The diamond drill., 1918-03-16

The Requirements Boiled Down
for Busy Folks.

III you are single ana your net ~
come for 1917 was 81 900 or more you
must file a return.
II you were married and living with
wife (or husband) and had a net In.
come OF $1,000 or more for 1917 you
must file return.
Husbands and wlfe's income must
be considered Jointly. plus income or
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 S2,ooo nne
or years Imprisonment, or both, Plus
| 100 per cent OF tax
For failure 10 make return on or
before April /. 1913, fine Is from SZo
to 81 900, plus 90 per cent OF tax due
Returns must be filed with the Col
| iector OF Internal Revenue of district
in which you live.
An agent may file return for per
son who is Ill. absent from the country
| or otherwise incapacitated.
Each return must be signed and
sworn or affirmed by person erecut-
ing II.
Single persons are allowed $1,000
exemption In computing normal tax.
A married person living with wife
(or husband) is allowed $1,000 exemp-
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 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 u 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 10 normal
tax, but must be reported and included
I'm net income.
Gifts and legncies are not income
and should not be included on the re-
turn OF the beneficiary.
Life insurance received as a bene-
hciary 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-
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 n farm
may also be claimed as a 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
personal return.
All taxes paid within the year can
be taken out on federal return, ex.
cept federal income taxes, Inheritance
taxes and assessments for local Inn.
provements.
Losses sustained In business or
through fire, storm or shlpwreck or by
thoft avpqnf whan roupono D., a.