Newark post., 1917-11-28
INCOME TAX LAW
EXPLAINED
Quotations From Act Given

Under the provision of the in
come tax law, enacted by the Della
ware Legislature this year, which
becomes operative January 1918,
State Treasurer Swain has ap-
pointed Frank Danner, of near
Dover, income tax clerk, at a sal
ary of $1,000 year.
Because many inquiries as to
deductions allowed under the law,
as we'll as exemptions, the follow
ing is quoted from the act:
"The proceeds of life insurance
policies paid to individual benefici-
aries upon the death of the insur-
ed; the amount received by the in
sured, as a return Of premium or
premiums paid by him under life
insurance, endowment, or annuity
contracts, either during the term
of maturity of the term mentioned
in the contract or upon the sur
render of the contract; the value
of property acquired by gift, be-
quest, devise or descent; interest
upon the obligations of State or
any political subdivision thereof
or upon the obligations of the
United States or it's possessions;
the salary of the present governor
during the term for which he has
been elected and the compensation
of other public officers Of this
State, now in office, during their
present terms of office respective
ly; rentals of real estate and gains
or profits derived from agricul-
tural operations; and the sum of
one thousand dollars out of the in
come of each taxable"
2S1 D. Sec. 248.-In computing
net income, the following deduc-
tions shall be allowed:
First-The necessary expenses
actually paid by the taxable in
carrying on any business or trade,
not including personal, living or
family expenses, and not includ-
ing expenses of agricultural opera
tions.
Second-All interest paid by the
taxable within the year of his in
debtedness.
Third-Taxes paid by the tax
able within the year imposed by
the authority of the United States,
or its territories, or possessions, or
any foreign country, or under the
authority of any State, county
or under the authority of any
State, county, school district
municipality or other subdivision
of any State.
Fourth - Losses actually sus
tanned by the taxable during the
year incurred in his business OF
trade, or other dealings, or arising
from fires, storms, shipwrecks, OF
other casualty, or from theft, whe1
such losses are not compensated
for by insurance or otherwise, no
including losses resulting from
agricultural operations.
Fifth-Debts due the taxable
actually ascertained to be worth
less and charged off within tn
year.
Sixth-A reasonable allowance
for the exhaustion, wear and tea
of property arising out of its us
or employment in the business o
trade of the taxable.
2S1 E, Sec. 249.-The tax shal
be computed upon the net incom
of each taxable subject thereto, re
ceived in each preceding calenda
year ending December 81.
Each taxable must, on or befor
the first day of March in each an
every year, render under oath a
accurate return of all gross incom
of one thousand dollars or over tn
proceeding calendar year, to tn
State treasurer, in each form as h
shall prescribe, setting fort
specifically the gross amount of II
come from all separate sources an
from the total thereof, deductin
the aggregate exemptions and dt
ductions herein authorized.
"Net income" means the aggr'
gate of all gains, profits, salaries
wages, compensation for persons
service of whatever kind and /
whatever form paid, ETC., and II
come derived and actually receive
into possession by taxable frol
any source whatever.