Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1914-02-22
FAILURE TO GET
NOTICE No AID
To TAX DODGERS
P. C. McDufie, of Atlanta Bar,
Tells Plainly How Income
Measure Works.
Continued from Page I.

The method OF assessment of the
normal income tax is as follows:
All items of income collected, OF
which have accrued between March j
and December 81. 1913. both dates in
cluded, are added together. except any
interest received upon any obligation
of the United States or any of its pos
/ sessions, or OF any State or any po-
| litical subdivision thereof, and except
| the value of property acquired by
| gift, beqaest, devise or DESCENT ana
except proceeds OF life insurance pol
| icies paid upon death; and except
| repayments made to holders of lie
| Insurance, endowment or annuity
contracts, upon the maturity or sur
| render of such contracts.
The sum of this addition is known
as gross income" and should be seq
| regated in accordance with the twelve
| subdivisions mentioned on page OF
form No 1910. A brief explanation OF
| the various items-in the order IN
which they appear on this form
may be OF assistance in the prepara-
| ton of the return.
To- addition to the twelve items
mentioned above, this page of the
form opposite each item IS dlViGed
into two columns, "a and "B." The
first column is headed amount of in
come on which tax has been deducted
and withheld at the source" while the
latter Column "B") has the following
caption: Amount of income on which
tax has not been deducted and with
held at the source.
The Subdivisions.
%. Under item Il" you should enter
all compensation received from March
/, 1913, to December 81, 1913, for per-
! sonal services OF whatever kind. IL
you receive a salary of $4,000, for ok
ample, and the corporation employing
| Iva Ia 1 1Ar
cent tax on any portion of this salary,
YOU should enter the portion on which
the tax has been retained under col
umn "A" and the balance of the in
come under column "B.
% Under item 20" you should enter
all income, received during the same
| period. from your individual business
of whatever kind, whether actually
collected within the period from
March /, 1918, to December 81, 1918,
or simply entered on the books. I'm
der this item any profits you may
have made on real estate, stocks1
bonds, etc, and any commissions you
may have received for special SER
vices rendered would also be entered.
The aggregate would be. of course,
entered under column "B," unless, for
any reason, the tax had been deduct
ed at the source
(3). Under item "3' you would
enter all rents" say from real estate
holdings of any kind, all interest al
ready accrued" on mortgages, notes
of individuals or other personal loans.
The amounts would be proportioned
under column "a" and "B' of this
item, depending upon whether a tax
of / per cent had been retained at
the source.
| ter all profit derived from partner
ship business of whatever kind, based
on the full amount of the profit earned
by this partnership, whether actu-
ally distributed or allowed to re-
main in the business as working
capital.
Place for Interest.
co. Under item rs" you should
enter all income derived from interest
on bonds or mortgages or corpora
lions, associations and insurance COM
panies, whether payable annually or
at shorter or longer periods. Cou-
pons cashed before November l, 1913,
where the bond contains a tax free
| clause" should be entered under col
umn b" whether they contain the
tax free clause" or not. Any cou-
pons of the character indicated.
cashed since November 1. should be
entered in column "a"
General Deductions.
The personal taxable income is as
| income the following Items:
First. All necessary expenses. ac-
| tually paid in carrying on any bust
ness, not including personal, living
or family expenses.
Second. All interest paid on in
| debtedness
Third All national, State, coun-
ty, school and municipal paid taxes;
| except assessments for local bene-
| fits.
Fourth. All losses incurred in
trade, or arising from fire, storm or
| shipwreck; and not compensated by
| insurance or otherwise.
Fifth. Worthless debts, charged Off
within the year
Sixth. Reasonable allowance for
| depreciation OF property, arising from
J its employment; not exceeding, in
case Of a mine. 5 per cent of the gross
value at the mine, of It's annual out
put; but no deduction shall be mads
| on account of expense incurred in
undoing any depreciation of property,
In addition to the reasonable allow
| ance for that depreciation.
Seventh. All dividends received
| upon corporate stock. and all other
amounts received from the net earn
ings of any corporation, or joint stock
company, or association, or insurance
company, which is taxable upon its
net income, under this statute.
Eighth. Any income, exceeding
| $4,000. the income tax upon which
has been paid or withheld for pay
ment at its source, as prescribed by
the statute.
Ninth. In the case of President
Wilson, his compensation during his
present term: and in the cases of all
United States judges who were in Of
flee at the date OF the enactment of
the law. their compensations: and
in the cases of all officers and all en-
ployees of any State or political sub
division thereof, their compensations,
except when such a compensation is
paid by the United States.
Tenth. In the case of any person,
not living with a wife or a husband.
$4,000.
Eleventh In the case of a man
and his wife living together, $4,000.
After the completion of the total
gross income, on page 2, and gen
eral deductions on page 8, you would
enter the summary" on page 1.