Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1913-11-28
GNss Income.

Q-What does gross income mean under
the income tax law? Across income is
defined in the statute as gains. profits and
income derived from salaries. wages OF
compensation for persona! service or from
professions. vocations. businesses. trade
commerce or sales or dealings in real or
personal property growing out of the own
ership or use of or interest in real or per-
sonai property. also interest rent >dvi-
lends. securities. or the transa cton of
any lewfrl business or gains profits and
income from any source wha
Q.-poes gross income include property
cGuirtd by gift or by will? A.-No but
I includes the income from such prop
erty.
OWN proce eds az life insurance poll
cies pad upon death or paid upon the ma
tugity of term or upon surrender of :.
policy be included as income: A.-No.
Rates of Taxation.
Q.-Wha, Is the rate of taxation? A
The normal rate is per cent of the net
income. and this applies to corporations
as well as to individuals. In the case of
individuals having Il net income exceed
ing 500 the law provides for an add
tional tax
Q.-What is the rate of the additional
tax against incomes of individuals? A.
One per cent or amount by which income
per cent on amount by which income eX
ceeds $50,Oo1 but does not exceed $4,000.
per cent on amount by which income ex-
ceeds S15.OO0 but does not exceed 800. 900:
per cent on amount by which income ex
ceeds 500 900 but does not exceed s1sO. GOO:
per cent on amount by which income ex
ceeds $3.50 0o0 but does not exceed $500.OOO:
per cent on amount by which income en-
ceeds s500O00.
Q.-Are corporations ever liable for the
additional tax? A.-Never.
Q.-In calculating net income for the ad
ditional tax. are the same deductions
made as In calculating net income for the
normal tax OF per cent? Ayes. with
the exception that in calculating net in.
come for the additional tax neither divi-
dends nor amount Of income on which tan
is withheld at the source will be deducted.
Exemptions and Deductions.
Q.-Is there any exemption allowed to a
taxable person? Ayes. $1,000: and If the
person Is married and his wife lives with
him the exemption is 81 900 more making
$4,000 in all. The same provision Is made
IL the person making the return Is a mar
ried woman whose husband lives with her.
Q.-Can husband and wife each deduc,
the additional $1,000? A.-No. Only one
deduction Of $4,000 shall be made from the
when living together.
Q.-Can guardians trustees, executors
etc. deduct the exemption of So 600 for
the benefit of the person for whom they
act? Ayes.
Q.-What deductions can be made by an
individual for expenses. etc? Al. Neces-
sary expenses actually paid in carrying
on business. 2. All Interest paid on in
debtedness. g. All national. state. county.
school and municipal taxes. 4. All losses
actually sustained in trade or arising
from fire. storms or shipwreck and not
compensated by insurance or otherwise.
g. Debts due and found worthless and
charged off. 6. Reasonable allowance for
wear and tear I. Dividends received from
corporations which pay income tax. 8.
Amount of income on which tax Is paid
or withheld at the source, provided such
income does not exceed 5000 or Is irregu-
lar as to time and amount. 9. Interest on
obligations of the United States a state
or a political subdivision of state. 10.
Salaries of the present president of the
United States. present judges Of the fed
eral courts and the compensation Of all
officers, employees Of a state or political
subdivision of a state, provided the same
Is not paid by the United States govern
ment. II. The exemption Of So 900 or $4,000
for couples living together. AS above ex.
planned, these deductions are allowed in
calculating ret income for the normal tax.
For the additional tax items and are
not allowed.
Q.-Can personal living or family ex-
penses be deducted? A.-No.
Q.-1s an assessment for local benefits
deemed tax and deductible as such?
A.-No. The statute expressly provides
that such assessments shall not be de-