The daily banner. (Cambridge, Md.) 1897-2008, 1920-01-10
INCOME TAX FOR
THE YEAR 1919.
Can Now be Made up and Sent In
just as S~~n as Necessary Blanks
Are Distributed.

Income Tax returns for the veal
1919 may now be made up and car
be sent in as soon as the blanks are
distributed by the Collectors office
1t is very important that every person
now take note of his affairs of the
past year to determine whether or not
he is liable in any way. For the in
formation of readers of this paper
Deputy Collector Chas. O. Carter,t ir
charge of these taxes in Carolile
Dorchester and Talbot counties, has
prepared the following information
which is of interest to all
! Every unmarried person having for
the calendar year net income of
81, 900, or more, must make a return
regardless of the amount of eXemp-
tion to which he is entitled. The pen
/ atty for failure to make this return
before the 18th day of next March S
not more than $1,000. This penalty
will be certainly avoided only. by
making the return as required by
law.
Every partnership and every cor
poration engaged in business, unless OF
he kind exempted by law, must make
4 return regardless of the amount OF
its gross or net income. The penalty
on a partnership is the same as on an.
individual. No tax is paid by any
partnership, but the individual part
ners must include the entire earnings
to which they were entitled when
making return.
The rate of tax for 1919 is A per
cent. for individuals and 10 per cent.
for corporations. Fiduciary incomes
are taxed as individuals, the exempt
ion being $1,000. Individuals will
pay 8 per cent. on any amount of in-i
come over $4,000, and the same sur
tax as last year on any amount of
income over $4,000
From the gross incomes the tax
payer is entitled to deduct for all
business expenses paid. This means
wages of employees, (not wagess paid
to self or minor children or wife),
rent on leased property, interest on
borrowed money, taxes, Except for
tocal benefits which apply to certain
properties); insurance, Except on
the home of the taxpayer) f; donations
70 religious, charitable, educational or
War-work organizations; and, in gen
era!, any expense which is properly
charged against the business or its con
duct.
BY gross income is meant the total
received from wages; salaries.
commissions; bonuses; fees; pensions;
partnership profits whether distribu-
ted or not) distribution from estates
or trusts; profits from the sale of
property (real or personaD stocks,
bonds, securities, options; rents and
interest on accounts, notes,
mortgages and bonds, including tax
free bonds, annuities; and other in
come not specifically exempted by
law.
Against incomes from business and
from leased properties the taxayer
may charge, in addition to the be-
ductions above named, the deprecia-
ton of buildings, furniture, fixtures
and machinery used for business pur-
poses, and for trucks, and automo-
biles used for business. This allow
ance for depreciation is based upon
the probable life of the property to
which it applies and may not apply
to that part of the value which is
in the land or in merchandise or
other property bought for sale in the
business. The usual rate on brick,
stone or concrete buildings is two to
three per cent; on frame buildings,
from three to five per cent; on furni-
ture, fixtures, machinery, fences,
drains, ETC., ten per cent; on trucks
and automobiles, 20 per cent. or more
all rates depending upon the condi-
tions and the probable life of the
property.
A great deal of misunderstanding
exists concerning 'bad debts" This
deduction is allowed only to those
who include good debts" in their in
come. There are two bases on which