Abbeville progress. (Abbeville, Vermilion Parish, La.) 1913-1944, 1918-03-16
FEDERLL INCOME
TAX IN BRIEF
The Requirements Boiled DCHn
for Busy Folks.

Apfll |, l'lS.
Tax due may be paid now or on or
before June 10 1918
If you are single and your net In
come for 1917 was $1,000 or more YOU
must file a return
If you were married and living with
wife Cor hushnnU and had net in
come of 50 $50 or more for 1917 you
must t'c return
Husbands and wifcs income must
be considered Jointly, plus income Of
minor children
Income of minor or incompetent,
derived from separate estate, mus;
be reported by his legal reprcscu .
tive
Severe penalties are provided fOr
those who neglect OF cvade the law.
For false or Fraudulent return there
is a penalty not cycccding $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 $50
to 81 900 plus 30 per cent. of tax due.
Returns must he 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 81 900
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 IS.
A head Of family. though single, is
allowed $1,000 exemption If actually
supper Ing 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 Interest on State and municipal
bonds issued within the q. 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 $1,000 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 n bene-
fciary or as premiums paid back at
maturity or surrender of policy is not
income
Payments received for renl 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 or such notes or mort
gnges 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 he 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 farm
may also be claimed as a tenant farm
er's expense
Payments for live stock are allowa-
BILE II bought for resale. But ~ bought
for breeding purposes cattle are an In
vestment, not an expense and cannOt
be allowed
A storckerper can claim amounts
paid for advertising, clerk hire, tele-
phone, water. light and fuel, also druy-
age and freight bins and cost OF OBJ
GRAZING and repairing wagons and
trucks
A physician can claim cost of his
professional supplies, rent. Office help,
telephone expense of team or automO-
blle 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 arc not
| allowable as an expense. They are To-
| vestments
Interest paid on mor'gag or other
personal Indebtedness is allowable on
/ a personal return.
| All taxes paid within the year can
/ be taken out Oh federal return, ex-
/ cept federal income taxes, inheritance
/ taxes aud assessments for local i'm
proyements
Losses sustained In business or
! through fire. storm or shlpwreck or by
theft. except when compensated by In
Surance or otherwise.
/ Wear and tear OF rented buildings or
rHrchIrery used In business may be