The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1923-02-16
used in his office. and the hire of

assistants.
The farmer may deduct all
amounts paid in the production,
harvesting and marketing of crops,
including labor, cost of seed and
fertilizer purchased, cost of minor
repairs to farm buildings (other
than the dwelling, which is personal
expense) and cost of small tools
used in the course of a year or two.
Rent paid for a farm also is an
allowable deduction.
Deduction of personal or living
expenses such as rent paid for a
dwelling, hire of domestic servants,
education of children, etc, Is ex-
pressly .disallowed by the revenue
act.
In making out his income tax re-
turn for the year 1922, the taxpay-
er is required to include all items
of gross income. In the case of a
storekeeper the gross income con-
sists usually of the gross profits on
sales, together with income from
other sources. The returns must
show the gross sales, purchases, and
cost of goods sold. To reflect net
income correctly, and to ascertain
gross income inventories are ordin-
arily required as of the beginning
and end of each taxable year. The
professional man, doctor, lawyer,
dentist, must include all fees and
other compensation for professional
services.
The farmer is required to report
as gross income all profits derived
from the sale or exchange of farm
n1r Iinr
stock, whether raised on the farm
er who rents his farm on the crop
sharing basis must report such in
come for the years in which the
crops are sold. Profit obtained
from the sale or rental of farm
lands also must be reported.
In order that they may obtain
full advantage of the deductions
from gross income to which they
are entitled, taxpayers are advised
by collectors of internal revenue
to study carefully the instructions
on the forms for making returns
under the head "Income from Bust
ness or Profession.
Liability to file an income tax
return for the year 1922 is de-
termined by a persons status on the
last day of the taxable year, Dec
ember 81, if the return is made on
the calendar year basis, as most
are. If on that date he was single
he must file return if his net in
come for 1922 was $1,000 or more,
and he is allowed only an ex emp
ton of $1,000. If he was married
on December 81 he is granted the
exemption allowed a married per-
SON for the full year, $4,000 if the
net income was $4,000 or less, and
$4,000 if his net income exceeded
$4,000. The brides income, how
ever, must be considered with that
of her husband, the larger exemp-
tions being allowed married couples
living together A widow or wild
over whose spouse died before the
end of the year is classed as
| single person. Divorces and per-
sons separated by mutual consent
also are classed as single persons.
Similar conditions exist with re-
spect to the head of a family. If
during the year, his support OF
relatives ceased he is entitled only
to the $1,000 exemption. A mar
who has a dependent child, not
mentally or physically defective
that attains the age of Is years
| Just before the close of the taxable
y-ar, can not claim the $500 credit
for a dependent.
| To avoid penalty, income tax re-
turns must be filed with the collect
| or of internal revenue for the dis
| trict in which the taxpayer lives OF
has principal place of business or
or before midnight of March Is
1923.
/ Where additional time is required
because of illness or absence of the
taxpayer from home, the collector
may grant, upon application before
the return is due, March Is, an ex
| If an accurate return can not bt
made within the 80 days extension
period, a request for further ex
| tension must be made to the Com
| missioner of Internal Revenue
Washington, D. c. Collectors have
not authority to grant extension ex
ceeding 80 days.
Failure to make a return OF
time subjects the delinquent to /,
penalty of $1,000 and an additions
| penalty of 25 per cent of tn,
amount due. If the failure is will
/ full, however, or an attempt is mad,
to evade the tax by filing a falls,
return, the offender is liable t,
Imprisonment and to fine of no
more than $4,000 and costs il
addition to a penalty of SO per cen
of the amount of tax evaded.