The Dawson news. (Dawson, Ga.) 1889-current, 1918-02-19
ENOTTY TAXATION
PROBLEMS CLEARED
,oowr PRIMER ISSUED BY THE
covFRNMENT PUTS PAYERS
RIGHT ON POINTS.

Mary knotty income-taX problems
q solved in "The Income Tax Pri-
aor - published by the bureau of
internal revenue.
The primer teaches that alimony is
1T income, and the recipient does
80 nav tax upon it, but the "dona-
tor" must.
# is also held that a husband and
.,-fo who receive independent in
comes, each equal to or in excess of
Q, oO0. must make separate returns.
II the individual incomes are less
tbon $1,000, but, combined, in ex-
COOS Of $4,000, joint return must
no made. Where individual returns
must be made it is no excuse for de-
lnouency to say that the other party
30 tho marriage filed his or her re-
turn On time.
Other points solved are:
Salary for December, 1917, paid
some dav in January, 1918, is not to
10 included in the 1917 return, but
in the return for the year in which it
was actually paid.
Room and board furnished with
salary must be considered as income.
If the services of the employee are
nsod in the employers business or
trade the latter may claim the rent
Maid by him for the room and the
actual cost Of meals as a deduction
under the head of business expens-
Il es."
An individual contractor who con-
structs a public highway, a bridge,
q drainage system, etc, for the state,
county or municipality is held to be
no political employee. His income from
the work is not exempt from the tax.
Liberty Firsts Exempt.
The primer has this to say on the
question of liberty bonds: "All inter
est derived from the liberty loan
31s per cent. bonds issued under the
act Of April "a, 1917, is exempt from
both the normal and additional in
come tax Interest derived from the
liberty loan 4 per cent. bonds issued
under the act of September "a, 1917,
is exempt from the normal income
tax; but so much of the interest as
is derived from such bonds, the prin-
cpal Of which exceeds $500, is sub
q iect to the additional income tax:
that is, if you hold $4,000 of liberty
loan per cent. bonds the interest
from $4,000, or $500, is exempt
from tax and the balance of the in
terest, or $120, is subject to the adj
" ditional tax.
Wages paid to a maid to assist in
caring for the household Of a farm
er are not allowable as a deduction.
"A Wages paid to a woman to assist in
v the preparation Of marketable prod
81 UCts or 10 aid in the care of farm
IaborerS, if they cat at a table sep
h a1ate from chat CT tho farmers fam
I'd lily, are to be included among 'bus-
n mess expenses"
A salesman working on a COM
mission basis may claim as deduc-
tons the amounts expended from his
~ own funds or railroad fares, excess
baggage, taXicab or street car fare,
& shoWrooms, assistants or advertising.
tie must, however, include such eX-
N penSes in the return under "gross in
come"
Assessments on corporation stock,
beng construed rs further invest
ments of capital" cannot be claimed
as deductions.
A professional or business man
VINO uses a portion of his home for
Professional or business purposes
may charge a portion of the rent to
business expenses" basing his
charge upon the number of rooms
so used
Builders, Take Notice.
Fees paid to architects to prepare
pans for building to be used for
business purposes cannot be claimed
as business expenses.
man who endorsed a note for an
oJner and had to pay it during 1917
because the debtor skipped" and
laS not been seen since may claim
me amount paid to the creditor as
a deduction, provided he has reason
70 oeheGye no restitution will ever be
n5de nm. That's bad debt"
rules the primer.
contributions made to individuals
al want whether relatives or friends,
are not allowable as deductions. If
4aqe to institutions they may be de
oocted to the extent of Is per cent.
Of the income.