Income

Generally income tax is concerned with wages, commissions, profits from business, stock dividends, interest and the like, but there are a couple of other sources of income that might be well mentioned here. Awards for suggestions or in recognition of excellence, granted by employers, are held to be wages under the Social Security Act, and the employer is required to make ordinary income tax and social security withholdings. In the event that this is not done, it is the responsibility of the recipient to report the award as part of his gross income for the year (CCH 6240).

Of special interest to many homophile taxpayers, I think, are the regulations concerning income from artistic endeavors. If the work on a patented invention, book, literary or musical composition or other artistic work covered a period of at least 24 months, there are conditions under which the income from such work can be classified as "long-term" income and a considerable tax saving realized by proper filing. The procedures are too involved for complete discussion here, and anyone qualifying under this regulation would be wise to seek expert assistance (CCH 2888; IRS Code Sec. 1301).

Joint Tenancy & Joint Ownership

Where living quarters are shared by two persons but owned by one only, with the other person paying room and board as it were, the income can be set up as rental income and reasonable expenses taken against it. In most cases little or no benefit would result to the homeowner since the 'renter' is probably paying his own cost, but under some circumstances there might be a deductible loss for the homeowner to claim against his taxable income. However, in most such cases, it has been my experience that sizeable losses are sub-

ject to closer than usual scrutiny by Internal Revenue Service and must be well documented to hold up (IRS, Los Angeles, Hadley).

In the case of joint legal ownership of property, interest, taxes and other deductible expenses may be deducted in full by the person who pays them (CCH 185). Naturally, if the expenses are shared equally, the deduction would also be shared equally.

Dependents

A taxpayer is entitled to a special tax rate if he or she qualifies as the head of a household. A head of a household is an unmarried individual (other than a non-resident alien or surviving spouse) who maintains as his home a household which is the principal place of abode for one of the following types of dependents: son or daughter, including adopted child, or their descendents; or a stepchild of the taxpayer; or any dependent of the taxpayer, other than a nonrelative or a cousin in an institution (CCH 552).

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Deduction for dependency may be claimed for the support of an related adult who has resided the full year in your home, provided that the other tests of dependency are met (IRS, Los Angeles, Hadley). This is obviously an important point to many homosexuals where one member of a household has not been gainfully employed to the extent of earning $600 during the year, and has had no income or support from other sources.

Since many homosexuals support or contribute to the support of their parents, it seems worthwhile to discuss some of the rulings for claiming parents as dependents. Of course, if your parent or parents reside in your home, earn less than $600 per year and more than half of their support comes from you, you are entitled to claim them as dependents. However, dependent parents may live in a

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