The Cape Girardeau Democrat. (Cape Girardeau, Mo.) 1876-1909, 1894-12-22
INCOME TAX RETURNS.
Regulations Approved by the Sec
rotary Of the Treasury.
Who Are Subject to the Taxation-How to
Make RetufnsLWhat the .Gross Gains,
Profit and Income Include
Deductions Allowed.

"a SbS StdIcS, wllSlllCT TColulnS
at home or abroad, and every person
residing or doing business in the United
States who has an annual income of
more than S., 500 is required to make
return under oath by the first Monday
in March in each year. The first re-
turn is TO include all income received
in the year 1894, from January 1 to De-
cember 81. Guardians, trustees and
all corporations acting in any judi
cial capacity are required to make
similar returns for minors, wards or
benefciaries. Persons having less
than So, 500 annual income are not re-
quired to make returns. All incomes
of 81, 600 and over are taxable at 9 per
cent
The person making return Is re-
quired to make affidavit that he has in
cluded in said return all gains, profits
and income from every source what
I'VE received by him or to which he is
justly entitled for that year, and that
he is honestly and truly entitled to
make ali the deductions entered Oh his
returns and that he has truly answered
the Undergraduates set forth OF said
blank form.
The gross gains, profit and income,
returned by persons are to include:
Gross profits of any trade, or business
wherever carried on; rents received
or accrued during the year; profits
from sales of real estate purchased
within two years; farming operations
and proceeds; money and value of all
personal property acquired by gift or
inheritance; premiums on bonds,
stocks, notes and coupons; income
from trade or profession not by stated
salary and not heretofore enumerated;
from salary or compensation other
than that received from the United
States; from salary or compensation
paid by the United States; undivided
gains and profits of any partnership;
interest received and accrued from all
notes, bonds or other securities; inter
est on bonds or coupons paid of any
corporation; dividends from corpora
tions; income of wife or minor child or
children; all other sources of income
mot above enumerated.
The deductions allowed on the re-
4lOEh SlC- ESui bllouodhtt ooiLo2S SA
'empt by law; interest due and paid
within the year; national, state, coun-
ty, school and municipal taxes paid,
not Including assessments for local
benefits; amounts expended in pur-
chase or production of live stock or
produce sold within the year; neces-
sary expenses, specified by items, actu-
ally incurred in carrying on any bust
ness or trade; losses actually sus-
tanned during the year, specified;
actual losses on sales of real estate
purchased within two years; debts
contracted and ~ascertained in the year
to be worthless: salary or cOmpensa-
ton over 81, 900 from which the tax of
2 per centum has been withheld by
discussing officers of the United States
government; dividends included in the
statement of gross profits from corpo-
rations on which the 2 per cent. tax
has been paid by such corporation.
If any person fails to make return.
or makes a false return, the collector
is to make return for him from evil
dence obtained by summoning the per-
son and examining his books, and from
all other evidence obtainable, and shall
add 80 per cent. to the amount of tax
Sound due as a penalty for neglect and
100 per cent. penalty in case Of fraud
ulent return.
All corporations, companies and as
sociations, both resident and foreign,
doing business in the United States,
are required to make annual return of
net profits on a separate blank to cover
the calendar year 1894. The exemption
of 81, 600 allowed to persons is MOTTO
extend to corporations, but the return
must cover all net profits without,ex-
emption.
The annual return of corporations
must include: The gross profits from.
all kinds of business; the expenses, en-
elusive of interest, annuities, or ,divi-
dends: the net profits, without allow
ance for interest. annuities or divi-
dends; the amount paid on account of
interest, annuities and dividends; the
amount paid in salaries of 81, coo or less
to each employee; the amount paid in
salaries of more than 81, 600 to each
employe and the name and address of
such employees
The gross profits must include: All
profits of any trade or business; inter
est or coupons, from bonds or other Sc
curities of any corporation; dividends
received from any corporations; undi-
vided profits of any corporation;
premium on bonds, notes or stocks;
commission or percentage; interest on
government securities. not exempt by
law; interest on other notes, bonds or
securities; profits from sale OF real es-
tate; from rents; profits from all other
sources, to be enumerated
The operating expenses must in
clude: Interest paid or accrued within
the vear on bonded or other indebted
ness of such corooration: losses actu-
ally sustained during the year, which
must be separately stated and fully
described as to cause, date and amount;
all taxes actually paid; salaries and
pay of officers and employees actually
paid during the year; rents and neces-
sary repairs; all other necessary ex-
penses, which must be itemized and
fully explained in the return.
The net profits are to include: All
amounts paid to stockholders; the
amount of undivided profits carried to
surplus or any other fund; amount of
net profit used for construction, en-
iarpemapt mr. ia;prOvemeut of plant: