The Beaver herald. [volume] (Beaver, O.T. [Okla.]) 1895-1923, 1919-01-30
INCOME TAx INFORMATION


Crowded out last week
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 allowable, also losses arising from
fires. storms. shipwreck or other
casualty. or from theft, In cases
where such losses are not compen-
sated for by insurance or otherwise.
Losses incurred outside OF persons
regular business are allowable to the
extent of gains reported from similar
transactions within the year. Debts
due to the taxpayer actually ascer-
tained to be worthless during the year
are deductible.
Depreciation on property used in
profession. in business. or in farm
ing is another item that may be
claimed as 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 deductions on his
Instruments; and. in the case of a
physician who maintains a team or
auto for making his calls on patients.
reasonable depreciation may be
claimed. The farmer may claim de-
probation on his farm buildings.
aside from his personal residence, al
so an his farm machinery, his work
horses and farm work wagons. The
theory of depreciation. in connection
with the Income Tax, is that wear
and tear caused by use in earning in
come is real expense in the earn
ing OF that income. The rate is de-
termined by the number of years
that the property ordinarily would be
useful, and the cost of the property is
|, the basis OF the computation. II the
} property suffering depreciation was
bought or acquired prior to March 1.
1918, 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
! operating exclusively for religious
, charitable. scientific or education
purposes. and to societies for the pre-.
vention OF cruelty to children OF
animals, may be deducted, to ar
r amount not exceeding IS per cent ol
the net income computed without ths
benefit Of this deduction.
II After the total OF all income II
l found. and the deductions allowabl,
;. by law have been computed as an off
set, the amount of income in excess o.
: such deductions Ii the net income
which forms the basis of the assess
ment of tax.
'Tf every person in this distric
will examine his own 1913 incom
and his allowable deductions, in lin
!. with data that have given. he viii
4 know beyond doubt whether he mus
,. file his return when the blanks arrive
:. And here is how he will determin
! his liability to file a return. II he |
n single he must file II his net incom
m was $1,000, or more. and this require
ment is enforced whether or not he
the head Of a family. II he is marrte
he must file his return II his net In
come: including that Of his wife an
minor children. was $4,000. or more.
n II want to emphasize the coopers
" tion feature OF the collection Of tn
y Income Tax this year. The policy {
!. the Internal Revenue Bureau Il to al
I'd taxpayers to meet the requirements {
As the law. We are going right to th
~ people. not to swing clubs or
i. mulct the wage-earner Of his saving
"a but offering every helpful goverl
W mental function that will assist PEI
pie to do their duty"
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