The Tucumcari news and Tucumcari times. [volume] (Tucumcari, N.M.) 1907-1921, 1918-03-21
FEDERAL INCOME
TAX IN BRIEF
The Requirements Boiled Down
for Busy Folks.

before June Is. 1918.
II you are single and your net In
come for 1917 was 81 900 or more you
must file u return.
II you were married aud living with
wife Cor husband) and had a net In.
come of $1,000 or more for 1917 you
must file Il return.
Husbands and wife's income must
he considered Jointly, plus income of
minor children.
Income of "a minor or Incompetent,
derived from a separate estate, must
he reported by his legal representa-
tive.
Severe penalties are provided for
those who neglect or evadc the law.
toi false or fraudulent return there
Is II penalty not exceeding $1,000 fine
or years Imprisonment, or both. plus
100 per cent. Of tnx.
For failure Ia make retur IN or
before April |, 1918, fine is from $50
to $1,000. plus 30 per cent. Of tax due.
Returns must he filed with the col.
lcctor of Internal Revenue OF district
In which you live.
An agent ma Ale return for a per
son who is III. absent from the country
or otherwise inCapacitated.
Each return must be signed and
worn or affirmed by person execut.
inT II.
Single persons are allowed $1,000
exemption In computing normal tax.
\ married person living with wife
(or hu>haud) Is allowed S2,GOn rX"mp
tiun. plus 5000 for each dependent
child under Is.
\ hoad NJ family. though slHgle. is
allowed $1,000 exemption If actually
supper ing II or more relatives.
Returns must show the entire
amount OF earnings. gains and profits
received during he year.
officials and employees are not TAXA
bile on the salaries or wages received
from a state, county, city or town in
the United States.
Interest on state and municipal
bonds issued within the L. s. is ex-
emp from federal income tax and
should he omitted.
Interest on United States govern.
ment bonds is also exempt, except on
individual holdings Of Liberty Fours In
excess Of 5000 par value.
Dividends are not subject 70 normal
tax, but must he reported and included
in net income.
Gifts and legacics are not income
and should not he Included on the Se.
turn Of the beneficiary.
Life insurance received as n bene.
ficiary or as premiums paid back at
maturity or surrender of policy IL not
income.
Payments received for real or per.
sonal property sold is not income, but
the profit realized thereon is income
for the year OF sale.
Amounts received In payment OF
notes or mortgages Is not income, but
the Interest On such notes or mort.
cages is taxable income.
From the entire gross income Ger.
tain allowances are made in arriving
al the net income.
Necessary expenses actually paid In
the conduct OF business, trade or pro.
fesslon may be claimed.
\ farmer can claim payments for
labor, seed, fertilizer, stock feed. re.
pairs on buildings, except his dwelling;
repairs Of fences and farm machinery.
materials and small tools for immedI.
ate use.
The amount OF rent paid for a farm
may also be claimed as a tenant carm.
er's expense.
Payments for live stock are allowa.
BILE II bought for resale. But II bought
for breeding purposes cattle are an in.
vestment, not an expense, and cannot
be allowed.
A storekeeper can claim amounts
paid for ADVERTISING. clerk hire, tele-
phone. water, light and fuel, also dray.
< and freight bills and cost OF Cd.
Grating and repairing wagons and
trucks.
A physician can claim cost of his
professional supplies, rent, Office help,
telephone, expense Of team or automo.
bile used In making professional calls
and expenses attending medical con.
ventions.
A dentist can claim similar items,
except team or auto expense, which
are not necessary in his profession.
Expenses that are personal or con.
nected in any way with the support or
well being Of a person or family are
not allowable.
The costs Of machines, instruments
vehicles or implements that are more
or less permanent In character are not
allowable as an expense. They are In.
vestments.
Interest paid on a mortgage or other
personal Indebtedness Is allowable on
a personal return.
All taxes paid within TIE year can
be taken out on a federal return, ex.
cept federal income taxes, Inheritance
taxes and assessments for local i'm.
provements.
Losses sustained In business or
through fire, storm or shipwreck or by
theft. except when compensated by in.
surance or otherwise.
Wear n tear of rented buiIdi,.s o