The Logan Republican. [volume] (Logan, Utah) 1902-1924, 1918-03-21
FEDERAL INCOME
I TAX IN BRIEF
The Requirements Boiled Down
for Busy Folks.


before June IS, 1918.
II you are single and your net in
come for 1917 was $1,000 or more you
must nle q return.
II you were married and living with
wife (or husband) and had a net in
come Of $1,000 or more for 1917 you
must fle return.
Husbands and wtfe's income must
be considered Jointly, plus income Of
minor children.
Income Of a minor or incompetent.
derived from q 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
10 q penalty not exceeding $4,000 ine
or years imprisonment, or both. plus
100 per cent. Of tax.
For failure to make return on or
before April 1, 1918, nne 10 from go
to $1,000. plus 30 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 Ole return for per.
son who, 10 III, absent from the country
Or otherwise incapacitated.
Each return must be signed and
sworn o. affirmed by person execut-
Ing II.
Single persons are allowed $1,000
exemption In computing normal tax.
A married person living with wife
Cor husband) IL allowed $1,000 exemp-
ton, plus $500 for each dependent
child under Is.
A head Of family. though single. 10
allowed $4,000 exemption II actually
supporting one or more relatives.
Returns must show the entire
amount Of earnings, gains and proats
received during the year.
Officials 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 q. q 10 ex-
empt from federal income tax and
should b omitted.
Interest on United States govern.
ment bonds ID also exempt, except On
individual holdings Of Liberty Foufs In
excess Of 5000 par value.
Dividends are not subject to normal
tax, but must b. reported and included
in net income. v
Gifts and lesacies lre mot income
and should not BE- included on the ~
turn Of the beneficiary.
Life Insurance received ~ Q bene.
nciary OF a. premiums paid back at
maturity or surrender Of policy u not
income.
Payments received for real or Per.
sonal property sold II not income. but
the profit realized thereon u income
for the year Of sale.
Amounts received In payment Of
notes or mortgages II not income, but
the interest on such notes or mort
cages 10 taxable income.
From the entire gross income GER
tain allowances are made In arriving
at the net income.
the conduct Of business, trade or pro-
fession may be claimed.
A farmer can claim payments for
labor. seed, fertilizer, stock feed. 70.
pairs on buildings. except his dwelling ;
repairs Of fences and farm machinery.
materials and small tools for immedl.
ate use.
The amount Of rent paid for farm
. may also be claimed 40 tenant farm
er's expense. 49,
Payments for live stock are allowa.
BILE II 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 op.
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
uuu CAPVuSSS otNSuuAh6 nCoAS0t SOu'
veutions.
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 OF
well being Of person or family are
| not allowable.
The costs Of machines, instruments
II, vehicles or implements that are more
or less permanent In character are NO,
| allowable as an expense. They are In.
vestments.
Interest paid on . mortgage or other
personal indebtedness II allowable on
q personal return.
All taxes paid within the year can
/. be taken out on q federal return. ex.
| cept federal income taxes, inheritance
| taxes and assessments for local i'm.
provements.
Il