The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1919-02-25

Earl NJ. Gilbro of Keene is reported
wounded slightly.
cially as "a person who supports one
or more persons closely connected with
him by blood relationship, relationship
by marriage or by adoption. >
The compensation in 1918 of man
in the military or naval service, either
as an enlisted man or an officer, is
wholly exempt from taxation, provid.
ed this did not exceed $500. Income
of soldiers or sailors from private
sources is taxable, however, if it ex-
ceeds the exemptions.
In figuring net income, deductions
may not be made for personal, family
or living expenses.
The low does provide for a number
of deductions, however, from gross in
come, and these are of interest manly
to men who made living out of bust
ness enterprises. These allowable de
auctions include the following items:
Expenses paid or incurred in 1918 in
carrying on any trade or business, in
Guiding rentals and reasonable al
lowance for salaries.
Interest paid or accrued in 1918, ex.
cept on Indebtedness incurred for the
purchase of tax.exempt stocks or bonds
Taxes paid -.or accrued, except in
| come, war profits and excess profits
taxes and those assessed against local
benefits of a kind tending to improve
the value of the property.
Losses in business or trade, if not
compensated for by insurance or other
wise.
Losses in any transaction entered
into for profit in some side-line of
business.
Losses of property not connected
with taxpayer s. regular business ii
arising from fires, storms or other cas-.
ualties, if not covered by insurance.
Worthless debts charged off during
the year.
A reasonable allowance for depreeia.
lion of property used in business OF
| trade.
A reasonable allowance for deple
ton as well as depreciation of proper
| ty in the ease of mines, oil and gas
wells and other natural deposits
Contributions to concerns operated
exclusively for charitable, religious
educational or scientific purposes, not
in excess of Is per cent of the tax
payer s net income.
Amortization on buildings, machin
cry, equipment or other facilities con
structed or acquired for the production
of articles contributing to the prosecu
ton of the war.
The preceding items must he reported
in the return and deducted according
to the method set forth in the return
blank form.
The following items are exempt from
taxation and need not be included il
the terms:
| Proceeds of life insurance policies
returns of premium on life endowment
and annuity policies; gifts, requests o
inheritances (income from gifts taxa
BILE, however,; interest on bonds of an
state, county or municipality; interes
on farm loan bonds; interest on $500
or less of Liberty bonds, and on large
amounts in certain cases provided b.
the bond act; payments on account o
accident or health insurance or unde
t'workmen S compensation acts.
To detect inaccuracies or fraud in ri
turns, the internal revenue bureau ha
instituted a system of checking return
with other reports required from a
persons or interests which paid on
$1,000 or more to any individual dun
ing the year. The latter reports const
tute the tax collecting machinery
"infcrmation at the source whic
proved so valuable last year in. prevent
ing tax lodging.
In addition to income taxes, there
multiplicity of other taxes to be al
: sessed this year. Incorporated bus;ne,
}; ses are required to pay taxes on nj
i incomes at the rate of ~ per Ger
with an exemption of $4,000. War pr
hts and excess profits taxes are a
sessed against corporations only.
The revenue bureau has made a Or,
: vision for accepting tentative est
s mates of income in eases where ia,
/ payers are not able to figure aecurat
J y their incomes before March Is. ]
= these eases, however, an installniel
$ payment of onefourth of the estima
e ed amount is required on that date ar
J. tax officials will guard against any a
r tempt to evade or miniTnize the ts
It .EE4Tggqfent then through setting an u
r IIgasQpably low estimate