The Marshall republican., 1914-03-06
The INCOME TAX
ALL RETURNS FOR LAST YEAR
WE'RE REQUIRED TO BE MADE
By March First.

year in case he Is a bachelor, or So
600 IL married, he is subject 20 the
income tax. and under the law each
individual must make return To the
internal revenue collector OF his dis
trict on or before the first day OF
March IL he has a net income OF So
OoO or over tS2.5OO for the ten mon
this Of 1919. While tho interest Of
most farmers In this subject IS purely
academic, the department OF agr.cul-
ture has received inquiries indicat-
ing that some wish to know Just what
IA required OF them under the new
law.
Tho income tax law Of October g.,
1913, places a tax OF I per cent upon
all net incomes OF over $4,000. whh
an additional tax on INCOMES vi S?0,-
600 or more. The first lucJtioE aris-
ing In the minds Of most people Is
what constitutes a net Income. For
u iIuN i'tfiN MS - i'Nhiht noihis "
a business man with a good system nj
bookkeeping. Il Is easy 20 determine
| whether or not his income II taxable.
BT, for the farmer who receives no
stated income. and who often fails
90 keep accurate accoun. OF receipts
and expenditures. Il is more difficult
@" calculate his net income.
IN order that farmers may be post
cd on the income tax as II may con
Germ them. the following information
has been furnished by the internal
revenue bureau OF the treasury de-
partmcnt:
What Income Tax l..
In general. an income consists Of
amounts derived from salaries. wages
or compensation for personal seryi:o.
paid In any form: also from profess
sions. business. sales or dealings in
property. or from rents. interest on
bonds or mortgages. dividends on
stocks, or other Income from invest
nents. These items consulate gross
income. from which there should be
deducted the eXpeni - OF carrying on
a business; interes paid on indebt-
eduoss: worthless deUts charged off:
losses by fire. storm or shipwreck,
not covered by insurance: exhaus-
ton. wear aud g Of property, and
any income upon which the income
tax has already On deducls~at the
source. as. for Instance, dividends Oh
the stock Of a corporation which has
already paid the tax on rs earnings.
The provisions regarding net In
comes OF $1,000 apply only to unmar-
ried persons, or TO married persons
not living with wife or husband. A
husband and wife living together are
entitled 10 an exemption OF $4,000
on their aggregate Income. This
means that in case the wife has a
separate income. II this added TO the
husbands income amounts TO $4,000
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the wife has no separate income. the
husbands income Is taxable only IN
case Il reaches $4,000. But a return
must be made II the aggregate in
come OF both Is $4,000 for the year
1913. The Joint exemption. however
you'd be S~3,333.33.
Start With Gross Income.
In arriving at his net income tho
farmer should start with his gross
income. This would consist OF TN,
items of the kind above enumerated
and especially all receipts from thu
sale OF products of every description
from farm. This would include ri
money received for produce and ami
/, mails sold, and for the wool and hide
|. OF animals slaughtered, II the WOO
and hides are sold but he may de
duct from these items the amount
actually paid as purchase money 70
the animals sold or slaughter durinI
the year.. When the animals raise
by the owner are sold or slaughtered
however. their value should not b
deducted.
, From the gross income there fhoul
be deducted amounts of money aetu
ally paid as expenses for operatin
the farm and producing the farm Pre-
ducts, live stock, etc. This woIl
include hired farm labor. farm SUI
plies purchased that are necessary I
carry on the business and not an II
vestment that represents prineipa
etc. Expenses for repairs on fari
property may be deducted, provide
the amount deducted does not rxcee
!, the amount spent for such repair
:. during the year for which the rctur
. Is made. The cost Of replacing too
:, or machinery may also be deductt
: to the extent that the most OF the ne
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