Western liberal. (Lordsburg, N.M.) 1887-1919, 1918-03-29
The Federal Income Tax
News

ANAh ~ 1910
Tax due mas be paid now or on or
before June 10, 1918.
II you were single and your net In.
come for 1917 was $1,000 or more you
must file a return.
II you we're married and living with
wife (or husband) and had a net I'm
come Of $1,000 or more for 1917 yon
must file a return.
Husbands and wlfe'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 $1,000 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 $40
to $1,000, plus 80 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 a 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 $1,000 kemp
ton, plus 5000 for each dependent
child under 1S.
A head of family, though single, is
allowed $1,000 exemption II actually
supporting one or more relatives.
Returns muar show the entire
amount Of earnings, gains and profits
received during the year.
Oficials 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 *
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.
ans ana ~Iegncies are not income
and should not be included on the re-
turn of the beneficiary.
Life insurance received as a bene-
iciary or as premiums paid back at
maturity or surrender of policy Is not
income.
Payments received for real or per
sOnaI 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, buI
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 II
the conduct Of business, trade or pro
fesslon may be claimed.
A farmer can claim payments 70
labor, seed, fertilizer, stock feed. re
pairs on buildings, except his dwelling
repairs of fences and farm machinery
materials and small tools for immedl
ate use.
The amount of rent paid for a farm
may also be claimed as a tenant farm
er's expense.
Payments for i've stock are allows
hle II bought for resale. But II bough
for breeding purposes cattle are an In
vestment, not an expense, and cannc
be allowed.
A stOrekeeper can claim amount
paid for advertising, clerk hire, tel'
phone, water, light and fuel, also ORA!
age and freight bills and cost of OF
Grating and repairing wagons an
trucks.
A physician can claim cost of hi
professional supplies, rent, office he'll
telephone. expense of team or autOm'
bile used in making professional cal
and expenses attending medical col
ventiOns.
A dentist can claim similar item
except team or auto expense, while
are not necessary In his profession.
Expenses that are personal or col
nected In any way with the support
well being Of a person or family al
! not allowable.
The costs Of machines, instrument
vehicles or implements that are mo
or less permanent In character are NJ
allowable as an expense. They are 4
vestments.
r Interest paid on a mortgage or 9th
+ personal Indebtedness is allowable (
e a personal return.
I All taxes paid within the year Ct
be taken out on a federal return, g
cept federal Income taxes, ihheritan
o taxes and assessments for local Il
prOvements.