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{
    "localId": "6818846",
    "label": "Federal Income Tax Return of Harry and Bess Truman",
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    "id": "6818846",
    "sourceUrl": "https://catalog.archives.gov/id/6818846",
    "contentType": "document",
    "title": "Federal Income Tax Return of Harry and Bess Truman",
    "citationUrl": "https://catalog.archives.gov/id/6818846",
    "identifierLocal": "HST-BWT_18-6_01-01 to 16",
    "collections": [
        "Bess W. Truman Papers",
        "Financial Affairs Files"
    ],
    "subjects": [
        "Ex-presidents",
        "Income tax"
    ],
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    "productionDates": [
        {
            "logicalDate": "1961-01-01",
            "year": 1961
        }
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{
    "seq": 16,
    "pageIndex": 0,
    "type": "photo",
    "url": "https://s3.amazonaws.com/NARAprodstorage/opastorage/live/46/8188/6818846/content/arcmedia/presidential-libraries/truman/gallery/HST-BWT_18-6_01-011_a.jpg",
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    "ocrText": "INSTRUCTIONS-(References are to the Internal Revenue Code of 1954)\nGAINS AND LOSSES FROM SALES OR EXCHANGES OF\nSale of a personal residence.-See Form 1040 instructions for\nPROPERTY.-- details in schedule on other side.\nspecial rules applicable to sale or exchange of your residence.\n\"Capital assets\" defined.-The term \"capital assets\" means\nLosses on securities becoming worthless.- (a) shares of\nproperty held by the taxpayer (whether or not connected with his\nstock become worthless during the year or (b) corporate securities\ntrade or business) but does NOT include-\nwith interest coupons or in registered form become worthless during\n(a) stock in trade or other property of a kind properly includible\nthe year, and are capital assets, the loss therefrom shall be con-\nin his inventory if on hand at the close of the taxable year;\nsidered as from the sale or exchange of capital assets as of the last\n(b) property held by the taxpayer primarily for sale to cus-\nday of such taxable year.\ntomers in the ordinary course of his trade or business;\nLosses on small business stock.-I the case of an individual\na loss on section 1244 stock which would (but for that section) be\n(c) property used in the trade or business of a character which\ntreated as a loss from the sale or exchange of a capital asset shall,\nis subject to the allowance for depreciation provided in\nto the extent provided in that section, be treated as a loss from the\nsection 167;\nsale or exchange of an asset which is not a capital asset.\n(d) real property used in the trade or business of the taxpayer;\nNonbusiness debts.- a debt, such as a personal loan, becomes\n(e) certain government obligations issued on or after March 1,\ntotally worthless within the taxable year, the loss resulting therefrom\n1941, at a discount, payable without interest and maturing\nshall be considered a loss from the sale or exchange, during the\nat a fixed date not exceeding one year from date of issue;\ntaxable year, of a capital asset held for not more than 6 months.\n(f) certain copyrights, literary, musical, or artistic composi-\nEnter such loss in column (h) and describe in column (a) in the\ntions, etc.; or\nschedule of short-term capital gains and losses on other side. This\n(g) accounts and notes receivable acquired in the ordinary\ndoes not apply to: (a) a debt evidenced by a corporate security with\ncourse of trade or business for services rendered or from\ninterest coupons or in registered form and (b) a debt acquired in\nthe sale of property referred to in (a) or (b) above.\nyour trade or business.\nSpecial rules apply to dealers in securities for determining capital\nClassification of capital gains and losses.-The phrase\ngain or ordinary loss on the sale or exchange of securities. Certain\n\"short-term' applies to gains and losses from the sale or exchange of\nreal property subdivided for sale may be treated as capital assets.\ncapital assets held for 6 months or less; the phrase \"long-term\"\nSections 1236 and 1237.\napplies to capital assets held for more than 6 months.\nIf the total distributions to which an employee is entitled under\nTreatment of capital gains and losses.-Short-term capital\nan employees' pension, bonus, or profit-sharing trust plan, which is\ngains and losses will be merged to obtain the net short-term\nexempt from tax under section 501(a), are paid to the employee in\ncapital gain or loss. Long-term capital gains and losses (taken into\none taxable year, on account of the employee's separation from the\naccount at 100 percent) will be merged to obtain the net long-\nservice, the aggregate amount of such distribution, to the extent it\nterm capital gain or loss. If the net short-term capital gain exceeds\nexceeds the amounts contributed by the employee, shall be treated\nthe net long-term capital loss, 100 percent of such excess shall be\nas a long-term capital gain.\nincluded in income. If the net long-term capital gain exceeds the\nGain on sale of depreciable property between husband and wife\nnet short-term capital loss, 50 percent of the amount of such excess\nor between a shareholder and a 'controlled corporation\" shall be\nis allowable as a deduction from gross income. This deduction is\ntreated as ordinary gain.\ngiven effect on line 9 of Schedule D.\nGains and losses from transactions described in section 1231\nLimitation on allowable capital losses.-It the sum of all the\n(see below) shall be treated as gains and losses from the sale or\ncapital losses exceeds the sum of all the capital gains (all such\nexchange of capital assets held for more than 6 months if the total\ngains and losses to be taken into account at 100 percent), then\nof these gains exceeds the total of these losses. If the total of these\nsuch capital losses shall be allowed as a deduction only to the\ngains does not exceed the total of these losses, such gains and losses\nextent of (1) current year capital gains plus (2) the smaller of either\nshall not be treated as gains and losses from the sale or exchange\nthe taxable income of the current year (or adjusted gross income if\nof capital assets. Thus, in the event of a net gain, all these trans-\ntax table is used) or $1,000. For this purpose taxable income is\nactions should be entered in the \"long-term capital gains and losses\"\ncomputed without regard to capital gains or losses or the deduction\nportion of Schedule D. In the event of a net loss, all these trans-\nfor exemptions. The excess of such allowable losses over the sum\nactions should be entered in the \"property other than capital assets\"\nof items (1) and (2) above is called \"capital loss carryover.\" It\nportion of Schedule D, or in other applicable schedules on Form 1040.\nmay be carried forward and treated as a short-term capital loss in\nSection 1231 deals with gains and losses arising from-\nsucceeding years. However, the capital loss carryover of each\n(a) sale, exchange, or involuntary conversion, of land (includ-\nyear should be kept separate, since the law limits the use of such\ning in certain cases unharvested crops sold with the land)\ncarryover to the five succeeding years. In offsetting your capital\nand depreciable property if they are used in the trade or\ngain and income of 1960 by prior year loss carryovers, use any\nbusiness and held for more than 6 months,\ncapital loss carryover from 1955 before using any such carryover\n(b) sale, exchange, or involuntary conversion of livestock held\nfrom 1956 or subsequent years. Any 1955 carryover which cannot\nfor draft, breeding, or dairy purposes (but not including\nbe used in 1960 must be excluded in determining total loss carry-\npoultry) and held for 1 year or more,\nover to 1961 and subsequent years.\n(c) the cutting of timber or the disposal of timber or coal to\nCollapsible corporations.-Gain from the sale or exchange of\nwhich section 631 applies, and\nstock in a collapsible corporation is not a capital gain. Section 341.\n(d) the involuntary conversion of capital assets held more than\n\"Wash sales\" losses.-Losse from the sale or other disposition\n6 months.\nof stocks or securities are not deductible (unless sustained in con-\nSee sections 1231 and 631 for specific conditions applicable.\nnection with the taxpayer's trade or business) if, within 30 days\nDescription of property listed.-State following facts: (a) For\nbefore or after the date of sale or other disposition, the taxpayer\nreal estate (including owner-occupied residences), location and\nhas acquired (by purchase or by an exchange upon which the\ndescription of land and improvements; (b) for bonds or other evi-\nentire amount of gain or loss was recognized by law), or has entered\ndences of indebtedness, name of issuing corporation, particular\ninto a contracti or option to acquire, substantially identical stock\nissue, denomination, and amount; and (c) for stocks, name of corpo-\nor securities.\nration, class of stock, number of shares, and capital changes\nLosses in transactions between certain persons.-N deduc-\naffecting basis (including nontaxable distributions).\ntion is allowable for losses from sales or exchanges of property\nBasis.-In determining gain or loss in case of property acquired\ndirectly or indirectly between (a) members of a family, (b) a cor-\nafter February 28, 1913, use cost, except as specially provided.\nporation and an individual (or a fiduciary) owning more than 50\nThe basis of property acquired by gift after December 31, 1920, is\npercent of the corporation's stock (liquidations excepted), (c) a\nthe cost or other basis to the donor in the event of gain, but, in the\ngrantor and fiduciary of any trust, (d) a fiduciary and a beneficiary\nevent of loss, it is the lower of either such donor's basis or the fair\nof the same trust, (e) a fiduciary and a fiduciary or beneficiary of\nmarket value on date of gift. If a gift tax was paid with respect\nanother trust created by the same grantor, or (f) an individual and\nto property received by gift, see section 1015 (d). Generally,\nthe\na tax-exempt organization controlled by the individual or his\nbasis of property acquired by inheritance is the fair market value\nfamily. Partners and partnerships see Section 707(b).\nat time of acquisition which usually is the date of death. For special\nLong-term capital gains from regulated investment com-\ncases involving property acquired from a decedent, see section 1014.\npanies.-Inclu in income as a long-term capital gain the amount\nIn the case of sales and exchanges of automobiles and other prop-\nyou are notified on Form 2439 which constitutes your share of the\nerty not used in your trade or business, or not used for the produc-\nundistributed capital gains of a regulated investment company.\ntion of income, the basis for determining gain is the original cost\nYou are entitled to a credit of 25 percent of this amount which should\nplus the cost of permanent improvements thereto. No losses are\nbe claimed on line 5, column (b), page 1, Form 1040. Enter such\nrecognized for income tax purposes on the sale and exchange of\namount in column (b) and wrile 'Credit from regulated investment\nsuch properties. In determining GAIN in case of property acquired\ncompany\" in the Where Employed column. The remaining 75\nbefore March 1, 1913, use the cost or the fair market value as of\npercent should be added to the basis of your stock. Also include in\nMarch 1, 1913, as adjusted, whichever is greater, but in determin-\nincome as a long-term capital gain any capital gain dividend which\ning LOSS use cost as adjusted.\nis paid to you by such company.\nU.S. GOVERNMENT PRINTING OFFICE:1960-0-555196\n16-76060-1"
}