Advice from Experts

In a friendly display of good sportsmanship, the Internal Revenue Service last week published a booklet telling the U.S. public how to calculate income taxes at the bare legal minimum. The 25-c- booklet (Your Federal Income Tax: 1955) gives advice on almost every problem the average individual taxpayer is likely to face. Samples:

P: Television quiz prizes are taxable as income, but most prizes awarded for past achievements, e.g., Nobel and Pulitzer Prizes, are not.

P: Cash donations to the Red Cross are deductible, but the value of blood donated is not. Also nondeductible: donations to a chamber of commerce.

P: A businessman looking for a new plant site cannot deduct travel expenses from taxable income; such travel is a capital expenditure. But a businessman who travels on U.S. Government work can deduct the entire cost.

P: Lobbying expenses are not deductible, even though they are a necessary part of a company's program. Nor are expenses "for establishing professional reputation," even if a professional man cannot do business without it.

This file is automatically generated by a robot program, so reader's discretion is required.