El Nuevo mexicano., 1919-01-30
Income Tax Drive Again Under
Way; Get Busy NOlU, AdUicc of
District Collector Franklin
Begin at Once and Help to Make Return Accurate
and Complete, Request Of Official; Explains
How Tax Must Be Paid


his return OF income. Tne cost PRICE
or stock bought prior to 1917 cannot
be deducted as IN the case Just cited,
cost was included in the deduction
made in the year or purchase.
The former Is not required to in
clude in his income tax computation
the value OF farm produce consumed
by himself and family. But in cases
where he exchanges produce for mer-
chandise, groceries, etc, the market
value of the articles received in exs
change must be included!
"All other Items Of income arising
during the year through personal ser
vices, business or trade, through use
OF property or money, should be add
ed into the grains Tor 1918.
Everyone desires to know what in
come is exempt from tax. Gifts and
requests can be eliminated: also pro
ceeds from life Insurance received by
the beneficiary Of an insured person.
A person who cashed in an endow.
ment policy need report as income
only that portion which exceeds the
total OF the premiums he paid in all
years on that policy. Annuities are
not taxable, unless the person receiv,
ed in the year payments which hepre.
sent, when added to all prior payments
on the annuity, an amount greater
than the original cost Of the annuity.
DIVIDENDS on unexpired life insur-
ance pollcies are not taxable income;
put ON paldTup policies must
be considered income Alimony is
not income TO the recipient, nor is II
an allowable deduction on the part
of me person VINO pays. a
FROM tne total OF an items OF IN
come, there are certain deductions al
loWaDie by law. All interest paid on
personal ln~deDteoneSs ana ali taxes
palu during the year are deductiDle,
except 1ederal income and excess prof
It's taxes, inheritance taxes and as
sessments tor local improvements
such as Sidewalks, sewers, etc Losses
incurred In business or trade are al
lowable, also losses arising from fires,
storms, shlpwreck Or other casualty,
or from inert, IN cases where such
losses are not compensated Tor by
insurance or otherwise. Losses in
CURED outside Of a persons regular
business are allowable to the extent
of gains reported from similar trans
ACTIONS WITHIN the year. Debts due
70 the taxpoyer actually a~scertained
% pc worthless during the year are
deductiple, M
Depreciation on property used in
a profession, in business, or in farm
ingiis another item that may be claim,e,
ga as q deduction. The, stockkeeper
may claim depreciation on his fix
lures, ana on MS, delivery horses and
wagons pu not on his stock held for
sale. The professional man may n
claim similar deduction on his instru
mentsi and, in the case Of a DhysiciaA
who maintains a team Of auto for max
ing his calls on patients reasonable /.
uoplecia.ion may pe cIalmea. me
a!m my claim uepreclaIion On ms
lai am puiiIinss' aslus from MS per
s1nai aiSo IN MS laIM ma
oninory, nis WORN lorses ana farm
,n "asons. ne .neury u uepIe-
ciatioh' ~ vohhectioh WIN the income
rec n aarninc tncnma - saeH
.nense IN tba. earning, ~ sbet ;noonsa
rate IL dotar,oanad ~ ~ mrm
her Of vears mai the nronartv nrd;
nari,v cyo,,IdT NJ usas,,, aU5 ~ M.
Of ne nyonertv Il ths has,s &c o tho
connntat;on r ~ nropaS.1 S.ssa,s
inc denrec;a t,on u'as hp,aht =. aonu,n
~ nr;ar ~ MsroE 7 1o1e ~ as9Sn
70 ,sa ass ~ tbat aata e ,saS atsss
~ INC cost IN ssg,,r;n1 dnnroaaatsan
y~ontfipuslons or giIts actually
maue IN iylo 70 oreanization operat-
ing eAcluslvely Ior reilgiouss charl-
taple, sclentillc OF educational pur-
DOSES, anu ~ socle.les Ior the proven
eon u cruelty 70 cniiuren OF ANIMALS,
may 9e ueuucted' 70 an our not
eAceeulns 70 per cen Oh the net m
Of this deduction. .
after the total Of all income is