The Springdale news., 1919-01-24

.#5 ,,-..4. in the year of purchase.
 .arba farmer is not required to In- 1f.,3a m his income tax computation ,isa 4value of farm produce consumed l,.. hinself and family. But m eases ,..rora he exchanges produce for mer- ..5aaz5s-,. proeeries, etc, the hlafNet value of the articles reeelVed III eA- rhaHge must be included,
 Ali other items of income arlslhs ,I,,rina the year through persona service business or trade, through =fs of property Or money. should De s43e8 into the gains for 1918.
 s.Fyervbody wants to know what lh= come is exempt from tax Very fe" ,Iums that fall to the average man may he legally disregarded Tn tlgurihg mn his 1918 income Gifts ana De- onasfs can be eliminated; also pro eaads of life insurance received by the beneficiary of an injured person, a nerSon who cashed in an endowment noliey need report as income only that nartiou which exceeds the total of the premiums he paid in all years on that no}f-y Annutes are not taNaDie, i anfess the person received Tn the year | Bavments which represent, when add | a b all prior payments on the an naity. an amount greater than the | original cost of the annuity. DlNl- | dends on unexpired life insurance pol ieies are not taxable income; but dividends on paid-up policies must be considered income Alimony Is not income 10 the recipient, nor IS II an allowable deduction on the part of the person who pays.
 From the total of all items of in come there are certain deductions ai- loUable bv law. All interest paid on personal indebtedness and all tax es pad during the year are deduct fble, except Federal Income and Tx cess Profits taxes, inheritance taxes and assessments for local improve
 ments. such as sidewalks, sewers, etc
 Losses incurred in business or trade are allowable also losses arising from
 fires. storms, shipwreek Or other cas-
 uaItv. or from theft, in cases where such losses are not compensated for bv insurance or otherwise. Losses
 incurred outside of a persons regu- lar business are allowable to the ex-
 tent of gains reported from similar
 transactions within the year. Debts
 due to the taxpayer actually aseef-
 taned to be worthless during the year
 are deductible.
 depreciation on pre perty used in 2 profession, in business, or In farm
 ing Is another item that may be
 claimed as a 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 deduction on his
 instruments; and, in the case of q physician who maintains d team or aat1 for making his calls on patients. reasonable depreciation may be claim l ed The farmer may claim depre citation on his farm buildings. aside
 from his personal residence, also on f his farm machinery, his work horses and farm work wagon The theory E of depreciation, iR connection with the Income Tax. IS that wear and tear ! caused by use in earning income Is d
 real expense in the earning of that r income. The rate is determined b. the number of years that the proper !. " arliuarily would be useful and the
 cost of the property Is the basis of the
 computation. If the property sui ] fzrine depreciation was bought or ae= :. 4afed prior to March 1, 1913. the
 market value as of that date is used, 2 instead of the cost, in figuring de E preeiation.
 Contributions or gifts ac,ually
 made lu 1918 to organizations opera , lion exclusively for religious, charlt- ] able. scientific or education purposes. . and to societies for the prevention
 of cruelty to children or animals, may
 be deducted, to an amount not ex- F eeeding l5 per cent of the net income . computed without the benefit of this < deduction
 . After the total of all income is ' found, and the deductions allowable
 oF law have been computed as an : offset the amount Of income in ex-
 cess of such deductions is the net ln- :, come, which forms the basis of the i assessment of tax
 If every person in this district s will examine his own 1918 income and : his allowable deductions in line with
 data that have given, He will
 noW beyond doubt whether he must i file his return when the blanks arrive And here Is how he will determine F his liability to file return, if he Is I. single he must file if his net income r was S1000 or more, and this require
 ment is enforced whether or not he s is the head of a family. If he is ! married, he must file his return ii 5 his net income. including that of his :. wife and minor children, was 5000 oi :. more.
 : T want to emphasize the coopera- e tion feature of the collection of the o Income Tax this year. The policy :. of the Internal Revenue Bureau is
 to ald taXpaYerS to meet the reuuirp.
 ments of the law We are going . right to the people. not to swing club. < or to muict the wage-earner of his . savings, but offering every helpful
 governmental function that will as.
 slst people to do their duty" =. haNITnD