The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1914-01-10
RULES FOR INCOME TAX.
TREASURY DEPARTMENT SENDS
OUT REGULATIONS.
Only Actual Expenses Of Buslncss
Shall he Excluded Grom the Gross
Rcceipts.


he used and regulations TO be followed
by individuals in making treturny for
the new federal income tax were sont
ont today by the treasury department.
For the past year. 1914, specific ap-
pheations will be- s2,500 to sS.Ss3.33
In the case OF Q married person, and
in future years $4,000 and $4,000.
Where the tan has been withheld on
part OF the income at the source. or
where part OF the income comes as
dividends upon stock OF corporation,
taxable under the corporation tax Sec
ton OF tie law. the regulations set
forth that such income shall be de-
Quoted from the individuals total net
income when computing the amount
on which he is taxable.
The law imposed a. tax OF 1 per
cent. and provides that individuals
who have an income between $40. 900
and $4,000 shall pay an additional
tax OF per cent on such amount;
on all between $4,000 and $4,000. q
per cent; $4,000 to 800. 900. 3 per
cent: $4,000 to s250.OOo. per
cent; ss5o.oO0, TO 100000, PEI
cent; and al over 100000. 6 per
cent Returns must be In the hands
Of the collector Of internal revenue In
the district where the payee lives or
where ne has his principal place Of
business not later than March 1. fail
ure to observe this limit to be pun
ished with fines ranging from $50 to
$1,000.
Refusal or neglect 20 flle returns.
except I'm case OF sickness or absence
will result In an addition Of so per
cent to the tax assessed. In the case
or false or fraudulent return 100 per
cent will be added to the tax assess
ed and any person required to make
render. sign or verify such return who
makes q false or fraudulent statement
with intent to defeat or evade the tax.
will be guilty CT misdemeanor and
subject to a fine Of not more than 32.-
900 or imprisonment for year or both
An extension OF 80 days from
March In case OF sickness or alb
sence may be allowed by the proper
collector. provided an application Is
made by the individual concerned.
Returns must be- accompanied by oath
or animation.
Expenses FOR medical attendance
store accounts family supplies. wages
OF domestic servants. cost Of board.
room or house rent shall not be de-
Quoted from gross income and indi-
viduals who own their own residences
can not deduct the estimated value OF
the rent
The farmer is required to include
In his net income all money from
produce and animals scld. for wool
and hides OF slaughtered animals.
provided they are sold. lie may de-
duct the sums actually paid for the
animals sold or slaughtered GuriEs
the year. but the 'alue OF animals
raised shall not be deducted as OK
penses or loss. The farmer also may
deduct money paid as expenses for
producing farm products. live stock.
ste. and for repairs for the current
year. The cost OF tools or machinery
- deductabie.
Persons receiving fees for personal
or other services must include all ac-
tuai receipts for services during the
year. together with all unpaid ac-
counts. charges for services or con-
tingent income for the year 'If good
and coiiectable."
Debts contracted within a current
year may be deducted from gross in
come. when found worthless. but not
before legal proceedings have proved
unavailing Debts contracted in pre-
vious years which eventually prove
worthless may be deducted subse-
quently under the head OF losses.
when they are charged off.
Amounts due or accredited 20 indi-
vdusl members OF a partnership from
net earnings shall be included In the
return OF tho individual. whether dis
tributed or not. and United States
pensions must he included as i'm
comes
Estimated advance of real estate is
not required to he reported unless
placed as an asset on the indivlduai's
hooks. Costs OF suits and other legal
proceedings arising out Of ordinary
business may be treated as expense
and deducted from gross income Of a
business.
In computing net income compen-
.ation Of all officers and employees ot
State or any political subdivision