The Owosso times. (Owosso, Mich.) 1897-1926, 1919-01-24

| fits, inheritance taxes and assessments
for local improvements, such as side
walks, sewers, etc. Losses incurred in
business or trade are allowable, also
losses arising from fires, storms, ship
wreck or other casualty, or from
theft, in cases where such losses are
not compensated for by insurance or
otherwise. Losses incurred outside OF
persons regular business are allow
able to the extent of gains reported
from similar transactions within the
year. Debts due to the taxpayer &C
tually ascertained to be worthless dur
ing the year are dedactible.
Depreciation on property used ii,
a profession, in business, or in farm
ing is another item that may be claim
ed as a 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 similar
deduction on his instruments; and, in
case of physician who maintains a
team or auto for making his calls on
patients, reasonable 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 depreciation, in connection
with the income tax, is that Wear anc
tear caused by use in earning in
come is real expense in the earning
Of that income. The rate is determin-
ed by the number of years that the
property ordinarily would be useful,
and the cost of the property is the
basis of the computation. If the
property suffering depreciation 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 or gifts actually
made in 1913 to organizations oper-
ating exclusively for religious, char
liable, 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 COM
puted without the benefit of this de-
duction. After the total of all in
come is found, and the deductions al
lowable by law have been computed
as an offset, the amount of income in
excess of such such deductions is the
net income, which forms the basis
of the assessment of tax
"If every person in this distric.
will examine his own 1918 income
and his allowable deductions, in line
with data that l 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 return. If he is sim
gle he must file if his net income was
81 900 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,
that of his wife and minor
children, was $4,000 or more.
81 want to emphasize the co-opera-
lion feature of the collection of the
income tax this year. The policy of
The internal revenue bureau is to aid
taxpayers to meet the requirements
Of the law. We are going right to
the people, not to swing clubs or to
nulct the wage-earner of his savings,
put offering every helpful government
al function that will assist people to
10 their duty"