Little Falls herald. [volume] (Little Falls, Morrison County, Minn.) 1889-1950, 1919-01-31

to have them travel through the Dis.
ton Of the returns and in deciding
f the people eo With the Income T 49, aae
| with the cooperation which the public
can give the government men, the re-
| turns will be filed by everybody wht
right taxes will be paid. and the Dis.
! trict will have done it's full patriotic
duty toward the governments support
Meanwhile, let me say again, there
of figures. Anything that Congress.
] does now will not effect the amount
of persons earnings for 1918. Lei
US avoid the belated throwing togethel
cannot be accepted as the basis Of tax
alton. 1t is clearly the duty of every
person to compile correct figures anc
| ascertain whether his income for 1913
| was sufficient to make necessary &
sworn return.
'"The year 1918 was banner year fol
salaries and wages. and the high wal
prices brought unusual prof1ts to tn
farmer: The opinion in Washington is
that million citizens and residents
will make this year their first income
tax returns.
| tax this year will reach nearly every
working man and woman, and nearly
every merchant, shopkeeper and farm
er. Not all will have to pay the tax
but nearly all will be obliged to make
II am therefore advising every :un-
married person who earned $1,000 OF
over during the year 1918, and every
his wife or husband, earned $4,000. to
sharpen his pencil and figure out how
he stands.
inc0noo from all SOnrceS. There's
his salary or wages, including overtime
pay and any bonus received as addi-
tional compensation. A married person
having children under IS who are work
ing should include the earnings of such
IF he sold any property at a profit
the gain must be computed and inclH ID,
property to other persons, the total
certained, ana from that figure : de-
dacti9n may be taken Tor pa1d on
repairs, fire insurance; any interest ne
may have paid on mortgage, and
reasonable allowance for annual wear
balance is included in gross income for
Interest on bank deposits, whether
withdrawn or added to his bank pal
tons Of income. Bond interest receiv-
ed during the year must also be in
Guided, except interest on municipal
county or state bonds: :aa lm aat Sn ; on
Guided BY the ordinary. bond holders
who purchased small amounts Holders
of large amounts of Liberty ponos:
should ask their tSa ban 6ank snn,y TO
ing on such interest. T..
'Dividends on stock shares are IT.
come, and must be included in the
gross figures, although tne l ds+r G61s
lions made BY domestic corporations:
"A person buying and selling m t,1
chandise must find his profits Tor the
ascertain ser S tn the gross sales or total cash
receipts. Then add together the IN
ventory at the beginning of the year
and the purchases OF go9ds t4 70 re- Eesd ;n:
ventory Of goods on hand at the years
end. and the result is the cost Of goods
sold. This COST, plus necessary ex.
Sol fG be- from
the gross sales, and the result is the
net earning Of the business: >.>-.
"A professional man arrives at ms
professional income by ascerta aa1ie+; tme
therefrom all expenses connected ar
ectly and solely with his practice.
"A farmer must figure up al income ne
PRODUCTS during the year. whether such
chased and resold; He Is allowed . to d re-
duct from this total Ms expenses tbe n1ant T.
ing, cultivation, harvesting ana maj MAJ
ing and marketing Of live stock. He Is
n neo a,io in 1918 in purchasing stock for
resale: but when such stock is sold IT'S
cost is to be deducted from sale PRICE
in ascertaining the gain to be ,include st
price Of stock bought prior to. 1917
cannot be deducted as IN the case ' vs.
cited, if such cost was included IN tne
deduction made in the year OF purchase s
clude in his income tax computation
the value Of farm produce consumed ny
himself and family. But in cases
where. he exchanges produce ICE. Tor met rSet
value Of the articles received In ex-
change must be included.
"All other items Of income arising
vice, business or trade. through usA Of
p tSs GAINS Gr % For isis sn'D =
i" Everybody wants to know what m
plums that fall to the average man may
be legally disregarded in figuring up
his 1918 income. Gifts and bequests
be S1s9 be ol
an insured person. A person who cash
cd an endowment policy need report as
Income only that portion when exs
ceeds the total of the premiums he PAID
in ali years on that policy. Annuities
are not taxable. unless the person re-
ceived in the year payments which re-
present, when added to oil prior pay !
ments on the annuity, an amount great
er than the original cost Of the annu-
[ty. Dividends or unexpired life tnsur-
ance policies are not taxable income:
but dividends on paidup policies must
be considered income. Altmony Is not
Income to the recipient, nor Is 1t 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, ex- j
:ept Federal Income and Excess Pro-
its taxes, inheritance taxes and as
easements for local improvements such
Is sidewalks, sewers, etc. Losses In
CURED In business or trade are allow
able, also losses arising from hres. .