Watauga Democrat. [volume] (Boone, Watauga County, N.C.) 1888-current, 1918-03-28
FEDERAL INCOME
f.. J, TAX IN BRIEF
The Requirements Boiled Down
for Busy Folks.

hPlH L, lClo.
Tax due may be paid now or on or
before June Is. 1918.
If you are single and your net in
come for 1917 was $1,000 or more you
must file a return.
II you were married and living with
wife (or husband) and had 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 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
NV per CeHt. VI YAK.
For failure to make return on or
before April 1, 1913, 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 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 1t.
Single persons are allowed $1,000
exemption In computing normal tax.
A married person living with wife
(or husband) Is allowed $4,000 exemp-
ton, plus 5000 for each dependent
child under 1S.
A head Of family. though single, 10
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-
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 5000 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 a bene-
ficlnry 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
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
fesslon may be claimed.
A farmer can claiO payments fol
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 q farm
may also be claimed a. q tenant farm
er's expense.
Payments for live stock are allowa
bic II bought for reside. But n bought
for breeding purposes cattle are an in.
vestment, not an expense, and cannot
be allowed.
A storekeeper can clalm amounts
paid for advertising, clork 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 hi,
professional supplies, rent. ofiics help
telephone, expense Of team or automo
bile used In making professional CALI
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 o.
wen being Of q person or family ar,
not allowable.
The costs Of machines. instruments
! vehicles or implements that are NOR,
or less permanent In character are no
allowable as an expense. They are In
vestments.
Interest paid on mortgage or othe
personal indebtedness ID allowable oI
personal return.
| All taxes paid within tho year cai
be taken out on q federal return. q
espt feders! income taze.' lnherltane'