The Birmingham age-herald., 1919-02-27
COLLECTOR WISHES PEOPLE ID ATTEND
 ID INCOME TAX
Large and Efficient Force on Hand to Aid Public and
 People Should Attend to Tax Now

Deputy internal revenue collectors arc being kept busy serving the Birmingham public, which is appearing at the fedora building and filing their income tax pa pers and paying the returns. A large and efficient force has beer secured for this purpose by John D. Mo. Neel. collector of internal revenue, ano all persons are urged to give this mat ter their prompt attention so as to avoid the rush during March. as it is neces- sary for the amount of the returns or at least one-fourth of it, to be paid by March 15 The following statement was issued from the office yesterday:
 GOVERNMENT STATEMENT
 Collectors of internal revenue are re- ceiving frequent inquiries as to the amount to be included under gross in come" in their income tax returns.
 In making out his return of gross income, the taxpayer is required to ac- count for practically every dollar he re- .ceived during 1918. The following items must be reported
 Salaries. wages and commissions for personal services, including bonuses.
 Interest received on notes, and de- posits in banks including savings banks.
 Dividends, on stocks, whether received in cash or stock. Only dividends paid out of earnings or profits accrued since March l. 1913, are taxable, but dividends are deemed to be distributed out of the most recently accumulated earnings.
 Profits resulting from purchases and sales of property. real or personal. If the property was purchased before March l. 1913, the profit is based on the diff ference between the selling price and the fair market price or value as of March 1, 1913.
 Profit from stock market transactions
 Income received from fiduciaries, that is. amounts received from income of es- tates, trusts, etc, through trustees. ad- miniStrators or executors.
 Net partnership profits, whether divid- ed or distributed or not.
 Royalties from mines, oil and gas wells patents, copyrights and franchises.
 The following items are not taxable and need not be included in the returns:
 Property received as a gift or by will or inheritance.
 It must be understood, however, that the income derived from such property is taxable.
 Proceeds of life insurance policies.
 Returns of premiums on life endowment and annuity policies.
 Interest on securities issued under the provisions of the federal farm loan act Of July +, 1916.
 Amounts received through accident or health insurance, or under, workmen s compensation acts, plus the amount of damages received. whether by suit or agreement on account of such injuries or sickness.
 Amounts received during the war by a person in the military naval forces for active service, up to $500.
 Interest on obligations of any state or political subdivision of state, such a city, county, town or village, and the District of Columbia. Interest on ob- ligations of the United States is exempt. except that interest on obligations issued after September 1, 1917, is exempt only to the extent provided in the Liberty Loan acts.
 Interest on Liberty Bonds to the par value of 5000, is exempt from all taxa ton. Holders of large amounts of Lib erty Bonds are advised to consult their bankers or collectors of internal revenue as to their interest exemptions.