Warren sheaf. [volume] (Warren, Marshall County, Minn.) 1880-current, 1918-01-09
INCOME TAX EXPLAINED
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ness unless you had bought them, and
then only in the amount you paid for
them. Neither can you deduct for loss
of any stock or grain or feed that you
have produced because you are not re-
quired to report on these until sold.
You can deduct incomes from liberty
bonds, and gifts to religious or char
liable or educational Institutions to the
extent of fifteen per cent Of your tax
able income provided no part of the
gift goes to an individual stock holder
in said institution for his benefit. =
All salaries or compensation paid by
the state or political subdivisions Of the
state are exempt. That is, if you are a
county supervisor or something where
by you get per diem or salary, this
does not have to be counted in the i'll
come tax report.
What Is Not Exempt?
Your living expenses are not to be
deducted from the total. And you can
not deduct any charge for any personal
service rendered in the business, or for
any member of the family Working at
home. You can't allow for a salary to
yourself. But you can deduct for cash
paid hired help as part of thesrunning
expenses of the farm. Even where sons
or daughters work for the parents at a
wage, the wage must be paid in cash as
to. strangers: and then this expense may
be deducted. If this is done ito avoid
the tax, there is severe penalty. = t*ss a :
=. ''an necessary expense actually paid
within the calender year in, carrying on
the business" may be exempt fronaItax
alton. : The question is: What IS pec-
.essary expense? The family and per-
sonal expenses are not so considered.
Your groceries,, fuel, light, clothing;
things, like a piano for the home are
personal or family expense and not de-
But you can deduct taxes; except In
come taxes and those: assessed against
local benefits Deduct interest paid on
your deb edness; insurance except: on
your welling; seed aud, feed ssp,lr-
chased; stock bought for resale ;,ztcash
paid fer4 Aired help bat cannot deduct
as part cot the wage the "a Tue ff;theif.
board, lodging Or washing: ~. .:5ss
You can deduct for the .necessar 81 re-
pairs, but hot for permanenf improve
ments, nor for new machilleTy sY lou
can deduct for small tools, and fof the
cost of running your machine such as
tractor, threshing machine, etc: How
ever, you cannot deduct for the cost Of
running the family auto If used: as a
pleasure car. If used only as d part of
the farm machinery to run about on
business it's cost Of operation can be de-
Quoted. -" -. H.. g:: s.z.s q
In brief this is the new; income tax
law. 1t is up to you to see the income
tax man. Don't think the tax does not
apply to you. Find out by talking. with
him and when you go to see him have
all figures ready showing what you took
in and what you paid out. . ;>s1ss Z
The government is going to send it's
income tax men out where it will be
easy for you to get to them. An income
tax man is going to be in every county
in every state in the union some time
between January End and March LIST.
Watch the local newspaper or ask your
banker or postmaster when he'll be
there, or near your place, and then go
to see him. He will have tax form
for you, help you make it out, answer
all your questions, and won't charge
Ianything for his services. ~ 81
| Don't neglect the income tax because
if you do you'll regret it later when the
government finds you out, as it will
and makes you pay the penalty for fail
ure to obey the law.
Ia. Penalties. ..s... ies
For failure to file income report be.
fore March list, 1918, not less than $40
nor more than $1,000, and in addition
so per cent Of the amount Of the tax
due
For failing to pay tax before June
18th, 1918, 5 per cent Of the amount OF
tax due, and l per cent interest fore
month tax remains unpaid.
For making false report, not exceed
ing $1,000, or not exceeding one year II
jail, or both. 8. 81 b:
Owing to the scarcity Of farm labor
Montelle Boyd has installed q milking i
machine on his dairy farm near. Ste
phen and reports It to be a success.