Imperial Valley press., 1922-02-01
NO. >
Income Tax Facts


A new and important provision in
the revenue act of 1921 is that every
person whose gross income for 1921
was $4,000 or over shall file a return
regardless of the amount of net in
come. If a husband and wife living
I together have an aggregate gross in
come of $4,000 or over, separate re-
turns or joint return may be filed.
/ Regardless of the amount of gross
income, returns are required of every
married person living with husband or
wife whose net income for 1921 was
+ 50 900 or over, and of every single per
son, or married person not living with
/ husband or wife, whose net income was
81 900 or over. NET income" upon
which the tax is assessed, is gross
income" less certain specified deduc-
tions. Gross income includes gains,
profits and income derived from sala-
ries, wages, or compensation for per-
sonal service, of whatever kind and in
whatever form paid, or from profes-
sionS, yocations, trades, businesses
commerce, or sales, or dealings in
property, whether real or personal,
growing out Of the ownership or use of
| interest, rent, dividends, securities, or
the transaction of any business car
ried on for gain or profit, or gains or
profits and income derived from any
source whatever"
Taxpayers may be divided into four
general classes-the wage Garner or
salaried class, business, professional
and agricultural. Any form of COM
gpehsation for personal service render
ed by the wage Garner is income in
cluding salaries, wages, commissions,
fees, pensions paid retired employees
and tips. All must be included in gross
income. If payment for personal serv-
ices is made partly in cash and partly
in board and lodging, fair value must
be placed on the room and meals, and
the amount included as income
/ The gross income of the usual bust
ness consists Of the gross profits on
sales together with income from other
sources. The return must show the
! gross sales, purchases, and cost Of
goods sold. To reflect net income cor
Irectly, inventories are necessary at the
beginning and end of each taxable
year.
The lawyer, doctor, architect, au-
thor, dentist, clergyman must include
in his return Of gross income all fees,
salaries, and like compensation for
professional services.
/ Exemption Allowed Clergymen
Certain items are specifically ex-
empt from income tax. In addition to
the items exempted by the revenue act
Of 1913, such as proceeds Of life n
ily heavy crop next summer, with the
result that, unless the Exchange is put
on firm financial basis, independent
selling viii ruin the eastern market
and, with it, the honey producers Of
California themselves.
/ "Facing this fact, the Exchange ap-
pealed to the FIRST National Bank Of
/ Los Angeles for financial assistance,
ard that bank has agreed to do for
the honey producers what it already
IS i. the habit Of doing for other CO.
operative producers and for the cotton
growers Of Imperial Valley, Arizona
and New IexIcO-tnis BY advancing
necessary credit 10 carry the crop and
promote the selling work of the Ex-
change, if and when the Exchange IS
placed upon q firm foundation through
re-enrollment Cf its members.
at the same time, Governor
Stephens has set aside the week Of
February Gil as Honey Week" in
California, during which time honey
viii be sold by the retailer at whole
sale priccs-this in order to build Up
a market for this important Calilor-
MIA product.
1T looks like brighter days for tie
honey man"