie and other compenation for peronal ervice. Any amount claimed a a deduction for ordinary and neceary expene againt alarie, etc., uch a traveling expene while away from home in connection with your occupation, hould be fully explained in Schedule A or in an attached tatement. Traveling expene ordinarily include expenditure for tranportation, meal, and lodging. The expene of a commuter in traveling to and from work are not deductible. If a joint return, enter a eparate item in Schedule A earning of each poue. Earning of minor children hould alo be entered in Schedule A, if parent i legally entitled to uch earning. 5. Interet on Government obligation, etc. Interet on an aggregate of not exceeding 5,000 principal amount of the obligation enumerated on line (<?), Schedule B, i exempt from the urtaxe impoed by ection 2 of the Revenue Act of 936. r nter in column 4, line (e), interet received from uch obligation in an amo int not exceeding the interet received or accrued on an aggregate principal of 5,000 o* uch obligation. If at time during the taxable year you held more than S5.000 principal in the aggregate of uch obligation, enter in column 5, line (<r), the interet received or accrued in exce of interet up to an aggregate of 5,000 principal amount of uch obligation. Interet coupon falling due within the taxable year will be conidered a income for uch year where the book are kept on a cah bai. If the book are kept on an accrual bai, report the actual amount of interet accrued on the obligation owned during the taxable year. (See alo General Intruction (J), paragraph (d).) 6, 7. Income from partnerhip, yndicate, pool, etc.. and fiduciarie. Enter a item 6 your hare of the profit (whether received or not) or of the loe of a partnerhip (including a yndicate, pool, etc., not taxable a a corporation), and. a item 7 income from an etate or trut. iclude in item 3 and 32, repectively, your hare of credit claimed for "-Jeral income tax paid at ource, and foreign income and profit taxe. If the taxable year on the bai of which you file your return doe not coincide with the annual accounting period of the partnerhip or fiduciary, you hould include in your return your ditributive hare of the net profit for uch accounting period ending within your taxable year. 8. Income from rent and royaltie. Fill in Schedule C giving the information requeted. If you received property or crop in lieu of cah rent, report the income a though th- rent had been received in cah. Crop received a rent on a crop-hare bai hould be reported a income for the year in which dipoed of (unle your return i on the accrual bai). 9. Profit (or lo) from buine or profeion. If you owned a ouine, or practiced a profeion on your own account, fill in Schedule D of the return, and enter the net profit (or lo) a item 9 of the return. Farmer' income chedule. If you are a farmer and keep no book of account, or keep book on a cah bai, obtain from the collector, and attach to thi return. Form 040F, chedule of Farm Income and Expene, and enter the net farm income a item 9 of thi return. If your farm book of account are kept on an accrual bai, the filing of Form 040F i optional. Intallment ale. If the intallment method i ued, attach to the return a chedule howing eparately for the year 934, 935, 936, and 937. the following: (a) Gro ale; \b) cot of good old; (c) gro profit; (d) percentage of profit to gro ale; (e) amount collected; and (/) gro profit on amount collected. (See ection 44 of the Revenue Act of 936.) Inventorie. If engaged in a trade or buine in which the production, manufacture, purchae and ale of merchandie i an income-producing factor, inventorie of merchandie on hand hould be ken at the beginning and end of the taxable year, which may be valued a cot, or (b) cot or market, whichever i lower. Taxpayer were given ption to adopt the bai of either (a) cot, or (b) cot or market, which i lower, for their 920 inventorie. The bai properly adopted for that\.,r or any ubequent year i controlling and a change can now be made only after permiion i ecured from the Commiioner. Application for permiion to change the bai of valuing inventorie hall be made in writing and filed with the Commiioner within 90 day after the beginning or the taxable year in which it i deired to make the change. Salarie. Do not include compenation for A,-rvice of yourelf, your dependent minor children (if you are legally entitled to their earning) or of huband or wife if a joint return i filed, which item are not deductible. Interet. Enter on line interet on buine indebtedne. Do not include interet to yourelf on capital inveted in or ahvanrwf trv during the taxable year. If you owned tock at any time during the taxable year in a foreign peronal holding company a defined in ection 33 ov'.ne Revenue Act of 936, a amended by the Revenue Act of 937, you mut include in your return a a dividend the amount required to be included in your gro income by ection 337 of the Revenue Act of 936, a amenad by the Revenue Act of 937.!'" vou owned 5 percent or more in value of the outtanding tock in uch fo peronal holding company, et forth in an attached tatement in compk (d) of the Revenue Act of 9 lil the information required by ection 337 amended by the Revenue Act of 937. the buine. A to limitation on deduction for unpaid expene and interet to certain peron, ee Specific Intruction 4. Taxe. Enter on line 2 taxe on buine property or for carrying on buine. (See Specific Intruction 5.) Loe. Enter on line 3 loe incurred in the trade or buine, if not compenated for by inurance or otherwie. (See alo Specific Intruction 6.) Loe from ale or exchange of capital aet hould be entered in Schedule F and item 0 of the return. Bad debt. Bad debt may be treated in either of two way (I) by a deduction from income in repect of debt acertained to be worthle in whole or in part, or (2) by a deduction from income of a reaonable addition to a reerve for bad debt. Taxpayer were given an option for 92 to elect either of thee method and the method ued in the return for the year 92 mut be ued in return for all ubequent year unle permiion i granted by the Commiioner to change to the other method. Application for permiion to change the method hall be made in writing at leat 30 day prior the cloe of the taxable year for which it i deired to effect the change. A ;payer filing a firt return of income may elect either of the two methoi mentioned above ubject to approval by the Commiioner upon examination of the return. If the method elected i approved, it mut be followed in return for ubequent year, except a permiion may be granted by the Commiioner to change to the other method. If the reerve method i ued, you hould attach to your return the tatement required by article 23 (k)-5 of Regulation 94. Debt ariing from ale or ervice are not deductible unle the original amount ha been reported a income. Bond acertained to be worthle are to be treated a bad debt. A debt previouly charged off, allowed a a deduction, and ubequently collected mut be returned a income for the year in which collected. Rent, repair, and other expene. Do not include rent for a dwelling occupied by you for reidential purpoe-, the cot of buine equipment or furniture, expenditure for replacement or permanent improvement to property, nor peronal, living or family expene. 0. Gain and loe from ale of property. Report ale or exchange of capital aet in Schedule F and enter the net amount of gain or lo to De taken into account in computing net income a item 0. (Capital loe are allowable only to the extent of 2,000 plu capital gain. Therefore, if the total amount of capital loe i in exce of the total amount of capital gain, the amount to be entered a item 0 mut not exceed 2,000.) Every ale or exchange of property, even though no gain or lo may be indicated, mut be reported in detail. Enter full decription of each item of property old or exchanged. Such decription hould include the following fact: (a) For real etate, location and decription of land, decription of improvement, detail explaining depreciation (column 8 of Schedule F); (b) for bond or ner evidence of indebtedne, name of iuing corporation, decription of ti particular iue, denomination, and amount: (c) for tock, name of corporation, cla of tock, number of hare, capital change affecting bai (nontaxable tock dividend, other nontaxable dividend, tock right, etc.). The "bai" for the property i not ubject to the ame rule for reporting gain a for loe, if the property wa acquired before March I, 93. If the property old or exchanged wa acquired, prior to March, 93, the bai for determining GAIN i the cot or the fair market value a of March, 93, adjuted a provided in ection 3(b) of the Revenue Act of 936, whichever i greater, but in determining LOSS the bai i cot o adjuted. (See ection 3 of the Revenue Act oi 936.) If property wa acquired after March, 93, bai for both gain and lo i the cot of uch property, except a otherwie provided b\ ection 3, Revenue Act of\ 936. The exception arie tax-free exchange cae ection 3 a the bai i oth. full detail mut be Enter in column Hy wh. property wa acquired by gift, bequet, luntar nverion, wa^h. ale of tock; and in uch e tfk ;i that hall K ued. If the amount hown ; actual ^ah cot of the property old or exchanged, hed regarding the acquiition of the property. >f Schedule F the amount of depreciation, expiration, wear and tear, obolecence, or depletion which ha been allowed (but not le than the amount allowable) in repect of uch property ince date of acquiition, or ince March, 93, if the property wa acquired before that date. In addition, if the property wa acquired before March, 93. the cot hall be reduced by the depreciation actually utained before that date. Subequent improvement include expenditure for addition, improvement, and renewal and replacement made to retore the property or prolong it ueful life. Do not deduct ordinary repair, interet, or taxe in computing gain or lo.