Abbeville progress. (Abbeville, Vermilion Parish, La.) 1913-1944, 1919-02-01
Vol. 10. No. -.
INCOME TAX
EDUCATIONAL SERIES

election ia the hi~tor. of Income Taz.
l am NOT waiting FOR the final pa..ae.
the new Revenue bin hv Congress. 80
~id Collector j. Y Fauutlcr.v tod.v.
nor I"r "a" new regulations uad blsat
'rm~ jo Zee issued To ct this biz
tN 40 and ct If accurate auJ complete
nr5, that VT, All begin now"
"Thr m,"nc 'ax obligations lmsa,,I
- t0r old laws, ~ veil e. the m,4surc
TO" az '"H-tr--. ruu>i,, Of t,,o dis
net operations, One j. 10 file return
statement Of an items Of ir,om, .iul
cm. # ,lrHortluus allowah!, Ly law.
nd to do his within The period p.uu,.i
D. ihr laN.. Vlc others is, 10 paw The
*, il an j. due.
'Nrithcr of these obligations can Doe.
'r' Without a careful review of in
ono and expenditure for IN, tax wear.
nat j. tb, big joh right now and that
why | say thr Income Tax drive, IL
ready uut"r way. Everywhere the
neil - busy. The old year is done;
u i,s fruits are CLEANED: and every per
~ who Jared we'll, OF earned q good
'mprtrncr, must analyze his own Ease
cold figures.
When the new bill is enacted into
INV, l VIII nave the proper return forms
distributed throughout the District, and
''erNbpdF VIII bee informed Of the date
hen the sworn return must be filed.
: - my plan 70 send my men ont to
.ntrai locations, and to have them ira
81 through the District. aiding tax
ayers IN the preparation Of the re
lrnS aud in deciding doubtful points.
We Viii go right 10 the people with the
,c"mc Tax, aud with the cooperation
hich ia" public can give the govern
1cut men, the returns will be filed hv
'EcrNh"dv who comes under the law y
rovi>i"ns, The night taxes will be paid
'"d the District viii have done its fun
.1trfotfc duty toward the government =
support.
Meanwhile, let me say again, there
- no need of DELAYING the preparation
ct figures. Anything that Congress does
oW viii not affect the amount of "A
crSon : earnings for 1918. Let us
void the bclated throwing together
? figures that may hit or miss. Gues,es
4nnot be accepted as the basis of tax
: ton. II Is clearly the duty OF every
Scertain whether his income for 1918
as sufficient to make necessary a
sworn return.
The year 1918 was a banner wear
or salaries and wages, and the high
var prizes brought unusual profits 70
he average small tradesman Sind TO
the farmer. The opinion in Washington
Is that million citizens and residents
5lli make this year their frst income
tax returns
All signs indicate that thu
lV this veRr viii rnaeh pesld nearly
every merchant, shop-keeper aud farmer
Not all will have to pay the tax, but
early all will be obliged to make u
worn statement Of the years income.
II am therefore advising every un>
iarrfed person, who earned $1,000. or
Yer during the year 1918, and every
narried person, who together with wife
n husband, earned $4,000, to sharpen
'us/pencil and figure out how he stands.
He must ascertain accurately his
ross income from all sources. There's
his salary or wages, including overtime
ay and any bonus received as addi-
iOnal compensation. A married per-
on having children under IS who are.
working should include the earnings Of
,uch children.
If he sold any property at profit,
the gain must be computed and included
in gross income. IF nc rented any prop
rty to other persons, the total rents
'eceived IN the wear must be ascertain
II, and from the figure deduction
nay be taken for taxes paid or rented
property, the necessary minor repairs,
ire insurance, any interest he may have
aid on mortgages, and reasonable
lloWance for annual wear and tear of
he rented property. The balance is
included in gross income for the wear.
interest on bank deposits, whether
withdrawn or added TO his bank bal
nces, must be included in all calcnla-
ions OF income. Bond interest re-
eived during the year must also he in
GUIDED, except interest ON municipal,
'ounty or state bonds. Interest on
United States Bonds need not be in
'luded by the ordinary bond -holder who
,urcrased small amounts. Holders Of
'arge amounts Of Liberty bonds, how.
ever, should ask their bankers TO write
- my office for the rule applying to
AK on such interest.
Dividends on stock shares are in
ONE, and must be included in the gross
cures, although the Law does not i'm.
pose the normal tax on distributions
made by domestic corporations.
"A person buying and selling mcr-
chandise must find his profits for the
wear Oh the following basis: First, as
certain the gross sales or total cash
receipts. Then add together the invcn-
'ory al the beginning of the year and
RI" purchases Of goods for resale. From
'hls latter sum subtract the inventory
If goods on hand AZ the vear $ end. and
, ne result is the cost 0i goods sold. This
cost, Plus necessary expenses incurred
solely through conduct Of the business
is TO he deducted from the gross sales,
and the result is The net earnings Of
the business.
"A professional man arrives at his
professional income by ascertaining the
total Of fees for services and deducting
thercfrom all expenses connected direct.
J ~ and solely with hi, practice.
! "A farmer must figure mp al income
! derived ir0r' the sale or cSchangc of
! products during the year, whether such
( produce was raised on the farm or pur-
/ chased and rCsold. He is allowed 20
deduct from This total his expenses Of
the year connected with the planting,