Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1918-02-20

oeductable item, but not the cost of
ehinery of a more or less permanent
character. Rent paid for farm may
be deducted.
Deductions Allowed.
A merchant may claim as deductions
4 the amount expended for advertising.
hire of clerks and other employees,
I cost of light, fuel. water, telephones,
/ etc, used in his place Of business.
drayage and freight bills, the cost of
/ operating delivery wagons or trucks
and cost of their repair.
A physician may deduct the cost of
medicines and medical supplies used
by him in the practice of his profess
sion; expenses paid in the operation
and repair of an automobile used In
professional calls, dues to medical so
cisties and subscriptions to medical
journals; expenses of attending medi-
cal conventions. rent paid for office
rooms and the hire of Office assistants,
and cost of fuel. light. water, tele-
phone, etc, used In Office rooms.
Amounts expended for books and surg
ical Instruments are not allowable as
a deduction.
This, In a general way, outlines the
ordinary expenses incurred by a farm
er. merchant or professional man, and
the principles underlying these allow
ances are equally applicable In the
case of any business, trade or profess
sion. In short. all expenses connected
directly and solely with an income
producing business, trade, profession
or vocation are allowable deductions.
You may deduct also from gross In
come debts actually ascertained to be
worthless and charged of within the
year, and losses sustained In business
or trade or from fires, storms or theft,
If not compensated by insurance or
otherwise. Reasonable allowance is
made for the depreciation of property
on account of wear and tear in the use
of business. Depreciation of your resi-
dence is not allowed, but IL you rent
property to others, depreciation can be
claimed.
Items to Be Included.
You are required to include under
gross income the following items:
Salaries, wages, commissions or
compensation of whatever kind for
personal services.
All profits derived from business
trade or commerce.
Profits from the sale of property.
real or personal.
Rents.
Interest on notes, mortgages, deeds
of trust or other securities issued by
individuals, partnerships, etc.
Interest on bonds, mortgages, deeds
of trust or similar obligations of cor
porations. joint stock companies or In
surance companies.
Interest on bank deposits. including
savings banks.
Income received from fiduciaries,
that is, amounts received from In
comes of estates, trusts, etc, through
trustees, administrators or executors.
Dividends on stock. whether re-
ceived as cash or stock. Only divi-
dends paid out of earnings or profits
accrued since March /. 1913, are tax
able.
Net partnership profits. whether d.
vided and distributed or not.
Royalties from mines, oil and gas
wells, patents, copyrights and fran
chises.
Heavy penalties are provided for de-
Hnquents. If you are late in filing
your return you are subject to a fine
of not less than $40 nor more than
$1,000, and, in addition. so per cent of
the amount of the tax due. For max
ing false or fraudulent returns the
penalty is a fine not exceeding $1,000
or not exceeding one years imprison-
ment. or both, In the discretion Of the
court, and, In addition, 100 per cent of
the tax evaded. For failing to pay tax
when due, which is on June is, 1918,
the penalty is an assessment of 5 per
cent of the amount unpaid. plus l per
cent interest for each month during
which 1t remains unpaid.
Government Keeps Check.
The man who thinks that failure to
make proper returns might escape un-
noticed is making serious error. The
government has a checking system by
which 1t will be informed of delin-
quents.
The task of collecting the revenue to
be derived under the war revenue act
devolves upon the bureau of internal
revenue. Revenue officers are visiting
every county in the United States TO
assist taxpayers in making out their
income tax returns. The date of their
arrival and the location Of their office
may be ascertained by inquiry of coli
lectors of internal revenue. These
government experts will furnish you
with return forms and answer any
and all questions as TO how they
should be filed out. Their services are
offered without cost. You should re-
member, however, that failure to see