The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1914-03-05
THE INCOME TAX
C0NFUSES MANY
Cashier Jeffrey of Local Bank
Explains New Rulings

The income tax law which went into
effect recently has caused much blum
doring and much unnecessary work
among many people who do not thor
QUICKLY understand the meaning of the
act Cashier Jelfery of the superior
National bank has undertaken the task
Of Interpreting the measure and cX-
planning its functions Some of the
material given by the cashier follows:
only those persons whose net in
come is over $4,000 per year are sub
ieCt 20 the income tax. In ease thcrc
is a doubt i'm the mind of the local coll
Icctor of this tax ana special request
is made for a statement OF income and
pcimissable exemptions a blank should
bc flied out by the party concerned.
There may not be but few people who
come under this act i'm Hancock but
REGARDLESS of the fact manly blanks
have been filled out by local residents
which would not have To bc done. Tho
income tax law places a tax of one per
cent upon all persons having AN in
come of over $4,000 per year with IN
additional tax on incomes of 10000 or
more per year 1t is an easy matter
for a man Of salary, or a professional
man with good system of book
Keeping To determine whether or not
his income is taxable. If the wife also
has an income from any source, then
husband and wife are jointly exempt
ed to the amount of $4,000 per year,
provided they file a joint statement
Living expenses cannot be deducted in
computing the net income but the eE-
pcusc of conducting business, inter-
est uaid on Indebtedness, worthless ac-
counts charged Off, losses 10y fire not
covered by Insurance. etc, are figured
off. Dividends from stocks i'm corpora
lions can be deducted if the corpora
tion has already paid a tax on its
earnings
"While farmers are generally sup
posed to be interested i'm the income
tax law in an academic way, there are
mo- doubt a great many who are FORUM
ate enough to have an income If
$4,000. particularly those who are en-
gagged in dairying or the live stock in
dustry. For the benefit of farmers
who may wish to learn how the in
come tax affects them ! have received
the following information furnished hy
the Internal Revenue bureau Of the
treasury deparement:
I'm general, an income consists Of
amounts derived from salaries wages,
or compensation for personal service,
paid i'm any form; also from profess
sions. business. sales or dealings i'm
property. or from rents. interests in
bonds or MORTGAGES dividends on
stocks, or other income from invest
ments. These items constiutS gross in
come from which there should he de-
Quoted the expenses of carrying N
business; interest paid ON indebted
ness worthless debts: lire losses;
storm or shipwreck. not covered by in
smance; exhaustion. wear and tear of
property, and any income upon which
the income tax has been deducted from
the source
I'm arriving at this net income the
farmer should start at his gross in
come This would consist of amy items
of the kind above enumerated, ana cS-
peciallN ali receipts from the sale "f
products of every description from the
farm. This would include all money
received for produce ana animals sold,
and for the wool and hides of the ami
mails SLAUGHTERED. if the wool ana
hides are sold; but he may deduct from
tInsn itcu,e tho nrnounts actuuIlN pa III