The Pleasantville press. (Pleasantville, N.J.) 1912-1929, 1919-01-25

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us avoid the belated throwing together
of figures that may hit or miss. Guess
es cannot be accepted as the basis of
taxation. 1t is clearly the duty of
every person to compile correct fig
ures and ascertain whether his income
for 1915 was sufficient to make neces-
sary a sworn return.
THE year 1918 was a banner year
for salaries and wages, and the high
war prices brought unusual profits to
the average small tradesman and to
the farmer. The opinion in Washing
ton is that a million citizens and resi-
dents will make this veal 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 far
mer. Not all will have to pay the tax,
but nearly all will be obliged to make
a sworn statement of the years in
come.
Il am, therefore, advising every I'M
married person who earned 100000
or owe during the year 1918, and ev-
cry married person, who together with
wife or husband, earned 100000 to
sharpen his pencil and figure out how
he stands.
"He must ascertain accurately his
gross income from all sources. There's
his salary or wages, including owe
time pay and any bonus received as
additional compensation. A married
person having children under IS who
are working should include the earn
ings of such children.
"If he sold any property at a profit,
the gain must be computed and in
cluded in gross income. If he rented
any property to other persons, the to-
tai rents received in the year must be
ascertained, and from that figure a
deduction may be taken for taxes paid
On rented property, the necessary mi
nor repairs, fire insurance, any inter-
est he may have paid on mortgage,
and a reasonable allowance for annual
wear and tear of the property. The
balance is included in gross income
for the year.
Interest on bank deposits, whether
withdrawn or added to his bank bal
ances, must be included in all calcu-
lations of income, Bond interest re-
ceived during the yea must also be
0ACSP1 ~ . Oh A4oAliS
pality, county or state bonds. Inter
est IN United States Bonds need not
be included by the ordinary bond hol-
der who purchased small amounts.
Holders of large amounts of Liberty
bonds, however, should ask their bank
ers to write to my office for the rule
applying to tax on such interest.
Dividends on stock shares are in
49, o-l a,,1 - z1I~l - H..
gross figures, although the law does
not impose the normal tax on distri-
buttons made by domestic corpora
tions.
"a person buying and selling mer-
chandise must find his profits for the
year on the following basis: First,
ascertain the gross sales or total cash
receipts. Then add together the in
ventory at the beginning of the year
and the purchases of goods for resale.
From this latter sum subtract the in
ventory of goods on hand at the years
end, and the result is the cost of goods
sold. This cost, plus necessary *
penses incurred solely through con-
duct of the business, is to be deducted
from the gross sales, and the result is
the net earning of the business.
"a professional man arrives at his
professional income by ascertaining
the total fees for services and deduct
ing therefrom all expenses connected
directly and solely with his practice.
"A farmer must figure up all income
derived from the sale or exchange of
products during the year, whether
such produce was raised on the farm
or purchased and resold. He is al
lowed to deduct from this total his
expenses of the year connected with
the planting, cultivation, harvesting,
and marketing of the crop, or the care,
feeding and marketing of live stock.
He is not allowed to deduct the am
cunt expended in 1918 in purchasing
stock for resale; but when such stock
is sold its cost is to be deducted from
sale price in a~scertaining the gain to
be included in his return of income.
The cost price of stock bought prior
to 1917 cannot be deducted as in the
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