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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

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26126344
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WHSF: Returned, 14-6
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26126344
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WHSF: Returned, 14-6
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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
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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