The Rathdrum tribune. (Rathdrum, Idaho) 1903-1963, 1918-03-22
THE INCOME TAX
Requirements Boiled Down For
Busy Folks.

before June. Is, 1918.
If you were single and your net In
come for 1917 was 1000 or more you
must file a 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
nninOr children.
Income of a 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 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, 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 a 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 it.
Single persons are allowed $1,000
exemption in computing normal, tax.
A married person living with wife
Cor husband) is allowed $1,000 exemp-
tion, plus 5000 for each dependent
child under 1S.
, head of family, though single, is
allowed $1,000 exemption il actually
supporting one or more relatives
Returns must show the eutire
amount of earnings, gains and profits
received during the year.
Officials and employees are not t; Exa-
BILE on the salaries or wages recei we'd
from a state,- county, city or townt in
the United States. y
Interest on state and munic kpal
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 ee-cepl on
individual holdings of Liberty b'ous 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 rot income
and should not be included on the re-
turn of the beneficiary.
Life insurance received ns q bene-
nc1ary or as premiums paid back at
maturity or surrender CT d )licy is not
income.
Payments received for cal 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 no h,s or mort
cages is taxable income.
From the entire gross income GER
tain allowances are mac e in arriving
at the net income.
Necessary expenses a, .tllally 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, exec pt his dwelling
repairs OF fences and farm machinery,
materials and small ools for immedi-
| ate use.
The amount oz rent paid for farm
may also be claimed ias tenant farm
er's expense.
Payments for live, stock are alEOwa-
hle If bought FOR res ale. But IL bought
for breeding purpos es cattle are an In
vestment, not an e. kpense, and cannot
be allowed
A storekeeper an claim amounts
paid for ADVERTISE az, clerk hire, teIe.
phone, water. light / and fuel, also dray.
age and freight iJills and cost of op
Grating and req airing wagons and
trucks.
A physivian G., claim cost Of his
profession al SUPP lies, rent, Office help
telephone, expenl ;e of team or automO
bile usesl in NAL ling professional CALI
and expenses q ttending medical con
ventiOns.
A dentist Rfl claim similar items
except team 'or auto expense, which
are not necess aHy in his profession.
Expenses that are personal or con
nected in any wa with the support o.
well being of "a person or family ar
not allowable
The costs Of N. lchines. instruments