Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1918-03-28
FEDERAL INCOME
TAX IN BRIEF
The Requirements Boiled OcHn
for Busy Folks.

before June 10, 1918
Ii you are single and your net in
come for 1917 was $1,000 or more you
must file return.
II you were married and living with
wife Tor 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 evnde the law.
For false or fraudulent return there
Is u penalty not exceeding $1,000 tine
or years Imprisonment, or both, plus
100 per cent Of tax.
For future to make return on or
before april l. 1918. fine Is from $40
to $1,000, plus so 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 q per-
son who Is Ill, absent from the country
or otherwise inCapacitated.
Each return must be signed and
sworn or affirmed by person execut.
ing 1t.
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, II
allowed $1,000 exemption II 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 q. s. 10 ex-
empt from federal income tax and
should he omitted.
Interest on United States govern
ment bonds is also exempt. except on
individual holdings Of Liberty FOurs In
excess Of 5000 par value.
Dividends are not subject to normal
In net income
Gifts and legacles are not income
and should not he included on the re-
turn Of the beneficiary.
Life insurance received a. hene-
ficinry or as premiums paid hack at
maturity or surrender OF policy Ii not
income.
Payments received for reni or per-
sonaI property sold Is not income, but
the profit realized thereon Is income
for the year Of sale.
Amounts received In payment Of
notes or mortgages Is not income, but
the interest or such notes or mort
cages Is taxable income.
From the entire gross income GER
tain allowances are made In arriving
mt the net income.
Necessary expenses actually paid in
the conduct of business. trade or pro-
fession may he claimed
A farmer cnn 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 as q tenant farm
er's expense
Payments for tive stock are aliOwa-
bile II bought for resale But II bought
for breeding purposes cattle are an In
vestment not an expense. and cannot
he allowed
storckeeper can claim amounts
paid for advertising. clerk hire, ,ele-
phone. water. light and fuel. also dray-
age and freight bills and cost Of OPP
rating and repairing wagons and
trucks
A physician can claim cost OF mis-
professional supplies, rent. Office help.
telephone. expense OF team or automO-
blle used In making professional calls
and expenses attending medical con-
ventions.
dentist can claim similar Items,
except team or auto expense. which
are not necessary In his profession.
Expenses that are personal or con-
nected In any way with the support or
well being OF person or family are
not allowable.
The costs Of machines, instruments.
vehicles or implements that are more
or less permanent In character are not
allowable az an expense They are in
vestments
Interest paid on mortgage Or other
personal Indebtedness Is allowable on
personal return.
All taxes paid within the year can
be taken out or federal return. ex-
cep, federal income taxes. inheritance
taxes and assessments for local Inn
prOcements
Losses sustained In business or
through fire. storm or shipwreck or by
theft. excep, when compensated by In
surnnce or otherwise
Wear and tear OF rented buildings OF
~, chirery used In business may be
,tu,mad