The Rice belt journal. (Welsh, Calcasieu Parish, La.) 1900-19??, 1918-03-15
FEDERAL income
TAX IN BRIEF
The Requirements Boiled Down
for Busy Folks.

before June 10, 1918
If you we're single and your vet u
come for 1917 was $1,000 or more you
must file q return.
If you were married and living WIN
wife Cor husband) and had a net I'D,
come Of $1,000 or more for 1917 you
must file a return. |
Husbands and wife's income n"s'
be considered Jointly, plus income ol
minor children.
Income of q minor or incompetent
derived from a separate estate mus'
be reported by his legal representa-
tive.
Severe penalties are provided FOR
those who neglect or evnde the law.
For false or fraudulent return mere
ls penalty not exceeding S2'ooO nne
or years Imprisonment, or O0'n' p'u"
100 per cent Of tax.
For fajlure to make return on or
before April /, l0lS, fine Is from -"
70 81 1000, plus 80. per cent. OF tax due
Returns must be filed with the Col
Iector 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 inCapacitated.
Each return must be signed ana
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) IL allowed $4,000 eXemp-
ton, plus 5000 for each dependent
child under IS.
A head of family, though single. ts
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 a state, county, city or town in
the United States.
Interest on state and municipal
bonds issued within the U. S. 10 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 Feurs In
excess of $4,000 par value.
Dividends are not subject to norma
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
f1ciary or as premiums paid back q
maturity or surrender Of policy Is no
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 Gel
tain allowances are made in aPriyin
at the net income.
Necessary expenses actually paid \
the conduct of business, trade or pre-
fession may be claimed.
A farmer can claim payments TO
labor, seed, fertilizer stock feed, n
pairs on buildings, except his dwelling
repairs of fences and farm machiner!
materials and small tools for immed
ate use.
The amount of rent paid for q far
may also be claimed as tenant farm
er's expense.
PAYMENTS for i've stock are allows
hle If bought for resale. But II bOugt
for breeding purposes cattle are an II
vestment, not an expense, and csnnl
be allowed.
A storekeeper can claim amount
paid for advertising, clerk hire, tel
phone, water, light and fuel, also dra
age and freight bills and cost Of O.
, Grating and repairing wagons or
trucks.
A physician can claim cost Of h
professional supplies, rent, office hel
telephone, expense of team or autom
: bile used in making professional cal
: and expenses attending medical co
\ ventionS.
. A dentist can claim similar item
: except team or auto expense. Whit
, are not necessary In his profession.
z Expenses that are personal or co
. neCted in any way with the support
= well being of IA person or family a
. not allowable.
= The costs Of machines. instrument
q vehicles or implements that are mo
g or less permanent in character are n
. allowable as an expense. They are
u veStments.
. Interest paid on mortgage or 9th
= personal Indebtedness is allowable
= a personal return.
81 All taxes paid within the year c
q he taken out on federal return, {
. cent federal income taxes. inheritan
. taxes and assessments for local /
u prOvements.
= Losses sustained In business
e through fire, storm or shipwreck or
2 theft, except when compensated by
3 surance or otherwise.
a Wear and tear of rented buildings
g machinery used In business may
q claimed