The Columbus courier. [volume] (Columbus, Luna County, N.M.) 1911-1920, 1918-03-22
FEDERAL INCOME
TAX IN BRIEF
The Requirements Boiled Down
for Busy Folks.

n you were single ana your net IN
come for 1917 was $1,000 or more you
must nie n return.
II you were married and living with
wife Tor hushand) and had a net In
come Of S2.OOO or more for 1917 you
must fle a return.
Husbands and wife's income must
he considered Jointly. plus income Of
minor children,
Income % a minor or incompetent.
derived from a separate estate. must
be reported by his legal representa-
tive.
Severe penalties are provided for
those who neglect or evnde the law
For false or fraudulent return there
IL n penalty not exceeding $1,000 rne
or years imprisonment, or both, Plus
100 per cent Of tar.
For failure to make return on or
before April /. 1918, fne IL from s2n
to $1,000. plus 80 per cent. 81 tax due
Returns must he filed with the Col
lector Of Internal Revenue Of district
In which You live.
An agent may nle return for n per
son who IL m. absent from the country
or otherwise incapacitated
Each return must he signed and
sworn or afivmed by person eNecut'
ing H..
single persons are allowed Sl0No
exemption In computing normal tax.
A married person living with wife
Cor hushand) IL allowed $4,000 eNemp'
ton, plus $500 for each dependent
child under ~.
A head 81 family. though single. Il
allowed 5000 exemption n actually
supporting one or more relatives.
Returns muit show the entire
amount o. earnings, gains and pronts
received during the year.
ofciais and employees are not taxa
HE on the salaries or wages received
from a state. county. city or town In
the United States.
Interest on state ard municipal
bonds issued within the 4, = Il eN'
smpt from federal Income lax and
should he united
Interest on United States govern.
ment bonds IL also exempt. except on
individual holdings 81 Liberty FourS In
excess of $1,000 par value.
Dividends are not subject to normal
tax. hut must he reported and includ~I
In not income.
Gifts and legacies nre not lncoms
and should not he included m The ~
turn ~ the beneficiary.
Life Insurance received as n hone
nrlary or ~ premiums paid back al
maturity or surrender 81 policy n mol
income.
Payments received for real NJ per
sonnl property sold IA not Income, I'm.
the profit realized thereon II lncom'
FOR the year ~ sale
Amounts received IN payment .
notes or mortgages Il not Income. hu
the interest on such notes or mort
cages II taxable income.
From the entire gross income Get
tain allowances are made In artl'lnI
at the net Income.
Necessary expenses actually pnid II
the conduct 81 business, trade or pro
fession may be claimed.
A farmer can claim payments 10
labor, seed. fertilizer, stock feed, r.
pairs on buildings. except his dwelling
repairs ~ fences and farm machlner,
materials and small tools for immed.
ate use.
Tn. amount Of rent paid Tor n ffrr
may also he claimed as n tenant farm
er's eVpense.
PAYMENTS for live stock are allows
HE n bought for resale, but II hough
for breeding purposes cattle are an Il
vestment. not an expense, and cannC
he allowed.
A s%torekeeper can claim amount
paid for advertising, clerk hire, tel,
phone, water. light and fuel, also drn'
age and freight bills and cost n N
Grating and repairing wagons m
, trucks.
A physlcian can claim cost Of h
professional supplies. rent. Office hel
- telephone. expense Of team or autom'
q bile used In making professional cal
and expenses attending medical Co
ventions.
Hi ~ utNNlHA ANu fANAh HAiANNaN lfN'
except team or auto expense, whi'
are not necessary In his profession.
Expenses that are personal or co
N nected In any way with the support
we'll being OF a person or family al
not allowable.
The costs Of machines. instrument
vehicles or implements that are mo
or less permanent In character are n
allowable NJ an expense. They are I
N vestments.
Interest paid on n mortgage or 9th
personRl Indebtedness IL allowable
a personal return.
All taxes paid within the year Il
be taken out Of a federal retuTn. .
y cept federal income taxes, lnherltan
taxes and assessments for local Il
provements
losses sustained In business
through hre, storm or shlpwreck or
theft, except when compensated by
aurance or otherwise.