El Paso herald. (El Paso, Tex.) 1901-1931, 1919-08-23

] a
II the government was to tell US you
owe so much tax. we would gladly
pay It, but We simply cannot figure
out these reports"
The main trouble Is that the most
OF them fan TO keep a proper account
OF their earnings and expenditures. Al
the present rate Of taxation Il pays
to keep an accurate account OF your
business and to have expert advice
| with the internal revenue department
found that the professional man anc
the farmer had the greatest trouble
| with the income tax owing TO no sys-
TEN Of bookkeeping or an adeuate
system Of bookkeeping.
The big ranchman also had great
deal OF difficulty in making out his
I reports. In the first place the only
/ way a man In the cattle business can
( get full credit for his losses is 10
I basis, taking an inventory OF his i've
stock each year Very few. do so and
| hence fail to obtain credit for losses
| to livestock that rs raised on the
} ranch In the second place II they
4 handle steer cattle and hold them for
I three OF four years, they do not get
I full reports on the inventory basis
Good Bookkeeping Necessary.
] The essential factor in figuring IN
/ come tax is proper bookkeeping
showing the exact status OF your
business A farmer who keeps no
books OF account cannot sit down a.
the end OF the year and figure Up all
he has taken in and all the expendi-
lures he has had during the year II
he will only put down the different
amounts he receives during the year
and his disbursements as they occur
and what he pays out his money for,
1t will be a great help to him in max
ing out his return. This also applies
to the professional man.
The average merchant whether an
individual. partnership. or corporation
generally has a good system Of book
keeping and does not have so much
trouble with his income tax In the
case OF the individual II Is important
that he keep an accurate account OF
his capital assets or furniture and
fixtures and other business Equipment
for the purpose OF getting credit Tor
depreciation allowed. ] find that IN
a great many cases the Individual and
a great many partnerships fail to do
Invested Capital Figured.
In the case OF corporations q great
many fail to- take proper credit for
the proportion OF intangible assets al
lowed In figuring their Invested capi-
tai The figuring OF invested capital
is very important as II plays Ola
part in the excess profits tax I was
called IN to the Austin office last year
reports for the government and found
that over 50 percent Of the reports
were inacurately compiled. although
prepared by corporation auditors and
as far as the figuring Of the earnlngs
and expenditures were concerned
were correct
The Income tax laws are a special
study in themselves and to become an
exnert Il is necessary TO C mine your
self TO that one subjeft- The govern
To- = t. n-T~s L. -
and the men who we're assigned 10 /
income tax work were put through I
course OF studies In which the law ]
was fully discussed and the various Z
problems that might arise were thor /
ouEhiv threshed out The men were 4
called In from time to- time and fur
Their Instructions were given them ard 4
examinations covering the new rui- 4
ines and Interpretations OF the law
were held IN earh collectors district
Evncrf Advise Needed.
II stands to reason that a man who
has heen IN the government sarvire
and qualified as an expert in the in
come and excess prof.. taxes IL in a
better position 70 rive expert advice
IN these matters than one who has
not had the benefit OF this snecial
study under government Supervision
7nd has had the experience In the
FILED in assisting the public In max
ing returns Of all classes In anv line
OF work Il always navs in the long run
TO consult an expert; you save tine
and money.
For income tax nurnoses Il IS neces-
sarv that the individual should keen
some hooks OF account that would
show his earni1gs ard eVne7ditu-es.
and the value OF his business equip
nent as well. in order to get the
neneFit of all deductions allowed for
Ienreria ZION. reoairS and the Ike.
An inHfvdu9i Is allowed the follow
'nz DEDUCTIONS IN addition 10 other
business expenses The amount Of all
state and COUNTY taNes. except taxes
assessed for local improvements. such
IS drairaee faVes. having taxes am
iaTas OF A like nature: all interest
1aid aut on personal indebtedness
to all RELIGIOUS. charit
able. scientific and educational insfi-
buttons. In order TO obtain credit for
ton and renairs he must
show hts hobs ~ account. the ac+ual
-ost OF his business equipment and the
year in which thew were ACQUIRED TIE
ate ~ denreciation IS fi9ured on the
1rohahie life Or the article.
A farmer Is allowed to claim depre-