The Nezperce herald. (Nezperce, Idaho) 1900-1957, 1919-02-27

IllOuScIlOlu, lIllS PcISOll 10 NV col-
|sidered the head of family an,
is therefore entitled only to tn
$1,000 exemption. If the paren
is wholly dependent, however
and lives in the taxpayers house
hold, this makes the unmarried
person the head Of the family.
If, because of the special ex
emption for children and de
Ipendents or because of the ex
emption of soldiers and sailor!
pay, an unmarried PERSONS in
come of more than $1,000 of =;
married person s income Of more
than $4,000 is found not to be
taxable, this condition does not
free the individual from filing
d return. Thus many persons
who do not have to pay a tax
must file returns.
A head of a family is describ-
ed officially as "a person who
supports one or more persons
closely connected with him by
blood relationship, relationship
by marriage or by adoption. =
The compensation in 1918 Of a
man in the military or naval SER
vice. either as an enlisted man or
an officer, is wholly exempt from
taxation, provided this did not
exceed $4,000. Income Of sol
diers or sailors from private
sources is taxable, however, if it
exceeds the exemptions.
In figuring net income deduc-
lions may not be made for per-
sonal, family or living expenses.
The law does provide for a
number or deductions, however,
from gross income, and these are
Of interest mainly to men who
made a living out of business en-
terprises. These allowable de-
auctions include the following
items:
Expenses paid or incurred
during 1918 in carrying on any
trade or business. including rem
ais and a reasonable allowance
for salaries.
Interest paid or accrued in
1918, except on Indebtedness in.
cured for the purchase of tax
exempt stocks or bonds.
Taxes paid or accrued, except
income, war profits and excess
profits taxes and those assessed
against local benefits of a kind |
tending to improve the value of |
Losses in business or trade, if
not compensated for by insur-
nee or otherwise.
Losses in any transaction en-
cred into for profit in some side
inc of business.
Losses of property not con-
lected with the taxpayers regu-
ar business if arising from fires,
forms or other casualties, if not
overed by insurance. i
Worthless debts charged off
uring the year.
A reasonable allowance for de-
recitation Of property used inI /,
usiness or trade. :
A reasonable allowance for de- '
letion as well as depreciation of t
in the case of mines, oil t
Id gas wells and other natural t
eposits. b
Contributions to concerns OPP c
ated exclusively for charitable, >
ligious, educational or scientif- :,
purposes, not in excess Of Is u
r cent. of the taxpayers net :,
come. !"
Amortization on buildings, -
achinery, equipment, or other -,
silities constructed or acquired 10
: the production of articles fy
ntributing to the prosecution &C
war. W
The preceding items must be W
ported to the return and de-.
cted according to the method
forth in the return blank
m. o.
The following items are ex- q
pit from taxation and need not h.
included in the returns: NJ
Proceeds of life insurance poll NJ
!, returns of premium on life, . o
owment ond annuity policies, co
$, requests or inheritances e.,
come from gifts is taxable Of
Tever), interest on bonds of ii,
state, county or municipal hi,
interest On $4,000 or less of cd
arty bonds and on larger aw
unts in certain eases provid- TAI
)y the bond act, payments on T /
'unt of accident or health in 70,
nee or under workman s
pensation acts.
0 detect inaccuracies or
d in returns the internal
nue. bureau has instituted a N
EN- of checking returns with
T reports required from all
ons or interests which paid
- mr.