Mountain Home Republican. [volume] (Mountain Home, Idaho) 1915-1946, 1918-04-27
Z MILLION TO CONTRIBUTE
TO THE COST OF WAR

capable of self-support because defec-
tive. A taxpayer is considered to be
the head of a family If he is support
Ing one or more persons closely con-
nected with him by blood relationship,
relationship by marriage, or if his duty
to support such person is based on
some moral or legal obligation.
Women as well as men are subject
to the tax.
The combined net income of mar
ried couple living together is assessed.
If, for example, the husband earns
$1,000 and the wife $1,000, they will
have to pay tax of $40, provided they
have no children.
A widow, woman living apart from
her husband, or a maid is assessed on
her net income above $1,000.
NET income means gross income,
less certain deductions provided for by
the act.
In arriving at your net income you
are allowed to deduct from gross in
come all expenses actually paid during
the year in the conduct of business,
trade or profession. These include
the amounts paid by farmer in pre-
pairing his land for crop and the
cultivation, harvesting and marketing
of the crop, the cost of seed and fer
tilizer used, the amount expended for
labor in caring for live stock and the
cost of feed. The farmer may deduct
also the amount paid for repairs to his
barn or other farm buildings, but not
the dwelling, and for repairs to farm
fences, machinery, etc. The cost Of
materials for immediate use and of
small tools which are used up In the
course of year or two, such as bind
ing Irvine, pitchforks, spades, etc, Is
deductable item, but not the cost of
threshing machines, tractors and ma
chinery of more or less permanent
character. Rent paid for a farm may
be deducted.
Deductions Allowed.
A merchant may claim as deductions
the amount expended for advertising,
hire of clerks and other employees,
cost of light, fuel, water, telephones,
ETC., used in his place of business.
drayage and freight bills, the cost Of
operating delivery wagons or trucks
and cost of their repair.
A physician may deduct the cost of
medicines and medical supplies used
by him In the practice of his profess
sion; expenses paid In the operation
and repair of an automobile used In
professional calls, dues to medical so
cieties and subscriptions to medical
journals; expenses of attending medi-
cal conventions, rent paid for office
rooms and the hire of office assistants,
and cost of fuel, light, water, tele-
phone, ETC., used In office rooms.
Amounts expended for books and surg
ical instruments are not allowable as
a deduction.
This, in a general way, outlines the
ordinary expenses incurred by farm
er, merchant or professional man, and
the principles underlying these allow
ances are equally applicable In the
case of any business, trade or profess
sion. In short, all expenses connected
directly and solely with an income
producing business, trade, profession
or vocation are allowable deductions.
You may deduct also from gross IN
come debts actually ascertalned to be
worthless and charged off within the
year, and losses sustained in business
or trade or from fires, storms or theft,
if not compensated by insurance or
otherwise. Reasonable allowance Is
made for the depreciation Of property
on account of wear and tear in the use
of business. Depreciation of your resi-
dence is not allowed, but If you rent
property to others, depreciation can be
claimed.
Items to Be Included.
You are required to include under
gross income the following items:
Salaries, wages, commissions or
compensation Of whatever kind for
personal services.
All profits derived from business
trade or commerce.