Evening star., 1919-03-02
Tax on Boarding Houses.


women are not exempt fronfahe pay
lnent of the income tax. Few board
ing house keepers, l believe, VIII
escape that provision of the law re-
quiring a return from single person
whose net income for 1915 was $1,000
or more. \ married woman, living
with her husband, must make re-
turn if her net income was $1,000 or
more. The tax is 6 per cent on the
first $4,000 of net income and II per
cent on the remaining net income in
excess of these amounts.
ITO the boarding house keeper who
has kept accounts the making out OF
an income tax return Will not be diff
cult First she must ascertain the
amount of her gross income for 1918.
This includes all the money paid her
by her boarders and all profits, gains
and income derived outside OF her
business from any source whatever.
Her net income is ascertained by de-
Quoting from gross income certain
items. which include all business ex-
penses. The cost of food served the
boarders and the cost of fuel and light
in excess of that which ordinarily
would be used by her own household
may be deducted. The wages of serv-
ants in proportion to their services
on the boarders may be claimed, and
the cost of the servants meals. The
cost of small utensils purchased solely
for use in preparing and serving meals
Deductions for Depreciations.
sIf the house is rented the boarding
house keeper is allowed to deduct
from the rent a proportionate amount
for the rooms occupied by the board
ers and used in serving meals. If she
owns the house she may claim as rea-
sonable depreciation on the dwelling
an amount proportioned on the use
of her home by boarders. An amount
for reasonable depreciation of furni-
ture in rooms occupied by boarders
also may be claimed.
IF any boarders departed during the
year in debt to her. and she has ascer
tanned the debt 20 be worthless. she
may claim the amount as a deduction.
Takes paid or accrued during the
year on real estate, except for local
benefits of a kind tending to improve
the value of the property, such as
sewer, lights, etc. may be claimed
"Many married women have taken
in boarders' during the last year as
an aid to the family exchequer in
meeting increased living expenses.
Whenever, in such cases, the COM
bined income of husband and wife
equals or exceeds $4,000 a return of
income must be made. Each may
make a separate return, or a joint
return may be filed If desired.
"If the taxpayer is actually sup
porting IN ner nome III
valid sister or other person closely
connected with her by blood rela-
tionship. relationship by marriage or
by adoption. she may claim the 1000
exemption allowed the head of a fam
lily. She is also allowed an additional
exemption of 5000 for each person de-
pendent upon her for their chief sup
port, If such dependent is under eight
cen years of age or incapable of self
support because mentally or physical
1y defective
Another item of income is profit de-
rived by a number of Washington
residents last year from the subleas-
ing of apartments. For example, the
taxpayer who rented for 500 or s125
a month an apartment for which he
paid $40 must report the difference in
his return under gross income If the
apartment was furnished he is allow
ed a reasonable deduction for depre-
ciation of his furniture.
I'm view of the limited time tax
payers are urged not to delay in the
settlement of their tax obligations.
The penalties are heavy-for failure
to file return on time fine of not
more than $1,000 and an additional
assessment of 25 per cent of the
amount. and for 'willfully refusing
fine of not more than SO, 600, or one
years Imprisonment, or both
Washington taxpayers may file their
returns at the office of the deputy
collector of internal revenue, Legal
building. Sth and G streets northwest.
where Is located a corps of revenue
officers to assist In the making out of
the forms