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ing the illusion of a $5,000 income
calling for $577.70 income tax he
has now a real income—and he had
only that income anyway—of $3,375
subject to $203.75, leaving him with
a net after taxes of around $3,175,
but still better than the $2,800 income
after taxes had been paid on the
higher illusory figure through failure
to compute all costs of doing busi-
ness.
Certain warnings must be sounded,
however. Figures in the above table
of additional business expenses are
only for explanatory purpo ses. De-
preciation of certain equipment may
be at the rate of 5 per cent a year or
20 per cent, depending upon its na-
ture. A passenger car may be used
only 25 per cent for business or as
much as 100 per cent. Driving to
and from a business to home is per-
sonal use. Use of one-half of the
buildings would not necessarily jus-
tify 50 per cent deduction for utili-
ties, though on the other hand busi-
ness of utilities might be greater than
home use. These are matters for the
individual taxpayer to determine in
the light of the facts applicable to his
particular business set-up and ex-
perience.
In passing it should be noted that
that part of the items enumerated
traceable to personal or home use
may not be deducted. It is because
of this disallowance that a division is
called for by the Treasury Depart-
ment.
Also, failure to take any of these
items in past income tax returns does
not make it permissible to include
past overlooked items in a current
return, i.e: two years depreciation
on a service car, for instance, in a
1945 return because it was not shown
in a 1944 return w T ould be disallowed.
A check list of other deductible
business expenses apt to be over-
looked in preparing income tax re-
turns include:
Membership fees in business and
trade associations, including cham-
ber of commerce;
Expense attending trade conven-
tions, including travel, hotel, meals
and other necessary costs;
Bad debts, so determined and writ-
THE MUSIC TRADE REVIEW, JANUARY, 1946
ten off in year deducted only;
Loss from theft, either cash or
property, either business of personal
only to extent not covered by insur-
ance;
Loss from accident, storm, hurri-
cane, fire, flood, etc., either to busi-
ness or personal property, to extent
not covered by insurance;
Subscriptions to business and trade
magazines;
Cost of coverall or similar type
uniforms (but not regular clothes) if
not adapted to ordinary wear; also
laundering same.
PIANO PRICING
(Continued from page
4)
in paragraph (E) of the order as
follows:
(1) The maximum price for a sale
or delivery at retail of a piano which
is shipped by a manufacturer to a
retailer on and after Jan. 2, 1946, (ex-
cept for retail sales by mail order or for
sales by manufacturers who sell exclu-
sively through their own retail outlets)
is computed as follows adjusted upward
or downward to the nearest dollar:
Step 1. Compare the manufacturer's
highest current maximum price to re-
tailers, as established or adjusted under
paragraphs (B), (C) or (D) with his
price to the same class of retailer in
effect immediately prior to Oct. 7,
1944, and determine whether the total
percentage increase in that price is
more or less than 20 per cent. If it is
20 per cent or less, omit Step 2; if it
is more than 29 per cent omit Step 3.
Step 2. Multiply the manufacturer's
highest current maximum price to re-
tailers by 1.74.
Step 3. Multiply the highest price to
a retailer in effect immediately prior to
Oct. 7, 1944, by 1.13 and add t» that
amount the applicable of the following:
Eighty-nine per cent of that amount
if it is below $225.01.
Eighty-five per cent or $200.25,
whichever is greater, if that amount is
between $338.01 and $564.
Seventy-five per cent or $445.56,
whichever is greater, if that amount is
over $564.
Step 4. Add to the amount calcu-
lated in accordance with Step 2 or 3,
the amount of the Federal excise tax
payable by the manufacturer and the
freight allowance indicated in para-
graph (E) (2).
MRP Includes Tax
The maximum retail price so com-
puted includes the Federal excise tax
and the permissible charge for freight.
No additional amount may be added
thereto on account of these terms. Each
retailer shall continue to furnish the
services he customarily furnished in
March, 1942, on the sale of a new
piano, as for example, free delivery,
tuning, etc., in addition the retailer
shall continue in effect, terms, dis-
counts, trade-in and other allowances
no less favorable to the purchaser than
the retail allowed in March, 1942. Local
and State taxes and credit charges (in
accordance with the provisions of para-
graph (I) of this order) may be added,
together with other price differentials
for which the retailer customarily made
a separately stated charge in March,
1942.
Paragraph (E) (3) is amended to
read as follows:
(3) Maximum retail prices previ-
ously established by this paragraph
(3) for pianos received by the retailer
on and after Oct. 7, 1944, and which
were shipped by the manufacturer be-
fore Jan. 2, 1946, are not changed by
the amendment to this order effective
on Jan. 2, 1946.
The amendment to the piano parts
order conforms the adjustment pro-
visions which are available to parts
manufacturers to those made avail-
able to manufacturers by the con-
current order.
Edgar B. Jones Hits Limelight
At Opening of Cannon-Jones
Music Company
Edgar B. Jones, formerly president
of the Schuller-Cable Piano Mfg. Co.,
hit the limelight in Charlotte, N. C.
recently when the "Charlotte Observ-
er" published an interview with him on
the occasion of the opening of the
Cannon-Jones Music Co., at 302 North
Tryon St., in that city, of which his
son Roland B. Jones is president.
The Cannon-Jones Co., is an ex-
pansion of the Cannon Music Co. of
Asheville, N. C. which was started in
1940 by Fletcher Cannon.
Edgar B. Jones, now retired, spends
his time farming and travelling.
Seeks Information to Help
Standardize Piano Supplies
Harmon J. Cook, president of Corn-
wall & Patterson, Bridgeport, Conn, as
chairman of the committee of the
Standardization of Piano Supplies of
the National Piano Manufacturers
Association in an endeavor to ascertain
what piano parts, in the opinion of
manufacturers, can be standardized,
has mailed to piano manufacturers a
questionnaire asking them to state what
parts can or cannot be standardized
and why.