The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1918-01-10
WHAT IS YOUR INCOME {?
REPORT TO COLLECTOR.
SOME POINTS THAT ALL WHO
PAY INCOME TAX SHOULD
KNOW.

nave Marks, income tax collector
for the Butte district, has prepared the
following which should be read by all
who come under the operations of the
law:
an rendering a return, what items
of income must | report under gross
income?
.ITnder gross income should be re-
norted everything of income direct
from any source whatever Except
the proceeds of life insurance policies
raid to individual beneficiaries, the
amount received by the insured as Il
return of premium or premiums pail
by him under life insurance endow-
ment or annuity contracts, the value
Of property acquired by gift or be-
quest, except the income derived from
sueh gift or bequest, interest upon
obligations of state or any political
subdivision of state) actually re-
ceiyed during the calendar year for
which the return is rendered, whether
received in cash or the equivalent of
cash, including:
"(a) All accounts of salary, wages
commissions or compensation of what
ever kind, received for personal serv-
ice, including professional fees.
"(b) All accounts of gain, profit or
income derived from business trade,
commerce, or from any sale of prop
erty. real personal or mixed The
method of ascertaining the amount of
gain of profit derived from sale is
as follows
Property Values.
IF you acquired the property sold
prior to March l, 1913, you should
take it's fair market price or value
as of that date and add thereto all
amounts subsequently expended in
making permanent improvements and
the difference between the result thus
obtained and the selling price is the
amount to be reported as gross in
come If you purchased the property
on or after March l, 1918, the dif-
ference between it's cost, plus all
amounts subsequently expended for
permanent improvements, less depre-
citation previously claimed, then deduct
the aggregate of all claims or depre-
citation in value of property claimed
as deductions on previous returns. 1t
the property come to you on and after
March l, 1918. as an inheritance, the
difference between the appraised value
placed upon it at the time plus all
amounts subsequently expended for
permanent improvements, less depre-
citation previously claimed, and it's sell
ling price is to be returned.
"(c) Rents interest on notes, mort
cages, deeds of trust, or other securi-
ties issued by individuals, partnership,
ETC., interest on bonds, mortgages,
deeds of trust, or other similar obliga-
lions of corporations, joint stock COM
panies associations or insurance COM
panies, and interest on bank deposits.
"(d) All income received from BEN
eflciaries, that is, accounts received
from income of estates, trusts etc.,
through trustees administrators or ex-
ecutors.
As to Partnership.
"(e) If you have an interest in
partnership you should report your
distributive share of the earnings OF
profits Of the partnership ascertained
during the calendar year for which
the return is rendered whether dis
tributed to you or not. That is, If the
fiscal year of the partnership ends on
December 81 of that year, your dis
tributive share of it's earnings or pro-
fits ascertained upon the close OF the
book on December 81 should be re-
turned. If this partnership ends it's
fiscal year on some day during the
calendar year, your dstributive share
of its earnings or profits ascertained
at that time should be reported.
"(f) All items of foreign income,
that is, interest upon bonds and mort
cages, or deeds of trust or other SIM
liar obligations issued by individuals,
who are citizens or residents of for
eign corporations joint stock compan-
les, etc.
"(g) Royalties from mines, Oil ana
gas wells, patents, copyrights, iran
chises, or other legalized privileges.
"(h) Dividends on stock, or from
the net earnings or domestic corpora
tions, joint stock companies, assocla-
tions or insurance companies, whether
paid in cash. stock or scrip. AS the
net earnings of corporations, JOINT
stock companies, ETC., are SUBJECT 10
the tax imposed upon the net income
of corporations, dividends from such
net earnings are not subject to the
normal income tax in the hands OF
the shareholders receiving the same
but they are to be returned for the
additional tax purposes and are SUBJ
ject to that tax"