The Lubbock avalanche. (Lubbock, Tex.) 1909-1922, 1922-04-21

The time for filing individual in
come tax returns for the calendar
year 1921 has just passed, and no
doubt most Of us will give little
thought again until the time comes
when we will have 10 file our re-
turns for 1929.
The purpose Of this article is to
impress on the minds OF taxpayers
the importance Of their taxable in
comes and allowable expenses for
the year.
Often tax payers would be fright
fully entitled to deduct from their
gross income amounts spent dur
ing the year for certain items, but
they have no records Of the amount
of the item and hesitate 10 claim the
deduction for fear they may be
called upon TO substantiate the
amount claimed.
This of course, could not be done
without some record Of the trans
action, II some simple record were
kept, the item would be conscient-
iously claimed and result in saw
ing Of tax to the taxpayer.
Another great advantage where
records are kept is that the task Of
making up the return is simplficd
and results in saving Of time 20
yourself and the person assisting
you.
II is also important 90 the tax
payer that his items Of income are
clearly analysed, as certain kinds of
income are entirely exempt from
the tax, some are subject 90 both
normal and surtax, and others are
only subject 20 the surtax.
Following are few suggestions
as to items of which records should
Doe kept.
SALARY-A record should be
Kept Of the amount resolved from
each source.
Interest on Bank Deposits, Notes.
Mortgages and Corporation Bonds
AS certain corporation bonds con-
tain q taX-free covenant clause and
"a portion Of the normal tax d as
sumed by the debtor corporation. the
amount of this interest should be
kept separate, as you are allowed
as a credit the amount of tax paid
for YOU by the corporation
Interest on municipal bonds Is
.NNfHA AANAA hAAf NAA anu NNNfM NNHA
be reported. Interest on Liberty
and Victory Bonds is entirely ex-
empt from the normal tax, but in
certain cases is subject 10 the sur
tax and therefore record should
be kept Of the amount Of interest
received from each issue
Rents and Royalties you own
renting property, record should be
kept Of the amount Of rent received
the amount expended for repairs
and other expenses.
Business or Profession-Nou rec
ords should show the total receipts
from the business and well-ltem-
ized list Of the business expenses.
Sale OF Real Estate-lf you sell
real estate during the year, note
the year IN which it was acquired,
cost price, March ], 1913, value, If
acquired prior TO that date. cost
Of subsequent Improvements, amount
Of depreciation claimed no former
years and the sale price
Sale Of Stocks and Bonds If
you sell stocks or bonds during the
year, note the year acquired, cost
price, March /, 1913 value, II ac-
CURED prior 20 that date, and the
sale price.
Diyidends-lf you receive divi-
bends on stocks Of domestic cor
pOrations, the amount should be
kept separate as they are not sub
jest 10 the normal tax; and II your
net income including dividends does
not exceed $4,000 they do not en-
ter into your computation.
Interest Paid-With a very few
exceptions all interest paid is an
allowable deduction, and therefore |
careful record of the amounts |
paid should be kept
Taxes Paid-All taxes, with few /
exceptions are allowable deductions /
and a record Of the kinds and /
amounts should be kept. One item
Of taxes which very few people 1
keep any record Of, is the luxury /
tax; this is an allowable deduction; /
and no doubt II you would jot down
the dates and amounts as you pay |
them, you would be very much sur
prised at the end Of the year to
see how they had accumulated.
Contribution 20 organiza-
ed charitable, religious and educa-
tiOnal institutions are allowable de-