The Bridgeport times and evening farmer., 1919-02-24

securities, other than ODuSal1OHS AS- sued by the United States after Sep tember 24. 1917.
 Taxes paid or accrued, except in come, war profits and excess profits taxes, and those assessed against local benefits of a. kind tending to improve the value of the property.
 Losses In business or trade, if not compensated for by insurance or otherwise.
 Losses in any transaction entered into for profit, not connected with the regular business of the taxpay- CT.
 Losses sustained by loss of property not connected with the business of the taxpayer if arising from hres, storms, shipWreck or other casualty, and 1T not mpensated for by insurance.
 Debts ascertained to be worthless and charged off within the taxable year.
 Amortization on buildings, machin- cry, equipment or other facilities con structed or acquired for the produc- ton of articles contributing to the prosecution of the war.
 A reasonable allowance for deprecf- ation of property used in business or trade.
 A reasonable allowance for deple- ton and depreciation of property in the case of mines, oil and gas wells and other natural deposits
 Contributions to corporations oper- erated exclusively for charitable, re- Hgious educational, or scientific pur- poses, or for the prevention of cruelty to children or animals. not in excess of l 5 per cent. of the taxpayers net income computed without the bene- fit of this deduction
 eE era1 important changes in the tax policy of preceding years Probably the most important is the provision allowing deductions for losses sus- tained in transactions outside of the taxpayers regular line of business. A business man ''dabbled in stocks" and in one transaction lost S10,000 and in other made $2,00O, was required, un- der the 1917 act, to include the S2,- 900 in his return of gross income, and could claim only that amount a 8 a de- duction. Under the current act, he is allowed to claim & deduction of $8,- 900.
 Deductions cannot be made for per sonal, family or living expenses.
 The following items are exempt from taxation under the current act, and need not be included in the re- turn:
 Proceeds of life insurance policies. Returns of premiums on life en- dowment and annuity policies. Value of property acquired by gift bequest or inheritance. It must be understood, however, that the income derived from such property is taxable and should be included under gross income.
 Interest on bonds and other obn- cations of any State or Territory, or any subdivision of a State or Terri tory, such as a city. town. county or village, and of the District of Colum- bia-
 Interest on securities issued under the provisions of the Federal Farm Loan Act of July IT, 1916.
 Interest on the obligations of the United States, except that in the case of obligations issued after September 1, 1917, the interest is exempt only to the extent provided for in the Liberty Bond Acts Interest on Liberty Bonds to the par value of S5,o00 is exempt from all taxation. Holders of large amounts of Liberty Bonds are advised to consult their bankers or collectors of internal revenue as to interest ex- emptdons.
 Amounts received through accident or health insurance, or under work
  amount of damages received, whether by suit or agreement, on account of such injuries or sickness. Amount received during the war by a person in the military or naval forces for active service not to ex- i ceed S3,50o.
 Husband or wife whose combined net income for 1918 equalled or ex- ceeded s2,0oO must file return, either
  arate returns are filed either one may claim the personal exemption of s2,- 1 900, or they may devide it A widow, a woman living apart from her hus- band, or a maid must file a return if her net income was S1,000 or more. The Bureau of Internal Revenue is seeking to impress upon the public the necessity for compliance with that section of the law requiring a return of income whether or not the income is taxable. The single man with an exact income of S1,000, or the married man with an exact in come of S2.O0O, who decides that, be- cause his income is not taxable, he need not bother about filing a return, is making a mistake. A checking system will inform the Bureau of Internal Revenue of de1fn- uuents Under the Information at source' provision of the act, every | individual, corpofation or partnership which paid in 1918 to another individ- uaI, corporation or partnership s1,0O0 | or more must make a return of such payment to the Commissioner of In l ternaI Revenue. These returns are re- 1 quired of employers, 1essees and mort 1 gagers of real estate, and fduciarfes, 1 and must include rents, salaries, prem l fums, and annuities. Employers are reuuired to make a separate return of each payment of $1,0o0 or more l to employees, and wherever possf- | ble, must state whether the recipient | is single, married or the head Of a 1 family.
 Forms for filing income tax returns may be obtained at the offices of col Iectors of internal revenue. Announce ment of their date of distribution will be made by collectors. Taxpayers, whose net income for 1918 was less than 5000, should ask for Form 1040 A. Those whose income was more than s5.0OO should. ask for Form 1040.
 The man who this year Is required to pay an income tax Is urged by the Bureau of Internal Revenue to file his return without delay as a means not only of avoiding possible future embarrassment to himself, but as an