New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1918-03-15
FEDERAL INC0ME
TAX IN BRIEF
The Requirements Boiled Oc:a1'
for Busy Folks.

II you are single and your net In
come for 1917 was $1,000 or more you
must file return.
II you were married and living with
wife Cor husband) and had net In
come of $1,000 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 separate estate, must
be reported by his legal representa-
! tive.
Severe penalties are provided fOf
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 l. 1918, fine Is from $50
! to 1000, plus so per cent OF tax due.
/ Returns must be filed with the Col
/ IeClDT OI IHlcTItui RCNChuc va h'oiAASs
In which you live.
An agent may file return for per-
son who is III, absent from the country
or otherwise inoapacitated.
Each return must be signed and
sworn or affirmed by person execut-
/ inr 1t.
! Single persons are allowed $1,000
! exemption In computing normal tax.
! A married person living with wife
, Tor hushand) is allowed $1,000 exemp-
tlon, plus 5000 for each dependent
I child under IS.
A head of family. though single. s
allowed $1,000 exemption II actually
supporting one or more relatives.
Returns must 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 state, county, city or town In
the United States.
Interest on state and municipal
bonds issued within the U. s. Is ex-
tihBl Iiplb iNhtiat biNpliC tuA uhA
/ should be omitted.
Interest on United States govern
ment bonds is also exempt, except on
individual holdings Of Liberty Fours in
excess OF S5. 900 par value.
Dividends are not subject to normal
tax, but must be reported and included
In net income.
Gifts and legacies are not income
and should not be included on the re-
turn Of the beneficiary.
Life insurance received as bene-
ficiary or as premiums paid back at
maturity or surrender Of policy IL not
income.
Payments received for real or per-
sonal 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, but
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 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 Immedl-
ate USE
The amount of rent paid for a farm
may also be claimed as tenant farm
er's expense.
Payments for live stock are allowa-
BILE II bought for resale. But II bought
for breeding purposes cattle are an in
vestment. not an expense. and cannot
be allowed.
A storekeeper can claim amounts
paid for advertising. clerk hire, tele-
phone, water. light and fuel, also dray-
age and freight bills and cost Of op-
Grating and 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-
ventiOns.
A dentist can claim similar items,
except team or auto expense. which
are not necessary in his profession.
Expenses that are personal or con-
nected In any way with the support or
well being Of a person or family are
not allowable.
The costs Of machines, instruments,
vehicles or implements that are more
or less permanent in character are not
allowable as an expense. They are In.
vestments.
Interest paid on a mortgage or other
personal Indebtedness is allowable on
4 personal return.
All taxes paid within the year can
be taken out on q federal return, ex-
,ept federal income taxes, inheritance
axes and assessments for local i'm.
)rovements.
Losses sustained In business or {
through nre. storm or shipwreck or by
heft. except when compensated BY In.
Iurance or otherwise.
Wear and tear of rented buildings or
machinery used In business may be
.laimed. It
You can also claim the amount paid I
o the Red Croes and TO other charita- I
Ilo, religious or educational organiza- $
ion to the extent ef 16 per cent Of {
~ ~ inceoA- II