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By

REX FRYE, L. L. B., M

Of the District of Columbia and Detr

Former Member of Examinin

United States Patent Off

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officials had not published many decisions t] formative. Long conferences were held with th and auditor, and it was decided that we would counsel. Several letters were forwarded to di lawyers, only to meet with the substantially u they knew of no definite rules that could b though several suggested methods that they the Certified public accountants were then interr equally indefinite in their replies. Several sug them, differing in some essentials from the sug patent lawyers, but, while general informat: specific data was furnished. The result was th tion had to be postponed.

The incident, however, spurred the author t more about the Income Tax Laws and their and like intangible subject matter. This wa little later the question arose as to proper di pany's books of an award made in a patent in specific question was: "In what year the should be considered as affecting the company' author could not find authoritative support opinions of several patent lawyers and accou variance, and not until a direct appeal had b missioner of Internal Revenue was the question

The author then proceeded to collect all data to the application of the Income Tax Laws a Laws insofar as they related to patents, trade-r will, and the like. It became almost a hobby Department officials gradually worked out so Department officials. The booklet is not entation of the subject. The ramifications varied and the enactments of the various mative stage has not been passed. The mpiled to show the development of the ped that they will prove useful in saving ting through all the decisions to garner rade-marks, and the like.

de of the information given and help - Wm. A. Zolg, Treasurer of the Toledo . Randolph, its Auditor; Mr. C. O. Martment, and Mr. Chas. A. Stockman, of everal officials and their assistants in the

Treasury Department have also been r replies to the author's queries, and did hout violating the secrecy that must be ved by them in their official capacities.

REX FRYE,

Ford Bldg., Detroit, Mich.

1

ii

Instances in which large savings have been
By revaluation and depreciation
By taking allowed credits
Scope of work

CHAPTER II.—FEDERAL INCOME TAX

Portions of Income Tax Law now in effect 1919) affecting patents, trade-mar

Title I:

Sec. 1. General Definitions

Title II. Income Tax:

Sec. 200.-Special Definitions

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.......

Sec. 202. Basis for Determining Gain or

Property acquired before or after Marc

Exchange of Property

Individuals:

Sec. 210.- Normal Tax

Rate for Normal Tax

..

Rate for 1919 and thereafter

Sec. 211. Surtax

Sec. 212.-Net Income Defined
Computation of Net Income

Sec. 213. Gross Income Defined
Exemptions

Sec. 214. Deductions Allowed

Expenses

Interest Paid or Accrued

Taxes Paid or Accrued

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