The Adair County news. [volume] (Columbia, Ky.) 1897-1987, 1918-03-27
income
TAX IN BRIEF
The Requirements Boiled Down
for Busy Folks.


come for 1917 was $1,000 or more you
must file a return.
If you were married and living with
wife Cor husband) and had a net in
come of $4,000 or more for 1917 you
must file a 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-
tive.
Severe penalties are provided for
those who neglect or evade the law.
For false or fraudulent return there
is penalty not exceeding $1,000 tine
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 $50
to $1,000, 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 i'll, 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 $1,000
exemption in computing normal tax.
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 $4,000 exemption if 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 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 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 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 a bene-
ficiary or as premiums paid back at
maturity or surrender of policy is 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 Is
the conduct of business, trade or pro-
fessiOn may be claimed.
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 a farm
may also be claimed as tenant farm
er'S expense.
Payments for i've stock are allowa
hle if bought for resale. But if bought
for breeding purposes cattle are an in
vestment, not an expense, and cannot
be allowed.
storekeeper can claim amounts
paid for advertising, clerk hire, tele
phone, water, light and fuel, also dray
age and freight bills and cost of op
Grating and repairing wagons anG
trucks.
A physician can claim cost of hi:
professional supplies, rent, Office help
telephone, expense of team or automo
bile used in making professional call:
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 o.
we'll being of person or family arr
not allowable.
The costs of machines, instruments
vehicles or implements that are NOR
or less permanent in character are no
! allowable as an expense. They are in
vestments.
Interest paid on a mortgage or othe
personal Indebtedness is allowable OF
l a personal return.
. All taxes paid within the year cal
: be taken out on a federal return, ex
cept federal income taxes, inheritanc
taxes and assessments for local i'm
provements.
Losses sustained in business O
$ through fire, storm or shipwreck or b
i theft, except when compensated by In
= surance or otherwise
e Wear and tear of rented buildings o
| oh tn Ir,-s L.