The record. [volume] (St. Maries, Idaho) 1913-1918, 1918-03-19
FEDERAL INCOME
TAX IN BRIEF
The Ram 3ements Boiled Down
M Busy Folks.

Tax due may be paid now or on or
before June 10, 1918.
If you were single and your net in
come for 1917 was $1,000 or more you
must file a return.
If you were married and living with
wife Cor husband) and had a 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 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
Ssy a penalty not exceeding $4,000 fine
Oh years Imprisonment, or both, plus
100 per cent. Of tax.
For failure to make return on or
before April 1, 1913, 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 Tor a 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 it.
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 18.
A head of family, though single, is
allowed $1,000 exemption If actually
supporting one or more relatives
Returns muAt 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 a state, county, city or town in
the 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 or
Individual holdings of Liberty Fours II
excess of $1,000 par value
Dividends are not subject to norma
tax, but must be reported and included
In net income.
Gifts and legacies are not income
and should not be included on the re
-lntrn of the beneficiary.
ife insurance received as n bene
fciary or as premiums paid back a
maturity or surrender of policy is no
Income.
Payments received for real or per
sonal property sold is not income, blu
the profit realized thereon is income
for the year of sale.
Amounts received IN payment o
notes or mortgages is not income, bu
the interest on such notes or mort
cages is taxable income.
From the entire gross income Gel
tain allowances are made in arrivin
at the net income.
Necessary expenses actually paid l
the conduct Of business, trade or pre-
fession may be claimed.
A farmer can claim payments fC
labor seed, fertilizer, stock feed, r
pairs on buildings, except his dwelling
repairs of fences and farm machiner
materials and small tools for immed
ate use
The amount of rent paid for a far
may also be claimed as a tenant farr
er's expense.
Payments for i've stock are allow
BILE If bought for resale. But If boug
for breeding purposes cattle are an
vestment not an expense, and cam
be allowed.
A storekeeper can claim amour
paid for advertising, clerk hire, tel
phone, water light and fuel, also dra
age and freight bills and cost Of G
Grating and repairing wagons al
trucks.
A physician can claim cost Of
professional supplies, rent, office he
telephone, expense of team or auton
bile used in making professional ca
1and expenses attending medical &C
yentions.
A dentist can claim similar tier
except team or auto expense, viii
are not necessary In MS profession.
Expenses that are personal or C
nected in any way with the support
we'll being Of a person or family
not allowable.
The costs Of machines, instrumen
vehicles or implements that are me
or less permanent In character are
allowable as an expense. They are
vestments.
Interest paid ON a mortgage or Otl
personal Indebtedness is allowable
a personal return.
All taxes paid within the year
be taken out on a federal return,
cept federal income taxes, inherita
taxes and assessments for local
pr0Fements.
Losses sustained in business
through fire, storm or shipwreck or