The daily star-mirror., 1915-02-11
MUST REPORT ON INCOMES
Continued from Page y

cent shall be added to such tax, and
any person required by law to make,
render, sign, or cerify any return who
makes any false or fraudulent return
or statement with intent to defeat or
evade the assessment required by this
section to be made shall be guilty of
a misdemeanor and shall be fined not
exceeding $4,000 or be imprisoned not
exceeding one year, or both, at the dis
cretion of the court, with the costs of
prosecution. This return properly fill
ed out must be made under oath or af-
frmation by any officer authorized by
law to administer oaths.
Expense for medical attendance,
store accounts, family supplies, wages
of domestic servants, cost of board,
room, or house rent for family or per-
sonal use, are not expenses that can
be deducted from gross income. In
case an individual owns his own res
idence he can not deduct the estimated
value of his rent, neither shall he be
required to include such estimated
rental of his home as income.
The farmer, in computing the net
income from his farm for his annual
return, shall include all moneys re-
ceived for produce and animals sold,
and for the wool and hides of animals
slaughtered, provided such wool and
hides are sold, and he shall deduct
therefrom the sums actually paid as
purchase money for the animals sold
or slaughtered during the year. When
animals were raised by the owner and
are sold or slaughtered he shall not de-
duct their value as expenses or loss
He may deduct the amount of money
actually paid as expense for producing
any farm products, live stock, etc. In
deducting expenses for repairs on farm
property the amount deducted must |
not exceed the amount actually ex-
pended for such repairs during the |
year for which the return is made |
The cost of replacing tools or mach
inery is a deductible expense to the
extent that the cost of the new ar
ticles does not exceed the value of the
old. In calculating losses, only such
losses as shall have been actually sus-
tanned and the amount of which has
been definitely ascertained during the
year covered by the return can be
deducted.
Persons receiving fees or emolu-
ments for professional or other serv-
ices, as in the case of physicians or
lawyers, should include all actual re-
,eipts for services rendered in the
year for which return is made, togeth- E
sr with all unpaid accounts, charges ,
or services, or contingent income due {
or that year, if good and collectible. t
Debts which were contracted dur l
ng the year for which return is made, ]
)ut found in said year to be worth Z
ess, many be deducted from gross in I
,ome for said year. but such debts can {
lot be regarded as worthless until t
.fter legal proceedings to recover the {
anne have proved fruitless, or it clear
y appears that the debtor is insolvent h
debts contracted prior to the year +
or which return is made were includ- C
d as income in return for year in F
7hich said debts were contracted, and
uch debts shall subsequently prove V
0 be worthless, they may be deducted /
nder the head of losses in the re- "
urn for the year in which such debts g
vere charged off as worthless. II
Amounts due or accrued to the in
ividual members of a partnership Il
'om the net earnings of the partner
hip, whether apportioned and dis G
'ibuted or not, shall be included in
le annual return of the individual. et
Estimated advance in value of real :
state is not required to be reported 4
) income, unless the increased value
taken up on the books of the in
vidual as an increase of assets. -
Costs of suits and other legal pro- =
,edings arising from ordinary busi- -
sss may be treated as an expense q
such business, and may be deduct -
from income for the year in which y. ~.
ch costs were paid.
An unmarried individual or a mar j
ed individual not living with Wife or
lsband shall be allowed an exemp-
IN of $4,000. When husband and wife
re together they shall be allowed
intly total exemption of only $4O00ll
their aggregate income. They may -
AXE joint return, both subscribing =
ereto, or if they have separate in
mes, they may make separate re- III
rms; but in no case shall they joint