The Dawson news. (Dawson, Ga.) 1889-current, 1919-02-04

r ~ OAAS RSA 0OA WIN pays H.
From the total of all items of in
come there are certain deductions
allowable by law. All interest paid
on personal indebtedness and all taxes
paid during the year are deductible,
except federal income and excess
profit taxes, inheritance taxes and
assessments for local improvements,
such as sidewalks, sewers, etc. Loss
es incurred in business or trade are
allowable, also, losses arising from
fires, storm, shipwreck or other cas-
ualtty, or from theft, in cases where
such losses are not by insurance
or otherwise. Losses incurred out
side persons regular business are
allowable to the extent of gains re-
ported from similar transactions with
in the year. Debts due to the tax
payer actually ascertained to be
worthless during the year are deduc-
tible.
Depreciation on property used in
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 fix
lures, and on his delivery horses and
wagons, but not on his stock held for
resale. The professional man may
claim similar deduction on his instru-
ment, and in case the physician who
maintains team or auto for making
his calls on patients reasonable de-
probation may be claimed. The far
mer may claim depreciation on his
farm buildings, aside from his per-
sonal residence. also on his farm ma
chinery, his work horses and farm
wagons. The theory of depreciation
in connection with income tax, is
that wear and tear caused by use in
earning income is a real expense 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 for the compu-
tation. If the property suffering de-
probation was bought or acquired
prior to March 1, 1918, the market
the cost, in figuring depreciation.
contributions or gifts actually
made in 1918 to organizations for
religious, charitable, scientific or ed
ucational purposes, and to societies
for the prevention of cruelty to child
rem or animals, may be deducted, to
an amount not exceeding Is per cent
net of the income computed without
benefit of this deduction.
"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 ex-
cess of such deductions is the net in
come, which forms the basis of the
assessment of tax.
"If every person in this district
will examine his own 1918 income
and allowable deductions, in line with
the data that | have given, he will
know beyond doubt whether he must
file his return when the blanks ar
rive. And here is how he will deter
mine his liability to file return. If
he is single he must file his return if
his net income was $1,000, or more,
and this requirement is enforced
whether or not he is the head of a
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, or more.
81 want to emphasize the cooper
dIlN6 ISdIuIe VI IIIO COlICCCIOu VI JIlS
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
mulct the wage-earner of his savings,
but offering every helpful govern
mental function that will assist peo-
pie to do their duty"