The Raymer enterprise., 1918-03-28
FEDERAL INCOME
TAX IN BRIEF
The Requirements Boiled Dowr
for Busy Folks

April i, 1913.
Tax due may be paid now or on OF
before June 10. 1918.
II you were single and your net In
come for 1917 was $1,000 or more you
must hle . return.
II you were married and living with
wife Tor 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 q 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
II penalty not exceeding 5000 fine
or years imprisonment. orsboth, plus
100 per cent. Of tax.
For failure to make return on or
before April l. 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 q per
son who ID Ill, absent from the country
or otherwise incapacitated.
Each return must be signed and
sworn or affirmed by person execslt-
ing 1t.
Single persons are allowed $1,000
exemption In computing normal tax.
A married person living with wife
Tor husband) Is allowed $4,000 exemp-
tton. plus $500 for each dependent
child under IS.
A head Of family. though single, is
allowed $1,000 exemption II actually
supporting one or more relatives
Returns mult show the entire
amount of earnings. gains and profits
received during the year.
OHicials and employees are not taxa
BILE on the salaries or wages received
from . state, county. city or town In
the United States.
Interest on state and municipal
bonds issued within the q. 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 lroursdn
excess Of 5000 par value.
Dividends are not subject tosnor1nal
tax, but must be reported and Included
In net income.
Gifts and legacies are not sincome
and should not be included onwthe re-
turn Of the beneficiary.
Life insurance received as IL bene-
nciary or as premiums paid back at
maturity or surrender Of policy is not
income.
Payments received for reaN or per
sonal property sold Is not income, but
the profit realized thereon is income
AoE tuc year VI bdN.
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 ces-
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 immedi-
ate use.
The amount of rent paid for farm
may also be claimed as a tenant farm
er's expense.
Payments for live stock are alloua-
hle II bought for resale. But II bought
for breeding purposes cattle are an in
vestment. not an expense. and cannot
be allowed
storekeeper can claim amount .
paid for advertising, clerk hire, teh,-
phone. water, light and fuel. also dras'-
age and freight bills and cost Of op,.
Grating and repairing wagons and
trucks.
A physician can claim cost Off IDS
professional supplies. rent, Office help,
telephone. expense Of team or aui bmo.
bile used In making professional calls
and expenses attending medical !, con.
ventions.
A dentist can claim similar its ms
except team or auto expense, wi Itch
are not necessary In his profession.
Expenses that are personal or q on
nected in any way with the support OF
well being Of person or family b are
not allowable.
The costs Of machines, instrumen ts
vehicles or implements that are ma re
or less permanent In character are n d
allowable a. an expense. They are 4
yestments.
Interest paid on mortgage or otht, 4
personal Indebtedness Ii allowable. d /
personal return.
All taxes paid within the year tcai1
be taken out on federal return. ex
cept federal income taxes, inherit snct
taxes and assessments for local i'm
provements
Lssses sustained In bushes \ O.