Book Description

FOREWORD IN this book the National Bank of Commerce in New York presents the complete text of the new act under which Federal internal revenue taxes are to be levied in lieu of those imposed under the Revenue Act of 1918. Beginning with 1922 the excess-profits tax is repealed and surtax rates are slightly reduced. While rates imposed on income of the calendar year 1921 have not been changed, the methods prescribed for the determination of taxable income have been altered in many particulars. Among noteworthy changes are the provision of an optional tax at a limited rate on net gain from the sale of capital assets held more than two years and the authorization of the deduction of net losses from income of subsequent years. In these and other, respects the detailed provisions of the revenue law have been recast with the view of securing a greater degree of fairness, though greater clearness has not always resulted. Side notes and a complete index have been provided to facilitate reference to the act, and an appendix of tables illustrates the application of the rates to incomes of varying size and composition, and their effect on the net income from various classes of securities in the hands of individual investors. James S. Alexander