The Cordova daily times., 1920-02-02
SOME DETAILS
 ABOUT INCOME
 TAX RETURNS

March 15, 1920. Blanks for the re- turns had not been received by the collector Of internal revenue at Ia coma when the last mails left the south. As soon as they are received they will be mailed to all those who paid income taxes for 1918, and SUD- plies will be sent to banks and other places.
 The internal revenue bureau has given out a summary of the law with reference to what must be included in the income tax statements and what is exempt.
 The followin gitems must be in- cluded under 1919 gross income:
 Salaries, wages and commissions for personal services, including bo- nuses.
 Interest received on notes and de- posits in banks, including savings banks.
 Dividends on stock. Only dividends paid out of earnings or profits ac- crued since March 1, 1913, are tax able but dividends are deemed to be distributed out of the most recently accumulated earnings.
 Profits received from the sale of property, real or personal. If the property was purchased prior to March 1, 1913, the profit is based on the difference between the selling price and the fair market price or value as of March 1, 1913.
 Profits on Stock Trades
 Profits from stock market transac- tions.
 Income received from fiduciaries, that is amounts received from incomes of estates, trusts, etG, through trus- tees. administrators or executors.
 Partnership profits; partnerships as such are not subject to the income tax, but each individual partner must pay tax on the income from such partnership.
 Royalties from mines, oil and gas wells, patents, copyrights and fran ehises.
 Items Not Taxable
 The following items are not taxable and need not be included in the re- turn:
 Property received as a gift by will or by inheritance. The income from such property, however, is taxable.
 Proceeds of life insurance policies.
 Returns of premiums on life insur- ance, endowment or annuity con- tracts.
 Amounts received through accident or health insurance or under work mems compensation acts, plus the amount of damages received, whether by suit or agreement
 Interest on obligations of any state, or any city, town, county or village and the District of Columbia. Inter- est on obligations of the United States is exempt from tax except that interest on obligations issued after September 1, 1917 is exempt only to the extent provided in the Liberty loan act.
 Interest on the securities issued un- der the provisions of the federal farm loan act of July IT, 1916.
 Army Pay Is Exempt
 Amounts received during the war by persons in the active military or naval forces up to $3,500, in addition to personal exemption. Interest on Liberty bonds to the par value of $5,000 is exempt from all taxation. Holders of large amounts of Liberty bonds are advised to con- suit their bankers or collectors of in- ternal revenue as to their exemptions. ] The law expressly prohibits the de- lduction of personal or living ex- penses. These include rent, wages of servants, cost of food and clothing for family, upkeep of automobiles used for pleasure or convenience, educa- tion of children and similar items. h. come spent during the year 1919 for any of these items is subject to the tax
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