New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1918-01-16
INSTRUCTIONS FOR
FIGURING INCOMES
'TUDY THESE SUGGESTIONS
IF YOU ARE NOT WISE
ON INCOME TAX -
ANY THINGS THAT WILL BE
A SURPRISE UNLESS YOU
ARE INFORMED.

Ever since the End of January
G. G. Shafer of Minneapolis who is
on special duty to instruct the people
of the state with reference to filling out
their income tax returns, has been IN
in the city. He is now at Sleepy Eye
where he will be from the 14th to the
18th of this month and then at Spring
field from the 21st to the Gath. Mr..
Schafer has given talk at the Armory
to tie farmers of the vicinity and later
he SPOKE to the business men OF the city,
and thoroughly explained tie workings
of the income tax.
The blanks have not reacheo mere
and Mr. Shafer took down the Names
Tie blanks will be mailed as soon as
tley are ready for distribution. Inc
blanks should be filled out and returned
before Mar. 1st to E. J. Lynch conectof
of internal revenue of St. Paul. Aitho
the tax is not due and payable until
June 18th the tax payers are requested
to send draft for tier tax Wien 'hey
~xsnd in tkeir returns so that the "oih
of taking care of tie income tax ASSESS
ments can be easily handled. 49,
Another thing Mr.. shafer wants TO
impress upon the people is that those
who claim exemption for children ana
would with such child exemption noe
be subject to an income tax must never
tEe!ess make such income tax return
whenever their income exceeds the sum
of $4,000.
In tie blanks which will be furnished
the income from all sources must be
entered. From the gross income Will
be allowed the expense of running
business or farm but no ore is allowed
to deduct for personal or living exrens es.
In addition to tie regular exemption
of $4,000 there is allowed an additional
of 5000 for every child under Is years
of aee dependent upon the one who is
making the return. If any of the male
-hildren above 1S-years old are paid
wae es by the parent, these wages may
be deducted from totol income. Among
the expenses which may be deducted may
be mentioned taxes except assessments Tor
local income improvements all interest
items paid and all insurance paid on build
ines except for the dwelling house. The
person making his return is also permit
ted to change off in the shape OF de-
probation 10 per cent on machinery,
IL Ger cent on workhorses, and l2O
on autos as long as they are used ex-
clusively for business purposes. Gas
oline and depreciation for autos can also
be deducted if they are used exclusively
for business purposes. If not so used, then
only such proportion Of the time as the
machine may be used for business pur-
poses may he considered in making the
deduction for depreciation and expenses
of running. In other words, if person
uses his automobile half Of the time for
pleasure and half for business purposes
he would be permitted to deduct 10 per
cent for depreciation and halt OF the
for gasoline.
On frame buildings and barns de-
probation of 4 percent may be charged
off and on sheds Fer cent. II the
buildings are of brick, then depreciation
amounting to only per cent may be
charged off and on buildings Of con-
crete only l per cent may be deducted.
There may also be deducted all insurance
paid on stock and against loss by hail.
= All moneys paid for feed for stock
and any moneys expended for seed grains
NAV be deducted. Also all incidental
expenses, such as a threshing bill, horse
shoeing, Irvine, fertilizer, and all depre-
citation on farm machinery and wagons
may be deducted.
All contributions to religi ous, scientific
and charitable institutions up to 10 per.
cent Of the income are deductible. In
other words, person with an income OF
$4,000 a year can expend and deduct
from, his gross income the sum OF $500
Ter year for such purposes. However, II
he claims it as an exemption, he must
actually expend it. The fact that he
is entitled to so much exemption does
not permit him to deduct it unless he
actually expends it for the purposes
mentioned.
A farmer is expected to list under his
income all proceeds from the sale OF
produce, live stock, poultry and eggs,
dairy products, cream checks, all pro-
ducts traded in stores for goods and other