The midland journal. (Rising Sun, Md.) 1885-1947, 1925-03-13
FRIDAY. MARCH 1s. 1925
YOUR INCOME TAX

In making OUT Ills lACOAiO eN<n AOA
the year 1924 the business man, pio-
fessional man. and farmer is reuulr
ed to use Form 104O, regardless Vi
whether mis- net income WAS CT Was
not in excess OF 5000 The
smaller FORM l04OA 10 used Tor re-
porting income of $4,000 o. less
derived chiefly from salaries O.
wages.
Forms have been sent to persons
who last year flied returns VI H.
come. Failure TO receive a form,
however, does not relieve the lax
payer from his obligation TO ME
return and pay the tax within the
time prescribed, on or before MarcL
Is, 1925. Copies or the rorms may
be obtained from offices Of collectors
of internal revenue and branch OF
noes. The tax may be paid in 1ull g
the time OF fling the return, or IT
four equal installments, due on .;
before March 15,. June Is. Septem
Der Is, and December 10.
The taxpayer mus -Tchde IN bis
lncome-tax retsrn for the year l924
all items of gross income specified b.
law. In the case OF a ST s-ekeereI.
gross income usually consists OF
gross profits on sales, together with
income from other sources. The re-
turn must show the gross sales, pur
chases, and cost OF goods sold. Thr.
professional man, lawyer, doctor,
dentist, must include ali lees aud
other compensation received from
professional services. The farmer
must report as gross income the pl o.
ceeds of sales or exchange oi So
ducts raised on the farm Ca
whether purchased by him anu j.
sold. He must report also gros, in
come from all other sources, such as
rentals or protlts from The sale q
farm land.
Net income, upon which the tax is
assessed. is gross income less Cei.-
tain deductions for business, ex-
penses, losses, bad debts, contri-
buttons, etc 10 take full aG an
tage of the deductions 10 which en-
titled taxpayers should read cara
fully the instructions on the form
under the heads of Income II 1Ll
business or profession"
A storekeeper may deduct as a
business expense amounts spent for
rent of his pace OF business, adv.,r
Using, premiums tor insurance
against fire or other losses, cost of
water, light and heat used in his
place of business, drayage ~and
freight bills, and the c.s1 Of main
Genance and repair to delivery
wagons and trucks, and reasonable
allowance for salaries.
A professional man, such as law
yer, doctor, OF dentist, may deduct
the cost of supplies used in his pro-
fession, expenses paid in the opera
ton and repair OF automoDlies used
in making professional calls, dues to
professional journals. office rent
cost of water, light, and heat used in
his office, and the hire OF office
assistants.
The farmer may deduct as neces-
sary expenses all amounts actually
expended in carrying on the bust
ness of farming, sucn as amounts
paid in the production and har
vesting OF mis- crODs, cos. OF seed and
fertilizer used. cost of u.:nor repairs
to farm buildings, and cost Of small
tools used up In n course of year
or two. The cost of farm machinery,
equipment, and farm buildings is
not deductible as expense.
Deductions for personal or llvin,
expenses, such as repairs to The TIA
payers dwelling. cost OF food, cloth
ing, education Of children, ETC., are
not allowed.