The Providence news. (Providence [R.I.]) 1891-1906, 1894-12-14
Exempts None Who Has In
come Above $500.
Some Deductions Allowed Points oi
interest in the Document.


home or abroad. and every person residing
or doing business In the United States
who has an annual income Of more than
$500, shall make full return OF the
same, verified by his oath. TO the collector
of internal revenue OF the collection dis
trict In which he resides, or, IL not resi-
dent, in which his business or property
from which income Is received Is situated,
OH or before the first Monday In March OF
each year.
The first return under the law shall be
made on before the lrst Monday In March,
1895, and shall include all income from
any source received in the year 1894, from
Jan. TO De. 81 in said year. Guardians,
trustees and all persons and corporations
acting in any financial capacity are re-
qnired 20 make similar returns, on or be-
fore the date mentioned, for all minors,
wards or benehciaries for whom they act.
Persons having less than s35OO annual
income are not required TO make the re-
turn, but all persons having an income in
excess ol that amount, whether IL reaches
the taxable limit of $1,000 or not, must
make returns as prescribed. The
Gross Gains. Profits and Income
returned by persons shall include:
l. Gross profits o. any trade, business OF vo-
cation, wherever carried on.
2 kcnts received or accrued during the
year
g. Profits from sales Of real estate purchased
within two years.
L. Farming operations and proceeds.
s. Money NJ value of all personal property
acquired by gift or inheritance.
g. Premium on bonds, stocks, notes and
coupons.
T. Income from trade or profession not by
stated salary ana not heretofore enumerated.
& From sala.y or compensation other than
that received from the United States.
o. i. ON salary or compensation paid by the
United States.
10, UndivIded gains and profits Of any part
nership.
II. Interest received or accrued from all
notes, bonds or other securities.
II. Interest on bonds or coupons paid of any
corporations.
l8. Div.d snds from corporations
Ia. Income OF vie or minor children or
Is. All other sources Of income not above
enumerated
The Deductions Allowed
on the return and therein enumerated
are:
l. Four thousand dollars exempt by law.
g Interest due and paid within the year
g. National, state, county, school and munic-
ipal taxes PAID, not including assessments for
local benefits.
l. Amount expended in purchase or produc-
ton of live stock or produce sold within the
year.
B. Necessary expenses, specified by items
actually incurred in cal rying on any business
or trade.
O. Losses actually sustained during the year
specified.
T. Actual losses on sales of real estate pur-
oh wit fkxo
Debts contracted and ascertained In the
year 10 be worthless.
o. Salary OF compensation over $4,000, from
which the tax of per centum has been with.
held by disbursng officers Of the United
States government.
10. Dividends included in the estimate gross
profits from corporations ON which the 2 per
coutum has been paid by such corporation.
How Corporations Are Affected.
All corporations, companies and associ-
ations, both resident and foreign, doing
business for profit in the United States,
shall make an annual return of all net
profits above business and operating ex-
penses on separate blank prepared for
them, and when duly verified by the oath
of the president or other chief officer oil
such corporation, the returns must be de-
lvered to the collector on or before the
first Monday in March of each year.
The first return of corporations shall
cover all net profits and income for the
calendar year 1894 The exemption OF
$4,000 allowed TO persons Is not extended to
corporations, but the return must cover
all net profits without exemption. The
canual return OF corporations must in.
elude:
/. The gross profits from all kinds Of bust.
ness.
q The expenses, exclusive ofTnterest. an.
nuties or diviocnds.
g. The net prohts, without allowance for
interest, annuities or dividends.
T. The amount paid ON account Of interest,
nnnuities and dividends.
B. Tne amount paid in salaries Of $500 or
less TO each ,mploye
g. The amount i aid in salaries Of more than
1000 TO each employe, and the name and al
Lress OF each OF such employe.
The Gross Profits Include,
l. All profits Of any trade or business.
2 Interest or coupons from bonds or other
securities OF any corporation.
g. Dividends received from any corporation.
T. Undivided profits o. any corporation.
D. Premium ON bonds, notes or stocks
D. Commi ssion or percentage.
e. Interest on government securities. moi
exempt by law.
s. Int East on other notes, bonds and .ecur
titles.
o. Profits from sales ofroal estate.
10. Fr IN ropts.
IL. Profits from all other sources, to b,
enumerated
The Operating Expenses
shall include;
/. Interest paid or accrued within the veal
on bonds or other Indebtedness OF such corpo.
alton.
?. Losses actually sustained during n
year, which m tst he separately stated an
fully scTibUl a. 10 cause, date and amour
g. AL taxes actually paid.
L. Salaries and pay of officers and employ
actually paid during the year.
d Rent- and necessary repairs.
@. kll other necessary expenses which mus
Be itemized and fully explained in the return
The Net Profits
shall include:
I. Al amounts raii 20 stockholders o
share ollors
< Inc llIHOunt of undivided profits on hant
orca rried 90 surplus or any other fund.
B.. Amount cf net profits used for constr1c