Jackson County sentinel. (Gainesboro, Tenn.) 1914-current, 1918-03-28
FEDERAL. INCOME
TAX IN BRIEF
The Requirements Boiled Down
for Busy Folks.

must file a return.
II you were married and living WIN
wife for husband) and had n net IN
come of $1,000 or more for 1917 YOU
must file return.
Husbands and wifes income aust
ne considered jointly plus income o.
minor children.
Income of minor or incompetent,
derived from a sst4Nate estate. mus
be reported by his legal representa-
tive.
Severe penalties are provided for
those who neglect or cvade the law.
For false or fraudulent return there
is a penalty NOT exceeding 5000 me
or years Imprisonment, or both, ,,lus
100 per cent Of tax.
For failure TO make return on or
before April |, 1918, fine Is from SO
to 81 1000, plus 80 per cent. OF tax due,
Returns must be 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 incapacltated.
Each return mr;:l be signed and
sworn or affirmed 10y person exeeut-
Ing 1t.
Single persons are allowed $1,000
exemption In computing normal tax.
A married person living with wife
Tor husband) is allowed $1,000 exemp-
ton, plus 5000 for each dependent
child under 49,
A head Of family, though single, is
allowed $1,000 exemption II actually
supporting one or more relatives.
Returns mult 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 a 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 ana
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
1 h.. tod nd ltAa a
IN net income.
Gifts and legacies are not income
and should not he included on the re-
turn of the beneficiary
Life insurance received as a hene-
ticiary or as premiums paid back al
maturity or surrender of policy is not
income
Payments received for real OF per
sonal property sold is not income, hut
the profit realized thereon is income
for the year OF sale.
Amounts received IN payment If
notes or mortgages is not income, hut
| the interest on such notes or mort
cages Is taxable income.
From the enNre gross income GER
tain allowances are made In arriving
ut 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 farm
may also he claimed as a tenant farm
ers expense.
Payments for i've stock are allowa-
lie If 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 OPP
Grating and repairing wagons and
trucks.
A physician can claim cost Of his
professional supplies. rent ONCE 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 person or family are
not allowable.
The costs of machines, Instruments.
vehicles or implements that are more
or less permanent I'm character are not
allowable rs an expense. They are in
vestMents.
Interest paid on a mortgage or other
personal Indebtedness is allowable on
a personal return.
All taxes paid within the year can
be taken out on a federal return, ex-
cept federal income taxes. inheritance
taxes and assessments for LEGAL i'm
provements.
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
machinery used In business may be