The evening Caledonian. [volume] (St. Johnsbury, Vt.) 1918-1920, 1919-01-20

"The farmer is not required to
include in his income tax computation
the value OF farm produce consumed
by himself and family. But in cases
where he exchanges produce for mer-
chandise, groceries, ETC., the market
value of the articles received in ex-
change must be included.
"All other items of income arising
during the year through personal SER
vice, business or trade, through use
of property or money, should be add
ed into the gains for 1918.
Everybody wants to know what
income is exempt from tax. Very
few plums that fall to the average
man may be legally disregarded in
figuring up his 1913 income. Gifts 6
and bequests can be eliminated; also
proceeds of life insurance received by
the beneficiary of an insured person.
A person who cashed in an endow-
ment policy need report as income
only that portion which exceeds the
total of the premiums he paid in all
years on that policy. Annuities are
not taxable, unless the person re-
ceived in the year payments which
represent, when added to all prior
payments On the annuity, an amount
greater than the original cost of the
annuity. Dividends on unexpired life
insurance policies are not taxable in
come; but dividends on paid-up pol
icies must b. considered income. Ali
mony is no. income to the recipient,
nor is it allowable deduction on the
part of the person who pays.
"From the total of all items of
income, there are certain deductions
allowable by law. All interest paid
on personal indebtedness and all tax
es paid du1ing the year are deduct
ible, except Federal Income and Ex-
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, shipwreck or other cas-
ualty, or from theft, in cases where
such losses are not compensated by
insurance or otherwise. Losses incur
red outside of persons regular bus
mess are allowable to the extent of
gains reported from similar transac-
tions within the year. Debts due to
! the taxpayer actually ascertained to
| be worthless during the year are de-
ductible.
: Contributions or gifts actually
made in 1913 to organizations oper-
ating exclusively for religious, char
u sitable, sciertiic or education purpos-
y les, and to societies for the prevention
!, of cruelty to children or animals, NAV
be deducted, to an amount not ex-
, ceeding Is per cent of the net in
|, come computed without the benefit
of this education.
After the total of all income is
5 found, and the deductions allowable
by law have been computed as an
offset, the amount of income in ex-
cess of such deductions is the net in
come, which forms the basis of the
! assessment of tax.
el IF every person. in this district
| will examine his own 1918 income anc
/ his allowable deductions, in line with
: data that l have given, he will know
r beyond doubt whether he must file his
f return when the blanks arrive. Anc
: here is the way he will determine his
n liability to file a return, if no change
n is made by the new law. If he i:
e single he must file if his net incom.
: was $1,000 or more, and this require
: ment is enforced whether or not h,
f is the head of a family. If he i
: married, he must file his return if hi
h net income, including that of his wifi,
n and minor children, was $4,000 o
lmore.