The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1919-01-25
INCOME TAX INFORMA TON

nor, under way. and every prepaId-
tinn IS being made to handle the iars-
asst collection in the history OF IN
4 come tax. II am not waiting for Ihe
I final passage of the new revenue plli
Inv congress-" said Collector murphy
TODAY. NOR for the new regulations
and blank forms to be Issued. 40 80.
this big tax in and get 1t accurate and
complete, I urge that We all begin
now"
s.The income tax obligations impos-
ed by the old laws, as well IS tne
measure now in congress, consist OF
1.-TWO distinct operations One IS, 10
file return or statement OF ali itenis
iof income and items of deducuons al
llowable by law, and to do this withiE
the neriod named in the law. The
lother Is, to pay the tax, If any Is due.
Neither of these obligations can
he met without careful review OF IN
come and expenditure for the tax
year. That is the big job right now,
and that is why say the income tax
drive is already under way. Every
where the pencil is busy. The Old year
lis done; all its fruits are CLEANED; ana
every person who Jared we'll, OF earn
ed a good competence, must analyze
his own case in cold figures.
when the new bill is enacted into
law. / will have the proper return
forms distributed throughout the dis
ltrict, and everybody will be informed
OF the date when the sworn return
must be fled 1t is my plan to send
NV men out to central locations, ana
Ito have them travel through the as
ltrict, aiding taxpayers in the prepar-
alton of the returns and in deciolhs
doubtful points. We will go r1sht 10
1.-THE people with the income tax, anu
with the cooperation which the PUBIC
can give the government men, the re-
turns will be filed by everybody VINO
lcomes under the laws provisions, tue
fright taxes will be paid, and the dis-
itrict will have done its full patriotic
duty toward the governments support.
Meanwhile, let me say again, there
is no need of delaying the prepara-
ton of figures Anything that con-
gress does now will not affect the
amount of a persons earnings for 1913
Let us avoid the belated throwing TO-
!. fgether of figures that may hit OF miss
!. Guesses cannot be accepted as the
basis of taxation. 1t Is clearly the
iduty OF every person to compile cor
!, rect figures and ascertain whetner ms
Income for 1918 was sufficient to make
necessary a sworn return.
!. The year 1918 was a tanner yeal
flor salaries and wages. and the mgr
war prices brought unusu.l proffts te
: 1.-THE average small tradesman and te
the farmer. The opinion in Washing
ton is that million citizens and resi-
: idents will make this year their frs
e Income tax returns.
= "AlI signs indicate that the income
8 tax this year Will reach nearly ever,
+ working man and woman, and nearly
y fevery merchant. shop keeper and farm
Ter. Not all will have to pay the tax
r but nearly all win be Obliged TO max
La sworn statement Of the years IN
d come.
@ 81 am therefore advising every un
married person who earned $1,000
g lover during the year 1918, and ever;
+ married person, who together VIII
g wife or husband, earned $1,000, u
9 sharpen his pencil and figure out hoy
I he stands.
:. .He must ascertain accurately hi
3 gross income from all sources. There
his salary or wages, including over
y time pay and any bonus received a
e additional compensation. marrie'
/, person having children under twenty
II one who are WORKING should includ
l. the earnings OF such children
e "If he sold any property az a prom
}. the gain must be computed and IL
r cluded in gross income. Ii he rente
/" any property to other persons, the re
ital rents received in the year must o
ascertained, and from that figure dc
/, iduction may be taken Ir taxes pal
{, or repairs, fire insurance. any 1nteres
a he may have paid on mortgage, and
reasonable allowance form annus
wear and tear of the rented proper.
The balance is included in gross il
II come for the year.
d Interest on bank deposits, whethe
withdraw or added to his bank ba
Is ances. must be included in all calcul:
B. lions OF income Bond interest rece1'
ed during the year must also be il
.e icIuded. except interest or municipa
I'd county or state bonds. Interest o
iJTnited States bonds need not be Il
.e Guided by the ordinary bond hoide
ID who, purchased small amounts Hol
lers OF large amounts of Liberty bond
e. however. should ask their bankers
G. write to my Office for the rule apr
ing TO tax on such interest.
+, dividends on stock shares are 1
come. and must be included IN tr
Igroes figures. although the law do'
mot impose the normal tax on distI
buttons made by domestic eoTpor
d lions.
To- "A person buying and selling me
~ chandise must find his profits for II
r. wear on the following basis: f1rf
a. ascertain the gross sales or total cas-
n receipts. Then add together the ]
ventory at the beginning. OF the ye;
and the purchases Of goods for resal
- frrora this latter sum subtract the
yentory OF goods on hand az the year
eua. and the result is the cost
goods sold. This cost, plus necessai
terpeuses incurred solely through co