Laserfiche WebLink
Section 17 : Deductions. <br /> In computing tax there may be deducted from the measure of <br /> tax the following items: <br /> A. Amounts derived by person, other than those engaging in <br /> banking, loan security or other financial businesses, from <br /> investments or the use of money as such, and also amounts <br /> derived as dividends by a parent from its subsidiary <br /> corporations; <br /> B. Amounts derived from bona fide initiation fees, dues, <br /> contributions, donations, tuition fees, charges made for <br /> operation of privately operated kindergartens, and endowment <br /> funds. This paragraph shall not be construed to exempt any <br /> person, association, or society from tax liability upon <br /> selling tangible personal property or upon providing <br /> facilities or services for which a special charge is made to <br /> members or others. Dues which are for, or graduated upon, <br /> the amount of service rendered by the recipient thereof are <br /> not permitted as a deduction hereunder; <br /> C. The amount of cash discount actually taken by the <br /> purchaser. This deduction is not allowed in arriving at <br /> the taxable amount under the extractive or manufacturing <br /> classifications with respect to articles produced or <br /> manufactured, the reported values of which, for the purposes <br /> of this tax, have been computed according to the provisions <br /> of Section 12 ; <br /> D. The amount of credit losses actually sustained by <br /> taxpayers whose regular books of account are kept upon an <br /> accrual basis, provided, that the amounts deducted were <br /> previously reported and subjected to the tax; <br /> E. Amounts derived from business which the state is <br /> prohibited from taxing under the Constitution of this state <br /> or the laws of the United States; <br /> F. Amounts derived by any person as compensation for the <br /> receiving, washing, sorting and packing of fresh perishable <br /> horticultural products and the material and supplies used <br /> therein when performed for the person exempted in RCW <br /> 82 . 04 . 330, either as agent or as independent contractor; <br /> G. By those engaged in banking, loan, security or other <br /> financial businesses, amounts derived from interest received <br /> on investments or loans primarily secured by first mortgages <br /> or trust deeds on nontransient residential properties. Loan <br /> fees which are amortized over the life of the loan are <br /> deductible only to the extent that they are indeed <br /> amortized. Any gain or fee recognized as earned in the <br /> making of the loan or on the sale of the loan is not <br /> deductible; <br /> 23 <br />