Lincoln County times. (Jerome, Idaho) 1911-1919, 1918-03-21
INCOME
TAX IN BRIEF
The Requirements Boiled Down
for Busy Folks.

April l, lJlS.
Tax due may be paid now or on OF
before June Is, 1918.
If you were single and your net In
come for 1917 was $1,000 or more You
must file return.
II you were married and living with
wife Tor husband) and had net In
come of $1,000 or more for 1917 you
must file return.
Husbands and wife's Income must
be considered jointly. plus income OF
minor children.
Income Of a minor or incompetent.
derived from separate estate. mus
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 fine
or years Imprisonment, or both. plus
100 per cent OF lax.
For failure TO mike return Oh OF
before April |. 1918. fine is from 500
10 81 600. plus 80 per cent. of tax due.
Returns must he filed with the Col
lector of Internal Revenue of districi
in which you live.
An agent may file return for per
son who is III. absent from the country
or otherwise incapacirated.
Each return must be signed and
sworn or affirmed by person execut
Ing 1t.
Single persons are allowed 81 900
exemption I'm computing normal tax.
A married person living with wife
(or 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 NUT 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 T. S. is ex-
should be omitted
Interest on United States govern
meni bonds is also exempt, except on
individual holdings OF Liberty Fours In
excess of $1,000 par value.
Dividends are not subject to normal
| tax. hut must he reported and included
| in net income.
Gifts and legacles are not income
and should not he included on the re-
turn OF the beneficiary.
Life insurance received MS hene
ficinry or as premiums paid back al
maturity or surrender of policy is not
| income
| Payments received for real or per
sona property sold is not income. hut
the profit realized thereon is income
for the wear of sale
| Amounts received in payment oi
notes or mortgages is not income hui
| the interest on such notes or mort
cages is taxable income
From the entire gross income Ger
tain allowances are made In arriving
al the net income.
Necessary expenses actually paid In
the conduct OF business. trade or pro
fession may he claimed.
farmer can claim payments FOL
labor. seed. fertilizer. stock feed. re
pairs on buildings. except his dwelling
repairs of fences and farm machinery
materials and small tools for immedi
ute use.
The amount OF rent paid for farm
may also he claimed as tenant farm
er's expense.
| PAYMENTS for we stock are allowa
hle II Fought fnr resale. But II bough
for breeding purposes cattle are an In
vesrment. not an expense. and canno
he allowed
A storekeeper can claim amounts
paid for advertising. clerk hire. tele
phone. water. light and fuel. also dray
are and freight bills and cost Of on
Grating and repairing wagons an,
trucks
A physician can claim cost Of hi
professional supplies. rent. office helr
| ltltlututs tNl'ti>t w ltulu w Nultilt
bile used In making professional call
and expenses attending medical con
ventions.
dentist can claim similar items
except team or auto expense. whic
are not necessary I'm his profession.
Expenses that are personal or cor
nected in any way with the support o
well being of person or family ar
not allowable.
The costs of machines. instrument,
vehicles or implements that are NOR
or less permanent in character are nc
allowable az an expense. They are IL
p vestments.
Interest paid on a mortgage or othe
D personal Indebtedness is allowable o
personal return.
All taxes paid within the year ca
he taken out on federal return, q,
cept federal income taxes. inheritanc
taxes and assessments for local In
provements.
$ Losses sustained In business {
J. through fire, storm or shipwreck or b