The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1921-01-15
1921 INCOME FACTS
YOU SHOULD KNOW

cctyct 10y the Bureau al lutrlh1! IHSs
nue. concerning the ltGina 10 DC IN, ~
Guided under gross Income III 'he
1870 income tax returns. correct u"-
outstanding Of the term is OF para
mount Importance TO the tANp@!e', "a
Il is the basis upon winch Inc return
Is made. ,ot
20 include gains. profits, and income
derived from salaries, wages, or per
sonal condensation, or from probes
slons. vuCat!ons, trades, business com
Incrce, or sales or dealings III proper ;
also from Interest, rents niF'uS" ,.,S,
securities, or IN the transaction OF any
business carried on tor gain or pFohl'
and income derived from any source
whatever" Practically every dollar
received by the taxpayer during Tue
ycar 1920 must be shown in his return
rs gross income. In arriving AZ ne
income, upon which tho tax is assessed
the taxpayer is allowed certain spec
he'd deductions, such as DuS!neS" tN-
renses. losses, and Depreciation. which
Will hr Iul!y explained later.
WACO Farmers TAX Return
Taxpayers may be divided into FOUR
genera, clas5rs--thc wage Garner or
SalaricL class. business. profess 'cnaI'
and agricultural. Any form OF CON-
pcnsatun for personal services rcN-
dcrcd by the wage Garner Is income
including salaries, wages, COMMISSIONS
fees. ana bonuses. aud tips. IaHmch-
for personal services may be paid far
rartiy IN cash and partly in hoard @Ad
lodging. In this event u fAir f1'uc
must be placed on the room ana meals
and the amount reported rs income.
PrumsSOry notes received IN pay
mcni for services, and not merely as
security for such payments, constitute
income to the amount OF their lar
market value. When services are pa -
for in something other than MONEY,
the fair market value of the thin
taken in payment is the amount to be
included as income.
If the services were rendered ut 0
stimulated price. in the absence OF CNi-
dcncc to the contrary such price Will
he presumed to be the fair value ~
the compensation received. Somp
lion credited TO taxpayers account
ana subject To withdrawal must be re-
ported as income whether actually re-
ccivcI or not.
The gross income or tho usual bus
ness consists Of the gross profit on
sales, together with in"olu" from UthGr
sources The return must show the
goods sold. To reflect ret income cor
rnctlv and ~ ascertain gross income
Inventories are necessary at the be-
ginning and end "C each t2Nahle year.
The lawyer. doctor. architect. actor.
author. dentist, clergyman. and JthHr
professional man must include N his
return Of gross income all foes sal
aries. aud other compensation for pro
fcsSional services
Return cy Farmers.
The farmer * required 10 report as
gross income all profits derived from
tho sale or cXcaanEc Of farm products.
Including crops and live stock whether
produced on "a" farm or purCha sod
and rcsol Where farm produce is
exchanged for groceries. merchandise.
or other articles the fair market value
&C the article must hc reported rs IN
come. \ farmer vino rents his far3i
on the crup-shHrc basis must rcp"Tt
suCn income for the var III which the
Crops are sold. l'rur. derived from
the sale or rental Of farm lands ruSt
be reported.
Within the meaning oe the revenue
net the term farm includes stock,
dairy, poultry, fruit. and truck farms:
also ranches. plantations. and all lana
used for farming operations. In IL
viduals. partnerships. or corporations
that operate or manage farms for
profit. either rs owners or tenants, are
designated farmers.
Every taxpayer is required to in
clude In hts return Of gross income the
following items:
Interest received on notes and de-
rosits in banks. including savings
cash dividend On stock. The SUI
prem" court decided in March. 1920.
that stock dividends are not taxable.
prints from the salc Of such stock.
however. are taxable income ror the
year in which received. Only div
bonds paid out Of earnings or profits
accrued since March !. 1913. are taxed
Profits received from the sale Of
property. real or personal. If the prop
crIy was purchased prior to March |.
1913, the pront IS based on the differ
rucc between the selling price and tho
fair market price or value : Of March
|. 1918.
Partnership rroits: partnerships as
such arc not subject 10 the incom" tax.
hut each Individual PARTNER must pay
4 tax on the income from such partner
shin. Partnerships arc required to
render a return on form 1905.
Royalties from mines. oil and gas
wells. copyrights. and franchises. In
come received from nduc!arics: that
is. amounts received from incomes of
estates. trusts, "tc., through trustees,
administrators, and executors