The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1919-01-21

during the year through personal
service. business or trade, through use
OF property or mehey, should be add
ed into the gains for 1918.
Everybody wants TO know what in
come is exempt from tax Very few
plums that fall to the average man
may be legally disregarded in figuring
up his 1918 income. Gifts and be
quests can be eliminated. also pro-
ceeds OF life insurance received by
the beneficiary Of an Insured person.
A person who cashed in an endow-
ment policy need report as-income on
ly that portion which exceeds the
total of the premiums he paid in all
years on that policy. Annuities are not
taxable, unless the person received
in the year payments which represent,
when added to all prior payments on
the annuity, an amount greater than
the original cost OF the annuity.
Dividends ON unexpired life insurance
policies are not taxable income; but
dividends on paid-up policies must be
considered on paid-up Alimony is not
income to the recipient, nor is ii an
allowable deduction on 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. Los
ses incurred in business or trade are
allowable, also losses arising from
fires, storms, shipwreck or other casu.
atty or from theft, in cases where
such losses are not compensated by in
surance or otherwise. Losses incur.
red outside Of persons regular bust
ness are allowable TO the extent OF
gains reported from similar transac
tons within the year. Debts due Ia
the taxpayer actually ascertained te
be worthless during the year are de
ductible.
depreciation on property used il
profession, in business, or in farm
/ ing is another item that may be claim
ed as deduction. The storekcepel
may claim depreciation on his fixtures
and on his delivery horses and wag
ons. but not on his stock held fol
sale. The professional man may claim
similar deduction on hts Instruments
and. in the case OF physician VIII
maintains a team or auto for maklnI
! his calls on patients reasonable de
probation may be claimed. The farm
err may claim depreciation on his farm
/ buildings. aside from his personal resi-
/ dence. also on his farm machinery
his work horses and farm work wag
ons. The theory OF depreciation, II
I connection with the Income Tax, i
I that wear and tear caused by use il
earning income is real expense il
/ the earning of that income. The rat
| is determined by the number OF year
that the porperty ordinarily would b.
useful, and the cost CT the property i
the basis of the computation. II th'
property suffering depreciation wa
bought or acquired prior TO March ]
1913, the market value as of that dat'
Is used. instead OF the cost. in fgurins
depreciation.
Contributions or gifts actual,
made in 1918 to organizations operat
/ ing exclusively for religious. CHART
able, scientific or education purposes
and TO societies for the prevention Of
cruelty to children or animals, may