The Mount Holly news. [volume] (Mount Holly, Burlington Co., N.J.) 1891-1942, 1918-03-19
FEDERAL INCOME
!, TAX IN BRIEF
The Requirements Boiled Down
for Busy Folks.

Returns must be f1led on or DeIore
April 1, 1915
Tax due may be paid now or on or
before June Is, 1918.
If you are single and your net in
come for 1917 was 81 900 or more you
must file return.
If you were married and living with
wife Cor husband) and had net In
come of $1,000 or more for 1917 you
must file return.
Husbands and wife's income must
be considered jointly, plus income Of
minor children.
Income of 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 evade the law.
For false or fraudulent return there
is a penalty not exceeding $1,000 fine
or years imprisonment, or both, plus
100 per cent of tax.
For failure to make return on or
before April 1, 1913, fine is from $50
to 1000, plus 80 per cent of tax due.
Returns must be filed with the Col
lector of Internal Revenue of district
in which you live.
An agent may file return for per-
son who is i'll, absent from the country
or otherwise inoapacitated.
Each return must be signed and
sworn or affirmed by person execut-
ing it.
Single persons are allowed $1,000
exemption In computing normal tax.
A married person living with wife
! Tor husband) Is allowed $1,000 exemp-
ton, plus $500 for each dependent
child under 49,
A head of family, though single, is
allowed $1,000 exemption If actually
supporting one or more relatives.
Returns must show the entire
amount of earnings, gains and profits
received during the year.
officials and employees are not taxa
BILE on the salaries or wages received
from state, county, city or town In
the United States.
Interest on state and municipal
bonds issued within the o. s. is ex-
empt from federal income tax and
should be omitted.
Interest on United States govern
ment bonds is also exempt, except on
individual holdings Of Liberty Fours In
excess of $1,000 par value.
Dividends are not subject to normal
tax, but must be reported and included
In net income.
Gifts and legacies are not income
and should not be included on the re
turn of the beneficiary.
Life insurance received as a bene
flciary or as premiu paid back al
maturity or surrender of policy is moi
income.
Payments received for real or per
sonal property sold is not Income, bu
the profit realized thereon is income
for the year of sale.
Amounts received In payment O.
notes or mortgages is not income, bu
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 IL
the conduct of business, trade OF. pro
fession may be claimed.
A farmer can claim payments 70
labor, seed, fertilizer, stock feed, re
pairs on buildings, except his dwelling
repairs of fences and farm machinery
materials and small tools for immedl
ate use.
The amount of rent paid for farm
may also be claimed as tenant farm
er's expense.
Payments for live stock are allows
Bile If bought for resale But If bough
for breeding purposes cattle are an In
, vestment, not an expense, and canno
be allowed.
A storekeeper can claim amount
, paid for advertising, clerk hire. tele
phone, water, light and fuel, also dray
!. age and freight bills and cost Of OF
Grating and repairing wagons an
trucks.
A physician can claim cost of hi
professional supplies, rent, ONCE neil
. telephone, expense Of team or automC
bile used in making professional call
: and expenses attending medical COZ
: ventions.
A dentist can claim similar item
!, except team or auto expense, whic
are not necessary In his profession.
Expenses that are personal or col
!, nected In any way with the support {
!. well being of person or family al
not allowable.
, The costs of machines, instrument
vehicles or implements that are MOI
or less permanent in character are NJ
: allowable as an expense. They are L
vestments.
:, Interest paid on mortgage or 9TH
!. personal Indebtedness is allowable 9
a personal return.
!. All taxes paid within the year ca
be taken out on federal return, e
cept federal income taxes, inheritan'
!, taxes and assessments for local IL
: provements
Losses sustained in business
through lire, storm or shipwreck or