Iron County news. [volume] (Hurley, Wis.) 1913-1950, 1918-03-16
FEDERAL INCOME
TAX IN BRIEF
The Requirements Boiled Down
for Busy Folks.

UelOFb y uuo 10, 1910.
II you were single and your net In
come for 1917 was $1,000 or more you
must file return.
If you were married and living with
wife Tor husband) and had net In
come Of $4,000 or more for 1917 you
must file return
Husbands and wifes 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 eya1e the faw.
For false or fraudulent return there
Is a penalty not exceeding $1,000 fine
or years Imprisonment, or both, plus
100 per cent. OF tax.
For failure TO make return on or
before April l, 1918, fine Is from $50
to 1000, 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 III, 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 5000 exemp-
ton, plus 500 for each dependent
child under 49,
A head OF family. though single, is
allowed $1,000 exemption II actually
supporting one or more relatives.
Returns NUT show the entire
amount OF earnings. gains and profits
received during the year.
officials and employees are not taxa
from a state, county. city or town In
the United States.
Interest on state and municipal
bonds issued within the U. 8. 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
I'm net income.
Gifts and lcgacles are rot income
ana should not be Included on the re-
turn of the beneficiary
Life Insurance received as p bene-
ficIary or as premiums paid back at
maturity or surrender OF policy is not
Income.
Payments received for real or per
sonal property sold is not income, but
the profit realized thereon is income
Tor the year OF sale.
Amounts received In payment OF
notes or mortgages Is not income, but
the interest on su4l notes or mort
cages Is taxable income.
From the entire gross income GER
tain allowances are made IN arriving
ut the net income.
the conduct % business, trade or pro-
fession may be claimed
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 lmmedi-
nte use.
The amount OF rent paid for a farm
may also be claimed as a tenant farm
er's expense.
FatueptS FOR 1--we stock are allowa-
ilc If bought for resale But II bought
for breeding purposes cattle are an In
N"stment not an expense, and cannot
bee allowed.
storekeeper can claim amounts
paid Tor advertising. crrk hire. tele-
phone, water, light and iuel. also dray-
nge and freight bills and cost of OBJ
Grating ana 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-
Nerfiaus
a dentist can claim similar items.
except team or auto expense. which
are npt necessary IN his profession.
Expenses thar arc personal or CON
netted ia amy way with the support or
Well being % person or family are
ue. allowable.
The costs az machines. Instruments,
Yeh'eie~ or implements tlat are more
or less permanent In character are not
allowable as an expense. They are in
Ne>jW,uts
Interest paid on a mortgage or other
personal Indebtedness is allowable ON
IA uersouui return.
All taxes paid within the year can
Ice taken out on federal return. ex.
c'pt federal income taxes. Inheritance
laNes and assessments for local i'm.
proycmeniS.