Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-01-22
DRIVE LAUNCHED
FOR COLLECTION
OF INCOME TAX
Passage of New Revenue Law
by Congress Not Awaited
Million Expected to Make
First Return.

Inc big income tax drive for 1871
now is under way. John w. Wolff,
deputy collector for Albuquerque an
nounced Tuesday. The national col
rector Is not waiting for the final pas
sage of the new revenue bill or the
new regulations and blank forms to
be issued. To get the tax collected
and get 1t completely he ordered the
BEGINNING at once.
The income tax obligations i'm
posed by the old laws as we'll as the
measure now before congress, consist
of two distinct eprations. one is to
file the returns, or statement of all
items of income and items of deduc-
tons allowable by law, and to do this
within the period named in the law
The other is to pay Ihe tax if any is
due.
1t was announced by the collector
that when the new bill is enacted
into law he would have the proper re-
turn forms distributed and that every
body would be informed of the date
when the sworn return must be filed.
He emphasized the fact. however,
that meanwhile there is no need of
delaying the preparation of figures.
Anything that congress does now Will
not affect the amount of persons
earnings for 1913. Early preparation
will avoid the belated and hasty fgur-
ing that may hit or miss, and, the col
lector pointed out, it is clearly the
duty of every person to compile cor
rect figures and ascertain whether
his income for 1913 was sufficient to
make necessary sworn return,
The year 1918 was a hammer one for
salaries and wages and the opinion
Ii, L.. MOT l,Ft
sons will make this year their first
income tax returns All signs indicate
that the income tax this year will
reach nearly every working man and
woman and nearly every merchant,
shop keeper and farmer. Not all will
have to pay the tax but nearly all Will
be obliged to make a return of the
years income. Every unmarried per
son who earned 81 1000 or more dur
ing the year 1918 and every married
person, who, together with wife or
husband, earned $4,000, to collect the
required data.
He must ascertain accurately his
gross income from all sources. There
is his salary, or wages, including over
time pay and any bonus receiyed as
additional compensation, A married
person having children under Is years
who are working should include their
earnings.
If he sold any property at a profit
the gain must be included in gross
income. If he rented any property
to other pers)rs he Total rents re-
ceived in the year must he ascertained
and from that figure a deduction may
be taken for taxes paid on rented
property. the necessary minor repairs
fire insurance. any interest he may
have paid on mortgage, and reason
able allowance for annual wear and
tear Of the rented property. The bal
ancc is included in the gross income
for the year.
Interest on bank deposits. whether
withdrawn or added to his bank bal
ances, must be included in all calcu-
la ions of income. Bond interest re-
ce;vcd during the year must also be
included. except interest on municin-
al, county or state bonds. Interest
on United States bonds need not be
included by the ordinary bondholder
who purchased small amounts. Hold
| ers Of large amounts Of Liberty bonds,
however, should ask their bankers TO
write for the rule applying TO tax on
interest.
dividends on stock shares are in
| gross figures. although the law does
not impose the normal tax on dlStrl-
buttons made by domestic corpora-
| tons,
| A person buying and selling mer-
chandise must find his profits for the
wear on the following basis: FIRST
! ascertain the gross sales or total cash
receipts. Then. add together the in
yentory at the beginning of the year
| and the purchases of goods for resale.
| From this latter sum subtract the IN
yentory of goods on hand at the
years end, and the result is the cost
! of goods sold. This cost plus neces-
| sary expenses incurred solely through
| conduct of the business is to be de-
| Quoted from the gross sales, ana the
J result is the earnings of the business
| A professional man arrives, at ms
| professional income by ascertalninE
| the total of fees for services ana ae-
Quoting therefrom all expenses con
nected directly and solely with ms
I practic an J.,
como derived from the sale or eX-
change of products. whether such
produce was raised on the farm or
purchased and resold He IS allowed
| to deduct his total exepnses OF the
wear connected with the planting cui-
! tivation, harvesting and marketing
| of the crOp. or the care, feedlng anu
! marketing of livestock lie is not al
| lowed to deduct the amount eNpehu-
ed in 1918 in purchasing stock for re-
sale; but when stock is sold IT'S COSY sa
is to lie deducted from the sale price
in ascertaining the gain to he included
in his return. The cost price OF STOCK
bought prior to 1917 cannot be de-
Quoted if such cost was included III ~
the deduction made in the GEAR Vi
purchase,
MANN cuPlMERS FROM