The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1914-02-10
TAX
Is EXPLAINED
MANY POINTS IN ire ENFORCE
MeNT ARE MADE CLEAR
BY state Agent Wilkinson. In CT,
Yesterday and To-day TO Dis
euss Measure With Inter.
estsd Parties.

A j. Wilkinson. of Huntington. in.
come tax agent for West Virginia.
spent yesterday and will remain over
today in this city. holding confer.
ences with many local men who are In.
terested In the new law. Mr. Wilkin-
son Is at the local Federal building
ne was kept busy yesterday explain
ing features OF the measure. and as
there seems TO be 80 little general
knowledge OF the details OF it's en-
forcement. he decided to remain over
today: Mr.. Wilkinson has been Wis
iting the more important centers OF the
State. but this is his first visit In this
section OF the State since the new law
became effective.
In an interview with an Intelligen.
Ger reporter yesterday. Mr.. Wilkinson
explained some OF the more import
ant provisions OF the law, as follows:
Every citizen of the United States.
living in the United States or abroad.
and every alien living In the United
states. man or woman. married or
single. having a net income from all
sources in excess OF $2,5O0 for the last
ten months OF the year 1918 is re-
CURED 10 make report TO the govern
ment before March l next This re-
port must be mailed to the collector
OF internal revenue at Parkersburg. w
Va. and cannot be mailed TO Washing
ton.
al Corporations in existence any
time during the year 1913 are required
10 make return to the government.
regardless OF the net profits or
whether any profits were made at all
The returns fro mthe corporation due
to be made At this time are for the
calendar year of 1918. Thereafter any
corporation may elect what twelve
months II desires as the fiscal year.
Should II elect other than the calendar
year IL must file with the collector Of
internal revenue at Parkersburg. with
out delay. 4 statement naming the
month the last day OF which II desires
10 end its fiscal year.
Hereafter. the report will be for
full year, and all who have more
than $4,000 net income from all sourc-
es. must report before the first of
each March. The blanks for this re-
port may be obtained from the collect
or OF internal revenue at Parkersburg.
The fact that the blanks are not re-
ceiyed without making application for
them Is no excuse. The penalty for
failure to make this return is a fine
OF not less than SEQ nor more shan
$1,000. The penalty for making a
fraudulent return Is n fine OF not ex-
ceeding $4,000 or years imprison-
ment. or both. In addition to this.
per cent to the tax. and making a
fraudulent return add 10rtepnecs Il
fraudulent return adds 100 per cent
Deductions Allowed.
In determining the net income, the
following deductions are allowed:
"Ffrst-All expenses necessarily in.
CURED in conducting the business,
which produces the income. but not
including any living, personal. OF fam
lily expenses.
"Second-All taxes paid within the
year. national. state, county or district.
Third-All interest accrued during
the year on any outstanding indebted
ness of the taxpayer.
"Fourth-Any loss sustained during
the year in trade, or by fire. ship
wreck or storm. not covered by insur-
ance or otherwise.
"Fffth-Any loss sustained by bad
debts contracted during the year. and
actually charged OF the books, but no
such debts are allowed to be charged
on and deducted unless the person
owing Is clearly insolvent. or due ef-
fort has been made to collect them by
process OF law.
'Sixth-A reasonable amount for de-
probation on account OF wear and tear
OF property. provided such deprecia-
ton has not been restored by re-
pairs. and the cost OF these repairs
included In the first deduction named
on the cost of improvements. better
ments. or additions to property.
'Seventh-All income of the taxpay-
er upon which the tax has been paid or
withheld for payment, at the source
Eighth-The sum of $1,000 for a
single man or woman. or the sum OF
$4,000 IN the case of married people
living together.
"All of the above deductions are
annual, and for the first report, the
deduction will be but five-sixth, the
law being effective only since the frs:
of March. last"
Husband and Wife.
III a husband and wife each have
an income, both may be included in
one return, but such return must
show the income of each. and both
must sign II. The law holds husband
and wife equally responsible for fail
ure TO make the return or pay the
tax.
The taxpayer is not required TO 70.
port as income the increase i'm the
value OF real estate. stocks. bonds
etc. until he sells the same. unless he
Keeps books in which he lists annually
the value OF such property I'm order
10 establish his asets. In that event.
he must reckon HIS income by the in.
crease or decrease shown by his books
from year TO year.
The proper way 10 arrive at an in
come or a pice of property that had
been held for some years and sold I'm
1913. and the increase in value not
listed ON the books annually. Is best
shown by an illustration:
John Doe bought lot in Wheeling
in 1908 for $1,000 He sold IL after
March !. 1913. for $4,000. Add 10 the
cost OF the lot I'm 1903 the total taxes
paid on the prOuertv in ton veare and
deduct this sum from the selling price
OF $4,000. Divide the difference by
ten. the number Of years the property
was held. and the quOfient Is the in