The Leavenworth echo. [volume] (Leavenworth, Wash.) 1904-current, 1919-01-24
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nor is it an allowable deduction on the I
part of the person who pays.
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 bushes or trade are allow
able; also losses arising from fires,
storms, shipwreck or other casualty, |
or from theft, in cases where such /
losses are not compensated for by in
surance or otherwise. Losses incurred /
outside of a persons regular business i,
are allowable to the extent of gains |
reported from similar transactions |
within the year. Debts due to the |
taxpayer actually ascertained to be |
worthless during the year are deduct
able.
Depreciation on property used in
profession, in business, or in farm
ing, is another item that may be
claimed as a deduction. The store
keeper 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 similar deduction on his instru-
ments, and, in the case of physi-
clan who maintains team or auto
for making his calls on patients, rea-
sonable depreciation may be claimed.
The farmer may claim depreciation
on his farm buildings, aside from his
personal residence, also on his farm
| machinery, his work horses and farm
| work wagons. The theory of depreci-
alton in connection with the income
| tax is that wear and tear caused by
the use in earning income is real
expense in the earring of that income.
The rate is determined by the num-
Der of years that the property ordinar-
| lily would be useful, and the cost of the
property is the basis of the deprecia-
ton. If the property suffering de-
probation was bought or acquired
prior to March /, 1913, the market
value of that date is used, instead of
the cost, in figuring depreciation.
contributions or gifts actually
made in 1918 to organizations operat-
ing exclusively for religious, charita-
bic, scientific or educational 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 COM
puted without the benefit of this de-
duction.
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
deductions is the net income, which
forms the basis of the assessment of
tax.
"If every person in this district will
examine his own 1918 income and his
allowable deductions, in line with data
that / have given, he will know be-
yond doubt whether he must file his
return when the blanks arrive. And
here is how he will determine his Ii
ability to file return. If he is sim
gle he must file if his net income was
$1,000 or more, and this requirement
is enforced whether or not he is the
head of family. If he is married he
| must file his return if his net income,
including that of his wife and minor
children, was $4,000 OF more.
al want to emphasize the co-opera-
| ton feature of the collection of the in
come tax this year. The policy of the
Internal Revenue Bureau is to aid tax
payers to meet the requirements of the
lew. We are going right to the peo-
pie, not to swing clubs or to mulct
the wage Garner of his savings, but
offering every helpful governmental
function that will assist people to do
their duty
Income tax blanks for the year 1918
will be distributed as soon after the
enactment of the law as possible.
!