The Ocala evening star. [volume] (Ocala, Fla.) 1895-1943, 1919-01-23
INCOME TAX DRIVE is ON
Concluded from First Page)

Alimony is not income to the recip-
lent, nor is it an allowable deduction
or the part of the person who pays.
"From the total of all items of in
come, there are certain deductions al
lowable by law. All interest paid on
personal Indebtedness and all taxes
paid during the year are deductible,
except federal income and excess
profits taxes, inheritance taxes and
assessments for local improvements,
such as sidewalks, sewers, etc. Losses
incurred in business or trade are al
lowable, also losses arising from
fires, storms, shipwreck or other
casualty, or from theft, in cases were
such losses are not compensated for
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
to the taxpayer actually ascertained
to be worthless during the year are
deductible.
Depreciation, Contributions, Gifts
Depreciation on property used in
a profession, in business or in farm
ing is another item that may be
claimed as a deduction. The store
keeper may claim depreciation on his
fixtures, and on his delivery horses
and wagons, but not on his stock held
for sale. The professional man may
claim similar deduction on his instru-
ments; and, in the case of physician
who maintains a team or auto for
making his calls on patients, reason
able depreciation may be claimed. The
farmer may claim depreciation on his
farm buildings, aside from his per-
sonal residence, also on his farm ma
chinery, his work horses and farm
work wagons. The theory of depre-
citation, in connection with the income
tax, is that wear and tear caused by
use in earning income is a real ex-
pense IN the earning of that income.
The rate is determined by the number
of years that the property ordinarily
would be useful. and the cost of the
property is the basis of the computa-
ton. If the property suffering de-
probation was bought or acquired
prior to March 1, 1913, the market
value as of that date is used, instead
of the cost, in figuring depreciation.
contributions or gifts actually
made in 1918 to organizations ope-
rating exclusively for religious, char
liable, scientific or educational pur-
poses, and to societies for the proven
ton of cruelty to children or animals,
may be deducted, to an amount not
exceeding Is per cent of the net in
come computed without the benefit of
this deduction.
"After the total of all income is
found, and deductions allowable by
law have been computed as an offset,
the amount of income in excess of
such deductions is the net income,
which forms the basis of the assess
ment of tax.
Collector Desires to Aid Taxpayers
eff every person in this district
will examine his own 1918 income and
his allowable deductions, in line with
data that have given, he will know
beyond doubt whether he must file his
return when the blanks arrive. And
here is how he will determine his la
bility to file a return. If he is single
he must file if his net income was
$1,000 or more, and this requirement
is enforced whether or not he is the
head of a family. If he is married,
he must file his return If his net in
come, including that of his wife and
minor children, was $1,000 or more.
81 want to emphasize the CO.
operation feature of the collection of
the income tax this year. The policy
of the internal revenue bureau is to
aid taxpayers to meet the require
ments of the law. We are going
right to the people, not to swing clubs
or to mulct the wage-earner of his
savings, but offering every helpful
governmental function that will as
sist people to do their duty"