The Republican journal., 1918-03-21


100 per cent. of tax.
For failure to make return on or
before April 1, 1918, fine is from Szo
to $1,000, plus so per cent. OF tax que,
Returns must be filed with the COL
lector of Internal Revenue OF district
in which you live.
An agent may file return for per-
son who is i'll, absent from the country
or otherwise ircapacitated.
Each return must be signed ana
sworn or affirmed by person execut-
inc it.
Single persons are allowed Sl,OOo
exemption in computing normal tax.
married person living with wife
Tor husband) is allowed $1,000 eNemp-
ton, plus 5000 for each dependent
child under 49,
head of family. though single IS
allowed $4,000 exemption if actually
supper ing one or more relatives.
Returns must show the entire
amount of earnings, gains and profits
received during the year.
Officials and employees are not taxa
BILE on the salaries or wages received
from d state. county, city or town in
the United States.
Interest on state and municipal
bonds issued within the q. S. is eN-
empt from federal income tax and
should be omitted.
Interest on United States govern
ment bonds is also exempt, except on
individual holdings of Liberty Fours In
excess of $1,000 par value.
Dividends are not subject to normal
tax, but must be reported and included
In net income.
Gifts and legacies are not income
and should not be included on the re-
turn of the beneficiary.
Life insurance received as bene-
ficiary or as premiums paid back at
maturity or surrender of policy is 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 or such notes or mort
cages is taxable income.
From the entire gross income GER
tain allowances are made in arriving
at the net income.
Necessary expenses actually paid in
the conduct of business, trade or pro-
fession may be claimed.
A 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 farm
NAV also he claimed as a tenant farm
ers expense.
PAYMENTS for live stock are allowa-
he If bought for resale But if 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-
age and freight bills and cost of op-
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 coz
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 mortgage or other
personal Indebtedness is allowable on
personal return.
All taxes paid within the 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 OF
through fire, storm or shipwreck or by
theft, except when compensated by in
surance or otherwise.
Wear and tear of rented buildings OF
90 machinery used in business may be
claimed
You can also clair' the amount paid
to the Red Cross and to other charita
BILE. religious OF educational organiza
ton to the extent Of Is per cent. Of
your net income.