Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1919-02-28
HOW INCOME TAX REPORT WILL Be MADE
Income Tax Reports Will Be Due on March 18th
Chicago Tribune Gives Details of Compil-
ing Returns According to Law

claim the personal exemption of 3d.
600, or this exemption may be divi-
ded. Earnings of dependent child
rem must be included as part of the
income of the head of the family.
Ii an unmarried person supports
either partially or wholly parent or
some other relative or friend, not liy-
ing in the same household, this per
son is not considered the head of a
family and is therefore entitled only
to the $1,000 exemption. If the par
ent is wholly dependent, however,
and lives in the taxpayers household,
this makes the unmarried person the
head of the family.
IF, because of the special exemp.
tions for children and dependents or
because of the exemption of soldiers
and sailors. pay an unmarried per-
sons income of more than 81, 900 or a
married persons income of more
than $1,000 is found not to be taxable.
this condition does not free the indi-
vidual from fling return. Thus
many persons who do not have to pay
tax must file returns.
The compensation in 1913 of man
in the military or naval service,
either as an enlisted man or officer,
is wholly exempt from taxation, if it
did not exceed $500. Income of
soldiers or sailors from private
sources is taxable, however, if it ex-
ceeds the exemptions.
deductions from gross income, and
these are of interest mainly to men
who made living out of business en-
terprises. These allowable deductions
include the following items:
Expenses paid or incurred during
1918 in carrying on an trade or bust
ness, including rentals and a reason
able allowance for salaries.
Interest paid or accrued in 1918, ex-
cept on indebtedness incurred for tie
purchase of tax exempt stocks or
bonds.
Taxes paid or accrued, except in
come, war profits, and excessive prof
it's taxes and those assessed against
local benefits of a kind tending to
improve the value Of the property.
Losses in business or trade if not
compensated for BY insurance or
otherwise.
Losses in any transaction entered
into for profit in some side line of
business.
Losses of property not connected
the taxpayers regular business if
arising from fires, storms, or other
casualties, if not covered by insurance.
Worthless debts charged off during
the year.
A reasonable allowance for depreci-
alton of property used in business or
trade.
A reasonable allowance for deple-
tion as well as depreciation of proper
ty in the case of mines, oil and gas
wells and other natural deposits.
Contributions to concerns operated
exclusively for charitable, religious,
educational or scientific purposes, not
in excess of Is per cent of the taxpay-
er's net income
Amortization on building, macl,in-
cry, equipment or other facilities con-
structed or acquired for the produc-
tion of articles contributing to the
prosecution Of the war.
The following items are exempt
from taxation and need not be includ-
ed in the returns
Proceeds of life insurance policies,
returns of premium ON life endoW-
ment and annuity policies, gifts, be-
quests or inheritances (income from
gifts is taxable, however, interest on
bonds OF any state, county or munich
pality, interest on farm loan bonds,
interest on $4,000 or less of Liberty
bonds, and on larger amounts in GER
tain cases provided by the bond act,
payments on account of accident or
health insurance or under workman's
compensation acts.