Jasper County Democrat, Volume 23, Number 42, Rensselaer, Jasper County, 21 August 1920 — RULING ON STOCK TAXING [ARTICLE]

RULING ON STOCK TAXING

Decreed That Profit Derived From Sales Subject to Income Tax. Washington, Aug. 20. —Carrying out its announced Intention of taxing income from stock dividend transactions, the bureau of Internal revenue has made public rules to be followed in such cases. Stock received as a dividend does not constitute taxable Income of the stockholder, the bureau stated, but any profit derived by the stockholder from the sale of such stock Is classed as taxable income to him. For determining the gain or loss derived from the sale of such stock, the bureau will base Its calculations on the cost of both the old and the new shares in the light of their fair market value as of March 1, 1913. ’I