Willmar tribune. [volume] (Willmar, Minn.) 1895-1931, 1919-01-29

tanning the gain to be included in his
return of income. The cost price of
stock bought prior to 1917 cannot be
deducted as in the case just cited, if
such cost was included in the deduc-
ton made in the year of purchase.
The farmer is not required to in
| clude 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 serv.
ice, business or trade, through US of
property or money, should be added
into the gains for 1918.
Exemptions.
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 and be-
quests can be eliminated, also pro-
| ceeds of life insurance received by
the beneficiary Of an insured person.
A person who cashed an endowment
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, un.
less the person received in the year
payments which represent, when add
| ed to all prior payments on the annui-
ty, an amount greater than the origi-
~ IF fhn 3,x$l
or unexpired life insurance policies
| are not taxable in come; but dividends
on paidup policies must be considered
| income. Alimony is not income to the
recipient, nor is it an allowable deduc-
ton on the part of the person who
pays.
Deductions.
From the total of all items of in.
| come, there are certain deductions al
lowable by law All interest paid on
personal Indebtedness and all taxes
paid during the year are deductible,
| except Federal Income and Excess
| Profits taxes, inheritance taxes and
| assessments for local improvements,
such as sidewalks, sewers, etc. Losses
incurred in business or trade are al
| lowable, also losses arising from fires,
storms, shipwreck or other casualty,
| or from theft in cases where such loss
| es incurred outside of a persons regu-
lar business are allowable to the ex-
| tent of gains reported from similar
| transactions within the year. Debts
due to the taxpayer actually ascertain,
| ed to be worthless during the year
are deductible.
Depreciation.
depreciation on property used in
| profession, in business, or in farming
| is another item that may be claimed
as deduction. The storekeeper may
claim depreciation on his fixtures, and
on his delivery horses and wagons,
but not on his stock held for SALE
The professional man may claim SINH
lar deduction on his instruments; and
in the case of physician who main
tains team or auto for making his
calls on patients, reasonable deprecia-
| ton may be claimed. A farmer may
claim depreciation on his farm
buildings, aside from his per-
sonal residence, also on his farm
machinery, his work horses and farm
work wagons. The theory Of depre-
| SA0tAO11, LII NOSACSLAOu Will tAO AASOAAO
Tax, is that wear and tear caused by
use in earning income is real ex-
pense in the earning Of that income
The rate is determined by the number
Of years that the property ordinarily
would be useful, and the cost of the
property is the basis of the computa-
ton. If the property suffering depre-
citation was bought or acquired prior
to March 1, 1913, the market value
as of that date is used, instead of the
cost in figuring depreciation.
! Contributions.
contributions or gifts actually
made in 1918 to organizations operat-
ing exclusively for religious, charit-
able, scientific or education purposes,
| and to societies for the prevention of
| cruelty to children or animals, may be
deducted, to an amount not exceeding
| Is per cent of the net income comput-
| ed without the benefit of this deduc.
ton
AFTER the total of all income is
found, and the deductions allowable
by law, have been computed as an
Offset, the amount of income in excess
Of such deduction is the net income,
which forms the: basis Of the assess
ment Of tax.
! III every person in this district will
examine his own 1913 income and his
allowable deductions, in line with data
that / have given, he will know beyond
doubt whether: he must file his return
when the. blanks arrive. And here Is
how he, will determine his liability to
file a return. II he is single he must
file This net income was $1,000 or more,
and this requirement Is enforced
whether or not he Is the head of a
family. II he Is married, he must file
his return his net Income, including
that Of his wife and minor children,
WAS $4,000 or more. seses#