The Dawson news. (Dawson, Ga.) 1889-current, 1914-02-24
THE FARMERS MUST PAY INCOME TAX

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them, respectively, so as to proven
overclaiming and resulting penalty
Widows and Widowers.
Q-When must widows or widow
ers file returns?
A-When the net income amount
to $4,000 or over. The exemption
allowed in this instance is but 49,.
| 600.
Q-From January /, 1913, to De
cember 81, 1913, my net income
amounted to $4,000, but from March
l to the end of the calendar veal
such income amounted to $4,000
Must / file return?
A-There is no express provision
of the statute or regulation on this
point. For 1914 and after no return
would be required, but in view OF
the fact that for the year 1913 your
income is computed for only five
sixths of the calendar year, and that
five-sixths only of the exemption OF
$4,000, i. e., $4,000, is allowed for
such year we consider that return
should be filed where the income
from March 1, 1918, amounts to ST.
500 or over for single person, in
Guiding widows or WidOWers and
married persons living permanently
apart.
Q-What income must be included
in an individuals return?
A-The statute provides that in
come shall include gains, profits
and income derived from salaries,
wages or compensation for personal
service of whatever kind and in
whatever form paid, or from profess
sions, vocations, business, trade,
commerce or sales, or dealings in
property, whether real or personal,
growing out of the ownership or use
of or interest in real or personal
property, also from interest, rent,
dividends, securities or the transac-
ton of any lawful business carried
on for gain or profit, or gains or prof
it or income derived from any source
whatever, including the income from
but not the value of property acquir-
ed by gift, bequest, devise or descent.
The statute exempts the proceeds
of life insurance policies, Salaries of
certain public Officers aha also inter
est upon obligations of the United
States government and of any state,
city, county, town or village. Such
items need not be included in the
return.
AS to Corporate Stock.
Q-I purchased 100 shares Of stock
in April, 1918, at 500 per share, and
sold the same in November, 1913, at
$93 per share. Must l include the
profit as income?
Am view of the broad wording
of the statute this would be held an
item of income.
o. purchased 100 shares of stock
in April, 1913, at $50 per share, and
on December 81, 1913, the market
value of the stock is found to have
appreciated to $93 a share. Must
l include the increase in value as
income?
A-No.
Q-I purchased a house in 1908
for $4,000, and sold it in November
1918, for $12,5O0. Must 1 include
in my 1913 return the total profit
made or can l apportion it?
Ave consider that where the
profit is made upon the sale of prop
erty purchased prior 10 Marcn L
1918, such profit should be appor
toned according to the number o.
years the property was held, unless
it can be established what profit, /
any, accrued subsequent to March l
1918. Where property is purchased
after March 1, 1913, and sold severa
years subsequently the profit made
will be considered profit for the yea
in which the property was sold, un
less an annual estimated increas'
shall have been included in the re
turn for each year as required by thu
regulation in certain cases.
Q-I own my residence. Must
include in my gross income the fai
rental value of the residence?
A-No.
Legacy Under Will.
o. received during the year
legacy of $4,000 under the will o
my uncle. Must include this amour
in my return?
A-Gifts are not taxable unde
the statute and you will not have t.
include the $4,000, but any interes
on, thiS cTm must he included in you