Mansfield mirror. (Mansfield, Wright County, Mo.) 1908-1957, 1918-03-21
FEDERAL INCOME
TAX IN BRIEF
The Requirements Boiled Down
for Busy Folks. .

before June Is. 1918
If you are single and your net IN
come for 1917 was $1,000 or more you
must Tile a return.
II you were married and living win
wife Cor husband) and had a net III
come OF S2.OoO or more for Id you
mus, tile a return.
Husbands and wlfe's Income must
he considered Jointly, plus income OF
minor children.
Income Of a minor or incompetent
derived from a separate estate nus'
ne 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 a penalty not exceeding S-''e" unc
or years imprisonment, or boih' p'us
100 per cent. of tax.
For failure to make return on OF
before April |. 1918, fine Is IRON ~
TO $1,000. plus 80 per or lax oue.
Returns must he filed with the o
lector Of Internal Revenue OF u's'r'e'
in which you live.
An agent may tle return for a per
son who is i'll. absent from the country
or otherwise ~incapacitated.
Each return must be signed n
sworn or affirmed by person execut'
inf it. q
Single persons are allowed $l,Ooo
exemption in computing normal lax.
A married person living with wire
Tor husband) is allowed $1,000 eSemp-
zion. Mus 5000 for each dependent
! child under Is.
A head OF family, though single. Is
allowed $1,000 exemption II actually
suppor; ing one or more relatives.
Returns must show the entire
amount of earnings, gains n pronts
received during the year.
officials and employees are not x
BILE on the salaries or wages received
from II state. county, city or town III
the United States.
Interest on state and municipal
bonds issued within the U. s. Is eX-
empt from federal income tax n
should he omitted.
Interest on United States govern
ment bonds Is also exempt, except on
individual holdings of Liberty Fours In
excess Of 5000 par value.
Dividends are not subject to normal
tax. but must be reported and included
in net income.
Gifts and legacies are not income
and should not be included on the re-
turn Of the beneficiary.
Life insurance received as a bene'
fciary or as premiums paid back al
maturity or surrender of policy Is moi
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 o.
notes or mortgages Is not Income, bu'
the interest on such notes or mort
cages Is taxable income.
From the entire gross Income Ger
tain allowances are made In arriving
at the net income.
Necessary expenses actually paid II
the conduct Of business, trade or pro
fesslon may be claimed.
A farmer can claim payments 10
labor, seed, fertilizer, stock feed, re
pairs on buildings. except his dwelling
repairs of fences and farm machlner!
t n.J r,,ol tnnlc for tmmad
n ate use.
The amount of rent paid for a far
NAV also be claimed as a tenant farm
er's expense.
J. Payments for live stock are allow
II BILE IL bought for resale. But II bougi
It for breeding purposes cattle are an Il
d vestment, not an expense, and cann'
" he allowed.
g A storekeeper can claim amour
n paid for advertising. clerk hire, tel
e phone, water, light and fuel, also dra
age and freight bills and cost OF o
10 Grating and repairing wagons al
y trucks.
re A physician can claim cost OF h
II. professional supplies, rent. office hel
IN telephone. expense Of team or autoH
IL bile used in making professional ca.
IN and expenses attending medical CO
ventions.
n A dentist can claim similar Item
IT, except team or auto expense. Will
g. are not necessary In his profession.
Il Expenses that are personal or CO
'r nected In any way with the support
60 well being Of q person or family 9
IL not allowable.
u The costs Of machines. instrumen
10 vehicles or implements that are M
r. or less permanent in character are
lc allowable as an expense. They are
10 vestments.
Interest paid IN a mortgage or oil
ha personal Indebtedness Ii allowable
ny a personal return.
to All taxes paid within the year {
'rk be taken out on a federal return,
mt. cent federal income taxes, inherital
hg' taxes and assessments for local
"" prOvements.
Losses sustained In business
we through fire, storm or shipwreck or
10 theft, except when compensated by
surance or otherwise.
we Wear and tear Of rented buildings
ihd machinery used in business may
'p'' claimed.
You can also claim the amount T
10 to the Red Cross and to other char
'em ble. religious or educational organ
are ton to the extent Of Is per cent
your net income.