Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1917-01-03

Of corporations with stock valued at
$4,000 or more. The old rate was 1
per cent
Estates of $4,000 or more, when:
transferred, must pay graduated tax
Of from l to 10 per cent. Munition
manufacturers are taxed 12h per cent
on their net profits. Corporations are
subject to a special excise tax Of 50
cents a year for each $1,000 Of fair
value Of capital stock in excess Of $685.
900.
Must File Before March.
Under the new act every Individual
whose total net income. including divi-s
dends, for the year 1916 is $4,000 or,
lmore Is required to file with the COLI
lector Of internal revenue for the dis
trict in which he resides on or before;
March 1, 1917, a personal income tax
return.
This requirement applies even IL the
individual derived income from no 9TH
err source than dividends on domestic
stocks, is entitled to personal exemp-
tion in excess Of the amount of his net
income, or has had normal tax with
held at the source from income paid to
him in excess of his total tax liability.
| Exempts "Head Of Family"
A personal exemption Of $4,000 is
now allowed to "a head Of a family"
widower or widow, for example. who
maintains home and has one or more
tchildren dependent upon him or her for
| support. may claim personal exemp-
ton Of II 900, as may an unmarried son
who supports a widowed mother, a de.
pendent father or unmarried sisters.
In case where, byia decree Of divorce.
the father Is charged with the support
Of one child and the mother with the
support Of another, each is entitled to
claim $4,000 exemption.
Any dividend declared and paid on
the stock of a domestic corporation.
etc. on or after Jan. 1, 1915, out OF
earnings or profits that accrued in
their entirety prior to March I. 1919,
will not be subject to tax. but a divi-
dent paid on or after Jan. 1. 1916. from
earnings or profits that accrued in part
before and In part after March l, 1913.
will be subject to additional tax on so
much of its amount as represents earn
ings or profits that accrued on or after
the latter date.
New Deductions Allowed.
The following shows the greater lat
itude granted by the amended law IN
the matter Of allowable deductions:
l. A taxpayer is permitted to claim
as a deduction the amount OF taxes
paid to any Foreign government.
.. In addition to the deductions al
lowed ~, .he act Of Oct. 3. 1919 or ac-4
count OF losses incurred in trade or
arising from fires, storms, or ship
wreck. when not compensated by in
Isurance or otherwise. taxpayer is
permitted to claim as deductions such
losses as result from "other casualty
end from theft or are sustained In
business or trade"
8 In transactions entered into for
profit, but not connected with the tax
payers business or trade, the losses
actually sustained therein during the
year may be claimed as deductions to
an amount not exceeding the profits
arising therefrom
New Buildings Not Exempt.
No deduction will be allowed for any
amount paid for new buildings. perma-
nent improvements or betterments
mat de to increase the value Of any prop
erty or estate, and no deduction will be
allowed for any amount of expense OF
restoring property or making good the
exhaustion thereof for which an allows
ance is or has been made, and no all
lowance shall be claimed for deprecia
ton in the value Of the taxpayers res
dence.
The return must be made on the new
form 1040, revised. which may soon be
obtained from the local collector (for
Iowa, Louis Murphy, Dubuque).