The Nezperce herald. (Nezperce, Idaho) 1900-1957, 1918-03-21
FEDERAL INCOME
TAX IN BRIEF
The Requirements Boiled Down
for Busy Folks.


must ale q return
II you were married and living with
wife Tor hnshand) and had net m
come Of 5000 or more for 1877 you
must file 3 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-
dive
Severe penalties are provided for
those who neglect or evade the law.
For false or fraudulent return there
is a penalty not exceeding $4,000 fne
or years Imprisonment. or both. plus
100 per cent. Of tax
For failure to make return on or
before April l. 1918. hne Is from $40
10 $1,000. plus 50 per cent Of tax due.
Returns must be sled with the Col
lector Of Internal Revenue Of district
IN which you live.
An agent may hle return for a per
son who Is III. absent from the country
or otherwise ineapacitated-
Each return must be signed and
sworn or affirmed BY person execut-
Ing IT,
Single persons are allowed $1,000
exemption in computing normal tax.
A married person living with wife
Cor husband) Is allowed $1,000 exemp-
ton. plus 500 for each dependent
child under Is
A head Of family, though single. Is
allowed 5000 exemption II actually
supporting one or more relatives.
Returns NUT show the entire
amount Of earnings. gains and profits
received during the year.
Ofacials and employees are not taxa
bic 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 i
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-
neiary or as premiums paid back at
maturity or surrender Of policy ID 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,
and small tools for immedi-
ate use.
The amount Of rent paid for a farm /
may also be claimed as a tenant farm
RS expense.
Payments for i've stock are aIlowa-
lie II bought for resale. But II bought
or breeding purposes cattle are an In
'estments not an expense, and cannot .
e allowed
A st0rekeeper can claim amounts n
aid for advertising, clerk hire, teIe- I,
hone water. light and fuel. also dray-
&c and freight BILLS and cost OF Op- Il
rating and repairing wagons and d
'ucks. =
A physician can claim cost Of his te
supplies. rent. Office help. %
aephone. expense OF team or auf0mo- "a
le used In making professional calls OF
i'd expenses attending medical con hs
snflons al
A dentist can claim similar items. q,
rcept team or auto expense, which fa
e not necessary In bis profession. au
Expenses that are personal or con
-~@@A 80 AA44 HAf WIN AAAE o3AAb4Et OF 1 w
ell being Of q person or family are WI
Il allowable.
The costs Of machines. Instruments. ris
'hieles or implements that are more sn
less permanent in character are not pa
Iowable as an expense. They are In VI
siments.
Interest paid on a mortgage or other NJ
rsonai Indebtedness Is allowable on
return.
AN taxes paid within the year can wa
taken out on a federal return. ex- r,.
pt federal income taxes. inheritance IL
xes and assessments for local i'm -
ovements :ei
Losses sustained IN business or w
rough fire, storm or shlpwreck or b. ~,
Eft. except when compensated BIZ IN IS
rance or otherwise O0l
Wear and tear Of rented buildings or
chinery used in business may be ST;
lined gao
gou can also claim the amount paid ~,
the Red Cross and 70 other charssm- '~'