Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1924-01-16
No. 8.

! whom you exercise family control,
you are the head of a family
and entitled in your income
tax return for the year 1928,
to the same exemptions grant
ed a married person. These are $500
if the net income was $1,000 or less.
$4,000 if the net income was more
than $4,000 In addition the head of
a family may claim $500 credit for
| each person dependent upon him for
! chief support if such person is under
Is years of age or incapable of self
support because mentally or physi-
cally defective.
For example, a son supports in his
| home an aged mother and two sisters
4 and 16 years of age. His net in
come for 1928 was $4,000. He is en-
titled to an exemption of 50, 500 plus
$500 credit for each dependent, a
! total of $1,000. While he pays no
| tax, he must file a return, because his
net income was in excess of 81, 900.
An exemption as the head of
: family can be claimed by only one
! member of household.
J In making out his income-taX
! return for the year 1928 the business
: man, professional man and farmer
, will be required to use Form 1910,
! regardless of whether his net income
/ was or was not in excess of $1,000
| or less derived chiefly from salary or
wages.
All items of gross income must
| be reported. In case of a storekeeper
gross income usually consists of the
gross profits on sales, together with
| income from other sources. The re-
| turn must show the gross sales,
| purchases, and cost of goods sold.
The professional man, lawyer, doc
| tor, dentist, must include all fees and
other compensation for professional
services. The farmer must report as
| gross income the proceeds of sale or
exchange of products raised on the
| farm and the profits from the sale
| of products purchased by him and re-
sold. He must also report gross in
come from all other sources.
Taxpayers, in order to take full
| advantage of the deductions to which
, they are entitled, are advised to
! study carefully the instructions on
! the forms under the head Income
from business or profession"
In the making OF his 1928 income
tax return, the business man, profess
sional man and farmer, may deduct
4 from gross income all items properly
| attributable to business expenses. In
the case of storekeeper they include
amounts spent for rent of his place
of business, advertising, premiums
for insurance against fire or other
losses, the cost of water, light and
4 heat used in his place of business,
( drayage and freight bills, the cost of
repairs and maintenance to delivery
! wagons and trucks, and reasonable
! allowance for salaries of employees
! A professional man, lawyer, doctor
! or dentist, may deduct the cost of
! supplies used in his profession, ex-
| penses paid in the operation and re-
! pair of an automobile used in making
! professional calls, dues to profess
sional societies, subscriptions to pro-
| fessional journals, office rent, cost of
light, heat and water used in his
office, and the hire of Office assist
ants. The farmer may deduct
amounts paid in the production and
harvesting of his crops, cost of seed
and fertilizer used, cost of minor re-
I pairs to farm buildings (other than
: the dwelling), and the cost of small
tools used up in the course of a year
or two.