The Leon reporter. (Leon, Iowa) 1887-1930, 1913-10-30
The new INCOME TAX. Law.
If your Gross Income Exceeds $1,000 per Year You Mus
Pay an Income Tax. Provisions of the New Law.

K. Provisions of the New Law.
rived from salaries, wages or com
pensation for personal services OF
any kind and however paid.
Professions or vocations.
Business, trade or commerce.
Sales or dealings in property real
or personal, growing out of the own.
ership or use of or interest in prop.
erty real or personal.
Interest, rent, dividends and Sc.
curities.
transactions of any lawful bust
ness carried on for gain or profit.
Gains or profits or income derived
from any source whatever.
Income from but not the value OF
property acquired by gift, bequest
devise or descent.
Neither the return of any part OF
principal invested in life insurance to
the insured, nor proceeds of policies
paid upon the death of the insured
are included as income.
Deductions Allowed
Necessary expenses actually incur
red in carrying on any business from
which the income arises.
All interest accrued and payable
within the year on Indebtedness.
All national state, county, school
and municipal taxes.
Losses actually sustained during
the year in connection with the bust
ness from which the income so deriv-
ed, not compensated by insurance or
otherwise arising from fire, storm or
shipwreck.
A reasonable allowance for the en-
haustion or wear and tear of prop
erty arising out of it's use or employ
ment in business, not to exceed, in
the case of mines, 5 per cent of the
gross value at the mine or the out
put for the year.
All income upon the tax which has
been paid at the source.
Amounts received as dividends
upon the stock of any corporation,
etc., which is taxed upon it's net in
come, but such dividends shall not be
deductible unless first reported in re-
turn as part of gross income.
deductions Not Allowed
All personal, living or family ex-
penses.
Taxes assessed against local bene-
fits.
All expense or restoring property
or making good the exhaustion there
of for which an allowance has been
made.
Amounts paid for new buildings,
permanent Improvements, or better
ments made to increase the value of
any property or estate,
Exemptions
Interest upon the obligations of a
state or any political subdivision
thereof.
Interest upon the obligations Of
the United States or its possessions
The compensation of the present
president during the term for which
he has been elected ....:.
The compensation of the judges of
the supreme and inferior courts OF
the United States now in office.
The compensation of all officers
and employees of state, or any poll
tical subdivision thereof, but not in
Guiding senators and representatives
in congress.
Three thousand dollars shall be de-
Quoted from the net annual income as
above ascertained of each person, and
$4,000 for husband and wife living
together.
Time of Going into Effect
The tax shall be computed upon
the remainder of the said net income
for the year ending December 31xI,
and for each calendar year thereaf-
ter, except that the tax for the year
1913 shall be computed only on that
portion accruing from March list to
December 31st.
Return of Income
A true and accurate return of all
net incomes of $4,000 or more for
the year shall be made under oath or
1t must be made to the collector
of internal revenue for the district in
which said person resides or has his
principal place of business in the
United States. For the purpose of
the additional or super tax all in
shall be returned personally.
The form shall be prescribed by
the com missioner of internal revenue
with the approval of the secretary of
the treasury.
1t shall set forth specially the
gross amount of income from all sep
arate sources. From this total shall
be deducted the aggregate items of
expenses and allowances above
authorized.
The return must be made on or be-
lore March 1st, 1914, and on or be-
lore March LIST of each wear there
after.
Persons Required to Make Returns
First-Each taxable person Of law
'ul age for himself.
Second-Guardians, legal or ma
ional trustees and executors shall
make and render a return of the net
ncome, coming into their custody or
of the person for whom they
lct. - .' -
Third-All persons, firms, COM
,anies, co-partnerships, corporations,
,tc., having the control, receipt, dis