The weekly Iberian. (New Iberia, La.) 1894-1946, 1914-03-07

be Made to Internal Reve
nue. Collectors by March l
If farmer is so fortunate as t.
have a net income of over $4,000 {
year in case be is bachelor, Oh
81 900 if married. he is subject Il
the income tax, and under tht
law each individual mHst make re-
turn TO the Internal Revenue col
lectOr Of his district on or before
the first day of March if be has 6
net income Of SO, 900 or over ts2,
500 for the ten months of 1919
While the interest of most farm
ers ln this subject is purely acad
| emic, the Department of Agricul
ture has received inquiries indi
eating that some wish to know
just what is required of them IN
der the new law.
The income tax law Of October
3, 1913, places tax Of per cent
upen all net incomes of over SO
600, with an additional tax nn in-
comes Of $4,000 or more The
first question arises in the minds
of most people is what constitutes
net income For a man receiv.
ing regular salary, or busins as
man with a good system OF book
keeping, it is easy TO determine
whether or not bis income is taxa
BILE But for the farmer who re-
celves ne stated income, and who
often fails to keep accurate &C
count Of receipts and expeEdi-
lures, ir ia more difficult to calcu-
late his net income.
La order that farmers may be
posted on the income tax as it may
concern them, the following iafot.
nation has been furnished by she
Int nal Revenue. Bureau of the
Treasury Department:
In general, n income consists
of amounts derived from salaries,
wages, or compensation for per
son4l service, paid IN any form;
also from professions, business.
sales or dealings III property, or
from rents, interest on bonds or
mortgages, dividends on stocks,
or other income from nvestments.
These items constitute gross In
come, from which there should be
deducted the expenses of carrying
OH the business; interest paid Cd
Indebtedness; worthless debts
charged off; losses by fire, storm
of shipwreck, not covered by in
surance; exhaustion, wear and
tear Of property, and any income
upon which the income tax has al
ready been deducted at the
source, as, for instance. dividends
on the stock Of corporation
which has already paid the tax on
its earnings.
The provisions regarding net in
comes of $4,000 apply only to un
married persons, or to married
persons not living with wife or
husband A husband and wife
living together are en5iEled to an
exception of $4,000 on their ag
gregate income. This means that
IN case the wife has q separate In
come, il this added to the hns-
bands income amounts to $4,000
the total is subject to the tax; or,
if The wife has no separate in
come, the husbands income is tax.
able only in case il reaches "a, 900.
But a return must be made if the
aggregate income Of both is 81,
500 for the year 1913, The joint
exemption, however, would be
s3, 1873. 33.
In arriving at his net income
the farmer should start with his
gross income. This would consist
of any items Of the kind above en-
umerated. and especially all re
ceipts from the sale Of products
of every description from the
farm. This would include ali
money received for produce and
animals sold, and for the wool and
hides Of animals slaughtered, II
the wool and hides are sold; but
he may deduct from these items
the amounts actually paid as pur-
chase money for the animals sold
or slaughtered during the year.
w hen the animals raised by the
owner are sold or slaughtered,
however, their valae should not
be deducted.
From the gross income there
should be deducted amounts OF
money actually paid as expenses
for operating the farm and pro
dnclng the farm products, live
stock, etc. This would include
hired farm labor, farm supplies
purchased that are necessary to
carry Oh the business and not 40
investment that represents priDci
pal, etc. Expenses for repairs on
farm property may be deducted,
nrovitiaf1 the amount deducted