Charlevoix county herald., 1918-03-15
FEDERAL INCOME
TAX IN BRIEF
The Requirements Boiled Down
for Busy Folks.

before June 10, 1918.
II you were single and your net In
ssms for 1917 was $1,000 or moro ysu
nsst Ale Q return.
Il you were married and living with
VIZ Cor husband) and had . net In
ssns q $1,000 or more for 1sl1 you
must hls Q return.
Husband's and wife's income must
- considered Jointly. plus income OF
ai,sr children.
Income q q minor or incompetent,
Ssrived from q separate estate, must
- reported by his legal representa-
tivs.
Severe penalties are provided for
shsss whs neglect or svsde the law.
Fer false or fraudulent return there
- . penalty not exceeding $4,000 nns
- years imprisonment. or both. plus
10 Per cant. Of tax.
Pc failuss to make return on or
Asasss April /, 1918. ins 10 from e20
- p 900. plus 90 per cent. Of tax due.
Returns must be nled with the Col
isstss q Internal Revenue Of district
n whisA yeu hvA
An agent may nls return for q per
- wAS " Ill. absent from the country
ss Otherwise incapacitated.
EacA return must be signed and
sworn or aharmed by person execut.
iAs It.
single persons are allowed $1,000
exemption In computing normal tax.
4 married person living with wife
(ss AssbAnd) 10 allowed $1,000 sxsmp-
usn, plus 800 for each dependent
0Atid under IL
/ head Of family. though single, is
allowed 1900 exemption II actually
sapport1nG one or more relatives.
Aeturns mu.t show the entire
Amount Of earnings, gains ana PROFITS
resolved during the year.
omcials and employees are not taxa
bic On the salaries or wages received
frSm . state, county, city or town In
the United States.
Interest on state and municipal
bends issued within the q. 8, 10 sx-
snDt from federal income tax and
should Be omitted.
Interest on United States govern
nsnt bonds IL also exempt, except on
individual holdings of Liberty Fours In
excess Of 5000 par value.
Dividends are not subject to normal
tax. but must be reported and included
In net income.
Offs and lsgacies are not income
and should not he Included on the re-
turn Of the beneficiary.
Life insurance received az q bene-
1ciary or a. premiums paid back ct
maturity or surrender Of policy II not
Income.
Payments received for real or per.
sonal property sold 10 not income, but
the proflt realized thereon IL income
fsr the year Of sale.
Amounts received In payment OF
notes or mortgages 10 not income, but
the interest on such notes or mort
SAgss II 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-
fsssion may be claimed.
4 farmer can claim payments for
labor, seed, fertilizer, stock feed. re-
pairs on buildings. except his dwelling;
rspairs Of fences and farm machinery.
materials and small tools for immedi-
ate Ne.
The amount Of rent paid for a farm
may also BE- claimed as q tenant farm
srs evrsnas.
Payments for live stock are allowa-
bas II bought for resale. But II bought
nor breeding purposes cattle are an In
vsstmsnt not an expense, and cannot
Be allowed.
4 storeksepsr can claim amounts
paid for advertising, clerk hire. tels-
phoos. water, light and fuel, also dray-
Ass and freight bills and cost of op-
Grating and repairing wagons and
trucks.
A physician can claim cost of his
professional supplies. rent, ONCE help.
telephone. expense OF team or automo-
bile used In making professional calls
and expenses attending medical con-
vsnttons.
4 dentist can claim similar items,
except team or auto expense. which
are not necessary In his profession.
Expsnsss that are peVonal or con-
nsctsd In any way with the support or
we'll being Of person or family are
net allowable.
The costs Of machines, instruments,
vehicles or implements that are more
or less permanent In character are not
allowable sun expense. They are IN.
vsstments.
Interest paid on n mortgage or other
personal indebtedness IL allowable on
o personal return.
All taxss paid within the year can
Be- taken out on q federal return, en-.
cspt federal income taxes, Inheritance
taxss and assessments for local I'm
provsments.
Losses sustained In business or
through fire, storm or shipwreck or by