The Idaho recorder. [volume] (Salmon City, Idaho) 1886-1927, 1918-03-29
FEDERAL INCOME
TAX IN BRIEF
The Requirements Boiled Do%n
for Busy Folks.

IL you are single and your net IN
come for 1917 was 81 900 OF more you
must file return
II you were married and living with
wife Cor hunbandl and had a net in.
come Of $1,000 OF more for 1917 you
must file a return.
Husbands and wife's income must
he considered jointly, plus income Of
minor children.
Income 81 minor or incompetent,
derived from separate estate, must
be reported by his legal representa-
tive.
Severe penalties are provided for
those who neglect or evnde the law.
For false or fraudulent return there
II a penalty not exceeding 5000 fine
or years Imprisonment. or both. plus
100 per cent. Of tax.
For failure 10 make return on or
before April !, 1918. fine IL from $50
20 81 900. plus 30 per cent. Of tax due.
Returns must be filed with the Col.
iector Of Internal Revenue Of district
In which you live.
An agent may iiIe return for per
son who Is III. absent from the country
or otherwise ln6apaeitatcd.
Each return must be signed and
sworn or affirmed By person execut.
ing u.
Single persons ARE allowed $1,000
exemption Ia computing normal tax.
A married person living with wife
Cor hnshandj Is allowed $1,000 excmp.
tion. plus 500 for each dependent
child Under IS
A head ~ family. though single, Is
allowed 5000 exemption II actually
supporting one or more relatives,
Returns must show the entire
amount Of earnings. gains and profits
received during the year.
OaicIais and employees are not taxa
bile on the salaries or wages received
from state. county. city or town In
the United States.
Interest on state and municipal
bonds issued within the y. =. Is ex.
cmpt from federal income tax and
should be omitted.
Interest ON United states govern.
ment bonds Is also exempt. except ON
Individual holdings Of Liberty Foura 10
excess Of $4,000 par value.
Dividends ure not subject 10 normal
tax. but must he reported and Included
IN net income.
Gifts and legncies are not income
and should not be Included on the 70
turn OF the beneficiary.
Life insurance received MS n bene.
flclary or rs premiums paid back at
maturity or surrender of policy la not
income.
Payments received for real or per,
nonal property sold n not income. hut
the profit realized thereon II income
for the year OF sale,
Amounts received IN payment Of
notes or mortgages IL not income, bat
the Interest on such notes or mort.
cages IL taxable lneouae.
From the entire gross income Ger
tain allowances are made 10 arriving
at the net Income.
Necessary expenses actually paid In
the conduct Of business, trade OF pro.
fesalon may bc claimed.
A farmer can claim payments for
labor. secd fertilizer, stock feed, re-
pairs on buildings. except his dwelling .
repairs Of fences and farm machinery.
materials ana small tools for immedi.
ate use.
The amount OF rent paid for farm
may also be claimed as tenant farm,
cr's expense.
fRa.Hs.....ts 49,. tt.ss s.t,.t. -. .sts.,....
HE u bought for resale Hut u bought
for breeding purposes cattle are an In.
yestment. no. an expense. and eanho,
be allowed.
A storckeepeF can claim amounts
paid for advertising, clerk hire. tele.
phone. water, light and fuel. also dray.
nee and freight bills and cost OF OPP
vrattng and repalrlng wagons and
trucks,
A physician can elatm cost of his
professional supplies, rent. otIiee heIp,
telephone. expense ~ team or nutOna.
bile used In making professional calls
and expenses attending medical con,
Vcntlons
A dentist can clalm similar ltcmp.
except team or auto expense. whlsh
aFa not necessary IN his profession,
Expenses that are personal az con.
nectvd ia any way With the support or
well belng Of person or family az,
not allowable,
The Gusts ~ machines. Instruments.
vehicles o. implements that are moro
or less permanent In character are not
allowable as az expense, They nFc In,
xeatmcntA
Interest paid on a mortgage or other
personal Indebtedness ~ allowable ON
q personal tvturn.
All taxes paid within the year can
be TAKEN out ON a federal return. ex.
cept federal income taxes. Inheritance
taxes aud assessments for locai Ian.
prOvcmeutA