Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1918-01-30
INCOME TAX MAN AT THE COURT
HOTrSF

u.
of Dubuque, has been at the cour
house. assisting farmers and other
in figuring their income tax Mr.
Gleason will be in Manchester unit
the evening of February 9Th, and viii
be glad to give any assistance he cal
to those who do not understand all O.
the points in connection with makins
proper returns on Income Tax. Or
February 9th the deputy collector viii
go to Ryan and will have his head
quarters at the Ryan State Bank, and
can be reached there until the evening
of February 10th. On February IS
10 and 20 he will be in Hopkinton to
assist those living in the extreme
southeast corner of the county.
There is no reason why anyone
should fail to make proper returns to
the government because of ignorance
of the law. Mr. Gleason is we'll post
ed on the Income Tax law, and his
services are free to everyone.
How am I to know whether I am
liable for Income Tax?
If in doubt, the surest way to find
out is to call on the income tax man.
He is here to solve the problem of
tax payers in making up their re-
turns.
The government has placed more
than so men in the field in Iowa, in an
effort to assist the thousands of per-
sons who have never before been call
ed upon to make returns of net in
come and to clear up problems arising
from the new law for persons who
made returns in previous years.
Determining Gross Income.
THE first thing to be ascertained in
determining tax liability is the gross
income. Gross income is the total
amount from all sources received dur
ing the year. In arriving at the total
income, the following suggestions are
made by the department, which, while
they apply more specifically to the
farmer, give an idea of what consti-
tutes income in the case of persons in
every vocation:
"Set down your income for each
of the following: Wife's income; in
come of son under 81 or daughter I'M
der IS; from interest," rents, cattle
sold. oats, wheat, corn, barley, seed
rye, potatoes, fruit, hay or straw, bees
or honey, poultry, hides or wool, hogs
sheep, horses, mules, butter or cream
eggs, for service of animals, lard
posts, ties, cordwood, royalty on min
eral lands, value of produce traded at
stores for merchandise, salary or al
lowance from other business, meat
cheese, plants, nursery stock, man and
horse labor off the farm, threshins
outfit, machinery hired out, crop rent
wages, dividends, profit on sale OF
land, or from other purchase and sale
Money or property, yours by gift, de.
wise, or bequest is not income. If you
had income from any other sources
put it down."
The total of whatever receipts you
may have had is your gross income.
Deductions.
The next step required in determin-
ing tax liability is the casting up Of
the general deductions. These de.
auctions COMPRISE necessary expense
in the operation of the business, in
terest paid on borrowed money, taxes
paid, depreciation, bad debts, (they
must be definitely determined as hope
less), losses sustained in trade thru
fire, storm, ETC., and which are not
compensated by insurance. These OBJ
servations apply generally. The de.
partment, with the farmer in mind
makes the following suggestions with
regard to allowable Deductions:
"They are taxes paid within the
year, repairs (but not improvements)
depreciation, interest paid during the
year, losses not compensated for by
fire, storm, or shipwreck, business
expenses (but not investment of new
capitaD, hired help paid except your
own minor children cattle bought fol-
feeding, seed, feed, salt for cattle, in
surance except on the homestead, tools
that are used up in year or two
blacksmith expense, veterinary. paid
for service of animals, . for thresh-
ing, rental paid for hired land, medi-
cines Except for humans), stock
regulators, clover seed, planted for
crop; expense of showing stock at
fairs (premiums received are income)
silage and roughage, ice bought for
milk, rent of buildings, cash rent OF
COWS, fertilizer that does not return
itself in year or two, crop and live
stock insurance, and depreciation OF
automobile that usage OF auto for bust
ness bears to total usage, twine
grease, oil, and repairs, gas and oil
for farm machinery, cottonseed oil
and oil meal"
The Net Income.
Let US assume the total or gross
income is $4,000, that the total of de-
auctions is $4,000. The net income is
the difference between $4,000 gross,
and $4,000, total of deductions, or 49,
900.