Evening Star Newspaper, February 12, 1928, Page 69

=2 THE SUNDAY STAR, WASHINGTON, D. C. FEBRUARY 12, 1928—PART # . INONE DEDCTION [ s st nissse ™« A 11 7 of our family voted jur” occurred the car was being used E E 3 b o o S SINEWS OF MARKET e s O1 our 1amily ote ; FORCARS OUTLINED A. A. A. Broadcasts Internal Revenue Plan for Allow: ances Granted Owners. Deductions from the gross income allowed car owners under the regula- tions of the Bureau of Internal Rev- enue on account of automobile owner- ship and operation were outlined in a | statement broadcast by the American Automobile Association today. First, the car owner may deduct from his gross income all sums paid during the calendar year in the form of regis- tration fees, drivers' licenses, state per- sonal property taxes and municipal taxes Second. the gasoline tax may be de- ducted in all cases where it is a “con- sumers’ tax” under the state law, but not where it is specifically enacted as a “distributors’ tax.” Third, the interest on money bor- rowdd for the purchase of an automo- bile is deductible, irrespective of whether the ear is used for business purposes or | If the taxpayer Kkeeps' for pleasure. his accounts on a cash basis such in- terest will be deductible only for the year in which paid. If accounts are kept on an accrual basis, interest may be deducted as it accrues. Uses Are Pro Rated. Fourth, if a passenger car is used wholly for business purposes, all ex- penses incident. to maintenance, includ- | ing depreciation at the rate of 20 per | cent per annum, may be deducted ‘Where the car is used “chiefly.” or more than 50 per cent for business and incidentally for pleasure. the ex- g:;se may be deducted on a pro rata 4 4 Pifth, loss sustained by reason of/ damage to a passenger automobile while being used for pleasure is deductible under a recent decision handed down by | th- Board of Tax Appeals. The loss, how- ever, must be an actual loss to the per- son claiming the deduction. In other words, if it is compensated for by in-| surance or otherwise it 1s not deduct- | lon farms and in towns with less than |that he might have in the preparation | portation as an adjunct to these units le. Sixth, the bureau has ruled that a fine paid by a motorist might be de- ducted as a business expense, where, at the time the expense was incurred, th: car was being used for business or professional purposes. The A. A. A. points out that in no case is the amount paid for an auto- mobile allowed as a deduction for ex- pense, regardless of whether it is used entirely for business. In the case of purchase by a farmer for strictly farm use, only the expense incident to opera- tion is deductible, just as in the case of any other business or professional use. Method of Determining. How can a motorist determine whether or not he is entitled to the ad- with deduction of maintenance costs for cars used wholly for business? On this point the national motoring body “When a passenger automobile is used primarily for professional or business purposes, and incidentally for pleasure, ordinary expenditures for maintenance and repairs may be pro rated accord- ing to use, and deducted, provided the car is used ‘chicfly’ in the pursuit of a business or profession. ‘Chiefly’ is in- terpreted by the bureau to mean more than 50 per cent. If business constitutes | a minor usage and pleasure the major part, the expense cannot be pro rated or deducted. If the chief use is for business, the items of depreciation, gas- oline, oil. repairs. garage rent, as well as any other legiti- mate expenses, may be pro rated ac- cording to the usage and the portion applicable to business purposcs de- ducted.” The A. A. A. statement continues: “Contrary to general belief, the Fed- eral war excise tax of 3 per cent on the wholesale valuc of new cars is not deductible. The regulations of the. bureau provide that taxes imposed upon sales of automobiles by the manufac- turers are not deductible by the indi- vidual purchaser, even though such taxes are billed to him. “The bureau has heretofore recog- nized no gain or loss when automobiles used for either business or pleasure are traded in on new cars. This point is now in the hands of the gen°ral coun- sel of the Bureau of Internal R(‘\'rnll(“ for an interpretation.” Fifty-six per cent of our cars are 10,000 people. vantages set forth in the clause dealing | chauffeur’s salary, | Public Waits to See Latest Models Before Giving Orders, Says Rudolph Jose. Automobile shows, once condemned by many as unjustifiably expensive and entircly deficient in value to the motor car industry, have completely re-estab- {lished themselves in the confidence of manufacturer and distributor as a re- sult of their universal success during { the st few years. This opinion Js ex- | pressed by Rudolph Jose, who has di- rected the Washington show for the eighth consecutive time. | The automobile shows this year, he says, have clearly revealed that ' the lic_is tremendously in favor of the ! annual panoramic array of new models. | “Yearly the sho open the flood- | gates of buying." says Mr. J “This | year the demand for cars following the | display has been tremendous.” He said the number of orders has given greater weight to the prediction that 1928 would be a 5.000,000-car year. “The public, apparently, has accepted the automobile show as its safeguard against error. The numerous changes Ithat the engineer is bringing in today have left many persons skeptical as to ;(hclr ability to get the very latest im- { provement if they act before the auto- mobile show. In some ways, the dis- play is a showdown in which it is rec- ognized that only the latest and best | will be exhibited. Then, reassured. the | purchaser goes into the market with a | fully justified measure of confidence. “As a result of the demand created by this year's exhibitions many factories | are operating on an overtime-production | basis to catch up with orders,” he sald. | LOSS CUT FROM TAXES. ! The amount of loss sustained in ac- | cidental damage to an automobile, even though it be used for pleasure purposes. constitutes a permissible deduction from ! gross income in the computation of in- come taxes, the United States Board of Tax Appeals has just ruled. The decision is called to the attention | {of automobile owners by the American | | Motorists' Association in order that the | automobile owner may deduct any losses of his 1928 tax returns, less Driver Most Serious American Problem. BALTIMORE, February 11 (Special). —It takes 19 yearstomake a passenger traln locomotive driver and 17 minutes to make an automobile driver, Charles W. Galloway, operating vice president of the Baltimore & Ohlo Rallroad, de- clared in a speech here this week. ““The most serious problem confront- ing the American public today is the menace of the inefliclent, careless and reckless automobile driver. Grea! strictions are necessary in th. of licenses which permit people to op’(:;l'.e motor vehicles,” Mr. Galloway said. “In some of the States in which we operate the only requirement asked of automobile drivers is that they pur- chase a tag. With that they are allowed to drive motor vehicles, many of which are as gower(nl and capable of just as much speed as rallroad engines. “It is also true of all accidents in the United States occurring on high- ways, or at least in the last 2,500,000 of them covered by a recent report that came to me, only 9.3 per cent occurred u«gmde crossings,” he said. In Baltimore during the last five years, 316 automobiles have been driven through lowered crossing gates by reck- ;f:.‘xledx:::rs. The hlllh:llfles in this city 'n _surprisingly low, however,” f:fip?&';':} cbre‘cm;\lue u:hthnt number of ngs three people have died. Every day I get reports ‘:tm two or three people have been injuréd or killed as a result of their machines being hit by trains of the Baltimore & d.|Ohlo, and as many as three machines crash into the sides of our trains every day. the same reports show,” Mr. Galloway sald. MOTORS JOIN CAVALRY. Three heavy-duty motor trucks and three cross-country cars will be part of the regular equipment of each United States Cavalry regiment from now on, | according to a recent announcement by the War Department. This departure from custom is be- ing made after a series of exhaustive surveys have shown that motor trans- will increase their efficiency. ‘New Hupmobile first in secret ballot” Oklahoma banker tells how his household selected the Six of the Century Popular suffrage has al- ready cast an emphatic vote in favor of the New Hupmobile—The Six of the Century. Anactualin- cidentin Oklahomaserves to illustrate the universal agreement. “‘Our family of seven went shop- ping for a new car,”’ reports a prominent banker. ‘“We inspected allthe well-known makes before at- tempting a decision. That evening we decided to take a secret ballot on first, second and third choice. When the votes were counted the Hupmobile had received 7 for first choice —a unanimous decision.” When a new car makes such an impression it is no wonder that people stand in line to buy, offer premiums for immediate delivery and do other ‘strange things that have not happened since the auto- mobile was a baby and the century had just been born. _its pleasantest surprises. N As a matter of recorded fact, this creation of new beauty and ad- vanced mechanical excellence has so startled and delighted the motor world that it has been aptly chris- tened the Six of the Century. You'll find it a deceiving car as well as a beautiful car; for you will assume, as soon as you see it, that it is well above the $2,000 price. But it is well below and that is one of //—\ %1505 SEDAN F.0.8. DETROIT \\ 14 Otwn 6 New Hupmobile on These Easy Terms + ¢+ Your present car’s value may equal the down payment on a new Hupmobile. Drive in today for an appraisal. Balance on easy monthly terms. NEW = HUPMOBILE e Six of the Century DISTRIBUTORS MOTT MOTORS, Incorporated OPEN EVENINGS Franklin 4277 Union Station Garage 50 H St. N.E. 2¢ Standard and Custom-equipped body styles, 81345 10 $1625 f. 0. b. Detroit, plus revenue tax. SALES AND SERVICE 1507 14th St. N.W. Brosius Bros. & Gormley, Inc., Rockville, Md. J. M. Duncan, Alexandria, Va. ¢ Aristocratic new body designs e More Power in its Pikes Peak Motor e Easy Control with Westinghouse Brakes ALOT of people are certainly doing a lot of talking about the new Chandler—and it is only natural that they should. With thirty magnificent new-style body creations — with new luxuries and comforts — with an increased arc of power — and with Westinghouse Vacuum Brakes — Chandler is cer- tainly giving peoplealot to talk about! Triple Driving Ease As the first American motor car to apply Westinghouse vacuum control to 4-wheel brakes, the new Chandler is three times casier to stop than cars that depend upon ordinary brakes Prices $995 to $2195, f.0.b. factory. alone—and three times as sate. Come see. Come drive. Compare! DAVID S. HENDRICK Ontario linl-ugt-; 1700 I\I:li:\l(;:l‘:\‘;;l'i hey Chall Onc%mefi’?o«m fi)fiil:eflfl\?qe the Proudest Dodge Brothers magnificent enthusiasm runs the same— Seniorshave alreadyachieveda g g A ; i ra o0 car at any price can su uniqueand enviabledistinction. e e . pass Senior performance” ... “I have owned several cars that cost more, but have never so thoroughly enjoyed driv- ing". . . “I should like to broad- cast my impression of your new Senior. It is splendid!” By delivering a quality of power unknown to their price class, they are no longer thought of in their price class, but challenge constant com- parison with the proudest names in motordom. Records of Senior brilliance are daily pouring in from all parts of America, and invari- sbly the trend of owner Here is“behavior” and responsiveness such as you have never experienced. Just as a gentle touch on the acceler- ator shoots the car forward, so at any speed, a soft touch of your toe on the brake pedal brings the car to a quick, cushioned stop. New Sixes, New Eights All models, the new Sixes as well as the new Royal Eights, have Westing. ! house Brakes as standard equipment —just as all models have Pikes Peak high-compression powerand the“One Shot"” System of centralized automatic chassis lubrication. Once ‘take the Senior wheel and you will understand why business men, unsolicited, are writing letters of this charac- ter to Dodge Brothers, Tune in on WRC for Dodge Brothers Radio Program Every Thursday Night, 8 to 8:30, NBC Red Network SEMMES MOTOR COMPANY HAPIAKL AEMMER, President 4 013 GG St N, Night Phone, Main 1943 % Dupont Circle Main 6660 ute tealern Vdward B3, Sen: 1es, Inc., Alexandrin, Va. H. C. Fleming Motor Cao,, Hyatsville, Md. Dooce BroTHERS , enior \ix Col. 8728 CHANDLER.CLEVELAND MOTORS CORPORATION . CLEVELAND, ONlO HANDLER NEW ROYAL EIGHTS 4 NEW BIG SIXES . NEW INVINCIBLE SIXES ‘ THY VICTORY S8IX AND AMERICA'S FASTEST FOUR ALSO ON DISPLAY