St. Tammany farmer. [volume] (Covington, La.) 1874-current, 1918-03-23
Many Questions Answered
That Will Help You
Make Reports
WHAT TO CHARGE
WHAT TO DEDUCT
What Interest, Dividends,
Bonds, Etc., Are
Not Income.

Returns must be filed on or before
April l, 1918.
Tax due may be paid now or on or
before June is. 1918.
II you were single and your net in
come for 1917 was 81 900 or more you
must file a return.
IL you were married and living with
wife Tor husband) and had net In
come of 5000 or more Cor 1917 you
must file q return.
Husbands and wife's income must
oe considered Jointly. plus income Of
minor children.
Income Of a minor or Incompetent
derived from q separate estate, must
be reported by his legal representa-
tive.
Severe penalties are provided for
those who neglect or evade the law.
For false or fraudulent return there
10 a penalty not exceeding $1,000 nne
or years imprisonment, or both, plus
100 per cent. Of tar.
For failure to make return on or
before April l, 1918, ane 10 from $40
to $1,000. plus 80 per cent. Of tax due.
Returns must be 6led with the Col
lector of Internal Revenue Of district
In which you live.
An agent may dle return for . per
son who is Ill, absent from the country
or otherwise incapacitated
Each return must be signed and
sworn or affirmed BY person execut-
ing It.
Single persons are allowed &1,000
exemption In computing normal tar.
A married person living with wife
(or husband) b allowed $2,000 exemp-
tion, plus 500 for each dependent
child under 1a
A head Of family. though single, 10
allowed 5000 exemption II actually
supporting one or more relatives.
Returns mu.t show the entire
amount Of earnings gains and profits
received during the year.
Officials and employees are not taxa
bic 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 U. 8. 10 e1-
empt from federal income tax and
should be omitted.
Interest on United States govern
ment bonds 10 also exempt. except on
individual holdings of Liberty Fours In
excess Of 5000 par value.
Dividends are not subject to normal
tax, but must be reported and included
In net income.
Gifts and legacies are not income
and should not be included on the re-
turn Of the beneficiary.
Life insurance received as a beno-
flciary or as premiums paid back at
maturity or surrender Of policy 10 not
income.
Payments received for real or per-
sonal property sold IL not income, but
the profit realized thereon Is income
for the year Of sale.
Amounts received In payment Of
notes or mortgages is not income, but
the interest on such notes or mort
cages Is taxable income.
From the entire gross income Ger
tain allowances are made In arriving
at the net income.
Necessary expenses actually paid In
the conduct Of business, trade or pro
fession may be claimed.
A farmer can claim payments for
labor, seed, fertilizer, stock feed, re-
pairs on buildings, except his dwelling !;
repairs Of fences and farm machinery,
materials and small tools for immedi-
ate use.
The amount Of rent paid for farm
may also be claimed 40 q tenant farm
er's expense.
PAYMENTS for i've stock are allowa-
BILE II fought for resale. But II bought
for breeding purposes cattle are an in
vestment. not an expense, and cannot
be allowed.
A storekeeper can claim amounts
paid for Advertising, clerk hire, tele-
phone, water. light and fuel. also dray-
age and freight bills and cost Of op-
Grating and repairing wagons and
trucks.
A physician can e1alm cost Of hid
professional supplies, rent, ONCE help.
telephone, expense Of team or automo.
bile used IN making peufssslenal calls
and expenses attending medical con
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