The Big Sandy news. [volume] (Louisa, Ky.) 1885-1929, 1918-03-22

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 incapacitnted.
Each return must be signed and
sworn or affirmed by person execut-
ing II.
Single persons are allowed $1,000
exemption in computing normal tar.
A married person living with wife
| Cor husband) is allowed $1,000 exemp-
ton. plus 800 for each dependent
child under IS
A head Of family. though single. IL
allowed $4,000 exemption II actually
supporting one or moro relatives
Returns must show the entire
amount Of earnings. gains and profits
received during the year.
onieiais and employees are not taxa-
BILE On the salaries OF wages received
fron . state. county. city or tDva In
the United States.
Interest On stats aad nlunicipai |
bends issued within ne o. 3. q az
empt from federal income tnx and |
should be omitted
Interest On United States Eevern-
msnt bonds b also exempt, exespt on |
individual holdings Of Liberty Teurs In |
excess Of 5000 par value
Dividends are not subject to normal
tax. but must bs reported and included
In net income
Gifts and legacies are not income
and should not he included on the 70
turn OF the beneficiary.
Life Insurance received a. q beae-
6eiasy o. - premiums paid back At
maturity o. surrender Of policy IL not
income.
Payments received for real or Per
senal property sold Is not income. but
the profit realized thereon Is income
fer the year Of sale
Amounts received in payment OF
notes or mortgages Is not income, but
the interest on 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 OF 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
may also be claimed a. tenant farm
ere expense.
Payments for live stock are ailowa-
BILE II bought for resale. But IL bought
for breeding purposes cattle are an in
vsstmcnt, 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.
physician can claim cost of his
professional supplies, rent. Office help.
expense Of team or automo-
bile used In making professional calls
and expenses attending medical con-
A dentist can claim similar items.
except team or auto expense, which
ire not necessary in his profession.
Expenses thnt are personal or con
,ected m any way with the support or
veil being Of person or family are
lot allowable.
The costs Of machines, instruments.
Iehieles or implements that are more
n less permanent in character are not
allowable ~ an expense. They are In
'estneuts
Interest paid On q mortgage or other
,ersonal Indebtedness h allowable on
personal return.
All taxes paid within the year ean
e taken out on federal return, ex-
ept federal income taxes, inheritance
axes and assessments for local I'M
Losses sustained IN business or
through fire. storm or shIpwreck or BY
heft, except when compensated by in
urapce or otherwise.
Wear and tear Of rented buildings or
used IN business may be
lnip1ed
You can also claim the amount paid
, the Req Cross and to other charita-
10, religious Or educational organiza-
on to no extent "a y per cent. Of
our net ineoino