Broo, Ida S.

Gildea, Mary C.

English

eGrove (Univ. of Mississippi)

Woman C.P.A. Volume 5 Issue 5 Article 1 6-1942 Presidents' Column Mary C. Gildea Ida S. Broo Follow this and additional works at: https://egrove.olemiss.edu/wcpa  Part of the Accounting Commons, and the Women's Studies Commons Recommended Citation Gildea, Mary C. and Broo, Ida S. (1942) "Presidents' Column," Woman C.P.A.: Vol. 5 : Iss. 5 , Article 1. Available at: https://egrove.olemiss.edu/wcpa/vol5/iss5/1 This Article is brought to you for free and open access by the Archival Digital Accounting Collection at eGrove. It has been accepted for inclusion in Woman C.P.A. by an authorized editor of eGrove. For more information, please contact egrove@olemiss.edu. The Woman C. P. A.JOINT BI-MONTHLY BULLETINof the American Woman’s Society of Certified Public Accountants and the American Society of Women AccountantsVolume 5—Copy 5 June 1942The Presidents' ColumnBy MARY C. Gildea, C. P. A.The fourth annual meeting of the Ameri­can Society of Women Accountants will be held in conjunction with the tenth annual meeting of the American Woman’s Society of Certified Public Accountants. The dates —September 25, 26 and 27, 1942. The place —the Palmer House, Chicago.Committees from the Chicago Chapter are working to make this a very worth­while meeting and they submit the fol­lowing preliminary program:Friday, September 25, at 7 p. m.—Joint meeting of the two societies at which com­mittee reports will be given; to be followed by general discussion of the reports and plans for any necessary action thereon.Saturday, September 26, at 10 a. m.— Business meeting of the A. S. W. A., fol­lowed immediately by a joint business meeting.Saturday, September 26, at 1 p. m.— Luncheon, with a talk on an accounting or related subject—speaker to be announced later. Immediately after lunch, there will be a business meeting of the A.W.S.C.P.A.Saturday, September 26, at 7 p. m.— Dinner meeting for members and guests.Sunday, September 27, at 10:30 a. m.— Brunch.On September 28, also at the Palmer House, the American Institute of Account­ants’ annual meeting will start. Our mem­bers have been extended a cordial invita­tion to take part in these sessions.Due to the urgencies of a wartime econ­omy, there is an increased demand for the services of women accountants. The man­ner in which we meet the challenge of in­dustry at this time will have a decided ef­fect upon our opportunities and progress in a post-war world. Now, more than ever, (Continued on page 44. column 2)By IDA S. BROO, C. P. A.In September the American Women’s Society of Certified Public Accountants will celebrate its tenth anniversary. This celebration is timed to allow visitors to attend this meeting, and also the meeting of the American Institute of Accountants in one trip.Although accounting is a profession to which women are ideally suited by tem­perament, today we find only 179 women certified public accountants in the United States. Accounting is a rapidly expanding profession, vital to the economic life of America. Our country needs not 179, but ten, twenty times that number of women C. P. A.’sIn today’s national emergency our coun­try needs its woman power. This means not only women taking the place of men in the factory but keeping pace with the need of the professions. As long as plenty of men were available the dearth of women accountants was of concern only to those especially interested in the economic pro­gress of women, but today this is of vital concern to every American, and is receiv­ing the serious study of professional ac­counting societies.By virtue of her degree, every woman CPA wields a wide influence, and the re­sponsibility of leadership is hers, whether accepted or ignored.The American Woman’s Society of Cer­tified Public Accountants exists to advance the professional interests of women ac­countants. This Society needs every wom­an CPA and today America needs us ur­gently. We invite every woman certified public accountant to come to this anni­versary meeting to learn the reason and need for our existence, our accomplish­ments and our aims.Page 44 The Woman C. P. A. June 1942Residential Property and TaxationBy RUTH A. CLARK, C. P. A.The loss on a sale of residential property may or may not be an allowable deduction. If purchased or constructed and used as a personal residence up until the date of the sale, the loss is not deductible. If pur­chased as a personal residence and later rented, the loss would be deductible. If purchased to be rented but later used as a personal residence, the loss would not be deductible. The status at the time of sale governs the deductibility of the loss.If converted to rental property, it is necessary that the property be actually rented or leased in order to secure the loss deduction. Having offered the property for rent or having instructed an agent to lease would not be sufficient.The loss on the sale of residential prop­erty purchased with the intention of leasing or re-selling would be deductible. It would however be necessary that the purchaser prove intent to lease or sell.If residential property is converted to rental property, later sold and a loss sus­tained, only that portion of the loss applic­able to the period after conversion would be deductible. The basis would be cost or value at the date of conversion whichever is lower. In computing the loss, the land would be considered a capital asset and if the owner is an individual, the percentage basis for computing gain or loss would apply. The loss on the sale of the building computed in accordance with the Act, would be deductible in full.If sold at a profit, the gain is taxable whether leased or used for a personal resi­dence. If used as a personal residence it would be considered a capital asset and the gain would be reported on a percentage basis according to the length of time held. If rented and sold at a profit, the land only would be considered a capital asset, and th? profit reported on the percentage basis. The gain on the sale of the building com­puted in accordance with the Act, would be taxable in full. It would be necessary that the cost basis and the selling price be allocated to land and building.If considered a capital asset, the gain or loss would be reported on a percentage ba­sis according to the length of time held providing the owner is an individual. If held less than eighteen months, the gain or loss to be reported would be 100%; if over eighteen months but less than twenty-four, 66%%; over twenty-four months, 50%. The length of time held would be computed from the date of purchase even though in event of a loss, the property had been con­verted from a personal residence to busi­ness property at a later date.Interest on mortgages, taxes and casual­ty losses are deductible whether property is used as a personal residence or leased. All taxes except assessments for permanent improvements and betterments are deduct­ible. However, the cost basis to be used in computing gain or loss in event of sale, would be increased by the amount of these non-deductible assessments.Repairs, depreciation, insurance and oth­er expenses are not deductible if property is used for a personal residence. If the property was purchased with the intention of renting and was rented, then the fore­going expenses would be deductible. If purchased as a personal residence and later converted to business property, these ex­penses are deductible subsequent to date of conversion. If purchased with the intention of renting but remains vacant, these items are allowable deductions.If property was leased and later con­verted to personal residence, the expendi­tures for repairs, depreciation, insurance and other such expenses would be allowable deductions only to date of conversion.When the sale of residential property is anticipated and particularly if a loss is ex­pected the owner should consider the tax situation before moving into rental prop­erty with the intention of advertising and showing the property. If the owner or his agent moves in any time prior to date of sale, the loss will not be deductible.★ ★ ★President’s Column—(Continued from page 37, column 1) the woman accountant needs the help and encouragement of other women in the ac­counting field. For this reason the annual meeting this year is a particularly import­ant one to each of us. Make every effort to attend.

Presidents\u27 Column

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Presidents\u27 Column

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