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

be met without careful review Of
income and expenditure for the tax
year. That is the big job right now,
and that is why say the Income Tax
drive is already under way. Every
where the pencil is busy. The old
year is done; all its fruits are CLEAN
ed; and every person who Jared we'll,
or earned a good competence, must
analyze his own case in cold figures.
when the new bill is enacted into
law, I will have the proper return
forms distributed throughout the Dis
trict, and everybody will be Informed
of the date when the sworn return
must be filed. 1t is my plan to send
my men out to central locations, and
to have them travel through the Dis
trict, aiding taxpayers in the prepare
ton of the returns and in deciding
doubtful points We will go right
to the people with the Income Tax,
and with the cooperation which the
public can give the government men,
the returns will be filed by everybody
who comes under the laws provisions,
the right taxes will be paid, and the
District will have done its full patri.
otto duty toward the governments
support.
meanwhile, let me say again, there
is no need of delaying the preparation
of figures. Anything that Congress
does now will not affect the amount
of a persons earnings for 1918. Let
us avoid the belated throwing together
of figures that may hit or miss. Guess
es cannot be accepted as the basis OF
taxation. It is clearly the duty OF
every person to compile correct fig
ures and ascertain whether his in
come for 1918 was sufficient to make
necessary sworn return.
1.-The year 1918 was banner year
far salaries and wages, and the high
war prices brought unusual profits to
the average small tradesman and to
the farmer. The opinion in Washing
ton Is that a million citizens and resi-
dents will make this year their first
income tax returns.
"All signs indicate that the income
tax this year will reach nearly every
working man and woman, and nearly
every merchant, shop keeper and farm
err Not all will have to pay the tax
but nearly all will be obliged to make
a sworn statement of the years in
come.
Sharpen Your Pencils.
81 am therefore advising every un
married person who earned $1,000 or
over during the year 1913, and every
married person, who together with
wife or husband, earned $4,000, tC
sharpen his pencil and figure out how
he stands.
"He must ascertain accurately his
gross income from all sources. There's
his salary or wages, including over
time pay and any bonus received as
additional compensation. A married
person having children under Is who
are working should include the earn
ings Of such children.
Land Values.
IF he sold any property at a profit
the gain must be computed and in
| cluded in gross income. If he rented
any property to other persons, the
total rents received in the year must
be ascertained, and from that figure
a deduction may be taken for taxes
paid on rented property, the necessary
minor repairs, fire insurance, and in
terest he may have paid on mortgage
| and reasonable allowance for annual
wear and tear of the rented property
The balance is included in gross in
come for the year.
Interest.
Interest on bank deposits, whether
withdrawn or added to his bank bal
ances, must be included in all calcu
lations Of income. Bond interest re-
| ceived during the year must also be
included, except interest on municipal
county or state bonds. Interest on
| United States Bonds need not be in
| cluded by the ordinary bond holder
| who purchased, small amounts. Hold
ers of large amounts of Liberty bonds
| however, should ask their bankers tc
| write to my Office for the rule apply
ing to tax on such interest.
Dividends.
"Dividends on stock shares are in
come, and must be included in the
gross figures, although the law does
not impose the normaI tax on distri
buttons made by domestic corpora
tions
"A person buying and selling mer
chandise must find his profits for the
year on the following basis: First
ascertain the gross sales or total casf
| receipts. Then add together the in
ventory at the beginning Of the veal
| and the purchases Of goods for re
sale. From this latter sum subtract
the inventory of goods on hand at the
years end, and the result is the cost
Of goods sold. This cost, plus neces
sary expenses incurred solely through
conduct OF the business, is to be de
Quoted from the gross sales, and. the
result is the net earning Of the bust
ness. / e
"A professional man arrives at his
professional income by ascertainins
the total OF fees for services and de
Quoting therefrom all expenses con
nected directly and solely with his
practice.
Farmers Incomes.
"a farmer must figure up all income
derived from the sale or exchange Of
products during the year, whether
such produce was raised on the farm
or purchased and. resold. He Is al
lowed to deduct from this total his
expenses of sthe year, connected with
I the planting, cultivation, harvesting
| and marketing of the crop, Of
the care, feeding and market
| ing of live stock. He is not allowed
Ito heduct the amount expended in 1915
IN purchasing stock for resale; but
when such stock 10 sold its cost 10 to
be deducte6 rom 1ale price u ascer