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Source Description
This file contains:
Doctument from State of CA Franchise Tax Board to RN & PN regarding additional tax to be paid. Includes carbon copies. 3pgs. [Financial Records], 4/10/1974
Letter from the law offices of Willis, Butler & Scheifly signed by Dean S. Butler regarding RN & PN & the franchise tax board. 4pgs. [Letter], 4/11/1974
"Notice of Action on Taxpayer's Protest" from the Franchise Tax Board regarding RN &PN taxes in 1969. 1pg. [Financial Records], 4/11/1974
"Notice of Action on Taxpayer's Protest" from the Franchise Tax Board regarding RN & PN taxes in 1970. 1pg. [Financial Records], 4/11/1974
Copy of letter from Dean S. Butler at Willis, Butler &Scheifly law offices to franchise Tax Board RE RN & PN taxes. 1pg. [Letter], 4/11/1974
Letter to Fred Buzhardt from Fred L. Leydorf at Willis, Butler & Scheifly RE copies of letters being sent to him from 04/30/1974 from Frank DeMarco, Jr. & 04/25/1974 from Mario A. Procaccino. 1pg. [Letter], 5/13/1974
Copy of letter to H. Champan Rose from Dean S. Butler RE RN's non-resident CA tax returns from 1969-1972. 1pg. [Letter], 5/6/1974
Copy of letter from Dean S. Butler to Franchise Tax Board RE non-resident CA tax returns. 1pg. [Letter], 4/30/1974
Copy of letter from Dean S. Butler to Franchise Tax Board authorizing the release of info RE RN's tax return. Includes copy of news release from Tax Board. 3pgs. [Letter], 5/3/1974
Memo to Haldeman from Bud Krogh RE "residence requirement for District of Columbia". 1pg. [Memo], 2/5/1969
Form D-4-A RE Certificate of No-nResidence in the District of Columbia. Includes handwritten notations. 2pgs. [Form], n.d.
Memo from Jean Robb to Krogh RE D.C. tax forms. 1pg. [Memo], 2/3/1969
Author and recipient unclear. RE DC Auditor's(?) Office and resident status of personnel. 1pg. [Memo], n.d.
Instruction sheet for 1968 income tax return for DC. 4pgs. [Form], n.d.
Copy of letter to Fred Buzhardt from Frank De Marco, Jr. RE workmen's compensation insurance. 1pg. [Letter], 4/30/1974
Copy of letter to RN from Mario A. Procaccino RE NY state income taxes from 1969. 1pg. [Letter], 4/25/1974
Copy of RN's CA individual income tax return for 1969. 21pgs. [Financial Records], 1969
Scholar Source Context
Document identity
localId
26126344
label
WHSF: Returned, 14-6
core
doc
dtoType
document
citationUrl
pageCount
1
Source metadata
id
26126344
sourceUrl
contentType
document
title
WHSF: Returned, 14-6
description
This file contains:
Doctument from State of CA Franchise Tax Board to RN & PN regarding additional tax to be paid. Includes carbon copies. 3pgs. [Financial Records], 4/10/1974
Letter from the law offices of Willis, Butler & Scheifly signed by Dean S. Butler regarding RN & PN & the franchise tax board. 4pgs. [Letter], 4/11/1974
"Notice of Action on Taxpayer's Protest" from the Franchise Tax Board regarding RN &PN taxes in 1969. 1pg. [Financial Records], 4/11/1974
"Notice of Action on Taxpayer's Protest" from the Franchise Tax Board regarding RN & PN taxes in 1970. 1pg. [Financial Records], 4/11/1974
Copy of letter from Dean S. Butler at Willis, Butler &Scheifly law offices to franchise Tax Board RE RN & PN taxes. 1pg. [Letter], 4/11/1974
Letter to Fred Buzhardt from Fred L. Leydorf at Willis, Butler & Scheifly RE copies of letters being sent to him from 04/30/1974 from Frank DeMarco, Jr. & 04/25/1974 from Mario A. Procaccino. 1pg. [Letter], 5/13/1974
Copy of letter to H. Champan Rose from Dean S. Butler RE RN's non-resident CA tax returns from 1969-1972. 1pg. [Letter], 5/6/1974
Copy of letter from Dean S. Butler to Franchise Tax Board RE non-resident CA tax returns. 1pg. [Letter], 4/30/1974
Copy of letter from Dean S. Butler to Franchise Tax Board authorizing the release of info RE RN's tax return. Includes copy of news release from Tax Board. 3pgs. [Letter], 5/3/1974
Memo to Haldeman from Bud Krogh RE "residence requirement for District of Columbia". 1pg. [Memo], 2/5/1969
Form D-4-A RE Certificate of No-nResidence in the District of Columbia. Includes handwritten notations. 2pgs. [Form], n.d.
Memo from Jean Robb to Krogh RE D.C. tax forms. 1pg. [Memo], 2/3/1969
Author and recipient unclear. RE DC Auditor's(?) Office and resident status of personnel. 1pg. [Memo], n.d.
Instruction sheet for 1968 income tax return for DC. 4pgs. [Form], n.d.
Copy of letter to Fred Buzhardt from Frank De Marco, Jr. RE workmen's compensation insurance. 1pg. [Letter], 4/30/1974
Copy of letter to RN from Mario A. Procaccino RE NY state income taxes from 1969. 1pg. [Letter], 4/25/1974
Copy of RN's CA individual income tax return for 1969. 21pgs. [Financial Records], 1969
citationUrl
collections
Richard M. Nixon's Returned Materials Collection
Returned White House Special Files
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Richard Nixon Presidential Library
White House Special Files Collection
Folder List
Box Number
Folder Number
Document Date
Document Type
Document Description
14
6
04/10/1974
Financial Records
Doctument from State of CA Franchise Tax
Board to RN & PN regarding additional tax
to be paid. Includes carbon copies. 3pgs.
14
6
04/11/1974
Letter
Letter from the law offices of Willis, Butler
& Scheifly signed by Dean S. Butler
regarding RN & PN & the franchise tax
board. 4pgs.
14
6
04/11/1974
Financial Records
"Notice of Action on Taxpayer's Protest"
from the Franchise Tax Board regarding RN
&PN taxes in 1969. 1pg.
14
6
04/11/1974
Financial Records
"Notice of Action on Taxpayer's Protest"
from the Franchise Tax Board regarding RN
& PN taxes in 1970. 1pg.
14
6
04/11/1974
Letter
Copy of letter from Dean S. Butler at Willis,
Butler &Scheifly law offices to franchise Tax
Board RE RN & PN taxes. 1pg.
14
6
05/13/1974
Letter
Letter to Fred Buzhardt from Fred L.
Leydorf at Willis, Butler & Scheifly RE
copies of letters being sent to him from
04/30/1974 from Frank DeMarco, Jr. &
04/25/1974 from Mario A. Procaccino. 1pg.
Wednesday, October 07, 2009
Page 1 of 3
Box Number Folder Number
Document Date
Document Type
Document Description
14
6
05/06/1974
Letter
Copy of letter to H. Champan Rose from
Dean S. Butler RE RN's non-resident CA tax
returns from 1969-1972. 1pg.
14
6
04/30/1974
Letter
Copy of letter from Dean S. Butler to
Franchise Tax Board RE non-resident CA
tax returns. 1pg.
14
6
05/03/1974
Letter
Copy of letter from Dean S. Butler to
Franchise Tax Board authorizing the release
of info RE RN's tax return. Includes copy of
news release from Tax Board. 3pgs.
14
6
02/05/1969
Memo
Memo to Haldeman from Bud Krogh RE
"residence requirement for District of
Columbia". 1pg.
14
6
n.d.
Form
Form D-4-A RE Certificate of No-
nResidence in the District of Columbia.
Includes handwritten notations. 2pgs.
14
6
02/03/1969
Memo
Memo from Jean Robb to Krogh RE D.C. tax
forms. 1pg.
14
6
n.d.
Memo
Author and recipient unclear. RE DC
Auditor's(?) Office and resident status of
personnel. 1pg.
Wednesday, October 07, 2009
Page 2 of 3
Box Number Folder Number Document Date
Document Type
Document Description
14
6
n.d.
Form
Instruction sheet for 1968 income tax return
for DC. 4pgs.
14
6
04/30/1974
Letter
Copy of letter to Fred Buzhardt from Frank
De Marco, Jr. RE workmen's compensation
insurance. 1pg.
14
6
04/25/1974
Letter
Copy of letter to RN from Mario A.
Procaccino RE NY state income taxes from
1969. 1pg.
14
6
1969
Financial Records
Copy of RN's CA individual income tax
return for 1969. 21pgs.
Wednesday, October 07, 2009
Page 3 of 3
STATE OF CALIFORNIA
NOTICE OF ADDITIONAL TAX
FRANCHISE TAX BOARD
PROPOSED TO BE ASSESSED
SACRAMENTO, CALIFORNIA 95867
03207792
Date
April 10, 1974
2
RICHARD M. AND PATRICIA R. NIXON
Income year
The White House
Taxable year 1970
Washington, D.C. 20500
Serial No.
Amount
$ 195.85
567680515
Ind. Code
Rev. Code
3432300: JM:VM
In accordance with the provisions of the Revenue and Taxation Code, notice is hereby given that a
deficiency is proposed to be assessed for the taxable year and in the amount shown above. Details of the
proposed assessment are set forth below.
Taxable Income
$9,544.00
Total tax
176.32
Credit for personal exemptions (6)
19.64
Tax
156.68
Penalty, Section 18681, failure to file return, 25%
39.17
Total tax and penalties
195.85
Income from California sources as determined from the report of the Joint
Committee on Internal Revenue Taxation, plus royalty income from prior
California services. See attached schedule.
cc: Dean S. Butler
IF YOU AGREE to the proposed assessment you should promptly remit the
IF YOU DO NOT AGREE to the proposed assessment you may file a protest
amount of additional liability plus interest at six percent a year on the
with the Franchise Tax Board within 60 days of the date of this notice (see
amount of additional tax from the original due date of the return to the
the reverse side of this form). Otherwise, this proposed deficiency assessment
date of payment, unless specified differently above. (The amount of interest,
will become final at the expiration of the 60-day period.
if included above, is computed only to the date indicated.) The remittance
should be made payable to the FRANCHISE TAX BOARD.
FTB 5830 (1-72)
59778-400 1-72 75M SEXT DT OSP
STATE OF CALIFORNIA
NOTICE OF ADDITIONAL TAX
FRANCHISE TAX BOARD
PROPOSED TO BE ASSESSED
SACRAMENTO, CALIFORNIA 95867
CALIFORNIA
03207792
Date
April 10, 1974
2
RICHARD M. AND PATRICIA R. NIXON
Income year
The White House
Taxable year 1970
Washington, D.C. 20500
Serial No.
Amount $ 195.85
567680515
Ind. Code
Rev. Code
3432300:JM:VM
In accordance with the provisions of the Revenue and Taxation Code, notice is hereby given that a
deficiency is proposed to be assessed for the taxable year and in the amount shown above. Details of the
proposed assessment are set forth below.
Taxable Income
$9,544.00
Total tax
176.32
Credit for personal exemptions (6)
19.64
Tax
156.68
Penalty, Section 18681, failure to file return, 25%
39.17
Total tax and penalties
195.85
Income from California sources as determined from the report of the Joint
Committee on Internal Revenue Taxation, plus royalty income from prior
California services. See attached schedule,
cc: Dean S. Butler
REMITTANCE TRANSMITTAL COPY
This copy is for your convenience when forwarding your remittance. Interest should be included at six percent a year on the amount of additional
tax from the original due date of the return to the date of payment unless specified differently above. The remittance should be made payable to the
FRANCHISE TAX BOARD.
FTB 5830 (1.72)
59778-400 1-72 75M SEXT OT OSP
GREAT
STATE OF CALIFORNIA
NOTICE OF ADDITIONAL TAX
FRANCHISE TAX BOARD
PROPOSED TO BE ASSESSED
SACRAMENTO, CALIFORNIA 95867
CALIFORNIA
03207792
Date
April 10, 1974
2
RICHARD M. AND PATRICIA R. NIXON
Income year
The White House
Taxable year 1970
Washington, D.C. 20500
Serial No.
Amount $ 195.85
567680515
Ind. Code
Rev. Code
3432300:JM:VM
In accordance with the provisions of the Revenue and Taxation Code, notice is hereby given that a
deficiency is proposed to be assessed for the taxable year and in the amount shown above. Details of the
proposed assessment are set forth below.
Taxable Income
$9,544.00
Total tax
176.32
Credit for personal exemptions (6)
19.64
Tax
156.68
Penalty, Section 18681, failure to file return, 25%
39.17
Total tax and penalties
195.85
Income from California sources as determined from the report of the Joint
Committee on Internal Revenue Taxation, plus royalty income from prior
California services. See attached schedule.
cc: Dean s. Butler
IF YOU AGREE to the proposed assessment you should promptly remit the
IF YOU DO NOT AGREE to the proposed assessment you may file a protest
amount of additional liability plus interest at six percent a year on the
with the Franchise Tax Board within 60 days of the date of this notice (see
amount of additional tax from the original due date of the return to the
the reverse side of this form). Otherwise, this proposed deficiency assessment
date of payment, unless specified differently above. (The amount of interest,
will become final at the expiration of the 60-day period.
if included above, is computed only to the date indicated.) The remittance
should be made payable to the FRANCHISE TAX BOARD.
FTB 5830 (1-72)
59778-400 1-72 75M SEXT 1T OSP
LAW OFFICES
WILLIS, BUTLER & SCHEIFLY
ARTHUR B.WILLIS
DEAN S. BUTLER
20TH FLOOR
JOHN E. SCHEIFLY
FRED L. LEYDORF
CITY NATIONAL BANK BUILDING
IRVING M. GRANT
DUDLEY M. LANG
JAMES F. CHILDS, JR.
MICHAEL 1. BLAYLOCK
606 SOUTH OLIVE STREET
JOHN J. BARCAL
DAVID R. DECKER
LOS ANGELES, CALIFORNIA 90014
STEVEN W. PHILLIPS
CHARLES R.AJALAT
NEAL S. MILLARD
DAVID L.CASE
TELEPHONE (213) 620-1650
April 11, 1974
Franchise Tax Board
1025 "P" Street
Sacramento, California 95814
Re:
Richard M. and Patricia R. Nixon
Reference 3432300JMVM
Gentlemen:
We are in receipt of your Notice of Additional Tax proposed to be
assessed to the above taxpayers for the taxable years 1969 and 1970,
inclusive.
The indications at this time are that the adjustments giving rise to
the proposed tax are generally acceptable to the taxpayers and that
it should not be necessary to file a protest in this regard, except
that the taxpayers do not agree with the penalty proposed for the
year 1969 in the amount of $1,026.76 based upon a failure to file
a tax return for 1969. It is the taxpayers' contention that the
failure to file a tax return for 1969 was in reliance on the advice
and opinion of competent counsel who had been supplied all of the
information required to enable them to reach an opinion as to the
necessity of filing a California Income Tax Return.
With reference to tax matters the taxpayers had engaged attorney
Frank DeMarco and Arthur Blech, CPA, as their advisors. A great
bulk of the information required was routinely available to Mr.
DeMarco, as he and his firm and his partner, Herbert Kalmbach,
represented President Nixon as his personal attorney in California.
The information available to Mr. DeMarco, and hence to Mr. Blech,
was complete in all respects insofar as it was necessary for them
to determine the responsibilities for filing an income tax return
in California. After careful examination of all of the facts and
information, Mr. DeMarco concluded that the President and Mrs. Nixon
were not residents of California for the purpose of requiring the
filing of California Resident Income Tax Return. Mr. DeMarco and
Mr. Blech further examined the nature and sources of income realized
WILLIS, BUTLER & SCHEIFLY
Franchise Tax Board
April 11, 1974
Page Two
by the taxpayers in 1969 and determined that the only income which
could be attributable to California was a rental income from property
owned in Whittier, California in the amount of $700 which was offset
by appropriate deductions attributable to this property that resulted
in an overall loss from this activity in the amount of $5,699. In
the light of these circumstances, it was concluded that a nonresident
return was not required. Acting on this information a memorandum was
prepared by Mr. DeMarco on April 8, 1970, and transmitted to the
White House reflecting these conclusions. In accordance with this
memorandum, no return was prepared for 1969. A copy of that memo-
randum is attached for your information.
By virtue of subsequent developments, it has been determined by your
office that an income attributable to California did exist in 1969
by virtue (a) an allocation of salary and related compensation with
reference to the fact that the President does devote a portion of his
time while in California to the conduct of his office, and (b) a
determination that some of the improvements to the President's home
in San Clemente were personal in nature and had been paid for by the
United States Government without reimbursement by the President.
Mr. DeMarco was intimately acquainted with the nature and extent of
the improvements which were made at San Clemente. It is obvious from
his conclusions that he did not regard this as income to the President
as there were no circumstances at that time which would have caused
that implication. It is also clear that Mr. DeMarco was intimately
acquainted with all of the facts and circumstances surrounding the
purchase and occupancy of the home at San Clemente. He, in fact,
represented the President and Mrs. Nixon in the preparation of the
documents for the purchase and was as aware as anyone could be at that
time of their probable use of this property. During 1969 the property
was acquired to provide the Nixons with a second home which they might
visit from time to time primarily for the purpose of vacation, and
to which they would ultimately retire as a permanent home following
his service in Washington. There was also, at that time, the
contemplation that some portion of the property might be ultimately
used as a site for the Richard Nixon Foundation. By virtue of the
expected visits by the President and Mrs. Nixon the improvements were
made to provide appropriate security and communication. These
improvements were not dissimilar from improvements that are made in
any location which might be visited by the President for however
brief a period of time. There was no decision or indicated intention
that this property would develop as a base for the regular performance
of any duties by the President or develop into what is generally
termed a "Western White House".
WILLIS, BUTLER & SCHEIFLY
Franchise Tax Board
April 11, 1974
Page Three
During the year 1969, the President and Mrs. Nixon occupied the
San Clemente premises on only one occasion for any significant
period of time. This was during the period from August 9th through
September 8th. The other brief days of visit to California were
either during the process of acquiring the property or for two days
at the end of the year on a casual visit. The occupancy during the
August-September period commenced immediately following the completion
of the improvements and furnishing of the home were primarily with
reference to a vacation period and a visit as a matter of personal
interest to see and enjoy the new home as it was available. Obviously,
during this period of occupancy the President did conduct the affairs
of State as necessary in the same sense that he would have at any
location during a vacation or rest period. A log of his activities
was maintained, this fact was known to Mr. DeMarco as well as the
fact that log was available. There were no facts or circumstances
relative to the occupancy during 1969 which were not available to
Mr. DeMarco. Mr. DeMarco did not construe what he deemed to be a
vacation or casual visit as a type of event which would give rise to
the need for an allocation of compensation income to the State of
California.
It is noted that a similar penalty for failure to file is proposed
with respect to the taxable year 1970. It is not, however, requested
that this penalty be waived or abated as an investigation of the facts
disclose that there was royalty income during this period which is
properly attributable to a California source and would require the
filing of a California Nonresident Return. Although the taxpayers
hereto relied upon advice of counsel, the situation here is dis-
tinguishable in that counsel was not supplied with all of the
pertinent information with regard to the royalty payment in that they
did not know that the book to which this royalty was attributable
was, in fact, prepared in California and the contract for its
publication was executed in California. Accordingly, this penalty
would appear to be appropriate by virtue of the taxpayers' failure
to supply the advisors with all necessary information.
In the light of the foregoing, we respectfully request that the
penalty proposed for 1969 be waived and abated and request that we
be advised promptly of your decision in this matter in order that a
determination can be made relative to the need to protest the proposed
assessment.
The undersigned hereby states that a substantial part of the fore-
going information was obtained from Mr. Frank DeMarco and Mr. Arthur
Blech and that other information was developed from public sources,
such as press conferences or published reports of various committees
or agencies. Subject to the reliance on these sources of information,
WILLIS, BUTLER & SCHEIFLY
Franchise Tax Board
April 11, 1974
Page Four
the undersigned hereby states under penalty of perjury that the
facts contained herein are to the best of his knowledge or belief,
true and correct.
Very truly yours,
DEAN S. BUTLER
DSB:cmn
OF
Notice of Action on
STATE OF CALIFORNIA
Taxpayer's Protest
FRANCHISE TAX BOARD
CALIFORNIA
SACRAMENTO, CALIFORNIA 95867
RICHARD M. AND PATRICIA R. NIXON
Date
April 11, 1974
2
The White House
Washington, D.C. 20500
Re proposed assessment:
Number
567680515
03207791
Dated
April 10, 1974
Income year
Taxable year 1969
Revenue code 3432300 : JM VM
Status code
3
You are hereby notified that the Franchise Tax Board has reconsidered the computation of the
proposed assessment referred to above and has acted upon the protest. The notice of proposed
assessment has been revised as follows:
Taxable Income
$55,553.00
Total tax
4,115.30
Credit for personal exemptions
8.26
Tax
4,107.04
CC: Dean S. Butler
City National Bank Building
606 S. Olive Street, 20th Floor
Los Angeles, CA 90014
IF YOU AGREE to the proposed assessment as revised you should remit the amount of the additional liability. The payment should include interest
from the due date of the return to the date of payment at six percent a year on the amount of the additional tax. (The amount of interest,
if included above, is computed only to the date of this notice.) The remittance should be made payable to the FRANCHISE TAX BOARD.
IF YOU DO NOT AGREE to the proposed assessment, as revised, you may file an appeal with the State Board of Equalization within 30 days
of the date of this notice (see the reverse side of this form). Otherwise, this action will become final and a notice (formal legal demand) for
the payment of the additional liability will be mailed at the expiration of the 30-day period.
FTB 5931 (9-71)
SEPT AT OSP
Notice of Action on
STATE OF CALIFORNIA
Taxpayer's Protest
FRANCHISE TAX BOARD
CALIFORNIA
SACRAMENTO, CALIFORNIA 95867
RICHARD M. AND PATRICIA R. NIXON
Date
April 11, 1974
2
The White House
Washington, D.C. 20500
Re proposed assessment:
Number
567680515
03207792
Dated
April 10, 1974
Income year
Taxable year
1970
Revenue code 3432300:JM:VM
Status code
3
You are hereby notified that the Franchise Tax Board has reconsidered the computation of the
proposed assessment referred to above and has acted upon the protest. The notice of proposed
assessment has been affirmed as follows:
Taxable Income
$9,544.00
Total tax
176.32
Credit for personal exemptions
19.64
Tax
156.68
Penalty, Section 18681, failure to file return, 25%
39.17
Total tax and penalties
195.85
cc: Dean S. Butler
Willis, Butler & Scheifly
606 S. Olive, 20th Floor
Los Angeles, CA 90014
IF YOU AGREE to the proposed assessment as revised you should remit the amount of the additional liability. The payment should include interest
from the due date of the return to the date of payment at six percent a year on the amount of the additional tax. (The amount of interest,
if included above, is computed only to the date of this notice.) The remittance should be made payable to the FRANCHISE TAX BOARD.
IF YOU DO NOT AGREE to the proposed assessment, as revised, you may file an appeal with the State Board of Equalization within 30 days
of the date of this notice (see the reverse side of this form). Otherwise, this action will become final and a notice (formal legal demand) for
the payment of the additional liability will be mailed at the expiration of the 30-day period.
FTB 5931 (9-71)
SEPT AT OSP
LAW OFFICES
WILLIS, BUTLER & SCHEIFLY
ARTHUR B. WILLIS
DEAN S. BUTLER
20TH FLOOR
JOHN E. SCHEIFLY
FRED L. LEYDORF
CITY NATIONAL BANK BUILDING
IRVING M. GRANT
DUDLEY M. LANG
606 SOUTH OLIVE STREET
JAMES F. CHILDS, JR.
MICHAEL 1. BLAYLOCK
JOHN J. BARCAL
DAVID R. DECKER
LOS ANGELES, CALIFORNIA 90014
STEVEN W. PHILLIPS
CHARLES .AJALAT
NEAL S. MILLARD
DAVID L. CASE
TELEPHONE (213) 620-1650
April 11, 1974
Franchise Tax Board
State of California
1025 P Street
Sacramento, California 95814
Re:
Richard M. and Patricia R. Nixon
Rev. Code 3432300:JM:VM
Gentlemen:
On behalf of the foregoing taxpayers, and acting pursuant to a Power
of Attorney previously filed with your office, I advise you that I am
in receipt of notices of additional tax to be assessed for the taxable
years 1969 and 1970. I can advise you that the adjustments and the
resulting tax in the amount of $4, 107. 04 for the year 1969, and for
a tax in the amount of $156. 68, plus a penalty of $39. 17 for the
calendar year 1970 are acceptable to the taxpayers, and no protest
will be filed in this matter.
In order that your files and records may be complete, tax returns
will be prepared in accordance with your determinations, and the
resulting tax and the penalty for the year 1970 will be remitted promptly.
Thank you for your courtesy and cooperation in giving this matter the
priority attention that these circumstances required.
Yours very truly,
A Builer
DEAN S. BUTLER
DSB:bws
LAW OFFICES
WILLIS, BUTLER & SCHEIFLY
ARTHUR B. WILLIS
DEAN S. BUTLER
20TH FLOOR
JOHN E.SCHEIFLY
FRED L. LEYDORF
CITY NATIONAL BANK BUILDING
IRVING M.GRANT
DUDLEY M. LANG
606 SOUTH OLIVE STREET
JAMES F. CHILDS, JR.
MICHAEL 1. BLAYLOCK
JOHN J. BARCAL
DAVID R. DECKER
LOS ANGELES, CALIFORNIA 90014
STEVEN W. PHILLIPS
CHARLES R.AJALAT
NEAL S. MILLARD
DAVID L.CASE
TELEPHONE (213) 620-1650
May 13, 1974
Mr. J. Fred Buzhardt
Counsel to the President
The White House
Washington, D.C. 20500
Dear Mr. Buzhardt:
In accordance with the request you made at our meeting last Saturday, I
enclose for your files copies of the following letters:
1. Letter dated April 30, 1974, addressed to you from
Frank DeMarco, Jr., relating to the possible necessity
of workmen's compensation coverage for salaried em-
ployees of President and Mrs. Nixon.
2. Letter dated April 25, 1974, addressed to The President
from Mario A. Procaccino, Commissioner of the
Department of Taxation and Finance of the State of
New York. This letter raises the possibility of
New York State income taxes being due from The President
for the year 1969.
I will follow through on the questions relating to the workmen's compensation
problem, and Dean Butler will be devoting his attention to the New York State
income tax problem. We will plan to keep you informed of any significant
developments as they arise.
Very truly yours,
FRED L. LEYDORF
FLL:mlm
Enclosures
LAW OFFICES
DEMARCO, BARGER & BERAL
FRANK DEMARCO, JR.
515 SOUTH FLOWER STREET, SUITE 4400
NEWPORT CENTER OFFICE
RICHARDS D. BARGER
HAROLD BERAL
550 NEWPORT CENTER DRIVE, SUITE 900
LOS ANGELES, CALIFORNIA 90071
ROBERT H. MORRISON
NEWPORT BEACH, CALIFORNIA 92660
RICHARD C. GREENBERG
TELEPHONE (213) 680-2811
TELEPHONE (714) 644-4111
THOMAS D. PECKENPAUGH
ALAN R. WOLEN
LARRY B. THRALL
TERRY L RHODES
April 30, 1974
OF COUNSEL
OAKLEY C. FROST
SHERWOOD C. CHILLINGWORTH
WESTON .JOHNSON
BRUCE E. HARRINGTON
THOMAS W. NORTON
A. DWAIN WHITE
ROBERT H. FORWARD, JR.
RICHARD S. CROWLEY
F. SCOTT JACKSON
PLEASE REFER TO
HOWARD S. SLUSHER
OUR FILE NUMBER:
THOMAS J. BARRACK, JR.
KENT KELLER
BRADLEY K. MATTEN
HARRY S. STAHL
THOMAS G. WILKINSON
Mr. J. Fred Buzhardt
Counsel to the President
The White House
Washington, D.C. 20500
Re: Workmen's Compensation Insurance
Dear Fred:
In connection with the San Clemente property, a
California workmen's compensation insurance policy was
obtained to cover Brigido Garcia, the caretaker of the
property. That policy was issued by Great American Insur-
ance Company, being its policy number C7364205. The current
term of the policy will expire December 18, 1974 and covers
only employees in California.
The District of Columbia labor authorities have
advised Arthur Blech that if the President or Mrs. Nixon
is going to employ a salaried employee, it will be necessary
for a workmen's compensation insurance policy to be issued
for the District of Columbia. During 1973, Mrs. Nixon did
employ Rita DiSantis, and accordingly an unemployment insur-
ance return was filed by Mr. Blech. We have been advised
that Mrs. DiSantis is no longer a salaried employee. If
that is the case, no District of Columbia workmen's compen-
sation policy need be obtained. If the President or
Mrs. Nixon is going to continue to have a salaried employee
at the White House or elsewhere in the District of Columbia,
a second policy should be issued to cover the District.
The local insurance broker, Corley Company, has advised
that it would be more proper for Ned Sullivan to obtain
such a policy if one is required. By a copy of this letter
I am advising Ned Sullivan to check with you to determine
whether or not such policy need be written.
Should you have any questions, please call me.
Very truly yours,
Jack FRANK MARCO, JR.
For the Firm
FDM:gem
CC: Kenneth W. Gemmill, Esq.
Mr. Edward O. Sullivan
FLSIOR
STATE OF NEW YORK
DEPARTMENT OF
MARIO A. PROCACCINO
COMMISSIONER OF TAXATION AND FINANCE
TAXATION AND FINANCE
PRESIDENT TAX COMMISSION
ALBANY, NEW York 12227
PERSONAL AND CONFIDENTIAL
April 25, 1974
The Honorable Richard M. Nixon
The President
The White House
Washington, D. C. 20500
Dear Mr. President:
From information in our possession, there appears to be a possibility
that New York State income taxes may be due from you for the year 1969.
We have searched our records carefully, but we cannot seem to locate a
return for that year.
If a report was filed, and if income taxes were paid, we would
appreciate it if you could provide us with a copy of the return or supply
us with other information which would help us to trace and locate the
return. If, on the other hand, a return was not filed, we would ask you
to please do so now, either as a nonresident or resident--whichever
you deem appropriate. Forms and schedules are enclosed for your
convenience.
Upon receipt of these reports, which may be addressed to me
personally, they will be processed immediately and we will advise you
accordingly.
Thank you for your anticipated cooperation.
Respectfully yours
Mario A. Procaccino
Enclosures
Commissioner
LAW OFFICES
WILLIS, BUTLER & SCHEIFLY
ARTHUR B. WILLIS
DEAN S. BUTLER
20TH FLOOR
JOHN E. SCHEIFLY
FRED L. LEYDORF
CITY NATIONAL BANK BUILDING
IRVING M. GRANT
DUDLEY M. LANG
606 SOUTH OLIVE STREET
JAMES F. CHILDS, JR.
MICHAEL 1. BLAYLOCK
JOHN J. BARCAL
DAVID R. DECKER
LOS ANGELES, CALIFORNIA 90014
STEVEN W. PHILLIPS
CHARLES R.AJALAT
NEAL S. MILLARD
DAVID L. CASE
TELEPHONE (213) 620-1650
May 6, 1974
H. Chapman Rose, Esquire
Reavis, Pogue, Neal & Rose
1100 Connecticut Avenue, N. W.
Washington, D. C. 20036
Dear Mr. Rose:
In Mr. Gemmill's absence I am forwarding to you copies of President
Nixon's California Nonresident Income Tax Returns which were filed
with the Franchise Tax Board for the years 1969 through 1972. I am
also including a copy of my Waiver of Disclosure for the year 1973 which
resulted in a press release by Martin Huff, a copy of which is also enclosed.
-
I am also sending a set of the same papers to Mr. Buzhardt and I am sure
between the two of you copies, as necessary, will be available to the
President. If you feel Mr. Gemmill should receive copies of the enclosed,
please let me know and I will forward them to him.
Sincerely,
DEANS. BUTLER
DSB:cmn
Enclosures
cc:
J. Fred Buzhardt
Frank DeMarco
Arthur Blech
LAW OFFICES
WILLIS, BUTLER & SCHEIFLY
ARTHUR B. WILLIS
DEAN S. BUTLER
20TH FLOOR
JOHN E. SCHEIFLY
FRED L. LEYDORF
CITY NATIONAL BANK BUILDING
IRVING M. GRANT
DUDLEY LANG
606 SOUTH OLIVE STREET
JAMES F. CHILDS, JR.
MICHAEL 1. BLAYLOCK
JOHN J. BARCAL
DAVID R. DECKER
LOS ANGELES, CALIFORNIA 90014
STEVEN W. PHILLIPS
CHARLES R.AJALAT
NEAL S. MILLARD
DAVID L.CASE
TELEPHONE (213) 620-1650
April 30, 1974
Franchise Tax Board
P. O. Box 1468
Sacramento, California 95807
Attention: Martin Huff
Re: Richard M. and Patricia R. Nixon
Nonresident California Income Tax
Returns for 1969, 1970, 1971 and 1972
Gentlemen:
I-am enclosing herewith the above referenced Nonresident Income Tax
Returns which have been executed by me on behalf of the taxpayers under
the authority of a power of attorney. A copy of this power of attorney has
previously been forwarded.
I am also enclosing checks in payment of the tax, interest, and penalty, if
any, with reference to your earlier notice of proposed assessment. Check
Number 20837 represents a payment with respect to the taxable year 1970.
The interest indicated thereon is in accordance with a discussion with your
office for interest to May 1, 1974.
Check Number 20836 should be applied with respect to the tax and interest
for the year 1969. As indicated in our telephone conversation, this check is,
however, in error as to amount since we had failed to consider the special
tax credit applicable to 1969 at the time of requesting this check. I would like
to ask that you apply it toward the tax as calculated in the enclosed return and
the appropriate amount of interest and that any balance be refunded to the tax-
payers and directed to my attention.
The returns for the years 1971 and 1972 do not, of course, reflect any tax
but are being filed at this time as a matter of routine procedure. If there are
any questions, please let me know. Thanks again for your cooperation.
Hopefully, this matter is now resolved.
Sincerely,
Oen Bith
DEAN S. BUTLER
DSB:cmn
Enclosures
FORM
TAXABLE YEAR
540NR
CALIFORNIA
INDIVIDUAL INCOME TAX RETURN
1969
For Nonresident and Part-Year Resident Taxpayers
Your social security number
S.C.
For Calendor Year 1969 or Fiscal Year Begun
1969 and Ended
1970
56768:0515
FIRST NAME(S) AND INITIAL(S)
LAST NAME
CO.
Your occupation
President of the
Please RICHARD M. and PATRICIA R.
NIXON
United States
M.S.
Type HOME ADDRESS (Number and street, or rural route)
COUNTY
Spouse's social security number
(Separate or joint return)
BUS.
or
The White House
PART.
Print CITY, TOWN OR POST OFFICE
STATE
ZIP CODE
Spouse's occupation
Washington
D. C.
20500
AUDIT
If nonresident at end of your taxable year, of what state are you a resident?
If part-year resident, enter date California
residence established
and/or date California residence terminated
If full-year nonresident, check box
X
and enter number of months you were in California during the taxable year
39 days
If active member of U.S. armed forces, check box
and enter "100%" on lines 12, 13 and 19.
Did you file a California return for last year?
No
If none filed. give reason
New York Resident
1. Filing Status-check one:
Single;
Separate return-married-Name of spouse
X
Married, filing joint return;
Unmarried "head of household"-Complete Part I, page 2.
2. DEPENDENTS
NAME (give address If different from yours)
RELATIONSHIP
Do NOT list yourself or your
Patricia
Daughter
ENTER
spouse
NUMBER OF
Do NOT list person who quali-
DEPENDENTS
fies you as Head of Household
LISTED
1
3. BLIND
Yourself
Your Spouse (See instructions page 6) Enter number of blind exemptions
0
4. Total number of exemptions claimed for dependents and blind (total of lines 2 and 3). Do not include your personal exemption.
1
Include income from all sources in Column "A". List all income while California resident plus all California income while a nonresident in Column "B".
5. Wages, salaries, tips, etc. (before payroll deductions) (if more than one employer, list in Part II, page 2)
Income
Employer's name
Where employed (city and state)
A. Total Income
B. California Income
Part II, Page 2
5
240,460
e
If joint return,
27,171
include all
6. Dividends (if over $100, list in Schedule B (540 NR), Part I
6
income of both
7. Interest (if over $100, list in Schedule D (540 NR), Part li
7
@
husband and
8. Other income (from page 2, Part 111, item 5)
8
38,969
wife
9. Total (add lines 5 through 8)
9
66,140
10. Adjustments to income (from page 2, Part IV, item 4)
10
11. Adjusted gross income (subtract line 10 from line 9)
11
66,140
ATTACH REMITTANCE HERE
12. Percentage of California income (Col. B ÷ Col. A)
% (100% maximum)
13. If you itemize deductions, enter total from Schedule A (540 NR), line 19, column B
Taxable
If you do not itemize deductions, compute standard deduction as follows:
Income
% (from line 12)
-
13
10,587
(1) Separate return of single or married taxpayer-$1,000 X
(2) Joint return of married couple, or head of household-$2,000 X
% (from line 12)
14. Taxable Income (Subtract line 13 from line 11.) Enter balance on this line
14
55,553
15. Tax (Figure your tax on the amount shown at line 14 using Tax Rate Schedule on page 8 of instructions
15
4,115
30
16. Personal Exemption Single-$25. Married couple or head of household-$50
16
50
17. Multiply total number of exemptions on line 4, above, by $8
17
0
8
18. Total (add lines 16 and 17)
18
58
19. Allowable exemptions (line 18 X
% (from line 12))
19
8
26
Your Tax,
20. Net tax (subtract line 19 from line 15)
20
Credits
4,107
04
21. Less special tax reduction (from page 2, Part V)
21
6
200
00
and
22. Tax liability (subtract line 21 from line 20)
22
3,907
04
Payments
23. Credit for net income taxes paid to State of
23
e
-
Attach copy of other state return (see Instructions)
24. Net tax liability (if $1.00 or less, enter zero)
24
3,907
04
25. 1969 California estimated tax payment or credit (if any)
25
e:
26. California tax withheld at source (list withholding agents and amounts withheld)
26
27. Total prepayments (add lines 25 and 26)
27
Balance Dua 28. If payments (line 27) are less than tax (line 24), enter Balance Due and Pay in full with this return
28
3,907
04
or Refund
29. If payments line 27) are larger than tax (line 24), enter Overpayment
Refund
29
a
Uniler penalties of perjury, I declare that ! him examined this return, Including accompanying schedules and statements, and to the heil of my knowledge and
Do not write in these spaces
belief it is true, correct and complete. If prepared by 2 person what Utan taxpayer, his declaration is based 00 of which he has any knowledge.
1
Sign
Your liling fomily, BOTH must sign
Date
Signature of prepirer other than taxpayer
here
ARTHUR
BLECH
&
COMPANY
5/1/74
P
Dean ST*Butler as Attorney Pil* act
CERTIFIED PUBLIC ACCOUNTANTS
Date
!
Make Remittance Payable-40 FRANCHISE TAX BOARD
5900 WILSHIRE BLVD.
1025 STOEST SACRAMENTO CALIFORNIA 95814
!
Form 540NR 1969 Page 2
PART 1. Head of Household If claimed, answer the following questions-(See Instructions, page 6)
Check one:
Never married;
Final divorce or
Separate maintenance-Dute
;
Widow(er)-Date
Individual who qualified you as head of household:
Name
Relationship
Age
Is this person married?
If
yes,
did
he
or
she file a joint return with spouse?
Did this person qualify as your dependent for the calendor year 1969?
Did this person reside in your home for your entire taxable year?
If not, explain circumstances
Total amount necessary to maintain household $
How much did you contribute? $
Include income from all sources in Column "A". List all income while California resident plus all California income while a nonresident in Column "B".
PART II. Wages, salaries, tips, etc. (before payroll deductions)
Employer's name
Where employed (city and state)
A. Total Income
B. California Income
United States Government,
Washington, D. C.
240,460
27,171
Executive Branch
As Per Schedule Attached
Total wages, etc. Enter here and on page 1, line 5
240,460
27,171
PART III. Other income
A. Total
B. California
PART IV. Adjustments to income
A. Total
B. California
1. Business income (Sched. C (540))
.
1. "Sick pay" if included in line 5, page
I (attach statement)
2. Sale or exchange of property (Schad.
0 (540))
a
2. Employee business expense (attach
3a. Pensions and annuities
.
statement)
(4,989)
3. Military exclusion (maximum $1,000)
b. Rents and royalties
C. Partnerships
Attach
a
4. Total adjustments (items 1 through 3).
(
Schedule E
Enter here and on price 1, line 10.
(Form 540)
0
d. Estates and trusts
322
e. Miscellaneous income
43,636
4. Farm income (Schedule F (540))
0
Note: Adjustments to income attributable to California
must be directly related to California income.
5. Add items 1 through 4. Enter here
and on page 1, line 8 Schedule Attached 38,969
PART V. Special tax reduction-If you had a long-term capital gain, complete lines 1 through 7; otherwise, omit lines 1 through 5, enter on line 6
your Net Tax (from page 1, line 20) and complete line 7.
1. Taxable income (from page 1, line 14)
2. Amount (if any) entered on Schedule D (540), Part I, line 10
3. Adjusted taxable income (subtract line 2 from line 1)
4. Tax on amount on line 3, from Tax Rate Schedule on page 8 of instructions
5. Allowable exemption credits from page 1, line 19)
4,107
04
6. Adjusted net tax (subtract line 5 from line 4)
7. 10 percent of line 6-not to exceed $100 if single or married filing separate return; or $200 if head of household or married filing joint
return. (Enter here and on page 1, line 21)
200
00
Note: Any balance of tax due (page 1, line 28) must be paid in full by the due date of this return to receive the benefit of this special reduction
HOW TO PREPARE YOUR RETURN
If you were a resident of California for part of the taxable year and a nonresident for the
remainder of the year, or were a nonresident for the entire taxable year, file your return on
Form 540NR and attach the following schedule(s) as required-
-Schedule A(540NR)-if you itemize deductions
-Schedule B(540NR)-if you had dividend or interest income over $100
-Schedule C(540) -if you had income or loss from a business or profession
-Schedule D(540) -if you had sales or exchanges of property
-Schedule E(540) -if you had income from pensions, annuities, rents, royalties,
portnerships, estates, trusts or other sources
-Schedule F(540) -if you had income or loss from G form
SCHEDULE
ITEMIZED DEDUCTIONS
A
CALIFORNIA
See instructions on back.
FORM 540NR
Attach to Form 540NR
Name and social security number(s) as shown on Page 1 of Form 540NR
Taxable Year
RICHARD M. and PATRICIA R. NIXON
567-68-0515
1969
During the period of nonresidence no deduction may be taken which is attributable to property or business located outside of California,
alimony is not deductible, and all other deductions must be directly related to California income. See instructions on back for limitations
on allowance of specific deductions.
Medical and dental expense (not compensated by insurance or otherwise) for
A. Total
B. California
medicine and drugs, doctors, dentists, nurses, hospital care, insurance premiums
Contributions.-Cash-including checks,
for medical care, etc.
money orders, etc. (itemize)
A. Total
B. California
1. One-half of insurance premiums for
medical care (but not more than $150)
2. Total cost of medicine and drugs
3. Enter 1% of line 11, Form 540NR
4. Subtract line 3 from line 2 (if less
than zero, enter zero)
5. Itemize other medical, dental expenses
(include balance of insurance pre-
miums not deductible on line 1)
Schedule Attached
14. Total cash contributions
750
15. Other than cash (see instructions for
required statement). Enter total here
-
18. Total contributions (add lines 14 and
15-maximum deduction may not
exceed 20% of line 11, Form 540NR)
750
Interest expense.-Home mortgage
Installment purchases
Other (itemize)
6. Total (add lines 4 and 5)
7. Enter 3% of line 11, Form 540NR
8. Subtract line 7 from line 6 (if less
than zero, enter zero)
17. Total interest expense
9. Total (add lines 1 and 8)
Miscellaneous deductions-for child care,
Child adoption expense
alimony, union dues, casualty losses,
etc. See instructions
10. Total expense paid or incurred
(Attach Itemized list)
11. Enter 3% of line 11, Form 540NR
12. Subtract line 11 from line 10 (See
instructions for maximum limitations)
Taxes.-Real estate
State and local gasoline
General sales
Auto license (excess of registration fee)
Schedule Attached
Personal property
State disability insurance (SDI)
18. Total miscellaneous deductions
19. TOTAL DEDUCTIONS (add lines 9, 12, 13, 16, 17 and 18,
13. Total taxes
9,837
column B-enter here and on Form 540NR, page 1, line 13)
10,587
(New 1969)
Richard M. and Patricia Nixon
Income as Nonresidents of California
Calendar Years
1969
1970
1971
1972
Income
Apportionable income
Presidential salary & allowance
$236,459
$250,000
$250,000
$250,000
Personal use of gov't. airplanes
4,001
9,276
4,636
9,102
Total
240,460
259,276
254,636
259,102
Less business expenses
-
-
-
-
Total to be apportioned
240,460
in
259,276
254,636
259,102
Apportionment formula
39/345
55/365
51/365
34/366
Income apportioned to Calif.
$ 27,171
$ 39,072
$ 35,572
$ 24,072
California income
Residual compensation
11
Interest (1)
-
-
-
-
Improvements to San Clemente
43,625
15,635
6,963
391
Income Mother's Estate
322
Whittier rental
(5,699)
(6,188)
(5,715)
(6,448)
Gain on sale of San Clemente
property (50% NLTCG)
58,918
Royalty income (2)
710
8,880
367
--
ADJUSTED GROSS INCOME
$ 66,140
$116,317
$ 37,187
$ 18,015
Deductions
California contributions
UCLA Alumni Ass'n
$
100
Whittier College
$
500
$
100
Nixon Foundation (3)
10,385
E. Whittier Friends Church
250
1,000
E. Whittier YMCA
250
So. Calif. School Theology
200
Total
750
350
11,485
200
0
Excess over 20% of AGI
-
-
( 3,998)
-
Allowable deduction
$
750
$
350
7,437
$
200
California interest expense
Elmore
$ 6,000
Ogden
75,000
$ 38,045
$ 17,437
Abplanalp (4)
11,955
11,955
21,425
Total
-
$ 92,955
$ 50,000
$ 38,862
California taxes
Real property - San Clemente
$ 7,561
$ 12,953
$ 11,346
$ 17,402
California sales tax
2,256
486
-
California gas tax
20
9
17
59
License tags - net
20
19
Total-
9,837
13,468
11,382
17,461
Total deductions
10,587
106,773
68,819
56,523
TAXABLE INCOME (LOSS)
$ 55,553
$ 9,544
($ 31,632)
($ 38,508)
FORM
540NR
CALIFORNIA
TAXABLE YEAR
1970
INDIVIDUAL INCOME TAX RETURN
For Nonresident and Part-Year Resident Taxpayers
For Colendar Year 1970 or Fiscal Year Begun
1970 and Ended
1971
FIRST NAME(S) AND INITIAL(S)
LAST NAME
Your Social Security Number
$
RICHARD M. and PATRICIA R.
NIXON
567 68 0515
C
Please
PRESENT HOME ADDRESS (Number and street or rural route)
Spouse's Social Security Number
M
Type The White House
or
CITY, TOWN OR POST OFFICE
STATE
ZIP CODE
Your Occupation
B
Print
President of the
Washington, D. C.
20500
United States
P
NAME AND ADDRESS OF EMPLOYER AT TIME OF FILING
Spouse's Occupation
A
United States Government, Executive Branch, Washington, D.C.
If nonresident at end of your taxable year, of what state are you a resident?
If part-year resident, enter date California
residence established
and/or date California residence terminated
If full-year nonresident, check box X and enter number of months you were in California during the taxable year
55 days
When absent from this State during the taxable year, did you maintain a home or other dwelling place, either owned or rented in California? Yes
If active member of U.S. armed forces, check box
and enter "100%" on lines 37, 38 and 45 on page 2.
Did you file a California return for last year? Yes If none filed, give reason
FILING STATUS
1.
Single
3.
Married, filing separate return-Spouse's name:
(Check One)
2.
X
Married, filing joint return
4.
Unmarried, head of household-Complete Part I, Page 2
Include income from all sources in Column "A". List all income while California resident plus all California income while a nonresident in Column "B".
5. Wages, salaries, tips, etc. (before payroll deductions) (if more than two employers, attach schedule),
Income
Employer's Name
Where Employed (city and state)
A. Total Income
B. California Income
U.S. Government, Executive Branch, Washington, D. C.
5
259,276
39,072
If joint return,
include all
income of
both husband 5. Dividends. Enter total here (also list in Schedule B (540NR), Part I, if total is over $100)
6
e
and wife
7. Interest. Enter total here (also list in Schedule B (540NR), Part 11, if total is over $100)
7
ATTACH REMITTANCE HERE
8. Other Income them page 2, line 30)
8
77,245
9. Total (add lines 5, 6, 7 and 8)
9
116,317
10. Adjustments to income (from page 2, line 35)
10
11. Adjusted gross income (subtract line 10 from line 9)
11
116,317
12. Tax (from page 2, line 40)
12
176
32
Your Tax,
13. Exemption credits (from page 2, line 45)
13
19
64
Credits
and
14. Tax liability (subtract line 13 from line 12)
14
15668
Payments
15. Credit for net income taxes paid to State of
Attach other state return (see instructions)
15
16. Net tax Hability (subtract line 15 from line 14--If $1.00 or less, enter "zero")
16
156
68
17. 1970 California estimated tax payment or credit (if any)
17
Balance
18. California income tax withheld at source (attach list of
withholding agents and amounts withheld)
18
Due or
Refund
19. Total prepayments (add lines 17 and 18)
19
20. Balance due (subtract line 19 from line 16)
PAY IN FULL WITH RETURN
20
21. Overpayment (if any)
Credit on 1971 estimated tax
$
and/or
REFUND
21
Under penalties of publicy declare that I Have examined this return. including accompanying schedules and statements. and to the best of my knowledge and
Do not write in these spaces
belief it is true, correct and complete. If prepared by a person other than taxpayer, his declaration is based on all information of which be has any knowledge.
T
Sign
Haday
Visur signature-if Wing jointly, BOTH must sign
Date
Signature of preparer other than Laxasyer
P
here
Specify's signature 4/30/74 Date
ARTHUR BLECH & COMPANY
5/1/74
CERTIFIED PUBLIC ACCOUNTANTS
Date
!
Dean S. Butler as Attorney In Fact
o
Make Romittonce Payable to FRANCHISE TAX BOARD-Mail 1<8900 WILSHIRE BLVD.
T
FRANCHISE TAX BOARD, SACRAMENTO, CALIFORNIA 95814 LOS ANGELES, CALIF. 90036
Form 540NR 1970 Page 2
PART I-Head of Household. If claimed, answer the following questions. (See Instructions)
Check
Never
Final divorce/dissolution
Separate maintenance
Widow(er)
One:
married
Date
Date
Date
Individual who qualified you as head of household:
Name
Relationship
Age
Gross income $
Is this person married?
If yes, did he or she file a joint return with spouse?
Did this person qualify C15 your dependent for
the calendar year 1970?
Did this person reside in your home for the entire taxable year?
If not, explain circumstances
Total amount necessary to maintain household $
How much did you contribute $
PART II-Other Income
A. Total Income
B. California Income
22. Business income (or loss) (attach Schedule C (540) )
22
.
23. Sale or exchange of property (attach Schedule D (540) )
23
o 58,918
24. Pensions and annuities
24
0
25. Rents and royalties
Attach
25
@ 2,692
Schedule E
26. Partnerships
(Form 540)
26
9
27. Estates or trusts
27
28. Farm income (or loss) (attach Schedule F (540) )
28
29. Miscellaneous income (state nature and source)
29
o 15,635
30. Total (add lines 22 through 29). Enter here and on page 1, line 8
Schedule Attached
30
77,245
PART III-Adjustments to Income
31. "Sick pay" if included on page 1, line 5 (attach statement)
31
a
32. Moving expenses (attach statement)
32
-
33. Employee business expense (attach statement)
33
.>
34. Military exclusion (maximum $1,000-$500 if separate return of husband or wife)
34
o
35. Total adjustments (add lines 31 through 34). Enter here and on page 1, line 10
35
PART IV-Tax Computation
38. Adjusted gross income (from page 1, line 11)
36
116,317
37. Percentage of California income (line 36, column B ÷ column A)
% (100% maximum)
38. If you itemize deductions, enter total from Schedule A (540NR), line 31, column B
If you do not itemize deductions, compute standard deductions as follows:
38
a 106,773
(1) Separate return of single or married taxpayer-$1,000 X
% (from line 37)
(2) Joint return of married couple, or head of household-$2,000 X
% (from line 37)
39. Taxable income (subtract line 38 from line 36, column B)
39
9,544
40. Tax from Tax Rate Schedule in instructions. Enter here and on page 1, line 12
40
176
32
1
PART V-Exemption Credits
41. Single-$25. Married couple or head of household-$50
41
.
50
42. Bilnd
Yourself
Your spouse-$8 for each box checked
42
9
43. Dependents-Do not list yourself, your spouse, or person who qualifies you as head of household
NAME (and address if different from yours)
RELATIONSHIP
Patricia
Daughter
Number of dependents listed
X $8
43
o
8
44. Total exemption credits (add lines 41, 42 and 43)
44
58
45. Allowable exemption credits (line 44 X
% from line 37). Enter here and on page 1, line 13
45
19
64
45031-400 8-70 2.000M © A OER
SCHEDULE
CALIFORNIA
TAXABLE
19 70
ITEMIZED DEDUCTIONS
FORM 540NR
YEAR
Attach to Form 540NR
Name, as shown on Form 540NR
Social Security Number
RICHARD M. and PATRICIA R. NIXON
567 68 0515
During the period of nonresidence no deduction may be taken which is attributable to property or business located outside of California,
alimony is not deductible, and all other deductions must be directly related to California income. See separate instructions for limitations
on allowance of specific deductions.
Medical and dental expenses (not compensated by insurance or otherwise) for medicine and drugs, doctors,
A. Total
B. California
dentists, nurses, hospital care, insurance premiums for medical care, etc.
1. One-half (but not more than $150) of insurance premiums for medical care
1
2. Medicine and drugs
2
3. Enter 1% of adjusted gross income shown on Form 540NR
3
4. Subtract line 3 from line 2 (if less than zero, enter zero)
4
5. Enter balance of insurance premiums for medical care not deducted on line 1
5
6. Other medical and dental expenses (attach itemized list)
6
7. Total (add lines 4, 5 and 6)
7
8. Enter 3% of adjusted gross income shown on Form 540NR
8
9. Subtract line 8 from line 7 (if less than zero, enter zero)
9
10. Total (add lines 1 and 9)
10
Child adoption expense
11. Total expenses paid or incurred-Attach itemized list
11
12. Enter 3% of adjusted income shown on Form 540NR
12
13. Subtract line 12 from line 11-See instructions for maximum limitations
13
Taxes
14. Real estate
14
15. State and local gasoline
15
16. General sales
16
17. Auto license-Excess of registration and weight fees (see instructions)
17
18. Personal property
18
19. State disability insurance (SDI)-Employer private disability plans do not qualify.
19
20. Other (specify)
20
21. Total taxes (add lines 14 through 20)
Schedule Attached
21
13,468
Contributions
22. Cash-including checks, money orders, etc. (itemize)
22
23. Total cash contributions
Schedule Attached
23
350
24. Other than cash (see instructions)-Enter total here
24
-
25. Total-Add lines 23 and 24-Maximum deduction may not exceed 20% of adjusted gross income
25
350
Interest expense
26. Home mortgage
26
27. Installment purchases
27
28. Other (itemize)
28
29. Total (add lines 26, 27 and 28)
Schedule Attached
29
92,955
30. Miscellaneous deductions for child care, alimony, union dues, casualty losses, etc. See instructions
(itemize)
30
31. Total miscellaneous deductions
31
32. Total deductions (add lines 10, 13, 21, 25, 29 and 31 of col B). Enter total here and on Form 540NR, page 2, in space provided.
106, 773
(Rev. 1971)
Schedule a (Form S40NR) on Reverse
SCHEDULE
CALIFORNIA
TAXABLE
1970
FORM 540
SALES OR EXCHANGES OF PROPERTY
YEAR
Attach to Form 540 or 540NR
Name as shown on Form 540 or 540NR
Social Security Number
RICHARD M. and PATRICIA R. NIXON
567 68 0515
Part I-CAPITAL ASSETS
SHORT-TERM-ASSETS HELD NOT MORE THAN 6 MONTHS
f. Cost or other basis,
a. Kind of property (if necessary,
e. Depreciation allowed
cost of subsequent
attach statement of descriptive
b. Date acquired
C. Date sold
(mo., day, yr.)
d. Gross sales price
(or allowable)
improvements (if not
0. Gain or loss
details not shown below)
(mo., day, yr.)
since acquisition
purchased, attach
(d plus less f)
(attach schedule)
explanation) and
r
expense of sale
1.
2. Enter your share of net short-term gain (or loss) from partnerships and fiduciaries
3. Enter unused short-term capital loss carryover from preceding taxable years (attach statement)
4. Net short-term gain (or loss) from lines 1, 2 and 3
LONG-TERM-ASSETS HELD MORE THAN 6 MONTHS
5. Enter gain (if any) from line 16, Part II
San Clemente Property
7-15-69
12-15-70
117,836
6. Enter your share of net long-term gain (or loss) from partnerships and fiduciaries
7. Enter unused long-term capital loss carryover from preceding taxable years (attach statement)
8. Net long-term gain (or loss) from lines 5, 6 and 7
117,836
9. Combine the amounts shown on lines 4 and 8 and enter the net gain (or loss) here
117,836
10. If line 9 shows a GAIN, enter 50% of line 8 or 50% of line 9, whichever is smaller. (Enter zero if there is a
loss or no entry on line 8)
58,918
11. Subtract line 10 from line 9, Enter here and on line 17, Part III
58,918
12. If line 9 shows a LOSS, enter here and on line 17, Part III the smallest of the following:
(a) the amount on line 9; (b) the amount of taxable income on Form 540 or 540NR, computed without capital
gains and losses; or (c) $1,000
Part II-SALE OR EXCHANGE OF PROPERTY UNDER SECTIONS 18181-82
13. Enter gain (if any) from line 22, Part IV
14. Enter gain (if any) from line 25, Part IV
15. Enter your share of gain (or loss) of Section 18181-82 items from partnerships and fiduciaries
16. Net gain (or loss). If GAIN, enter on line 5, Part I; if LOSS, enter on line 29, Part V
PART III-TOTAL NET GAIN OR LOSS FROM SALES OR EXCHANGES OF PROPERTY
17. Net gain (or loss) from line 10 or 11, Part I
58,918
18. Net gain (or loss) from line 31, Part IV
19. Total net gain (or loss)--Combine lines 17 and 18. Enter here and on Form 540 or Form 540NR, page 2, Part
II, line 23
58.918
(Rev. 1970)
(Schedule continued on reverse)
Page 1
Richard M. and Patricia Nixon
Income as Nonresidents of California
Calendar Years
1969
1970
1971
1972
Income
Apportionable income
Presidential salary & allowance
$236,459
$250,000
$250,000
$250,000
Personal use of gov't. airplanes
4,001
9,276
4,636
9,102
Total
240,460
259,276
254,636
259,102
Less business expenses
-
-
-
-
Total to be apportioned
240,460
T
259,276
254,636
259,102
Apportionment formula
39/345
55/365
51/365
34/366
Income apportioned to Calif.
$ 27,171
$ 39,072
$ 35,572
$ 24,072
California income
Residual compensation
11
Interest (1)
-
-
-
-
Improvements to San Clemente
43,625
15,635
6,963
391
Income Mother's Estate
322
Whittier rental
(5,699)
(6,188)
(5,715)
(6,448)
Gain on sale of San Clemente
property (50% NLTCG)
58,918
Royalty income (2)
710
8,880
367
-
ADJUSTED GROSS INCOME
$ 66,140
$116,317
$ 37,187
$ 18,015
Deductions
California contributions
UCLA Alumni Ass'n
$
100
Whittier College
$
500
$
100
Nixon Foundation (3)
10,385
E. Whittier Friends Church
250
1,000
E. Whittier YMCA
250
So. Calif. School Theology
200
Total
750
350
11,485
200
0
Excess over 20% of AGI
-
-
( 3,998)
-
Allowable deduction
$
750
$
350
7,437
$
200
California interest expense
Elmore
$ 6,000
Ogden
75,000
$ 38,045
$ 17,437
Abplanalp (4)
11,955
11,955
21,425
Total
-
$ 92,955
$ 50,000
$ 38,862
California taxes
Real property - San Clemente
$ 7,561
$ 12,953
$ 11,346
$ 17,402
California sales tax
2,256
486
--
--
California gas tax
20
9
17
59
License tags - net
20
19
Total
9,837
13,468
11,382
17,461
Total deductions
10,587
106,773
68,819
56,523
TAXABLE INCOME (LOSS)
$ 55,553
$ 9,544
($ 31,632)
($ 35,508)
FORM
TAXABLE YEAR
540NR
CALIFORNIA INDIVIDUAL INCOME TAX RETURN
1971
For Nonresident and Part-Year Resident Taxpayers
For Calendar Year 1971
DO NOT WRITE ON THIS LINE
or Fiscal Year Begun
1971 and Ended
1972
FIRST NAME(S) AND INITIAL(S)
LAST NAME
Your Social Security Number
Spouse's Social Security Number
Please RICHARD M. and PATRICIA R.
NIXON
567680515
Type PRESENT HOME ADDRESS (Number and street or rural route)
Your Occupation
Spouse's Occupation
President of the
or
The White House
United States
Print
CITY, TOWN OR POST OFFICE
STATE
COUNTY
ZIP CODE
Washington
D.C.
20500
NAME AND ADDRESS OF EMPLOYER AT TIME OF FILING
5
C
M
B
P
A
United States Government, Executive Branch, Washington, D. C. 20500
If nonresident during any part of your taxable year, of what state were you a resident?
If part-year resident, enter date
California residence WBS established
and/or date California residence was terminated
If full-year nonresident, check box
X
and enter number of months you were in California during the taxable year
51 days
If active member of U.S. armed forces, check box
and enter "100%" on lines 19, 49 and 50.
FILING STATUS-Chock Only One:
Claim your appropriate
BLIND and/or DEPENDENT EXEMPTIONS:
1.
Single
exemption on line 16
5. Blind
Yourself
Your spouse-Enter number of boxes checked
5
e
2.
K
Married, filing joint return
6. Dependents-Do not list yourself, your spouse, or person who qualifies you
as head of household NAME (and address if different from yours) RELATIONSHIP
3.
Married, filing separate return-if this item checked, enter spouse's
social security number in space above and enter first name
Enter
here
number
6
e
4.
Unmarried "head of household"-Complete Part I, page 2
7. Total blind and dependent exemptions (add lines 5 and 6)
7
Include income from all sources in Column "A". List all income while California resident plus all California income while a nonresident in Column "B".
Do not write
in this column
0. Wages, salaries, tips, etc. (before payroll deductions) (if more than two employers, attach list)
Employer's Name
Where Employed (city and state)
A. Total Income
B. California Income
Income
U. S. Government, Executive Branch,
8
254,636
35,572
Washington, D. C.
9. Dividends. Enter total here (complete and attach Schedule B (540NR), if total is over $100)
9
€
ATTACH REMITTANCE HERE
10. Interest. Enter total here (complete and attach Schedule B (540NR). if total is over $100)
10
6
11. Other income (from page 2, line 41)
11
1,615
12. Total (add lines 8, 9, 10 and 11)
12
37,187
13. Adjustments to Income (from page 2, line 47)
13
-
14. Adjusted gross income (subtract line 13 from line 12)
14
37,187
15. Tax (from page 2, line 52)
15
None
16. Personal Exemption. Single-$25. Married couple or head of household-$50
16
@
17. Multiply total number of exemptions on line 7 above, by $8
17
18. Total exemption credits (add lines 16 and 17)
18
Your
18. Allowable exemption credits (line 18 X
% from line 49)
19
Tax,
20. Tax liability (subtract line 19 from line 15) (not less than zero)
20
None
and
21. Credit for net income taxes paid to State of
Attach other state return (see instructions)
21
e
Credits
22. Not tax (subtract line 21 from line 20)
22
23. Tax forgiveness-20% of line 22 (use Part V on page 2, if reporting income on Schedule 0 (540) )
23
0 None
NOTE: You must have been a California resident on the last day of your taxable year, file your raturn and
pay any tax due (line 30) by the due date to be entitled to this forgiveness.
24. Het tax liability (subtract line 23 from line 22-1f $1.00 or less, enter "zero")
24
None
25. Tax on preference income (see instructions) check here
if Schedule P (540) is attached
25
e
26. Total tax liability (add lines 24 and 25)
26
None
27. 1971 California estimated tax payment (include 1970 overpayment allowed as a credit)
27
Balance 28. California income tax withheld at source (attach list of withholding agents and amounts withheld
28
Due or 29. Total prepayments (add lines 27 and 28)
29
Refund 30. Balance due (subtract line 29 from line 26)
PAY IN FULL WITH RETURN
30
e
31. Overpayment (if any)
Credit on 1972 estimated tax
$
and/or
REFUND
31
Do not write in these spaces
Under penalties of pirpay, I declare that : have examined this return, including accompanying schedules and statements, and to the best of MY knowledge and
belief il is true, correct and complete. If produced by a DEISON other than taxpayer, his declaration is based on all information of which he has any knowledge.
Sign
Maray
T
4/2/20
Your signature- Sting jointly BOTH must sign
Date
Signature ARTHOR
P
here
CERTIFIED PUBLIC ACCOUNTANTS
5/1/74
Smith's
Date
Address
Date
I
Dean S. Butler as Attorney in Fact
5900 WILSHIRE BLVD.
Enter Your Social Security No. on Your Check or Money Payable to
T
FRANCHISE TAX BOARD - Mail to FRANCHISE TAX BOARD, SACRAMENTO, CALIFORNIA 95867
Form 540NR 1971 Puge 2
PART I-Head of Household. If claimed, answer the following questions. (See Instructions)
Check
Never married
Legal separation (interlocutory decree does not qualify) Date
One:
Widow(er) - Date
Final divorce/dissolution - Date
Individual who qualified you as head of household:
Name
Relationship
Age
Gross income $
Is this person married?
If yes, did he or she file a joint return with spouse?
Did this person qualify as your dependent for
the calendar year 1971?
Did this person reside in your home for the entire taxable year?
If not, explain circumstances
Total amount necessary to maintain household $
How much did you contribute $
PART II-Other Income
A. Total Income
B. California Income
32. Business income (or loss) (attach Schedule C (540) )
32
33. Net gain (or loss) from sale or exchange of capital assets (attach Schedule D (540) )
33
34. Net gain (or loss) from Supplemental Schedule of Gains and Losses (attach Schedule D-1 (540) )
34
35. Pensions and annuities
35
0
36. Rents and reyalties
37. Partnerships
—
Attach
36
(5,348)
Schedule E
(Form 540)
37
0
38. Estates and trusts
38
39. Farm income (or loss) (attach Schedule F (540) )
39
(a) Fully taxable pensions and annuities (not reported on Schedule E)
40. Miscel-
(b) Alimony
laneous
(c) Other (state nature and source)
income
(d) Total miscellaneous income (add lines 40(a), (b) and (c))
40
6,963
41. Total (add lines 32 through 39, plus 40). Enter here and on page 1, line 11 Schedule Attached
41
1,615
PART III-Adjustments to Income
42. "Sick pay" if included in line 8 (see instructions--attach statement)
42
43. Moving expenses (see instructions-attach statement)
43
*
44. Employee business expense (see instructions-attach statement)
44
0
45. Military exclusion (see instructions for line 8)
45
0
46. Payments as a self-employed person to a retirement plan, etc. (attach federal Form 2950SE)
46
.
47. Total adjustments (add lines 42 through 46). Enter here and on page 1, line 13
47
PART IV-Tax Computation
48. Adjusted gross income (from page 1, line 14)
43
37,187
49. Percentage of California income (line 48, column B ÷ column A)
% (100% maximum)
50. (a) If you itemize deductions, enter total from Schedule A (540NR), line 32, column B
(b) If you de not itemize deductions, compute standard deductions as follows:
50
68,819
(1) Separate return of single or married taxpayer-$1,000 X
% (from line 49)
(2) Joint return of married couple, or head of household-$2,000 X
% (from line 49)
51. Taxable income (subtract line 50 from line 48, column B)³
51
None
52. Tax from Tax Rate Schedule in instructions. Enter here and on page 1, line 15
52
None
PART V-Tax Forgiveness Complete all items
53. Taxable income from line 51 above
53
54. Amount (if any) entered on Schedule D (540), line 13(a)
54
55. Adjusted taxable income (subtract line 54 from line 53)
55
56. Adjusted tax from Tax Rate Schedule
56
57. Allowable exemption credits (from page 1, line 19)
57
58. Credit for net income tax paid to another state (from page 1, line 21)
58
59. Add lines 57 and 58
50
80. Adjusted net tax (subtract line 59 from line 56)
50
61. 20% of line 60. Enter here and on page 1, line 23
19
32510-200 8.21 1,000M © A OSP
CHEDULE
CALIFORNIA
TAXABLE
19 71
ITEMIZED DEDUCTIONS
FORM 540NR
YEAR
Attach to Form 540NR
Name as shown on Form 540NR
Social Security Number
RICHARD M. and PATRICIA R. NIXON
567 68 0515
During the period of nonresidence no deduction may be taken which is attributable to property or business located outside of California,
alimony is not deductible, and all other deductions must be directly related to California income. See separate instructions for limitations
on allowance of specific deductions.
MEDICAL AND DENTAL EXPENSE (not compensated by insurance or otherwise) for
CONTRIBUTIONS
A. Total
B. California
medicine and drugs, doctors, dentists, nurses, hospital care, insurance premiums
for medical care, etc.
22. Cash including checks, money
A. Total
B. California
orders, etc. (itemize)
1. One-half (but not more than $150)
of insurance premiums for medical
care
2. Total cost of medicine and drugs
Schedule Attached
11,485
3. Enter 1% of adjusted gross income
shown on Form 540NR
4. Subtract line 3 from line 2 (if less
than zero, enter zero)
5. Enter balance of insurance premi-
ums for medical care not entered
on line 1
6. Itemize other medical, dental ex-
penses (include balance of insur-
23. Total cash contributions
11,485
ance premiums not deductible on
line 1)
24. Other than cash (see instructions
for required statement). Enter total
-
here
25. Total (Add lines 23 and 24-maxi-
mum deduction may not exceed
20% of adjusted gross income).
Enter total of col. B on Form 540-
NR, page 2 Limited to
7,437
INTEREST EXPENSE
7. Total (add lines 4, 5 and 6)
26. Home mortgage
27. Installment purchases
8. Enter 3% of adjusted gross income
28. Other (itemize)
shown on Form 540NR
9. Subtract line 8 from line 7 (if less
than zero, enter zero)
10. Total (add lines 1 and 9). Enter total
of col. B on Form 540NR, page 2
CHILD ADOPTION EXPENSE
29. Total. Enter total of col. B on
11. Total expense paid or incurred
Form 540NR, page 2 Schedule Attached
50,000
(Attach itemized list)
MISCELLANEOUS DEDUCTIONS
12. Enter 3% of adjusted gross income
Casualty or Theft Loss(es)
shown on Form 540NR
NOTE: If you had more than one casualty
or theft loss occurrence, omit lines 30
13. Subtract line 12 from line 11 (See
through 33 and follow instructions for
instructions for maximum limita-
guidance.
tions). Enter total of col. B on
30. Loss before adjustments
Form 540NR, page 2
31. Insurance reimbursement
TAXES
32. $100 limitation
$100.00
$100.00
14. Real estate
33. Add lines 31 and 32
15. State and local gasoline
34. Line 30 less line 33
18. General sales
35. Child Care-See instructions
36. Other-For education, alimony, union
17. Auto license (excess of registration
dues, etc. See instructions
fee)
18. Personal property
19. State disability insurance (SDI). Em-
ployer private disability plans do
not qualify
20. Other
37. Total. (Add lines 34, 35 and 36).
21. Total taxes. Enter total of col. B
Enter total of col. B on Form
on Form 540NR, page 2
Schedule Attached
11,382
540NR, page 2
TOTAL DEDUCTIONS
(flov. 1972)
Schedule 23 (Form 540NR) on Reverse
68,819
Richard M. and Patricia Nixon
Income as Nonresidents of California
Calendar Years
1969
1970
1971
1972
Income
Apportionable income
Presidential salary & allowance
$236,459
$250,000
$250,000
$250,000
Personal use of gov't. airplanes
4,001
9,276
4,636
9,102
Total
240,460
259,276
254,636
259,102
Less business expenses
-
-
-
-
Total to be apportioned
240,460
[
259,276
254,636
259,102
Apportionment formula
39/345
55/365
51/365
34/366
Income apportioned to Calif.
$ 27,171
$ 39,072
$ 35,572
$ 24,072
California income
Residual compensation
11
Interest (1)
-
-
-
-
Improvements to San Clemente
43,625
15,635
6,963
391
Income Mother's Estate
322
Whittier rental
(5,699)
(6,188)
(5,715)
(6,448)
Gain on sale of San Clemente
property (50% NLTCG)
58,918
Royalty income (2)
710
8,880
367
-
ADJUSTED GROSS INCOME
$ 66,140
$116,317
$ 37,187
$ 18,015
Deductions
California contributions
UCLA Alumni Ass'n
$
100
Whittier College
$
500
$
100
Nixon Foundation (3)
10,385
E. Whittier Friends Church
250
1,000
E. Whittier YMCA
250
So. Calif. School Theology
200
Total
750
350
11,485
200
Excess over 20% of AGI
-
-
(
3,998)
-
Allowable deduction
$
750
$
350
7,437
$
200
California interest expense
Elmore
$ 6,000
Ogden
75,000
$ 38,045
$ 17,437
Abplanalp (4)
11,955
11,955
21,425
Total
-
$ 92,955
$ 50,000
$ 38,862
California taxes
Real property - San Clemente
$ 7,561
$ 12,953
S 11,346
$ 17,402
California sales tax
2,256
486
1
-
California gas tax
20
9
17
59
License tags - net
20
19
Total-
9,837
13,468
11,382
17,461
Total deductions
10,587
106,773
68,819
56,523
TAXABLE INCOME (LOSS)
$ 55,553
$ 9,544
($ 31,632)
($ 38,508)
"NONRESIDENT
INDIVIDUAL
TAXABLE
540NR
CALIFORNIA
1972
INCOME TAX
PART-YR. RESIDENT
YEAR
For calendar year 1972, or other taxable year beginning
, 1972, ending
1973
FIRST NAME(S) AND INITIAL(S)
LAST NAME
Your social security number
Please
RICHARD M. and PATRICIA R.
NIXON
567 68 0515
Type
PRESENT HOME ADDRESS (Number and street, including apartment number, or rurol reute)
Wife's number, if joint return
or
The White House
Print
CITY, TOWN OR POST OFFICE, STATE
ZIP CODE
OCCU-
Yours President of the
Washington, D. C.
20500
PATION
Wife's United States
If nonresident during any part of your taxable year, of what state were you a resident?
If part-year resident, enter date
California residence was established
and/or date California residence was terminated
If full-year nonresident, check box
and enter number of months you were in California during the taxable year
34 days
If active member of U.S. armed forces, check box
and enter "100%" on lines 15, 22 and 58.
Filing Status-Check Only One
5. Dependents-Do not list yourself, your spouse or person who qualifies you as head of household
1.
Single
NAME (include last name and/or address if different from yours)
RELATIONSHIP
2.
X
Married, filing joint return
3.
Married, filing separate return-Enter spouse's social
security number and first name here
Enter
Number
5
6. Blind (refer to instructions)
Number of blind exemptions claimed
6
4.
Head of Household-Complete Part 1, page 2
7. Total dependent and blind exemptions (add lines 5 and 6)
7
Include income from all sources in Column "A". List all income while California resident plus all California income while a nonresident in Column "B"
A. Total Income
B. California Income
(Attach Copy 2 of Form(s) W-2 to
8. Wages, salaries, tips, and other employee compensation front. If unavailable, attach explanation)
8
259,102
24,072
9. Dividends. Enter total (if over $500, complete and attach Schedule B(540NR))
9
10. Interest Enter total (if over $500, complete and attach Schedule B(540NR))
10
11. Income other than wages, dividends and interest (from page 2, line 44)
11
(6,057)
<< Attach Copy 2 of Form W-2 here. A
12. Total (add lines 8, 9, 10 and 11)
12
18,015
13. Adjustments to income (from page 2, line 50)
13
-
14. Adjusted gross income (subtract line 13 from line 12)
14
18,015
15. Percentage of California income (line 14, column B ÷ column A)
% (100% maximum).
16. Itemized deductions OR standard deduction (from page 2, line 59)
16
56,523
17. Taxable income (subtract line 16 from line 14, column B)
17
None
18. Tax from Tax Rate Schedule in instructions.
18
None
19. Personal Exemption. Single-$25. Married couple or head of household-$50
19
20. Other Exemptions-Total on line 7 above,
X $8
20
21. Total exemptions (add lines 19 and 20)
21
22. Allowable Exemption Credits (line 21 X
% from line 15)
22
23. Tax liability (subtract line 22 from line 18)
23
None
24. Credit for net income taxes paid to the State of
Attach other state return (see instructions)
24
25. Net tax liability (subtract line 24 from line 23)
25
None
< Write social security number on check or money order. Attach here. A
26. Tax on preference income (see instructions-attach Schedule P(540))
26
27. Total tax liability (add lines 25 and 26)
27
None
28. Total California income tax withheld (attach Form(s) W-2 or DE-2P to front)
28
29. 1972 California estimated tax payments
29
30. Excess California SDI tax withheld (attach Form 1964 to face of return)
30
6
31. Total payments tadd lines 28, 29 and 30)
31
32. If line 27 is larger than line 31, enter BALANCE DUE. Pay in full. Mail payment with return to
32
Franchise Tax Board, Sacramento CA 95867.
33. If line 31 is larger than line 27, enter OVERPAYMENT. Mail return to P.O. Box 13-540, Sacramento, CA 95813
33
34. Line 33 to be (a) REFUNDED. (Allow at least six weeks for your refund)
0 Attach Form DE 1864 here. a
(h) Credited on 1973 estimated tax
Under pensities of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and
Do not write in these spaces
belief it is true. correct and complete. If prepared by a person other than taxpayer, his declaration is based on all information of which he has any knowledge.
Signature MANUU of preparer other than taxpayer
P
Sign Main 4/20/24 Date
Your signature- Alleg jointly, BOTH must sign
E
here
ARTHUR BLECH & COMPANY
5/1/74
Date
A<CERTIFIED PUBLIC ACCOUNTANTS Date
A
Dean S. Butler as Attorney In Fact
5900 WILSHIRE BLVD,
LOS ANGELES, CALIF. 90036
Page 2 Form 540NR (1972)
PART I-Head of Household-If claimed, answer the following questions (See Instructions)
Check
Never married
Legal separation (interlocutory decree does not qualify) Date
one:
Widow(er) Date
Final divorce/dissolution Date
Individual who qualified you as head of household (Do not list this individual as a dependent on page 1, line 5):
Name
Relationship
Age
Did this person qualify as your dependent for
the calendor year 1972?
Did this person reside in your home for the entire taxable year?
If not, explain circumstances
PART II-Other Income
A. Total Income
B. California Income
35. Business income (or loss) (attach Schedule C (540))
35
36. Net gain (or loss) from sale or exchange of capital assets (attach Schedule D (540))
36
37. Net gain (or loss) from Supplemental Schedule of Gains and Losses (attach Schedule D-1 (540))
37
38. Pensions and annuities
38
39. Rents and royalties
Attach
39
(6,448)
Schedule E
40. Partnerships
(Form 540)
40
41. Estates and trusts
41
42. Farm income (or loss) (attach Schedule F (540))
42
(a) Fully taxable pensions and annuities (not reported on Schedule E)
43. Miscel-
(b) Alimony
laneous
(c) Other (state nature and source)
391
Income
(d) Total miscellaneous income (add lines 43(a), (b) and (c))
43
391
44. Total (add lines 35 through 43). Enter here and on page 1, line 11
Schedule Attached
44
(6,057)
PART III-Adiustments to Income
45. "Sick pay" if included in line 8 (see instructions-attach statement)
45
46. Moving expenses (see instructions-attach statement)
46
47. Employee business expense (see instructions-attach statement)
47
48. Military exclusion-active duty pay only (see instructions for line 8, page 1)
48
49. Payments as a self-employed person to a retirement plan, etc.
49
50. Total adjustments (add lines 45 through 49). Enter here and on page 1, line 13
50
PART IV-Itemized Deductions OR Standard Deduction On separate returns of married taxpayers both must itemize deductions or both must take the standard deduction
If you itemize deductions, complete and attach Schedule A (540NR) and enter California subtotals on lines 51 through 56 below
51. Total deductible medical and dental expense (from Schedule A (540NR) line 10)
51
52. Total child adoption expense (from Schedule A (540NR) line 13)
52
53. Total taxes (from Schedule A (540NR) line 21)
53
17,461
54. Total contributions (from Schedule A (540NR) line 25)
54
200
55. Total interest expense (from Schedule A (540NR) line 29)
55
38,862
56. Total miscellaneous deductions (from Schedule A (540NR) line, 37
56
57. Total itemized deductions (add lines 51 through 56)
57
56,523
if you do not itemize deductions, compute standard deduction as follows
OR
58. (a) Separate return of a single or married taxpayer-$1,000 X
% (from page 1, line 15)
58
(b) Joint return of a married couple, or head of household-$2,000 X
% (from page 1, line 15
59. Total itemized deductions (line 57) OR standard deduction line 58). Enter here and on page 1, line 16
59
56,523
64242-400 N-TO 2.000M © A DEP
SCHEDULE
CALIFORNIA
TAXABLE
19 72
ITEMIZED DEDUCTIONS
FORM 540NR
YEAR
Attach to Form 540NR
Name os shown on Form 540NR
Social Security Number
RICHARD M. and PATRICIA R. NIXON
567 68 | 0515
During the period of nonresidence no deduction may be taken which is attributable to property or business located outside of California,
alimony is not deductible, and all other deductions must be directly related to California income. See separate instructions for limitations
on allowance of specific deductions.
MEDICAL AND DENTAL EXPENSE (not compensated by Insurance or otherwise) for
CONTRIBUTIONS
A. Total
B. California
medicine and drugs, doctors, dentists, nurses, hospital care, insurance premiums
for medical care, etc.
22. Cash - including checks, money
A. Total
B. California
orders, etc. (itemize)
1. One-half (but not more than $150)
of insurance premiums for medical
care
2: Total cost of medicine and drugs
3. Enter 1% of adjusted gross income
shown on Form 540NR
Schedule Attached
4. Subtract line 3 from line 2 (if less
200
than zero, enter zero)
5. Enter balance of insurance premi-
ums for medical care not entered
on line 1
6. Itemize other medical, dental ex-
penses (include balance of insur-
23. Total cash contributions
200
ance premiums not deductible on
line 1)
24. Other than cash (see instructions
for required statement). Enter total
here
25. Total (Add lines 23 and 24-maxi-
mum deduction may not exceed
20% of adjusted gross income).
Enter total of col. B on Form 540-
NR, page 2
200
INTEREST EXPENSE
7. Total (add lines 4, 5 and 6)
26. Home mortgage
27. Installment purchases
8. Enter 3% of adjusted gross income
28. Other (itemize)
shown on Form 540NR
9. Subtract line 8 from line 7 (if less
than zero, enter zero)
10. Total (add lines 1 and 9). Enter total
of col. B on Form 540NR, page 2
CHILD ADOPTION EXPENSE
29. Total. Enter total of col. B on
11. Total expense paid or incurred
Form 540NR, page 2Schedule
Attached
38,862
(Attach itemized list)
MISCELLANEOUS DEDUCTIONS
12. Enter 3% of adjusted gross income
Casualty OF Theft Loss(es)
shown on Form 540NR
NOTE: If you had more than one casualty
or theft loss occurrence, omit lines 30
13. Subtract line 12 from line 11 (See
through 33 and follow instructions for
instructions for maximum limita-
guidance.
tions). Enter total of col. B on
30. Loss before adjustments
Form 540NR, page 2
31. Insurance reimbursement
TAXES
32. $100 limitation
$100.00
$100.00
14. Real estate
33. Add lines 31 and 32
15. State and local gasoline
34. Line 30 less line 33
16. General sales
35. Child Care-See instructions
36. Other-For education, alimony, union
17. Auto license (excess of registration
dues, etc. See instructions
fee)
18. Personal property
19. State disability insurance (SDI). Em-
player private disability plans do
not qualify
20. Other
37. Total. (Add lines 34, 35 and 36).
21. Total taxes. Enter total of col. B
Enter total of col. B on Form
on Form 540NR, page 2 Schedule Attached
17,461
540NR, page 2
(Rav. 1972)
Schedule il (Form 540NR) on Reverse
Richard M. and Patricia Nixon
Income as Nonresidents of California
Calendar Years
1969
1970
1971
1972
Income
Apportionable income
Presidential salary & allowance
$236,459
$250,000
$250,000
$250,000
Personal use of gov't. airplanes
4,001
9,276
4,636
9,102
Total
240,460
259,276
254,636
259,102
Less business expenses
-
-
-
-
Total to be apportioned
240,460
I
259,276
254,636
259,102
Apportionment formula
39/345
55/365
51/365
34/366
Income apportioned to Calif.
$ 27,171
$ 39,072
$ 35,572
$ 24,072
California income
Residual compensation
11
Interest (1)
-
-
-
-
Improvements to San Clemente
43,625
15,635
6,963
391
Income Mother's Estate
322
Whittier rental
(5,699)
(6,188)
(5,715)
(6,448)
Gain on sale of San Clemente
property (50% NLTCG)
58,918
Royalty income (2)
710
8,880
367
-
ADJUSTED GROSS INCOME
$ 66,140
$116,317
$ 37,187
$ 18,015
Deductions
California contributions
UCLA Alumni Ass'n
$
100
Whittier College
$
500
$
100
Nixon Foundation (3)
10,385
E. Whittier Friends Church
250
1,000
E. Whittier YMCA
250
So. Calif. School Theology
200
Total
750
350
11,485
200
Excess over 20% of AGI
-
-
( 3,998)
--
Allowable deduction
$
750
$
350
7,437
$
200
California interest expense
Elmore
$ 6,000
Ogden
75,000
$ 38,045
$ 17,437
Abplanalp (4)
11,955
11,955
21,425
Total
-
$ 92,955
$ 50,000
$ 38,862
California taxes
Real property - San Clemente
$ 7,561
$ 12,953
$ 11,346
$ 17,402
California sales tax
2,256
486
-
--
California gas tax
20
9
17
59
License tags - net
20
19
Total
9,837
13,468
11,382
17,461
Total deductions
10,587
106,773
68,819
56,523
TAXABLE INCOME (LOSS)
$ 55,553
$ 9,544
($ 31,632)
($ 38,508)
NONRESIDENT
INDIVIDUAL
TAXABLE
540NR
CALIFORNIA
1972
PART-YR. RESIDENT
INCOME TAX
YEAR
For calendar year 1972, or other taxable year beginning
, 1972, ending
1973
FIRST NAME(S) AND INITIAL(S)
LAST NAME
Your social security number
Please
RICHARD M. and PATRICIA R.
NIXON
567 68 0515
Type
PRESENT HOME ADDRESS (Number and street, including opartment number, or rural route)
Wife's number, if Joint return
or
The White House
Print
CITY, TOWN OR POST OFFICE, STATE
ZIP CODE
OCCU-
Yours President of the
Washington, D. C.
20500
PATION
Wife's United States
If nonresident during any part of your taxable year, of what state were you a resident?
If part-year resident, enter date
California residence was established
and/or date California residence was terminated
If
full-year
nonresident,
check
box
X
and enter number of months you were in California during the taxable year
34 days
If active member of U.S. armed forces, check box
and enter "100%" on lines 15, 22 and 58.
Filing Status-Check Only One
5. Dependents-Do not list yourself, your spouse or person who qualifies you as head of household
1.
Single
NAME (include last name and/or address if different from yours)
RELATIONSHIP
2.
X
Married, filing joint return
3.
Married, filing separate return-Enter spouse's social
security number and first name here
Enter
Number
5
6. Blind (refer to instructions)
Number of blind exemptions claimed
6
4.
Head of Household-Complete Part 1, page 2
7. Total dependent and blind exemptions (add lines 5 and 6)
7
Include income from all sources in Column "A". List all income while California resident plus all California income while a nonresident in Column "B"
A. Total Income
B. California Income
(Attach Copy 2 of Form(s) W-2 to
8. Wages, salaries, tips, and other employee compensation front. If unavailable, attach explanation)
8
259,102
24,072
9. Dividends. Enter total (if over $500, complete and attach Schedule B(540NR))
9
10. Interest. Enter total (if over $500, complete and attach Schedule B(540NR))
10
11. Income other than wages, dividends and interest (from page 2, line 44)
11
(6,057)
4 Attach Copy 2 of Form W-2 here.
12. Total (add lines 8, 9, 10 and 11)
12
18,015
13. Adjustments to income (from page 2, line 50)
13
-
14. Adjusted gross income (subtract line 13 from line 12)
14
18,015
15. Percentage of California income (line 14, column B ÷ column A)
% (100% maximum).
16. Itemized deductions OR standard deduction (from page 2, line 59)
16
56,523
17. Taxable income (subtract line 16 from line 14. column B)
17
None
18. Tax from Tax Rate Schedule in instructions.
18
None
19. Personal Exemption. Single-$25. Married couple or head of household-$50
19
20. Other Exemptions-Total on line 7 above,
X $8
20
21. Total exemptions (add lines 19 and 20)
21
22. Allowable Exemption Credits (line 21 X
% from line 15)
22
23. Tax liability (subtract line 22 from line 18)
23
None
24. Credit for net income taxes paid to the State of
Attach other state return (see instructions)
24
25. Net tax liability (subtract line 24 from line 23)
25
None
26. Tax on preference income (see instructions-attach Schedule P(540))
26
Write social security number on check or money order. Attach here.
27. Total tax liability (add lines 25 and 26)
27
None
28. Total California income tax withheld (attach Form(s) W-2 or DE-2P to front)
28
29. 1972 California estimated tax payments
29
30. Excess California SDI tax withheld (attach Form DE 1964 to face of return)
30
e
31. Total payments (add lines 28, 29 and 30)
31
Pay
in
full.
Mail
payment
with
return
to
32. If line 27 is larger than line 31, enter BALANCE DUE.
32
Franchise Tax Board, Sacramento CA 95867.
33. If line 31 is larger than line 27, enter OVERPAYMENT. Mail return to P.O. Box 13-540, Sacramento, CA 95813
33
34. Line 33 to be (a) REFUNDED. (Allow at least six weeks for your refund)
0 Attach Form DE 1964 here.
(b) Credited on 1973 estimated tax
Under penalties of projury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and
Down write in these typeses
belief it is true, correct and complete. If prepared by a person other than laxpayer, his declaration is based on all information of which he has any knowledge.
P
Sign
white
Your signature-if filing Jointly, BOTH must sign
Date
Signature of preparer other than taxpayer
E
here
kun
ARTHUR BLECH & COMPANY
my
5/1/74
Spouts's signature
Date
ASSERTIFIED PUSLIC ACCOUNTANTS Date
A
Dean S. Butler as Attorney In Fact
5900 WILSHIRE BLVD.
LOS ANGELES, CALIF. 90036
Page 2 Form 540NR (1972)
PART I-Head of Household-if claimed, answer the following questions (See Instructions)
Check
Never married
Legal separation (interlocutory decree does not qualify) Date
one:
Widow(er) Date
Final divorce/dissolution Date
Individual who qualified you as head of household (Do not list this individual as a dependent on page 1, line 5):
Name
Relationship
Age
Did this person qualify as your dependent for
the calendar year 1972?
Did this person reside in your home for the entire taxable year?
If not, explain circumstances
PART II-Other Income
A. Total Income
B. California Income
35. Business income (or loss) (attach Schedule C (540))
35
38. Net gain (or loss) from sale or exchange of capital assets (attach Schedule D (540))
36
37. Net gain (or loss) from Supplemental Schedule of Gains and Losses (attach Schedule D-1 (540))
37
38. Pensions and annuities
38
39. Rents and royalties
Attach
39
(6,448)
Schedule E
40. Partnerships
(Form 540)
40
41. Estates and trusts
41
42. Farm income (or loss) (attach Schedule F (540))
42
(a) Fully taxable pensions and annuities (not reported on Schedule E)
43. Miscel-
(b) Alimony
laneous
(c) Other (state nature and source)
391
Income
(d) Total miscellaneous income (add lines 43(a), (b) and (c))
43
391
44. Total (add lines 35 through 43). Enter here and on page 1, line 11
Schedule Attached
44
(6,057)
PART III-Adjustments to Income
45. "Sick pay" if included in line 8 (see instructions-attach statement)
45
46. Moving expenses (see instructions-attach statement)
46
47. Employee business expense (see instructions-attach statement)
47
48. Military exclusion-active duty pay only (see instructions for line 8, page 1)
48
49. Payments as a self-employed person to a retirement plan, etc.
49
50. Total adjustments (add lines 45 through 49). Enter here and on page 1, line 13
50
PART IV-Itemized Deductions OR Standard Deduction On separate returns of married taxpayers both must itemize deductions or both must take the standard deduction
If you itemize deductions, complete and attach Schedule A (540NR) and enter California subtotals on lines 51 through 56 below
51. Total deductible medical and dental expense (from Schedule A (540NR) line 10)
51
52. Total child adoption expense (from Schedule A (540NR) line 13)
52
53. Total taxes (from Schedule A (540NR) line 21)
53
17,461
54. Total contributions (from Schedule A (540NR) line 25)
54
200
55. Total interest expense (from Schedule A (540NR) line 29)
55
38,862
56. Total miscellaneous deductions (from Schedule A (540NR) line, 37
56
57. Total itemized deductions (add lines S1 through 56)
57
56,523
If you do not itemize deductions, compute standard deduction as follows
OR I I
58. (a) Separate return of a single or married taxpayer-$1,000 X
% (from page 1, line 15)
58
(b) Joint return of a married couple, or head of household-$2,000 X
% (from page 1, line 15
59. Total itemized deductions (line 57) OR standard deduction line 58). Enter here and on page 1, line 16
59
56,523
64242-400 8-72 2.000M © A OSP
SCHEDULE
CALIFORNIA
TAXABLE
19 72
ITEMIZED DEDUCTIONS
FORM 540NR
YEAR
Attach to Form 540NR
Name as shown on Form 540NR
Social Security Number
RICHARD M. and PATRICIA R. NIXON
567 68 | 0515
During the period of nonresidence no deduction may be taken which is attributable to property or business located outside of California,
alimony is not deductible, and all other deductions must be directly related to California income. See separate instructions for limitations
on allowance of specific deductions.
MEDICAL AND DENTAL EXPENSE (not compensated by insurance or otherwise) for
CONTRIBUTIONS
A. Total
B. California
medicine and drugs, doctors, dentists, nurses, hospital care, insurance premiums
for medical care, etc.
22. Cash including checks, money
A. Total
B. California
orders, etc. (itemize)
1. One-half (but not more than $150)
of insurance premiums for medical
I
care
2: Total cost of medicine and drugs
3. Enter 1% of adjusted gross income
shown on Form 540NR
4. Subtract line 3 from line 2 (if less
Schedule Attached
200
than zero, enter zero)
5. Enter balance of insurance premi-
ums for medical care not entered
on line 1
6. Itemize other medical, dental ex-
penses (include balance of insur-
23. Total cash contributions
200
ance premiums not deductible on
line 1)
24. Other than cash (see instructions
for required statement). Enter total
here
25. Total (Add lines 23 and 24-maxi-
mum deduction may not exceed
20% of adjusted gross income).
Enter total of col. B on Form 540-
NR, page 2
200
INTEREST EXPENSE
7. Total (add lines 4, 5 and 6)
28. Home mortgage
27. Installment purchases
8. Enter 3% of adjusted gross income
28. Other (itemize)
shown on Form 540NR
9. Subtract line 8 from line 7 (if less
than zero, enter zero)
10. Total (add lines 1 and 9). Enter total
of col. B on Form 540NR, page 2
CHILD ADOPTION EXPENSE
29. Total. Enter total of col. B on
11. Total expense paid or incurred
Form 540NR, page 2Schedule
Attached
38,862
(Attach itemized list)
MISCELLANEOUS DEDUCTIONS
12. Enter 3% of adjusted gross income
Casualty or Theft Loss(es)
shown on Form 540NR
NOTE: If you had more than one casualty
or theft loss occurrence, omit lines 30
13. Subtract line 12 from line 11 (See
through 33 and follow instructions for
instructions for maximum limita-
guidance.
tions). Enter total of col. B on
30. Loss before adjustments
Form 540NR, page 2
31. Insurance reimbursement
TAXES
32. $100 limitation
$100.00
$100.00
14. Real estate
33. Add lines 31 and 32
15. State and local gasoline
34. Line 30 less line 33
16. General sales
35. Child Care-See instructions
36. Other-For education, alimony, union
17. Auto license (excess of registration
dues, etc. See instructions
fee)
18. Personal property
10. State disability insurance (SD). Em-
player private disability plans do
not qualify
20. Other
37. Total. (Add lines 34, 35 and 36).
21. Total taxes. Enter total of col. 8
Enter total of col. B on Form
on Form 540NR, page 2 Schedule Attached
17,461
540NR, page 2
(Rev. 1972)
Schedule B (Form 540NR) on Reverse
Richard M. and Patricia Nixon
Income as Nonresidents of California
Calendar Years
1969
1970
1971
1972
Income
Apportionable income
Presidential salary & allowance
$236,459
$250,000
$250,000
$250,000
Personal use of gov't. airplanes
4,001
9,276
4,636
9,102
Total
240,460
259,276
254,636
259,102
Less business expenses
-
-
-
-
Total to be apportioned
240,460
I
259,276
254,636
259,102
Apportionment formula
39/345
55/365
51/365
34/366
Income apportioned to Calif.
$ 27,171
$ 39,072
$ 35,572
$ 24,072
California income
Residual compensation
11
Interest (1)
-
-
-
-
Improvements to San Clemente
43,625
15,635
6,963
391
Income Mother's Estate
322
Whittier rental
(5,699)
(6,188)
(5,715)
(6,448)
Gain on sale of San Clemente
property (50% NLTCG)
58,918
Royalty income (2)
710
8,880
367
-
ADJUSTED GROSS INCOME
$ 66,140
$116,317
$ 37,187
$ 18,015
Deductions
California contributions
UCLA Alumni Ass'n
$
100
Whittier College
$
500
$
100
Nixon Foundation (3)
10,385
E. Whittier Friends Church
250
1,000
E. Whittier YMCA
250
So. Calif. School Theology
200
Total
750
350
11,485
200
0
Excess over 20% of AGI
-
-
( 3,998)
-
Allowable deduction
$
750
$
350
7,437
$
200
California interest expense
Elmore
$ 6,000
Ogden
75,000
$ 38,045
$ 17,437
Abplanalp (4)
11,955
11,955
21,425
Total
-
$ 92,955
$ 50,000
$ 38,862
California taxes
Real property -- San Clemente
$ 7,561
$ 12,953
$ 11,346
$ 17,402
California sales tax
2,256
486
I
-
California gas tax
20
9
17
59
License tags - net
20
19
Total-
9,837
13,468
11,382
17,461
Total deductions
10,587
106,773
68,819
56,523
TAXABLE INCOME (LOSS)
$ 55,553
$ 9,544
($ 31,632)
($ 38,508)
LAW OFFICES
WILLIS, BUTLER & SCHEIFLY
ARTHUR B. WILLIS
DEAN S. BUTLER
20TH FLOOR
JOHN E. SCHEIFLY
FRED L. LEYDORF
CITY NATIONAL BANK BUILDING
IRVING M. GRANT
DUDLEY M. LANG
606 SOUTH OLIVE STREET
JAMES F. CHILDS, JR.
MICHAEL 1. BLAYLOCK
JOHN J. BARCAL
DAVID R. DECKER
LOS ANGELES, CALIFORNIA 90014
STEVEN W. PHILLIPS
CHARLES R.AJALAT
NEAL S. MILLARD
DAVID L. CASE
TELEPHONE (213) 620-1650
May 3, 1974
Franchise Tax Board
State of California
P. O. Box 1468
Sacramento, California 95807
Attention: Martin Huff
Re: Richard M. and Patricia R. Nixon
1973 California Nonresident Income Tax Return
Gentlemen:
In accordance with the authority granted to me in a Power of Attorney
from the above designated taxpayers and previously filed with your office,
I hereby authorize the disclosure by your office of the fact that a 1973
California Nonresident Income Tax Return has been filed by the taxpayers
and that such return discloses no tax payable. You are also authorized
to disclose any of the details of the return which you feel are appropriate.
Yours very truly,
Dan S Buth
DEAN S. BUTLER
DSB:cmn
NEWS RELEASE FROM:
Franchise Tax Board
Sacramento, CA 95867
(916) 445-0408 or
Phone: Robert W. Longsdorf, (916) 355-0447
FOR IMMEDIATE RELEASE
On April 12, 1974, Martin Huff, Executive Officer of the Franchise
Tax Board, stated that President and Mrs. Nixon's tax counsel had indicated
that California State income tax returns for 1969 through 1972 would be
prepared in accordance with the determination of their liability.
Huff stated that those returns have now been received and the amount
due has been paid. On payment, the 1969 tax liability of $4,107 was subject
to a credit of $200 to reflect the special tax credit applicable for that
year. A timely return for the year 1973 was also filed. It was prepared
on a basis consistent with the department's determination for prior years.
At a press conference held February 1, 1974, questions were raised as to
President Richard M. Nixon's and Patricia R. Nixon's filing status under the
California Personal Income Tax Law for years prior to 1969. These questions
could not be answered at that time as the department had no waiver permitting
disclosure. Subsequently, a waiver was received.
For the years 1947 through 1963, California returns were filed and taxes
paid by Richard M. and Patricia R. Nixon. For the years 1964 through 1968,
Mr. and Mrs. Nixon were not residents of California and were not subject to
the California filing requirements.
#####
A schedule setting forth the data and calculations for 1973 is attached.
74-2-550
5/3/74
RICHARD M. and PATRICIA R. NIXON
1973 Income as Nonresidents of California
INCOME
Apportionable Income:
President's salary and allowance
$ 250,000.
Apportionment Formula - 46/365 = 12.6027%
Income apportioned to California
31,507.
California Income
Whittier Rental
[
5,371.]
$ 26,136.
ADJUSTED GROSS INCOME
Deductions:
California Contributions
$
300.
California Interest Expense
19,833.
California Taxes
11,969.
Total Deductions:
$ 32,102.
TAXABLE INCOME (LOSS)
[$ 5,966.]
74-2-550
5/3/74
February 5, 1969
TO
MR. HALDEMAN
FROM
BUD KROGH
RE
RESIDENCE REQUIREMENT FOR DISTRICT OF COLUMBIA
Sorry to be late in getting this answer back to you, but I wanted to check
on the question with Justice, our personnel office, and the District of
Columbia Tax Auditing Department. The results of these checks are as
follows:
(1) Even though you are in a temporary status at the Jefferson Hotel
and will probably move into the suburbs with your family during the
summer, you are still, for District withholding tax purposes, a resi-
dent of the District. Consequently, you should fill out that form indi-
cating that you are a resident of the District and Mrs. Robb's office
will proceed to withhold income tax for the District according to your
tax bracket.
(2) You will not be taxed double. If, during the period from January 1
through June or July, the State of California also imposes an income
tax, this will be deducted from the income tax payable to the District.
In addition, if you are not a resident of the District for seven months
this year, or do not live here on the last day of the month, the tax
withheld from your pay checks in the next six months or so will be re-
funded to you.
(3) The crux of all this is that you should not fill out form D-4-A, the
pink form, but should fill out that form stating that you are a resident
of the District. I forget its color.
(4) There are no problems that I can see that might be caused by
California being a community property state and the District, Virginia,
or Maryland not being a community property state.
17
Form D-4-A
Government of the
CERTIFICATE OF NON-RESIDENCE IN THE DISTRICT OF COLUMBIA
District of Columbia
(See instructions on reverse
)
Finance Office
Print full name
Social Security No.
Washington. D. C. 20001
1
EMPLOYEE:
Print street address, city, state, zip code
Upon request of your employer,
you must file this form with him
I,
, certify that:
SO his records may show clearly
(Name)
that you are not a resident of the
District of Columbia. Otherwise, he
My permanent residence is
must withhold D. C. income tax from
(Street)
your wages.
; that
(City)
(County)
(State)
EMPLOYER:
I do not have a place of abode within the District; that
Keep this certificate with your
I have not maintained a place of abode within the District for more than seven (7) months
records. If you believe the am-
during this calendar year; that
ployee should have filed Form DA
in lieu of Form D-4-A, the Financ
I do not reside within the District; and that
Officer, D. C. should be so informed
I am not domiciled within the District.
(see instructions on reverse)
I certify under the penalties provided by law that the above statements are true, correct,
and complete to the best of my knowledge and belief.
(Date)
-2
(Signature)
INSTRUCTIONS TO EMPLOYEES
1. Purpose of Certificate of Non-Residence.-Your em-
(a) he did not maintain nor does he expect to main-
ployer is required to determine your resident status in
tain a place of abode within the District for more
order that he may know whether or not you are subject
than seven months of the taxable year; and
to the D.C. Withholding Tax. In order to establish that
(b) he does not reside within the District; and
you are not a resident of the District and therefore not
subject to the D.C. Withholding Tax, this form must be
(c) he is not domiciled within the District.
filed with your employer upon his request. Employees
3. Change in Resident Status.-If your resident status
who are residents of the District will not use this form
changes at any time after you have filed Form D-4-A with
but will file Form D-4, "Employee's Withholding Exemp-
tion Certificate". Failure to file the appropriate certifi-
your employer so that you have a place of abode within
cate in any doubtful case will cause your wages to be sub-
the District, or reside within the District, or become
ject to D.C. Withholding Tax without exemption.
domiciled within the District, you must promptly file
2. Who Must File a Certificate of Non-Residence.-Up-
Form D-4, "Employee's Withholding Exemption Certifi-
on the request of his employer every individual who is
cate", with your employer in order that he may determine
employed in the District must file Form D-4-A when:
the proper amount of tax to be withheld from your wages.
W-17
2/3/69
Mr. Krogh:
As per our conversation, furnished herewith are
D.C. tax forms (Non-resident certificate and the
current instructions regarding D.C. Tax Return for
1968 income). May I have copy of your resulting
memorandum - for my record?
Jean Jean Robb Robb
THE WHITE HOUSE
WASHINGTON
mr. Broaddus
D.C. Audition office.
# 629-3324
check M: resident states of our
personnel
A.E.C
who are you. deary
Eva Daughtry
INSTRUCTIONS FOR FORM D-40
1968
DISTRICT OF COLUMBIA INDIVIDUAL INCOME TAX RETURN
INSTRUCTIONS FOR EMPLOYEES WHO EARNED LESS THAN $10,000
Employees who earned less than $10,000 may follow these simple steps to use Form D-40 if they were residents for the entire year.
1. Enter your full name, address and social security number.
6. Computation of Tax
2. Fill in lines 1, 2, and 3 to receive credit for your exemptions.
a. If your income was less than $5,000, you may figure your
Dependents must be listed on page 2.
tax from the tax table on page 4 of these instructions.
b. If your income was $5,000 or more, compute your own tax
3. Enter on line 4 the total wages and other compensation from
by completing line 10.
all your 1968 Forms D-2. If you claim "sick pay" on line 4a,
c. Enter your tax on lines 11 and 13.
attach Form FR-102.
7. Enter the total D.C. tax withheld on lines 14 and 16. Attach
4. Report all dividends and interest in Schedule A, Page 2 and
all withholding statements.
enter the total on line 5, page 1.
8. Enter the balance due on line 17 or refund on line 20.
9. Sign your return. If a joint return, both husband and wife
5. Enter your total income on line 8.
must sign.
10. Attach check or money order for any balance of tax due.
GENERAL INSTRUCTIONS
IMPORTANT: Since the District of Columbia and Federal
PAYMENT OF BALANCE DUE.-Any balance of tax due must
income tax laws are not the same, you should read the following
be paid with your return. Make your check or money order pay-
instructions carefully.
able to "D. C. Treasurer." Do not send cash or stamps.
WHO MUST FILE A TAX RETURN.-Unless exempt for one
of the reasons shown below, you must file a return if-
Notice of Charge for Dishonored Checks.-A penalty of $5.00 will
(1) you maintained a permanent home (domicile) in the Dis-
be imposed if a check in payment of any obligation due the Dis-
trict of Columbia is not honored by your bank.
trict on the last day of the taxable year, or
(2) you maintained a place of abode (lived) in the District for
SOCIAL SECURITY NUMBER.-Your Social Security number
more than seven months of the taxable year.
must be entered in the space provided. Married persons must
CHANGE OF RESIDENT STATUS.-Any individual who on
enter the numbers of both spouses even though separate returns
or before December 31st changes his permanent home (domicile)
are filed.
to a place outside the District shall be taxable as a resident of
1969 ESTIMATED TAX.-File a 1969 Declaration of Estimated
the District for that portion of the taxable year during which
he had his permanent home (domicile) in the District. Also,
Tax, Form D-40ES, by April 15, 1969 and make quarterly pay-
ments if you expect your gross income will exceed-
any individual who, during the calendar year, acquires a perma-
nent home (domicile) in the District is taxable on the amount
(a) $5,000 after allowance for personal exemptions; or
(b) $1,000 from sources other than wages subject to withhold-
of gross income received from and after the date he becomes a
resident of the District. If you resided in the District for less
ing and will exceed $500 after allowance for personal
than 12 months in 1968, be sure to enter the number of months
exemptions.
you were a resident at the top of Page 1 (if more than half a
MARRIED PERSONS-JOINT OR SEPARATE RETURNS.-
month, count it as a full month.)
Important-It is generally advantageous for married couples
See "Personal Exemptions and Credit for Dependents Allowed
to file separate returns if the combined taxable income exceeds
on Change of Resident Status" on Page 2 of these instructions.
$2,000.
WHO IS NOT REQUIRED TO FILE A RETURN.-You are not
Joint Returns-Joint returns must include all income of both
required to file a return if you were-
spouses. The names of both spouses must be entered in the
(1) single, or married and not living with husband or wife,
heading of the return. Both spouses must sign the return.
and received less than $1,000 gross income during the tax-
able year, or
Separate Returns-Include only the income of the filing spouse.
(2) married and living with husband or wife and the com-
Do not claim an exemption for the other spouse.
bined income received by both spouses during the taxable
year was less than $2,000, or
CHANGE FROM JOINT OR SEPARATE RETURN-Election
(3) an elective officer of the U. S. Government, or
to file joint or separate returns cannot be changed after April 15,
(4) an employee on the staff of an elected officer in the legisla-
1969.
tive branch of the U. S. Government and both you and the
elected officer are bona fide residents of the same State, or
NONRESIDENTS.-Use form D-40B to claim a refund. The
(5) an officer of the executive branch of the U. S. Government
form may also be used to request a ruling with regard to liability
who had no permanent home (domicile) in the District on
for D. C. income tax and to substantiate claim of domicile outside
the District.
the last day of the taxable year and your appointment to
the office held was-
CHECK THESE ITEMS BEFORE MAILING YOUR RETURN:
(a) by the President of the United States,
(b) subject to confirmation by the U. S. Senate, and
1. Signature(s) on return.
(c) terminable at the pleasure of the President of the
2. Social security number(s) on return.
United States.
3. Name and address, including Zip Code, printed legibly on
return.
WHEN AND WHERE TO FILE.-File your return as soon as
4. Copy of withholding statement attached for each employer.
possible after January 1, but not later than April 15, 1969. Mail
5. All personal exemption questions answered.
or deliver it to the Finance Office, Revenue Division, Municipal
6. Copy of State tax return attached if State credit claimed.
Center, 300 Indiana Avenue, N. W., Washington, D. C. 20001. If
7. Form FR-102 attached if sick pay exclusion claimed.
you require more time to file your return and you have a justi-
8. Filing on Form D-40B if claiming refund as nonresident.
fiable reason, an extension of time may be obtained by filing
9. All computations double checked for accuracy.
Form FR-127, in duplicate, before April 15, 1969.
10. Check or money order attached if balance of tax due.
SPECIFIC INSTRUCTIONS
PERSONAL EXEMPTION-PAGE 1, LINE 1
These instructions are so designed that the filing
EXEMPTION FOR YOURSELF AND WIFE.-Claim exemp-
of your D. C. return will be relatively easy after
tion for your spouse only if all of the income of the spouse is in-
you have prepared your Federal income tax re-
cluded in this return, or if spouse had no income. Married
turn. Many of the items on your D. C. return
persons not living together must file as single persons. Head of
may be copied from the Federal return, but read
family may be claimed only if you are single or married and not
the following instructions carefully for some
living with spouse AND you supported in your home one or
of the important differences.
more dependents listed on page 2.
PAGE 2
EXEMPTIONS FOR CHILDREN AND OTHER DEPEND-
TAX COMPUTATION
ENTS.-Each dependent must be listed on page 2 and meet ALL
If you do not use the tax table your tax must be computed in
of the following tests:
the tax computation on page 1 of the return. Instructions for
(1) Received more than one-half of his or her support from you
the tax computation are as follows:
(or from wife or husband if a joint return is filed).
(2) Received less than $500 gross income.
Line 10a.-Enter amount of standard deduction, or total of
itemized deductions from page 2. The election to claim the
(3) Did not file a joint return with her husband (or his wife).
standard deduction, or to itemize deductions, is irrevocable for
(4) Was a citizen or resident of the United States, Canada, or
the taxable year for which the election is made. If husband and
Mexico.
wife living together file separate returns and one itemizes de-
(5) Was related to you in one of the following ways:
ductions, the other must itemize. Upon request by the Finance
Child
Sister
Mother-in-law
The following if re-
Officer you must be able to support all itemized deductions
Stepchild
Grandchild
Father-in-law
lated by blood:
claimed. Generally, itemized deductions may be copied from
Mother
Stepbrother
Brother-in-law
Uncle
your Federal return. Some deductions which may not be copied
Father
Stepsister
Sister-in-law
Aunt
are as follows:
Grandparent
Stepmother
Son-in-law
Niece
1. Contributions-Contributions to organizations which do
Brother
Stepfather
Daughter-in-law Nephew
not carry on their charitable activities to a substantial
Note: No exemption is allowed if your child had $500 or
extent in the District of Columbia are not allowed on the
more gross income even though the child was under 19 or was
D. C. return. The total deduction for contributions may
a student.
not exceed 15% of the amount reported on line 8, page 1.
BIRTH OR DEATH OF A DEPENDENT-You may claim a
2. Taxes-No income or wage taxes, or any taxes deducted in
full $500 exemption for a dependent who was born or died dur-
computing the total income reported on pages 3 or 4 are
ing the year if the tests for claiming exemption for such depend-
allowed as itemized deductions. Taxes which are not
ent are met for the part of the year during which he or she
deductible on your Federal return but which may be in-
was alive.
cluded in itemized deductions on your D. C. return are
auto license fees; social security taxes for your domestic
PRORATION OF EXEMPTIONS REQUIRED-
employees; and Federal excise taxes on services including
Change in Marital Status.-If you use the tax table, your
transportation, telephone and telegraph.
marital status on the last day of the taxable year determines your
3. Medical and Dental Expenses-The Federal exclusion of
allowable exemptions.
1% of adjusted gross income from costs of medicines and
If you do not use the tax table, and your marital status changed
drugs does not apply on the D. C. return. The exclusion
during the year, you must prorate your personal exemptions in
from the D. C. total medical expense deduction, however,
accordance with the number of months before and after such
is 5% as compared to 3% on the Federal return. You
change. A fraction of a month is disregarded, but if it is more
cannot deduct one-half of the amount of the medical in-
than one-half of a month, count it as a full month.
surance premiums paid not exceeding $150 for yourself,
Decedents.- total amount of the decedent's exemptions
your wife, and dependents without regard to any limita-
reported on line 3 must be prorated to the date of death in the
tion. However, the entire amount paid for medical insur-
final return of an individual who died during the taxable year.
ance may be included with other medical expenses subject
Personal Exemptions and Credit for Dependents Allowed On
to the 5 percent exclusion. An itemized statement of all
Change of Resident Status.-If you changed your resident status
medical expenses must be attached to the return.
and are filing a return for a period of less than a full calendar
4. Casualty Losses and Thefts-The Federal exclusion from
or fiscal year you must:
the deduction for losses and thefts does not apply on the
1. Include in your return all gross income received while you
D. C. return. Losses, damage, and thefts of property
were a resident of the District,
owned for more than two years are not deductible on the
2. Prorate your personal exemptions and credit for dependents
D. C. return.
according to the number of months you were a resident of
5. Miscellaneous-Moving expenses, costs of child care, and
the District (if more than one-half of a month, count it as
alimony payments not made under a court order, are not
a full month), and
deductible on the D. C. return.
3. Itemize your deductions. Report only those deductions
Excess deductions on the termination of an estate or
actually paid while you were a resident of the District.
trust are not allowable deductions on the D. C. Individual
You may not use the Standard Deduction or the Optional
Income Tax Return of the beneficiary.
Tax Table.
Itemized Deductions Limitation.-If you changed your resident
WAGES, SALARIES, TIPS, ETC.- PAGE 1. LINE 4
status and are filing a return for a period of less than a full calen-
Report the full amount of your wages, salaries, fees, tips,
dar or fiscal year you must itemize your deductions. Report only
commissions, bonuses, and other payments for your personal
those deductions actually paid while you were a resident of the
services even though taxes and other amounts have been with-
District. You may not use the Standard Deduction or the
held by your employer.
Optional Tax Table if your return is for a period of less than a
All income received, regardless of source and unless specifically
full calendar or fiscal year.
exempt, must be reported even though it may be offset by
Lines 10a, b and c.-Follow instructions on each of these lines
expenses and other deductions. If you are filing a return for a
on page 1.
period of less than a full calendar or fiscal year, include in your
Line 10d.-The balance on line 10d is your TAXABLE IN-
return all gross income received while you were a resident of
COME. Compute your tax on this amount by using the tax
the District.
rate schedule on page 3 of the return.
"SICK PAY" EXCLUSION-PAGE 1, LINE 4a
Line 12-State Tax Credit.-If you were domiciled outside the
Federal limitations on "sick pay" do not apply on the D. C.
District of Columbia during the entire calendar year and you
return. Enter the total of amounts received under employers'
were required to pay and you paid income or intangible personal
wage continuation plans for periods you were absent from work
property taxes for the calendar year to your state of domicile or
due to personal injuries or sickness. Attach to your return a
any political subdivision thereof, enter the amount of such
completed Form FR-102 or a comparable statement showing how
taxes paid.
such amount was computed.
State Tax Credit if Resident Status Changed.-If you file a
INCOME FROM PAGE 2-PAGE 1. LINE 5
D. C. return for the portion of the calendar year that you main-
If you had income from dividends and interest, enter on line
tained a place of abode in the District and are required to file a
5 the total amount reported in Schedule A on page 2.
full calendar year return as a domiciliary resident with another
jurisdiction, the amount of state tax credit must be prorated in
INCOME FROM PAGE 3-PAGE 1, LINE 6
the same ratio as the amount of adjusted gross income shown on
If you had income required to be reported on page 3, follow the
your D. C. return bears to the amount of adjusted gross income
instructions for page 3 with respect to such income and enter
reported on your return filed with the other jurisdiction. Attach
the total on line 6.
a statement showing how you prorated your State Tax Credit.
INCOME FROM PAGE 4-PAGE 1, LINE 7
If you file for a portion of the calendar year with the District
If you had income required to be reported on page 4, follow the
and the balance of the year with another jurisdiction, no credit is
instructions for page 4 with respect to such income and enter the
allowed for the amount of tax paid to the other jurisdiction.
total on line 7.
Do not take credit for any tax paid for any year other than
1968. Your home state or political subdivision must require you
FIGURING YOUR TAX-PAGE 1, LINES 9 and 10
to pay the tax. If you voluntarily pay such tax, or any portion
OPTIONAL TAX TABLE
thereof, or if you fail to take advantage of your home state's
If your total income shown on line 8, page 1, is $5,000 or less,
credit provisions for taxes paid on income earned while residing
you may be eligible to use the optional tax table to compute your
in D. C., your claim for credit against the D. C. tax will be dis-
tax. (See instructions for the tax table on page 4.)
allowed.
PAGE 3
Attach to your D. C. return a copy of the tax return filed with
called for in columns through 6 of Schedule C. Each line of
the state or subdivision.
Schedule C is for reporting one annuity or pension.
You may be requested to submit proof you were required to
Part-Year Annuities.-If your payments started after January
pay the tax to the state or subdivision and proof of domicile in
1, 1968, instead of reporting 3-percent, take 1/12 of this 3% of
that jurisdiction.
cost and multiply it by the number of months for which you
Line 14-D. C. Income Tax Withheld.-Enter the total amount
received payments in 1968.
of D. C. income tax withheld during 1968, and attach copy "A"
After You Recover Cost.-As soon as you have recovered your
of all Forms D-2 or other approved substitute withholding tax
cost tax-free (usually within the first few years), then every-
statements to your return.
thing you receive must be reported as income. From then on,
REFUND OF OVERPAYMENT OR PAYMENT OF BALANCE
you can report your full pension or annuity receipts in column
DUE-PAGE 1.
6 of Schedule C without filling out the other columns. Enter
Follow the instructions on lines 11 through 18, page 1 of
the total of column 6 in the last column to the right.
the return carefully to determine if your tax is overpaid or if
Noncontributory Annuities.-If the employee did not con-
there is a balance of tax due, and complete the appropriate lines.
tribute to the cost and was not subject to tax on his employer's
Refunds Due on Behalf of Deceased Taxpayers.-If a return is
contributions, the full amount of an annuity or a pension of a
filed on behalf of a taxpayer (or his wife if a joint return is filed),
retired employee must be included in column 6.
who died during or after the taxable year 1968, Form FR-147,
Other Joint and Survivorship Annuities.-If, after the death
Statement of Claimant to Refund Due on Behalf of Deceased Tax-
of one annuitant, another person continues to receive the an-
payer, must be completed by the claimant in accordance with the
nuity payments, the new recipient must continue to report income
instructions contained therein and attached to the return.
in the same manner as the deceased annuitant.
DIVIDENDS AND INTEREST-PAGE 2, SCHEDULE A
Disability Pensions.-If your employer's plan provides for the
Dividends.-Report as taxable income all dividends received,
payment of a disability pension when you become permanently
including the following:
disabled due to sickness or injury before you reach normal retire-
(1) Dividends received in liquidation of a corporation.
ment age, you may exclude all of the amounts you receive up to
(2) The full amount of dividends received from regulated
the time you reach normal retirement age. Thereafter, you
investment companies even though such distributions,
must report the payments received under the 3-percent rule ex-
in whole or in part. are classified as "capital gain" divi-
plained above. However, upon death of the disability annuitant,
dends for Federal income tax purposes.
the surviving spouse must immediately report the payment re-
(3) Distributions received from public utility corporations
ceived under the 3-percent rule.
which generally are classified in part as "return of capi-
INCOME FROM RENTS AND ROYALTIES-PAGE 3, SCHED-
tal" for Federal income tax purposes.
ULE D
Do not exclude any amount from such dividends.
If you received more than $5,000 from renting property located
Interest.-Copy interest income listed on your Federal return
in the District, you may be required to file an unincorporated
except interest from obligations of the United States, its agencies,
business franchise tax return. (See instructions for filing Form
or instrumentalities.
D-30.) Copy the detailed information from the rent and royalty
NONTAXABLE INCOME-GAINS AND LOSSES FROM SALES
income part of your Federal return. (See instruction for Schedules
OR EXCHANGES OF CAPITAL ASSETS.-PAGE 2
D-1 and G-1 for depreciation rules.)
"Capital Assets" Defined.-The words "capital assets" mean
INCOME FROM PARTNERSHIPS, ESTATES, TRUSTS AND
any property, whether real or personal, tangible or intangible,
OTHER SOURCES-PAGE 3, SCHEDULE E
held by the taxpayer for more than two years (whether or not
connected with his trade or business) but do not include:
A partnership, estate or trust engaged in a trade or business in
(1) Stock in trade or other property of a kind properly in-
D. C. or receiving income from renting property located in D. C.
may be required to file an unincorporated business franchise tax
cludible in inventory if on hand at the end of the tax-
return. (See instructions for Form D-30.)
able year; or
(2) Property held by the taxpayer primarily for sale to
Partnerships.-For the tax year in which the last day of the
customers in the ordinary course of his trade or business.
partnership year falls, report your share of the net income (or
Report all gains and losses from selling or exchanging capital
loss) of the partnership, whether actually received by you or not.
assets in this schedule.
Estates and Trusts.-Report your share of the net income of an
Following are some examples of transactions which do not
estate or trust which, for the taxable year, is either required
qualify as a sale or exchange of capital assets for D. C. purposes:
to be distributed to you or has been paid or credited to your
(a) Distribution received from employees profit-sharing or
account.
pension plan (Report in Schedule C)
Other Income.-Report income such as alimony, separate main-
(b) Liquidating distributions by corporations (Report in
tenance, prizes, winnings, recoveries of bad debts and other items
Schedule A)
which reduced your tax in a prior year.
(c) Distributions received from mutual funds which are
Fellowship Grants and Awards.-Report the full amount of a
classified as "capital gains" distributions for Federal in-
come tax purposes. (Report in Schedule A)
grant or fellowship award as taxable income unless you can
(d) Profit from surrender of annuity contract for cash. (Re-
establish that it was a gift and not payment in whole or in part
for services performed. Submit full details with your return
port in Schedule C)
if you believe it was a gift.
OTHER NONTAXABLE INCOME-PAGE 2
All other items of nontaxable income must be reported in the
DEPRECIATION-PAGE 3, SCHEDULE D-1 AND PAGE 4,
SCHEDULE G-1
schedule provided at the bottom of page 2 of Form D-40.
If your income was all from salaries, wages, dividends and
Furnish information as required. The depreciation allowance
interest, disregard instructions for pages 3 and 4, and file only
does not apply to inventories or stock-in-trade, nor to land.
pages 1 and 2.
Any method of computing depreciation approved by the In-
GAINS AND LOSSES FROM SALES OR EXCHANGES OF
ternal Revenue Service will be permitted if it produces a
PROPERTY OTHER THAN CAPITAL ASSETS-PAGE 3,
reasonable depreciation allowance based upon useful life of the
SCHEDULE B
property to the trade, business or profession and if it takes into
consideration estimated salvage values. However, District law
Gains.-Gains and profits from selling or exchanging prop-
contains no provisions similar to the 7% investment tax credit
erty other than capital assets are fully taxable. (For definition
and the 20% "bonus" or additional first year depreciation allow-
of "capital assets" see NONTAXABLE INCOME instructions.)
ance on tangible personal property, both of which are provided
Losses.-Generally, losses from selling or exchanging property
for in the Federal law.
other than capital assets are fully deductible, except as follows:
The bases to be used in computing depreciation are as follows:
(1) Loss from the sale or exchange of a personal residence
or other nonbusiness property which was not held for the
(a) Property (including intangible personal property) ac-
quired by gift or inheritance, use the highest valuation
purpose of producing income, and
placed upon its transfer by the Federal Government
(2) Loss of stock which became worthless over two years
or by the State or Territory imposing a tax on the
after it was acquired.
transfer thereof. If the transfer of the property was not
"Capital Loss Carryover."-Capital loss carryover is not per-
subject to the aforesaid transfer tax, use the fair market
mitted.
value at the time acquired. The time such inherited
INCOME FROM ANNUITIES AND PENSIONS-PAGE 3,
property was acquired shall be the date of death of the
SCHEDULE C
decedent.
Report as income each year 3-percent of all the money you paid
(b) Property acquired by purchase, use cost.
toward your annuity or pension until you recover your cost
(c) Property acquired by exchange, use fair market value
tax-free. This is called "the 3-percent rule." Enter the figures
at the time of the exchange.
PAGE 4
(d) Property acquired prior to Januar
1939 as to which an
by the District to unincorporated business. The amount to
election was made in prior years to use fair market
be reported in Schedule F may be found in Schedule M, column
value as of that date instead of any other allowable
8, of the D. C. unincorporated business franchise tax return,
basis, continue to use the January 1, 1939 fair market
Form D-30, filed by the business.
value.
PROFIT (OR LOSS) FROM BUSINESS OR PROFESSION-
The allowance for depreciation actually sustained during the
PAGE 4, SCHEDULE G
taxable year may not be increased by any depreciation allow-
able in any prior year.
If you owned a business or practiced a profession, you must
fill in Schedule G. If the total receipts from your business or
INCOME (OR LOSS) FROM UNINCORPORATED BUSINESS-
profession were more than $5,000, you may be required to include
PAGE 4, SCHEDULE F
such income in an unincorporated business franchise tax return
As owner or part owner of an unincorporated business you
(see instructions for filing Form D-30).
must report in this schedule the portion of your share of the
Generally, the information which you furnished in Schedule C
income (or loss) of the business, whose taxable year ends within
and attached to your Federal return may be copied in Schedule
or with the year covered by your return, which was not taxable
G of Form D-40. Attach the necessary statements.
1968 OPTIONAL TAX TABLE FOR INCOMES OF $5,000 OR LESS
DO NOT USE THIS TABLE IF YOUR RETURN IS FILED FOR A PERIOD OF LESS THAN 12 MONTHS.
If your total adjusted gross income (Line 8, page 1, on your return) is more than $5,000 use Tax Computation on page 1 of your
return.
Your tax may be found in the table below under the optional method of computing tax if (1) you are reporting on a cash basis
:or the full calendar year; (2) you are not claiming credit for taxes paid to another jurisdiction on any part of your income; (3) your
adjusted gross income for the calendar year is $5,000 or less; (4) your income is derived solely from salaries, wages, dividends and in-
terest; and (5) your spouse, if filing a separate return, also uses the Optional Tax Table or takes the 10% standard deduction in lieu of
itemizing deductions.
To find your tax read down income columns until you find the line covering the total adjusted gross income shown on line 8,
page 1. Then read across to appropriate columns headed by the amount corresponding to the total amount of exemptions claimed on
line 3, page 1. Enter tax on line 11, page 1.
If adjusted gross
income on line 8,
And the total amount of exemptions claimed on Line 3, Page 1, of Form D-40, is-
page 1, is--
But
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
At
less
or more
least
than
Your tax is-
$0
$1,125
$0
$0
$0
$0
$0
$0
$0
$0
1,125
1,225
1.00
0
0
0
0
0
0
0
1,225
1,325
3.00
0
0
0
0
0
0
0
1,325
1,425
5.00
0
0
0
0
0
0
0
1,425
1,525
6.50
0
0
0
0
0
0
0
1,525
1,625
8.50
0
0
0
0
0
0
0
1,625
1,725
10.00
0
0
0
0
0
0
0
1,725
1,825
12.00
2.00
0
0
0
0
0
0
1,825
1,925
14.00
4.00
0
0
0
0
0
0
1,925
2,025
15.50
5.50
0
0
0
0
0
0
2,025
2,125
17.50
7.50
0
0
0
0
0
0
2,125
2,225
19.00
9.00
0
0
0
0
0
0
2,225
2,325
21.50
11.00
1.00
0
0
0
0
0
2,325
2,425
24.00
13.00
3.00
0
0
0
0
0
2,425
2,525
27.00
14.50
4.50
0
0
0
0
0
2,525
2,625
29.50
16.50
6.50
0
0
0
0
0
2,625
2,725
32.00
18.00
8.00
0
0
0
0
0
2,725
2,825
35.00
20.00
10.00
0
0
0
0
0
2,825
2,925
37.50
22.50
12.00
2.00
0
0
0
0
2,925
3,025
40.50
25.50
13.50
3.50
0
0
0
0
3,025
3,125
43.00
28.00
15.50
5.50
0
0
0
0
3,125
3,225
46.00
31.00
17.00
7.00
0
0
0
0
3,225
3,325
48.50
33.50
19.00
9.00
0
0
0
0
3,325
3,425
51.00
36.00
21.00
11.00
1.00
0
0
0
3,425
3,525
54.00
39.00
24.00
12.50
2.50
0
0
0
3,525
3,625
56.50
41.50
26.50
14.50
4.50
0
0
0
3,625
3,725
59.00
44.00
29.00
16.00
6.00
0
0
0
3,725
3,825
62.00
47.00
32.00
18.00
8.00
0
0
0
3,825
3,925
64.50
49.50
34.50
20.00
10.00
0
0
0
3,925
4,025
67.50
52.50
37.50
22.50
11.50
1.50
0
0
4,025
4,125
70.00
55.00
40.00
25.00
13.50
3.50
0
0
4,125
4,225
72.50
57.50
42.50
27.50
15.00
5.00
0
0
4,225
4,325
75.50
60.50
45.50
30.50
17.00
7.00
0
0
4,325
4,425
78.00
63.00
48.00
33.00
19.00
9.00
0
0
4,425
4,525
81.00
66.00
51.00
36.00
21.00
10.50
.50
0
4,525
4,625
84.50
68.50
53.50
38.50
23.50
12.50
2.50
0
4,625
4,725
88.00
71.00
56.00
41.00
26.00
14.00
4.00
0
4,725
4,825
92.00
74.00
59.00
44.00
29.00
16.00
6.00
0
4,825
4,925
95.50
76.50
61.50
46.50
31.50
18.00
8.00
0
4,925
5,000
99.00
79.50
64.50
49.50
34.50
19.50
9.50
0