The Alaska daily empire., 1919-02-28


 Tommy Noble. the British title holder. in twenty rounds )f family and is therefore entitled only to the $1,000 exemption. If the parent is wholly dependent, however, and lives in the taxpayers house hold, this makes the unmarried per son the head of the family"
 Some Other Rules
 If, because of the special exemp ions for children and dependents or because of the exemption of soldiers md sailors pay, an unmarried per on's income of more than S1,000 Oi ! married persons income of more han $2,000 is found not to be tax ble, this condition does not free he individual from filing a return A head of a family is described of icially as "a person who supports ne or more persons closely connect | with him by blood relationship elationship by marriage or by adop ion.''
 n the military or naval service, eith er as an enlisted man or an officer is wholly exempt from taxation, pro vided this did not exceed $3,500 In come of soldiers or sailors from pri vate sources is taxable.
 About Deductions
 In figuring net income, deductions nay not be made for personal, fam 'ly or living expenses.
 The law does provide for a mum Der of deductions, however, from gross income, and these are of in terest mainly to men who made living out of business enterprises These allowable deductions include she following iteIas:
 Expenses paid or incurred during 1918 in carrying on any trade oI business, including rentals and req ,onable allowance for salaries.
 Interest paid or accrued in 1918 except on indebtedness incurred fol she purchase of tax-exempt stocks or bonds
 Taxes paid or accrued, except in come, war profits and excess-profits axes and those assessed against To cal benefits of a kind tending to i'm. prove the value of the property.
 Losses in business or trade, if not compensated for by insurance or oth erwise
 Losses in any transaction entered into for profit in some side-line of business.
 Losses of property not connected with the taxpayers regular business f arising from fires, storms or other casualties, if not covered by insur ance.
 Worthless Debts
 Worthless debts charged off dur .ng the year.
 A reasonable allowance for deprec iation of property used in business pr trade.
 A reasonable allowance for deple ion as well as depreciation of prop erty in the case of mines, oil and gas wells and other natural depos- it's.
 Contributions to concernsDperated exclusively for charitable, religious, educational or scientific purposes, not in excess of 15 per cent. of the taxpayers net income.
 Amortization on buildings, machin- ery, equipment or other facilities con structed or acquired for the produc- ton of articles contributing to the prosecution of the war.
 The preceding items must be re ported in the return and deducted ac- cording to the method set forth in the return blank form.
 Exemptions Given
 The following items are exempt from taxation and need not be in cluded in the returns:
 Proceeds of life insurance policies :. returns of premium on life endow- ment or annuity policies; gifts, be- quests in inheritances (income from gifts taxable, however,; interest on bonds of any State, county or muni- cipality; interest on farm loan bonds; interest on $5,000 or less of Liberty Bonds, and on larger amounts in certain cases provided by the bond act; payments on account of acci-