The Portland daily press., 1895-03-02
THE INCOME TAX.
Deputy Collector Kelleher Meets
Portland Pe,ple.

HOW TO Estimate incomes OF PERSONS ana
Corporations.-ReguIa as to Debts,
Dividends, Taxes. etc.
Insnector of Internal Revenue 2. H.
Kelleher, of Auburn, who was in the
city Thursday. at the Custom House, for
the purpose of meeting those who might
wish to consult with him about the in
come tax, said to a representative of the
PRESS that he had received no official
notice as yet to the effect that the time
for making returns of income had been
extended to the fifteenth Of April The
newspapers have SO announced, however,
and they are probably correct. The date
originally fixed was the first Monday of
March. Mr.. Kelleher wished the PRESS
to remind its readers that it was the duty
of all citizens to keep the income tax
law in mind, and send for return blanks
in case they should not receive them.
MIR. Ke!leher has sent ont blanks to as
many as he could ascertain to be liable
to the tax; but of course many persons
and corporations were omitted. 1t is the
duty of.sueh to write to him at Auburn
blank excuses no one.
All persons having an annual income
of more than $500 are required to make
return of.ineome, although the tax of
two per cent. is assessed in cases of indi-
viduals only on the amount of income in
excess of $4,000.
There is no exemption of $4,000 for Cor
%vvn
their net income.
Business firms or partnerships do not
make return, the individuals composing
them returning their profits as income:
In estimating the gain, profits and
INCOMES OF ANY PERSON
there shall be Includes:
All incomes derived from interest upon
notes, bonds and other securities, except
such bonds of the United States the
principal and interest of which are by
the law Of their issuance exempt from all
: Federal taxation. 6
4 ~. Profits realized withinTttle year from
sales of real estate purchased w thin two
years previous to the close of the year for
which, income is estimated. l.e.4gg
D. lHt0EeSb T6CGlNSQ OF dCCFuGG upon iii
notes, bonds, mortgages. or other forms
of indebtedness bearing interest, whether
paid or not, if good and collectible
4. The amount of all premiums on
: bonds, notes or coupons.
5. The amount of sales of live stock,
sugar, cotton, wool, butter, cheese,
pork, beef, mutton, or other meats, hay.
and grain, or other vegetable or other
productions, being the growth or pro
duce of the estate Of such PERSONA less
the amount expended in the purchase or
production of said stock, or produce, and
not including any part thereof consumed.
directly by the family.
g. Money, and the value of all personal
property acquired by gift or Inheritance
z. All other gains, profits and income
derived from any source whatever eX-
cept that portion. of the salary, compen-
sation, or pay. received = for. services in
the civil, military, naval, or other SER
vices of the United States. including
Senators, Representatives and Delegates
in Congress, from which the tax has
been deducted.
s. Where the salary or other pensa-
ton paid to any person in the employ
ment or service of the United States
shall not exceed the rate of $4,000 per
annum, or shall be by feez, Oh uncertain
or irregular in the amount or in the
time during which the same shall have
accrued or been earned. such salary or
other compensation shall be included
in estimating the annual gains, profits
or income of the person to whom the,
sam me have been paid.
In computing incomes there Shall De
deducted: sifse.e 8ssst 5,elt.,5
1. The necessary expenses actually in
Cured in carrying on any business, oc-t
cupatson, or profession. -cF- 81
2. All interest due or paid within the
year by such persons on existing indebt-
edness. ~ & w #H~&
8. All national, State, county. school
and municipal taxes, not intending those,
assessed against local benefits, paid
within the year shall be deducted from
the gains, profits or income OF the person
who has actually paid the same, whether
such person be owner, tenant or mortgag.
er.
4. Losses actually sustained during the
year, incurred III trade, or arising from
fires, storms or shipwreck. and not com.
pensated for by insurance or otherwise.
5. Debts ascertained to be worthless
but excluding all estimated depreciation
of values.and losses within the year on
sales of real estate purchased within two
years previous to the year for which in
come is estimated.
Provided, That no deduction shall be
made for any amount paid out for new
building, permanent improvements, OF
betterments, made to increase the value
OF any property or estate.
Provided also, That in computing the
income of any person, corporation, COM
pany or association there shall not be
included the amount received from any
corporation, company or association, as
dividends upon the stock of such corpor-
alton, company or association, if the tax
of 2 per cent has been paid upon its net
profits by said corporation, company or
association as required by this act.
Expenses for medical attendance, store
accounts, family suuplies, wages OF do
lnestic servants.ss cost Of board, room, or
house rent for family or personal use, are
not expenses that can be deducted from
the gross profits or income i'll making
annual returns. Only one deduction of
$4,000 can be allowed from the aggregate
incomes Of all the members of any family
composed of parents, or parent, and
minor children. 1t is not essential that
the children live with the parents. A
husband and wife are regarded as me M
befs Of the same family. though living
separately, unless separated by divorce or
other operation of laws, as to break up
the family relations Where separate
wards are not comprised in one family,
guardians are allowed to naka n de-