Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1918-01-04
Interesting Points
Concerning Complex
Income Tax La,U

The act Of Oct. is retroactive in so
far as the entire calendar year Of 1917
is concerned.
livery person paying $500 year or
more to another must make report OF
such payment to the internal revenue
collector
Gross income must be scheduled.
Gross income includes salaries.
wages and gains from professions, vo-
cations, business trade, and commerce;
gains and profits from sales In or
growing out of ownership or use OF
property, real or personal; compensa-
ton for personal services; income from
interest, rent, dividends. securities.
transactions Of any business carried
on for gain or profit, gains. profits, and,
in fact income derived from any source
whatever.
Excluded In Gross Income.
Exclude in reporting gross income:
Proceeds Of life assurances paid upon
tho death Of the insured.
Premium returned to the insured I'M
der life endowment, annuity contracts.
Property acquired by gift. devise, be-
quest descent, but the income from
such property shall be included as In
come.
Interest on the obligations a state
or any political subdivision thereof. and
Of the United States, after Sept. i!
1917, only II and to the extent provid-
ed In the act authorizing the issue
A. ~ n fhnHfv
bonds carries only the Inheritance tax.
and the second Liberty loan bonds car
~ the surtax and the inheritance tax
and are tax free UP to the income on
81, 900 bonds, other laws then regulat-
Ing the surtax ag
Must Not es Scheduled.
Obligations OF any possession OF the
United States must not be scheduled.
Farm loan securities issued under
the act Of July II, 1895. are tax free.
Income Is to be reported on the basis
of actual receipts and disbursements
A promissory note accepted in payment
of an obligation is treated as cash.
Easter offerings and fees received by
clergymen for funerals, marriages, bap-
tisms, masses, ETC., are regarded as
income. M
Christmas gifts are not regarded as
| income. However, bonuses given in re-
turn for Services rendered" or as
stinulant to energetic future services
have becn held to be taxable as income.
Based or Cost Price.
The act Of Sept. 8. 1915, provides:
FOR the purpose Of ascertaining the
gain derived from the sale or other dis
position Of property, real, personal, or
mixed, acquired before March l, 1913.
the fair market price or value shall be
based as Of March I, 1913, ana this
value shall be the basis for detemin-
| ing the amount Of such gain derived
After March 1. 1913. on all property
Sold traded. etc. gain Is to be based on
cost price" 4
Where property that has been ac-
| quired by gift, descent DEVISE or be-
quest Is subsequently sold at price
greater than the appraised value at
the time the property was acquired,
or, II acquired before March 1, 1918,
the fair market value at that date Is
the basis for computing the gain, which
is taxable.
No Account Of Fluctuations.
No account Is taken for the purposes
OF the income tax Of fluctuations in
market value or book values Of secur-
tiles or. other property, but q gain or
loss 10 counted ON a completed TRANSACT
ton on the basis Of price considera-
ton.
In speculative operations ono can
show losses on completed trades, but
not In excess of winnings.
| 0ShA r~ouk <nP i'm rowan an ma ia Inv q
tenant as part payment of rent Is to
be added to rent as income Of the land
lord.
Partnerships as such are not re-
CURED to make income tax returns. ex-
cept when requested, but each partner
snail report mis- SNARE OF tho PrUiita
therein, whether distributed or not.
Same laws relate to nonreporting OF
interest on obligations held OF any
state or government bonds other than
the second Liberty As.
Must Report Dividends.
The individual. however shall report
| his share OF any profits from dividends
earned by the partnership under prop
er title on official blank.
1t Is obligatory ON the part Of the
Individual to obtain forms for returns
Of income tax.
III a taxpayers income is determined
at some time during the calendar year
the return 90 determined II to be re-
I ported In the Individuals return for
the calendar year ending Dec. 81 Of the
same year.
Answer These Questions.
Here are three questions which each
person should he able to answer:
Am required to render q per-
sonal income tax return for the year
1917? (. ..i g354 II + n
Yet, II unmarried and your net In
come for that year equals or exceeds
1000. n you are married no return
IL required unless your net income, in-
Guiding that Ut y5oa:.. = husband or wife,
equals or exceeds $4,000. V
III you act a. the guardian Of q
minor or inconapeterst person, o. - the