Alma record. (Alma, Mich.) 1878-1928, 1918-03-14
FEDERAL INCOME
TAX IN BRIEF
The Requirements Boiled Down
for Busy Folks.

before lime II. 1918.
III YOU were single and your net In
come for 1917 was 81 900 or more you
must file return
II you were married and living with
! wife Cor husband) and had n net In
come OF 81 600 or more for 1917 you
,uSet file a return.
! Husbands and wife's income must
F, be considered Jointly. plus Income OF
minor children.
Income Of minor or incompetent,
! derived from separate estate. must
! be reported by his legal representa-
tive
Severe penalties are provided for
those who neglect or evade the law.
For false or fraudulent return there
is penalty not exceeding $4,000 fine
or years imprisonment. or both, plus
100 per cent. OF tax.
For failure TO make return ON or
before April !. 1918. fine Is from $50
10 1000. plus so per cent. OF tax due.
Returns must be fled with the Col
lector OF Internal Revenue OF district
in which you live
An agent may file return for n per
son who is iii. absent from the country
or otherwise incapacitated.
Each return must be signed and
sworn or affirmed by person execut-
ing H.
Single persons are allowed 81 900
exemption In computing normal tax
A married person living with Wife
Cor husband) lis allowed $1,000 exemp-
ton. plus 5000 for each dependent
child under Is.
A head OF family, though single. Is
allowed $1,000 exemption II actually
supporting one or more relatives.
Returns mu.t show the entire
amount OF earnings, gains and profits
received during the year
Officials and employees are not taxa
bic 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 Z. 8. Is ex.
empt from federal income tax wnd
should be omitted.
Interest on United States govern.
meDt bonds Is also exempt, except on
individual holdings Of Liberty Fours In
excess OF 5000 par value.
Dividends are not subject 10 norma!
tax, but must be reported and Included
in net income.
Gifts and iegacles are not income
and should not be included on the re
turn Of the beneficiary
Life insurance received as q bene-
nciary or as premiums paid back al
maturity or surrender OF policy Is not
income
Payments received for real or per
sonal property sold II not income. but
the profit realized thereon IL income
for the year Of sale.
Amounts received Ira payment of
notes or Tnortga ges is not income. but
tho interest on such notes or mort
cages Is taxable income.
From tho entire gross income Ger.
tain allowances are made Ia arriving
at the net income.
Necessary expenses actually paid IN
the conduct of business. trnde 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 aud farm machinery.
materials and small tools for immedl-
ate use
The amount OF rent paid for a farm
may also be claimed as tenant farm
er's expense.
Payments for i've stock are allowa-
HE II 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 OPP
Grating and repairing wagons and
trucks
A physician can claim cost OF his
professional supplies. rent, Office help,
telephone, expense OK team or automo-
bile used In making professional calls
and expenses attending medical con
ventions.
dentist can claim similar Items.
except team or auto expense. which
are not necessary In his profession.
Expenses that are personal or con.
neoted in any way with the support or
well being OF person or family are
not allowable.
The costs Of machines, Instruments.
vehicles or implements that are more
or less permanent I'm character are not
allowable as an expense. They are In
Vesiments
Interest paid on a mortgage or other
personal Indebtedness Is allowable on
personal return.
All taxes paid within the year can
be taken out on q federal return, ex-
ccpt federal income taxes. Inheritance
taxes and assessments for-iocal I'm.
provements.
Losses sustained In business or
through fire. storm or shlpwreck or by
iheft, except when compensated by in
>urance or otherwise.
Wear and tear OF rented buildings or
machinery used in business may be
claimed
You can also claim the amount paid
to the Red Cross and to other charita.
BILE, religious or educational organlza
ton to the extent Of 10 per cent. of
your net income.
Keen Smiling.