. Florists' review [microform]. Floriculture. Fbbeuaey 10, 1921 The Florists' Review 19 value, such as a claim against the surety company. A loss incurred through em- bezzlement is an allowable deduction from gross income only for the year in which the embezzlement occurred. Bad Debts. Bad debts form an important item in the returns of many in the trade. Claims for such deductions must have certain qualities. The debt must have been charged off within the year in which its worthlessness was discovered; the return must show evidence of the manner in which discovery was made; a statement should
. Florists' review [microform]. Floriculture. Fbbeuaey 10, 1921 The Florists' Review 19 value, such as a claim against the surety company. A loss incurred through em- bezzlement is an allowable deduction from gross income only for the year in which the embezzlement occurred. Bad Debts. Bad debts form an important item in the returns of many in the trade. Claims for such deductions must have certain qualities. The debt must have been charged off within the year in which its worthlessness was discovered; the return must show evidence of the manner in which discovery was made; a statement should be made that the debtor has been discharged in bank- ruptcy or has disappeared leaving no trace, or that the ordinary means of collection have been exhausted. Where the creditor continues to ex- tend credit, a debt may not be claimed as worthless. A debt may not be charged off or deducted in part, but must be wholly worthless before any part can be deducted, though it may be clearly worth less than the face amount. If a debt is forgiven, it cannot be deducted, because it is then regarded as a gift. The Commission Men. Some commission houses come under the head of what are called "personal service corporations," and are consid- ered in the same light as partnerships in the matter of income taxes. Some com- mission houses do not come under this classification for various reasons. A personal service corporation, first of all, is one which is engaged principally in rendering personal service, the earnings of which are ascribed primarily to the activities of the principal owners or stockholders, and in which the employ- ment of capital is only incidental. Thus a commission business conducted by the owner of the concern himself without financial interest in the shape of invest- ments or temporary loans or advances may be considered a personal service corporation. But if such a corporation assumes the risk of bad debts, market fluctuations and the like, if it guarantees acco
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Keywords: ., bookcentury1900, bookdecad, booksubjectfloriculture, bookyear1912
