The Hartford republican. (Hartford, Ky.) 18??-1926, 1918-03-29

must file return.
Husbands and wife's income must
be considered jointly, plus income OF
minor children.
Income OF minor or incompetent,
derived from a separate estate must
be reported by his legal representa-
tive.
Several penalties are provided for
those who neglect or evade the law.
For false OF fraudulent return
there is a penalty not exceeding $2,-
600 fine or years imprisonment, or
both, plus 100 per cent of tax.
For failure to make return on or
before April 1, 1918, fine is from $40
to $1,000, plus so per cent of tax
due.
Returns must be fled with the Col
lector OF Internal Revenue of district
in which you live.
An agent may file return for a per-
son who is Ill, absent from the coun-
try or otherwise incapacitated.
Each return must be signed and
sworn or affirmed by person execut-
ing IL.
Single persons are allowed $1,000
exemption in computing normal tax
A married person living with wife
Tor husband) is allowed $4,000 ex-
emption. plus $500 for each depend
ent child under is.
A head of family, though single. is
allowed $4,000 exemption il 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 tax
able on the salaries or wages received
from a state, county, city or town in
the United States.
Interest on state and municipal
bonds issued within the U. $. 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 $4,000 par value.
Dividends are not subject to nor
NAL tax, but must be reported and
included in net income.
Gifts and legacies are not income
and should not be included on the
return of the beneficiary.
Life insurance received as a bene-
Gciary or MS premiums paid back at
maturity or surrendere of policy is
not income.
Payments received for real or per
5oaal property sold is not incomeb 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 dwell
ing; repairs of fences and farm ma
chinery, materials and small tools
for immediate use.
The amount of rent paid for farm
may also be claimed as a tenant farm
er's expense.
Payments for live stock are allow
able If bought for resale. But If
bought for breeding purposes cattle
are an investment, not an expense,
and cannot be allowed.
A storekeeper can claim amounts
paid for advertising, clerk hire, tele-
phone. water. light and fuel, also
drayage and freight bills and cost of
operating and repairing wagons and
trucks.
A physician can claim cost of his
professional supplies, rent, Office help,
telephone, expense of team or auto
mobile used in making professional
calls and expenses attending medical
conventions.
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 cost of machines, instruments,
vehicles or implements that are more
For less permanent in character are
not allowable as an expense. They
are investments.
Interest paid on a mortgage or
other personal Indebtedness is al
lowable on a personal return.