The Huttig news., 1918-03-23
FEDERAL INCOME
 Il TAX IN BRIEF
The Requirements Boiled Down
 for Busy Folks.

come for 1917 was $1 GOO or more you must file a return.
 If you were married and living with wife Cor husband) and had & net in- come of $2,OOO or more for 1917 you must file return.
 Husbands and wife's income must be considered jointly. plus income of minor children.
 Income of minor or incompetent, derived from & 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 5000 fine .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 $2o to $1 ,0O0, plus 60 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 per son who is i'll, absent from che country or otherwise incapacitated.
 Each return must b0 signed and sworn or affirmed by person e1eeut- ing it.
 Single persons are allowed 1000 exemption in computing normal tax.
 A married person living with wife Cor husband) is allowed 5000 exemp- ton, plus s2o0 for each dependent child under Is.
 A head of family, though single, Is allowed $2,OO0 exemption if actually supporting one or more relatives.
 Returns nust show the entire amount of earnings, gains and profits received during the year.
 Officials and employees are not taxa ble 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 U. s. is ex- empt from federal income tax and should be omitted.
 Interest on United States govern uCht poHub ID hlSo cAtIuBl, cAScpt VII l individual holdings of Liberty Fours in excess of 5000 par value. l Dividends are not subjeGt to normal tax, but must be reported and included in net income.
 Gifts and legacies are not incom and should not be frlclude1 on the re turn of the beneficiary.
 Life insurance received as a bene flciary or as premiums paid back at maturity or surfender 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 gages is taxable income.
 From the entire gross income eer- tain allowances are made in arriving at 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 ,.ent paid for farm may also be claimed as a tenant farm CTS expense.
 Payments for live stock are ailowa- ble if bought f0, resale. But If bought for breeding purposes cattle are an in- vestment. nV an expense, and cannot be allowed.
 A store1,eeper can claim amounts paid for advertising, clerk hire, tele- phone, Water light and fuel, also dray- age av.d freight bills and cost of op- eratb E and repairing wagons and txGe ks.
 A physician can claim cost of Iis Professional supplies, rent, office help. telephone, expense of team or autom0- 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- pected in any way with the support or we'll being of. q person or family are not allowable.
 The costs of machines, instruments, vehicles or implements that are more or less permanent in character are not allowable as an expense. They are in- vestments.
 Interest paid on mortgage or other personal indebtedness is allowable on personal return.
 All taxes paid within the year can te taken out on 6 federal return, ex- .ept federal income taxes. inheritance taxes and assessments for local i'm | provements.
 Losses sustained in business or through fire. storm or shipwreck or by theft, except when compensated by in- surance or otherwise.
 Wear and tear of rented buildings or machinery used in business may be claimed.
 You can also claim the amount paid