Shoshone journal. [volume] (Shoshone, Idaho) 1884-1931, 1914-03-06

The provisions regarding net in
comes OF $4,000 apply only 10 uninar-
ried persons, or to married persons
NOT living with wife or husband. A
husband and wife living together are
entitled &C. an exemption Of $4,000 on
: their aggregate Income. This means
that IL case the wife has separate
income. II this added 10 the husbands
income amounts to $4,000 the total IL
subject 10 the tax; or II the wife has
no separate income. the husbands in
come Is taxable only In case It reach
IS $4,000. But return must be made
IL the aggregate income OF both is
$4,000 for the year 1913. The Joint
exemption, however, would be 1888
ss.
IN arriving At this net income the
farmer should start with his gross IN
come This would consist Of any
items u the kind above enumerated,
and especially all receipts from the
sale Of products OF every description
from the farm. This would include
an money received for produce and
animals Gold and for the wool and
hides Of animals slaughtered. II the
wool and hides are sold; but he may
deduct from thesc items the amounts
actually paid as purchase money for
the animals sold or slaughtered dur |
ing the year. When the animals rnis-
ed by line owner are sold or slaught- |
cred, however, their value should not |
be deducted.
From Tho gross income there should
be deducted amounts Of money ac-
tualiy paid for expenses for operating
the farm and producing tine farm pro-
ducts. live stock, etc. This would in
elude hired farm labor, farm supplies
purchased that are necessary 10 carry
on the business and not an Investment
That represents principal, etc EX-
penses for repairs on farm property
may be deducted, provided the amount
deducted does not exceed the amount
spent for such repairs during the year
FOR which the return IS made The
cost Of replacing tools or machinery
may also be deducted to the extent
that the cost Of the new articles does
not exceed the value OF the old. No !
deduction may be made for the cost
OF additional farm machinery, but .
credit may be allowed for the annual
depreciation I'm the value Of such ma
chinery. For example, If "A machine
cost 500 and Is regarded as good for
ten years Of service, the annual de-
probation would be 10 per cent and
a deduction OF $40 each year could
be made on this account as part of
he expense of operating the farm.
The expense OF supporting the fam
~. however. can not be deducted from
he gross income. Among items for d
which credit is not allowed are ex- u
'ense Tor medical attendance, life in .
urance. insurance on dwelling store 50
~
domestic servants. and cost Of board, D
DOM or house rent for family or per- u
onal use. In case an individual owns n
is residence he cannot deduct the es- d
imated value Of his rent But ten &C
mt operating a rented farm as pro-
rietor may deduct the rent of the ei
arm rs a part Of the expense of his u
usiness. al
Farmers are not required to include ha
I their income the produce taken 10
rom the farm and consumed by the yo
imily. Only produce sold off the
lrm Is to be included A farmer is III
OF entitled to a deduction for his own pu
dor. or for expense of feeding live 'r'
ock. He may. however deduct such
ems as cost Of fertilizer and other pa
ipplies and materials which are used ap
p In the course Of his operations. sii
The law provides that for the year hs
ll2 the tax shall be computed only eV
\ the net income for the ten months
ON March LIST TO December 3ist, and oil
at returns shall be made on the ba- iul
$ of fve-siXths OF the year There pa
re, IL the net income for the last ten az
onths of 1918 amounts 20 $500 or
ere q return on form 1850 Is required. ms
)r the ten months OF 1913 every sim oel
q person IS allowed 80 500 exemption no
id ia The case of husband aud wife. VIC
sing together S3.333,S3 exemption. an
computing the net income for this esl
'riod deductions should be made for M
lly 0ve-siNths Of the amounts prop
Is allowable for the whole year. Re- pr'
rms Tor 1918 must be made by March, "
1914. eie
Blanks for making returns for the COZ
come tax may DE obtained from the OF
Electors Of internal revenue through ms
L the country, or from the Bureau
Internal Revenue of the Treasury sh'
,partment at Washington. d. c. In tie
Sc OF failure ON the part Of any one ~,
no "a subject to the tax TO file the ~
turn by the first of March, the law
es a penalty of so per cent of the an
lount of the tax assessed and $40 To sen
900 fine IN case of false or fraud Wi
snt return there Is a penalty of
b per cent and $50 to $4,000 fine and ing
g years imprisonment or both. STU
rhe Bureau of Internal Revenue is VIII
eparing regulations which may be GUS
tanned By interested persons on APP 1
cation 20 collector of internal Rev ma
uc for the applicants district OF
n1al