Atlanta Georgian., 1914-02-22

come Of both, but showing the sep
arate total Of each under the various
subdivisions.
The method Of assessment Of the
normal income tax Is as follows:
All items Of income collected, or
which have accrued between March !
and December 81, 1918. both dates in
cluded, are added together. except any
interest received upon any obligation
Of the United States or any Of It's pos
sessions. or Of any State or any po-
utical subdivision thereof. and except
the value Of property acqulred by
gift. beqJest, devise or descent. and
except proceeds or life insurance pol
Icies paid upon death. and except
repayments made to holders OF life
Insurance, endowment or annuity
contracts, upon the maturity or sur
Fender OF such contracts.
The sum Of this addition is known
As gross income" and should be seq
fegated in accordance with the twelve
subdivisions mentioned on page OF
form No 1910. A brief explanation OF
the various ltems-in the order in
which they appear on this form
may be Of assistance in the preparA-
tion OF the return.
Is addition 10 the twelve Items
mentioned above, this page of the
form opposite each item is divided
into two columns, "a and "B, The
nrst column is headed amount OF In
come on which tax has been deducted
and withheld mt the source while the
latter Column 81 has the following
caption. Amount Of income on which
tax has not been deducted and with
held at the source.
The Subdivisions.
"a. Under item - you should entsr
All compensation received from March
/, 1918, TO December 81, 1918, for, per,
sonal services Of whatever kind II
you receive salary Of $4,000, for ex-
ample. and the corporation employing
Won has already retained the ] per
cent tax on any portion Of this salary,
YOU should enter the portion on which
The tax has been retained under coll
pmn "a, !" and the balance OF the In
rome under column "B.
(2D Under item 90 you should enter
Ali Income, received during the same
neriod from your individual business
~ whatever kind, whether actually
collected within the period from
March 3. 1913. 10 December 81. 1913,
or simply entered on the books. Un-
Aer this item any pronts you may
have made on real estate, STOCKS,
bonds, etc. and any commissions you
NAV have received for special SER
vices rendered would also be entered.
The aggregate would be, OF course,
rntered under column "B." unless, for
any reason, the tax had been deduct
cd at the source.
(3). Under item 80" you would
enter all rents say from real estate 1
holdings Of any kind, all interest al
ready accrued" on mortgages, notes
Of individuals or other personal loans.
The amounts would be proportioned
ander column "A" and "B' OF this
Aem, depending upon whether tax
~ / per cent had been retained at
The source.
(D Under item "a" you should en-
ter All profit derived from partner
shin business of whatever kind based
on the fun amouHt of the profit earned
by this partnership, whether actu-
ally distributed or allowed TO re-
main In the business as working
eapital
t5). Under item "5" you should
enter all income derived from interest
on bonds or mortgages or corpora
lions. associations and insurance COM
panles, whether payable annually or
al shorter or longer periods. Cou-
pons cashed before November |, 1913,
where the bond contains a tax free
clause" should he entered under coli
umn "B,p 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"
(G). Under item "6" you should
enter all income derived from in
vestments outside of the United
States and payable abroad.
fD. Under Item ~" you should
enter any income derived from Inter-
est In an estate or trust OF any kind,
tS). Under item IS" you should
enter any income not classified above.
(g). Under item -" you should
enter the two separate totals of coll
umns "a" and "B."
Cl0n Under Item 10" you should
enter le amount OF columns "A
and "B" added together.
u). Under item III" you should
enter all dividends which you have
received from any corporations In the
United States between March 1. 1913,
and December 81, 1918, both dates in
elusive. These dividends do not have
to be itemiged.
l2). Under item "12" YOU should
enter the amount Of items TO- and
I'll" added together
This completes the entries to be
made under the heading Gross In |
come" page 2, form 104o. and brings !
US to a consideration OF page 3, OF
the form, ON which should be item |
lied certain deductions allowed by
law
General Deductions.
The personal taxable income is as |
certained by deducting from the gross |
income the following Items:
First. All necessary expenses. ac- |
tually paid in carrying on any bust |
ness, not including personal, living
on 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- /
dts.
Fourth. All losses incurred in 1
trade, or arising from fire storm or
shipwreck; ana not compensated by
insurance or otherwise