The Corvallis gazette. [volume] (Corvallis, Or.) 1862-1899, 1895-03-07

g. National. state county school and
taxes raid, not drscluding as
for local benefits.
4. Amount expended in purchase or
production of livestock or produce sold
witnin the year.
s.. Necessary expenses specified by |
tenls actually incurred in carrying on
iny business or trade.
6. Losses actually sustained during |
the year specified.
z. Actual losses on sales of real es-
late purchased within two years.
8. Debts contracted and ascertained
in the year to be worthless.
9. Salary or compensation over $4,-
600 from which the tax of 2 per cent.
would be withheld by disbursing of
fcers of the government.
TO- Dividens included in the estimate
of gross profits from corporations ON
which the ten per cent. tax has been
paid by such corporations.
Section 80 of this new income tax
law will more properly cover the point
raised by the Mound City Inquirer.
The first section of that paragraph
reads as follows:
"Sec. 80. That there shall be as
sessed, levied and collected, except as
herein otherwise provided, a tax of 2
per centum annually ON the net profits
or Income above actual operating and
business expenses, including expenses
for material purchased for manufac-
ture or bought for resale, losses, and
interest ON bonded and other indebted
ness of all banks, banking institutions,
trust companies, savings institutions,
fire, marine, life, and other insurance
companies, railroad, canal, turnpike,
canal navigation, slack water, tele-
phone, telegraph, express, electric
light, gas, water, street railway COM
panies, and all other corporations, COM
penies or associations doing business for
profit in the United States, no matter
how created or organized, but not in
Guiding partnerships.
Section 35 of this law which hears
upon the levying of the income tax
upon corporations reads as follows:
"See. 30. That every corporation
company or association doing business
for profit shall make and render to
the collector of its collection district
ON or before the first Monday of March
each year, beginning with the year
1895, a full return, verified by oath
or affirmation, in such form as the
commissioner of internal revenue may
prescribe, of all the following matters
for the whole calendar year last pre-
ceding the date of such return:
81. The gross profits of such corpo-
ration, company, or association, from
all kinds of business of every name
and nature.
"2. The expenses Of such corpora.
| ton, company, or association, eXclu
sive of interest, annuities, or dividends
"3. The net profits of such corpora,
ton, company, or association, withou
allowances for interest, annuities, OF
dividends.
a. The amount paid on account ol
interest, annuities, and dividends
stated separately.
"5. The amount paid in salaries o.
$4,000 or less to each person employed
'6. The amount paid in salaries o.
more than $4,000 to each person EN-
ployed, and the name and address o.
each of such persons and the amour
paid EACH"
The gross profits include:
! 1. All profits of any trade or busi
ness.
g Interest or coupons from bond
or other securities Of any corporation
| 8. Dividends received from any cor
poration.
4. Undivided profits of any corpora
ton. 5
5. Premium on bonds, notes o.
stocks
6. Commission or percentage.
1 Z. Interest on government securities
not exempt by law.
| s. Bonds and securities.
8. Profits from sales of real estate
10. From rents.
| H. Profits from all, other sources
to be enumerated.
The percentage expenses shall in
clude:
l. Interest paid on bonded or othe
Indebtedness of such corporation.
2. Losses actually sustained durin;
the year, which must be separated.
stated and fully described as to cause
date and amount.
3. All taxes actually paid.
4. Salaries and pay of officers ant
employes actually paid during th
year.
5. Rents and necessary repairs.
i U. All OlllGE uGCeSSstIy GAlSllSS
which must be itemized and fully ex
Iplained in the return.
The net profits shall include:
1. All amounts paid to stockholder
|or shareholders.
2. The amount of undivided profit
on hand or carried to surplus of an.
lother fund.
8. Amount of net profits used fo
Iconstruction, enlargement or improve
rnent of plant.
4. All other expenditures or invest
ments from the net profits.
While individuals whose net prof
or income does not exceed $500 pc
annum are not required by this Law
to make return to the government
Ievery corporation must do so no matte
what it's income or profit may be. 1
it is doing losing business it mus
make its return. but of course if ther
is no net profit or income, there coul,
be no tax collected.