54 Ga. App. 62 | Ga. Ct. App. | 1936
This case arose upon direct exception to the judgment of the trial judge finding against an affidavit of illegality interposed by Mrs. Morris Brandon to the levy of a tax execution issued by the State Revenue Commission for income taxes for the year 1932. It appeared from the affidavit and an agreed statement of facts, that defendant in fi. fa. was a resident married woman, living with her husband; that she claimed an exemption of $3500 from her net income, although her husband had made a separate return of his taxes for 1932 and was allowed a $3500 exemption from his net income; that defendant in fi. fa. acquired certain shares of corporate stock in 1909, worth then $10,100, the fair market value of which was $41,500 on August 22, 1929, which she sold in 1932 for $8998.06, claiming in her return a deductible loss of $32,501.94; and that- the commission disallowed both of the claims of the taxpayer.
The State income-tax act of 1931 provides that there shall be deducted from the net income of a married resident individual living with husband or wife an exemption of $3500. Code, § 92-3106. We think the words of this statute are so plain and the meaning so obvious as to need no construction, but it should be given the meaning and application as expressed therein. Liability for the tax rests upon the person by whom the income, in respect
It is true that the State Revenue Commission has adopted a regulation that “The following personal exemption and credits for dependents may be deducted from the net income of resident individuals. . . (B) Married individuals living with husband or wife, to be taken by either, or divided in any proportion between them; but the total exemption for both not to exceed $3500.” However, the income-tax act specifically provides that the revenue commission may only make such regulations as are provided for and consistent with the provisions of that act. Code, § 92-3005. Any regulation inconsistent with the provisions of that law and not authorized thereby is invalid and unenforceable. It lias not the force of law. Nor 'is the contrary of the ruling made in this division borne out by the subsequent provisions in the income-tax act. The language of the corresponding provisions of the Federal income-tax laws on this subject is entirely different from the language of the present section of the State law. The Federal law provides that the exemption can not be claimed by both husband and wife, even though they earn separate incomes, each separately taxable.
An income tax is a tax on a person’s income, emoluments, profits, and the like, or the excess thereof over a certain amount. See Code, § 92-3107. The income tax is not a property tax, but is more nearly within the category of an excise tax. Waring v. Sa
Statutes imposing a tax on incomes ordinarily authorize deductions from gross income of particular charges, expenses, losses, or disbursements, in arriving at the net income which is subject to the tax; and of course, where allowable deductions equal or exceed the gross income of the taxpayer, no tax is payable. Williams v. Com., 272 Mass. 249 (171 N. E. 727). So where property is sold or otherwise disposed of at a loss, the entire amount of such loss is deductible, under a statute permitting the deduction of such losses from income for the year in which the sale or disposition of the property takes place, regardless of when the shrinkage of its value occurred. It is frequently provided, as in this State, that in ascertaining the loss resulting from the sale or other disposition of property owned on or acquired before a specified date, its value at such date shall be taken as a basis of the determination. Such a statute, however, operates merely as a limitation upon the amount of the loss which may be deducted, where it would otherwise be greater if computed with reference to the actual cost of the property; and the statute is inapplicable where the loss, if computed with reference to the value on the statutory date, would be greater than the difference between the actual cost of the property and its selling price. So where the selling price of property is less than the value of such property on the date specified by the statute, but equal to or greater than its original cost, no loss results, and no deduction may be made. So, under the income-tax act of this State, profit from the sale of property is income for the year in
Our statute, while not like it word for word, is somewhat similar to the Federal income-tax statute as it formerly was, and also similar to corresponding provisions of income-tax laws of other States, from which our law was modeled, and many of the features of the various acts are practically identical. The Federal income-tax law, as it was when the. decision of Norman v. Bradley, supra, was pub
Under the foregoing rulings, the court erred in finding against the affidavit of illegality on the ground of the $3500 exemption claimed by the taxpayer, but properly found against the claim of illegality on the second ground, as pointed out in division 3 of this opinion.
Judgment reversed.