Sharp County record., 1918-03-22
FEDERAL INCOME
d TAX IN BRIEF
The Requirements Boiled Down
for Busy Folks.

Tax due may be paid now or on or
before June Is, 1918
If you are 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 (or 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 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 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 /, 1918, fine is from $50
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 per
son who Is i'll, 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
(or husband) is allowed $4,000 eyemp'
ton, plus 5000 for each dependen.
child under IS.
A head Of family. though single, Is
allowed $4,000 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 state, county, city or town In
he United States.
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. 81.
Gifts and legacies are not income
and should not be included on the re-
turn Of the beneficiary,
Life insurance received as a bene-
hciary or as premiums paid back at
maturity or surrender Of policy Is not
income.
Payments received for real or per
sonnl 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 lmmedl-
nte use.
The amount Of rent paid for q farm
may also be claimed rs tenant farm.
rr's expense.
Payments for live stock are allowa.
ble II bought for resale, But II bought
for breeding purposes cattle are an In.
vestment, not al expense, and cannot
be allowed.
A storekeeper Gun 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 slmilat items,
except team or auto expense, which
IRE not necessary In his profession,
Expenses that arc personal or con.
nected IN any way with the support or
well being Of person or family ara
not allowable,
The costs Of machines, instruments,
vehicles or implements that ore more
cr less permanent In character nro not
allowable es an expense, They are In.
yestments,
Interest paid on a mortgage or other
personal Indebtedness IL allowable ON
n personal return,
All taxes paid within the year can