New Iberia enterprise and independent observer. (New Iberia, La.) 1902-1944, 1919-03-01

come tax returns.
In making out his return II
gross income. the taxpayer : re-
quired to account for practically
every dollar he received during
1918. The following items must
be reported: a.
Salaries. wages nd commissions
for personal services. including
bonuses.
Interest received on notes. and
deposits in banks including say
IngS banks
Dividends on stock. whether
received in cash or stock Only
dividends paid out Of earnings OF
profits accrued since March !.
1918. are taxable. but dividends
are deemed TO be distributed ont
of the most recently accumulated
earnings.
Profits resulting from pur-
ehaseS aud sales Of property. real
or personal. If the property was
purchased before March |. 1918.
the profit is based on the difference
between the selling price and the
fair market price or value as or
March |. 1913.
Profit from stock market trans
actions.
Income received from fducia
rieS. that is amounts received
from income of estates. trust, etc.
through trustees. administrators
or executors.
Net partnership profits, whether
divided or distributed or not.
Royalties from mines. oil and
gas wells, patents, copyrights and
francbS>e>.
The following items are not
taxable and need not be included
in the return: 0
Property received as a gift or
by will or inheritance. |. must
he understood. however. THAI the
income derived from Sueh prop
erty is taxable:
Proceeds of life Insurance. poll
cieS
Returns of premiums on life en-
Gowment and annuity policies.
Interest on securities ISSUED I'M
der the provisions of the Federal
Farm Loan Act of July l., 1916.
Amounts received through ac-
oident or health Insurance. or I'M
der workmen s compensation acts,
Its the amount of DAMAGES re
ceived whether by suit or gree
ment IN account of suCh injuries
or sickness.
Amounts receivedsduring The
war bv a person infhe military
or naval forces fer active service,
up to $500.
Interest on obligations of any
State or political subdivision OF
State. such as a city, county,
town or villabe, and the District
of Columbia. Interest or obllga-
tions of the United States is ex-
empt, except that interest on obi
cations issued after September |.
1917, is exempt only to the extent
provided in the Liberty Loan Acts
Interest on Liberty Bonds to the
par value of $1,000 is exempt from
all taxation. Holders of large
amounts of Liberty Bonds are adj
vised to consult their bankers or
collectors of internal revenue as
to their interest exemptions.
"Net income" for the purpose
of making out an income tax re-
turn is gross income less certain
deductions provided for by she
revenue bill. The current act al
lows the ordinary and necessary
expenses. and specifically includes
salaries for personal services and
rentals paid for business pur7
poses.
Losses incurred by taxpayer
in any transaction entered into
for profit outside of his regular
line of business are allowed. un'
der the 1917 act deductions fol
such losses were allowed only t
the extent of gains in similar
transactions. If for example q
| person made $1,000 in one stock
transaction and in another lost
s. 600 he was required to include
the 81 900 in his return as gross
income and could deduct only that
amount as a loss. Under the eur
rent act he is allowed net de-
duction of $4,000
4 reasonable ALLOWANCES made
for depreciation of business prop
erty, including reasonah bic
amount for obsolescence. In the
case of buildings, machinery and
eouipment built or acquired after
| Anril 6. 1917. and ships built oil