The Nezperce herald. (Nezperce, Idaho) 1900-1957, 1924-06-05
THINGS WORTH KNOWING ABOUT
INCOME TAX LAW.

Ine I0loWlng desirable information
is available through the courtesy O
Joe Richards, auditor for the Uniol
Securities Co. of Spokane, who is her
making his regular semi-annual exam
ination of the Farmers State Bank
1t is this bank desire to be helpful
to its customers in solving their in
come tax problems.
Mr.. Richards says:
President Coolidge has signed the
1924 Income Tax Law which provides
for the lowest rates of all the various
laws passed since 1917. The principal
reduction will come next March when
taxes for 1924 are due but immediate
relief of 25 per centum is granted on
all amounts due or paid on 1928 in
comes. Taxpayers who have already
paid in full for 1923 will receive a
refund without applying for it. Those
who pay on the quarterly basis may
reduce the June 18th installment by
one-half of the total reduction grant
ed and the last two quarterly install
ments by one-quarter each.
Interesting provisions of the new
law are:
The $1,000 exemption in the case of
single person; $250O exemption in
the case of married person living
with spouse or who is the head of a
family; $40O exemption for each de-
pendent
These credits are determined by the
status of the tax payer on the last
day of his taxable year.
The rate of tax is 296 on the first
$4,000. Net income in excess of the
above credits: 40 on the next $4,000
and $50 on the remainder. The surtax
starts at $4,000, the rate being 10
on net incomes between $4,000 end
$4,000. The tax is increased at the
rate of Ia on each additional $4,000
income over $4,000.
Returns must be made by single
person if his net income is $1,000 or
over and by married person if his
net income is $2500 or over. If net
incomes are under these amounts yoiI
are not required to make return,
but if your gross income is $4,000 or
over you must make return regard
less of the amount of your net in.
come.
If for the taxable year 1922 a tax
payer sustained net loss in excess
Of his net income for 1923, the amount
of such excess shall be allowed as n
deduction in computing net income for
the year 1924. Such losses may pc
carried over and applied against In
comes for the two succeeding years.
nGross Income" is now very
broad term and includes winnings
from a penny-ante game to aiimony
received as result thereof, but losses
sustained at the green cloth Except
at Monte Carlo where gaming is sane
toned by the government) and the re-
sulting alimony are not found among
allowable deductions.
The rental value Of dwelling house
and appurtenances thereof furnished
70 a minister of the gospel as a part
Of his compensation is no longer tax
able income.
Persons who have paid surtaxes in
past year should file claims for re-
funds supported by separate returns
for himself and spouse. Idaho is one
IF the seven Community Property
5tates'' enjoying the special privilege.
Farmers who have paid surtaxes in
,ast years due to holding two or three
7ears crops and selling in one year
,hould file amended returns, comput-
mo- their income on inventory basis
md thereby equaizing the tax over
everal years instead of paying an ex-
ra large tax in one year.
For corporations the rate of the tax
emains at 121aeo with the same spe-
ific exemption of $4,000 on net income
lot in excess of $4,000. Farmer .
sochdale companies organized for the
urpose of marketing the products of
nembers and purchasing supplies and
ouipment for the use of members and
urning back vo them the proceeds
fter paying expenses and nominal
ividends of capital memberships are
xempt from taxation to the extent of
he percentage of business done with
lembers.