The Alaska daily empire., 1918-03-07
INCOME TAX PRIMER FOR
 BUSY PEOPLE

Gel Interest upon the obligations
 of any possession of the United | States, or securities issued under the
 provisions of the Federal Farm Act
 of July F, 1917.
 (f) The compensation of the pres
 ent President of the United States during the term for which he was
 elected, and the judges of the Su-
 preme and inferior Courts of the
 United States in office on October
 3, 1917
 (g) The compensation of all off
 cers and employees of a State or any
 political subdivision of a State, ex-
 cept when such compensation is paid
 by the United States Government. This includes the official salaries
 received by publc-school teachers, l State and county officers, and em- , playees of municipalities; but income derived by such persons from sources | other than State, county, or munich
 pal funds, and the other sources
 enumerated in this answer, is tax | dDlS. lEocC ScC. aSt Ol oOPt' o' | 1916. as amended.)
 | Income
 19. What is meant by the term
 Net Income"
 For the purpose of determining
 whet ether or not a personal income tax
 return should be rendered, net in come means your total gross income | less the exemptions specified in the answer to the eighteenth question and the general deductions specified in the answer to the fifty-eighth ques- ! tiOn.
 20 In rendering a return what items of income must I report under gross income?
 Under gross income should be re- ported every item of income derived from any source whatever except those specified in the answer to question 18) actually received during the calendar year for which the re- turn is rendered, whether received in cash or the equivcalent of cash, including:
 (a) All amounts of salary, wages. commissions, or compensation or whatever kind, received for personal ! service, including professional fees. (b) All amounts of gain, profit, or income derived from a business, | trade, commerce, or from any sale of property, real, personal, or mixed. l The method of ascertaining the
 amount of gain or profit derived from a sale is outlined in the answer l to question 26.
 ! Co Rents, interest on notes, mort gages, deeds of trust, or other secur- | ities issued by individuals, partner | ships, etc, interest on bonds, mort gages, deeds of trust, or other simi- ] lar obligations of corporations, joint
 stock companies, associations. or in surance companies, and interest on
 bank deposits.
 (d) All income received from fi- | duciaries-that is, amounts received ! from incomes of estates, trusts, etc., l through trustees, administrators, or | executors.
 1 (e) If you have an interest in a
 partnership you should report your | distributive share of the. earnings
 or profits of the partnership ascer- | tained during the calendar year for
 which the return is rendered, wneth'
 CT distributed to you or not; that IS,
 if the fiscal year of the partnership | Of ho your distributive share of it's earn | ings or profits ascertained upon the close of the books on December 31
 should be returned. If the partner i ship ends it's fiscal year on some
 day during the calendar year your
 distributive share of it's earnings or
 profits ascertained at that time
 should be reported.
 (D All items of foreign income | that is, interest upon bonds and mort gages or deeds of trust or other sim liar obligations issued by individuals who are citizens or residents or Tor eign countries, foreign corporations joint stock companies, etc. N6J IeoyditiCo run hiAhS"' oAA ~-S- gas wells, patents. copyrights, iran chises, or other legalized privileges. (h) Dividends on stock or from the net earnings of domestic corpora tions, joint stock companies, associa- tions, or insurance companies, wheth' CT paid in cash, stock or script. As the net earnings of corporations, joint stock companies, etc, are subject to the tax imposed upon the net income of corporations, dividends from such net earnings are not subject to the normal income tax in the hands oi it's shareholders receiving the same but they are to be returned for the additional tax purposes and are sub ject to that tax The rates of tax to be assessed against dividend re ceived during the year 1917. or any subsequent year. are covered by the answer to question 53.
 2l. If my salary for December 1917. is not paid to me until some day in January. 1918, or later. is its