The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1914-01-02
REVENUE OFFICERS
GIVE INFORMATION
AS TO income TAX
Items Which Are TO be Deducted
From Gross Earnings in Max
ing Statements.

iNeldliNe 10 tue INCOME Ida NV
enuc collectors are supplying the
following information.
There shall be allowed as deduc-
tions in computing net income for
the normal tax:
/. Necessary expenses actually
paid in carrying on any business,
not including personal. living or
family expenses.
,. All interest raid on indebted
ness.
3. All national, state, county,
school and municipal taxes, not in
gliding those for local benefits.
4. Losses actually sustained
during the year, incurred in trade
or from fires. storms. and not com
pepsatcd for by insurance or other
wise.
5. Debts dIc the taxpayer ana
actually ascc, tuned to be worthless
and charged -n dur : the year.
6. A reasonable allowance f1t
the exhaustion, wear and tear OF
property arising odt of its use or
F, employment in the business. not to
exceed. in the case of mines, per
cent Of the gross value at the mine
of the output for the year for which
the computation is made.
But no deduction shall be made
for any amount of expense for re-
storing property or making good the
exhaustion thereof for which an al
lowancc is or has been made
No ded1ction shall he allowed
for any amount paid out for new
buildings, permanent Improvements
or betterments made to increase the
value of any property or estate.
I. The amount received as d.
vided upon the stock, or from the
net earnings of any corporation
(nearly all banks are corporationsl,
joint stock company, which is tax
allie upon its net income.
s. Ghe amount of income. the
tax upon which has been paid, or
withheld for payment at the source
of the income. Provided, ii such
annual income does not exceed
100000, or is not fixed or certain,
or is indefinite or irregular as to
amount or time of accrual, the
same shall BE deducted in tue
personal return of such person.
The net income from property
owned and business carried Oh in
the United States, by persons re-
siding elsewhere, shall be computed
upon this basis and that part OF
paragraph C. relating to computing
aud the not income of corporations,
etc, orsdniae:l or cv sting under the
laws Of l@yei"N Countries insofar rs
applicable.
In computing net income there
shall be excluded interest upon the
obligation of a state or any political
subdivision thereof, and upon thu
obligations of the United States or
its possessions. Also the compsnsa-
tion of all officers and employees of
a state or political subdivision
thereof.
Necessary expenses actually paid
IN carrying on any business natur-
ally include: Rent (if any #
place of business, clerk and help
hire, lighting and heating, station
cry, advertising, insurance on stock
or fixtures, freight and express
charges, telephone and telegraph
tolls, travelling expenses while
wholly on business In brief, alll
expenses incurred exclusively in
conducting the business.
In the opinion of collectors, tho
maintenance of an automobile or
horses used occasionally by the
family, or for pleasure is not dc |
Quoted from the income on business
expenses. To be dcductablc as busi-
ness expenses, the items must not be
connected in any way with the liy- |
ing expenses Of the taxable person. |
Expenses for medical attendance, |
hospital bills, store accounts, family !
supplies, wages of all domestic |
servants, insurance and telephone |
and neat and light for the home, |
cost of board, rent of house or liv-
ing rooms, and expenses of like ma
ture applicable to the living expen-
SEES of the taxable person, or not al
lowed as deductions, in the opinion |
of the collectors.
In addition to the deductions !
there is a specific exemption allowed
Tor 1913, of $4,000 for single per
sons, and $3.33S.33 for husband OF
wife, IL living together
Forms for returns of individuals
VIII b. furnished banks and individ-
uals early in January by the collcc-
tors. upon request. They will prob
a..