Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1918-03-14

The Requirements Boiled Down
for Busy Folks.


april I, 1913.
Tax due may be paid now or on Or
before June Is, 1918.
If you were single and your net In
come for 1917 was $1,000 or more you
must file a 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 a return.
Husbands and wife's income must
be considered Jointly, plus income Of
minor children.
Income Of minor or incompetent,
derived from q. 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 $4,000 fine
or years Imprisonment, or both, plus
100 per cent Of tax.
For failure to make return on or
before April 1, 1918, fine Is from $50
| to $1,000 plus so per cent. Of tax due.
Returns must be fled with the Col
In which you live.
An agent may file return for a per-
son who is III. 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
| Cor husband) is allowed $4,000 exemp-
| ton, plus 5000 for each dependent
| child under Is.
A head of family, though single, is
| allowed $4,000 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
bic on the salaries or wages received
from q state, county, city or town N
| Interest on state and municipal
| bonds issued within the u. 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 $4,000 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-
ficiary or as premiums paid back at
maturity or surrender Of policy Is not
income
PA aents received for real or per-
sonal 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 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 or 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 q farm
may also be claimed as a tenant farm
er's expense.
Payments for i've stock are allowa-
| BILE If bought for resale. But II bought
for breeding purposes cattle are an In
vestment, 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.
A physician can claim cost Of his
| professional supplies. rent, Office help
telephone, expense of team or automo-
bile used In making professional calls
| and expenses attending medical con-
ventions.
A dentist can claim similar items,
except team or auto expense, which
are not necessary in hfs profession.
Expenses that are personal or con-
nected in any way with the support or
we'll 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 as an expense. They are in
vestments.
Interest paid on mortgage or other
personal Indebtedness Is allowable on
a personal return.
All taxes paid within the year can
be taken out on federal return, ex-
cept federal income taxes, Inheritance
taxes and assessments for local i'm
provements.
Losses sustained In business or
through fire, storm or shipwreck or by
theft, except when compensated by in
surance or otherwise.
Wear and tear of rented buildings or
machinery used In business may be
claimed.
You can also claim the amount paid
to the Red Cross and to other chartta-
Bile. religious or educational organiza-