The Mena weekly star., 1918-02-14
FEDERAL AGENT IS
 AFTER INCOME TAX
Eugene C. Torbett at Antlers Hotel to February 2l, and Urges ln- terested Parties To Come
 Early-A Statement.

AAeSi tioi ltSNIiluC 1lNlCCs lo III Mena at the Antlers hotel for the purpose of meeting all persons in Polk county who should pay income tax for the year 1917. He will be here up to and including Febru- uary 2l.
 At the present time the business men of Mena are keeping MT. Tor belt very busy, but he urges all to come early in order to avtd con- fusion during the last days.
 Mir. Torbett desires The Star to call attention of merchants to cer- tain important data they should bring when making report. These are, first, inventories of January i, 1917 and January 1, 1918; two, total purchases during 1917; three, gross sales, cash and credit for year, and, four, total expenditures, these last to be itemized.
 The farmers income is based en- tirely on those things he has pro- duced and turned into cash or it's equivalent during the past year Unsold products on hand have no bearing on the matter.
 A farmer should have, first, list of all moneys coming to him from every source during the year, and name each such source, and, two, a list of all expenditures, itemized.
 To make this matter more clear, the following statement by MT, Tor bett is printed:
 If you are unmarried and your income equals or exceeds Si,000 you then are required to rem der return on it. If you are married or the head of a fam fly, no return will be required un- less your net income equals or ex- ceeds 100000. Net income is gross income, less all allowable deduc- tions. Gross income includes all gains, profits and income derived from any sounce whatever (There are few items of income which are exempted These will he enum- erated by the revenue officer to each taxpayer. Gross income should be reported as amounts received as salaries, wages, commissions and professional fees; gain or profit de- rived from business, trade, com merce or from the sale of real or personal property; rents and inter- est, including interest on bank de- posits: income derived from iidu- eiaries; the earnings or profits of partnership, whether distributed or not: all items of foreign income, royalties from oil and gas wells, mines. copy-rights, etc., dividends on stock or from net earnings of domestic corporation, joint stock company, etc, whether paid in cash, stock or scrip.
 The farmer is not required to re- turn for tax purposes the value of the crops and stocks he has pro- duced until the same has been re- duced to cash, or the equivalent of cash, but, if he exchanges produce for merchandise, the price placed on the goods by the merchant is re- turnable as income. In rendering a personal return, items of expense actually paid, during the tax year in the conduct of business, trade or profession may be claimed as de- from the gross income.
 "The farmer may claim the cost of labor in preparing his land for a crop, the cultivating, harvesting and marketing of the crop; the cost of the seed and fertilizer used; the amount paid for labor in caring for stock. and the cost of feed; the cost of stock purchased for resale; re- pairs to farm buildings, machinery, etc.; and the amount of rent paid.
 "A merchant may claim as de- ductions, the amount paid for ad- vertising, hire of clerks and other the cost of light, fuel, water. telephone, etc., used in and at his place of business; drayage and freight bills: the cost of oper- ating delivery wagons or trucks and repairs on same.
 "A physician may claim as de- duetions the cost of medicine and surgical supplies used by him in the practice of his profession; the ex- penses paid in the operation and repair of an automobile used in making professional calls; dues to medical societies and subscriptions to medical journals; expenses or medical conentions; rents paid for office rooms; hire of office assistants; cost of fuel, light, water, telephone, etc.
 "These exceptions outline in a general way the ordinary and usual exceptions of the farmer, mer- chant and professional man, and the principles underlying these all lowances are equally applicable to one engaged in any business, trade or profession.
 Taxes and interest paid, loss in cured in business or trade are proper deductions under all heads of business-in short all expenses connected directly and solely with the conduct of an income producing business, trade, profession or vp- cation are allowable as deductions. Items of personal expense. or items connected in any way with the sup port, maintenance and well being of family are not allowable, neither are ahe amounts paid for tools. implements, vehicles, machin- cry or surgical instruments, which