The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-01-31
Us, REVENUE BUREAU HAS
l932TAX ACT TRANSLATED
INTO SIMPLEST LANGUAGE

WASHINGTON, Jan. 81 (UP)
The International Rev n u e
bureau today interpreted the
Revenue Act of 1882 in simple
language and illustrated 1t with
clear examples in an effort to heip
millions of persons required to file
income tax returns for last year.
Income tax levies, which affect
the pOcketbOoks of many Ameri-
cans, were explained along with
exemptions, deductions, and valu-
able information pertaining TO
business and professional expenS-
es. taxes paid, and depreciations.
Returns are required of every
single person who for the calendar
year 1882 had a gross income OF
$4,000 or more, or a net income
of $1,000 or more and of every
husband and wife living together,
who had an aggregate gross IN
come of $4,000 or more. or an
aggregate net income of $4,000 or
more.
PERSONAL EXEMPTIONS
Personal exemptions include
$1,000 for single persons and
$4,000 for married persons living
together and for heads of families.
In addition to personal exemp-
tions, a taxpayer is entitled to q
credit of $4OO for each dependent
defined bv incOme-tax law and
regulations as q person under Is
years of age or incapable OF sell
support because mentally or phy-
sically defective.
The term mentally or physi-
cally defective means not only
cripples and those mentally de
fective, but persons in i'll health
and the aged. according to the
bureau.
The normal tax rate is four per
cent on the first $4,000 of net in
come in excess of the personal ex-
emptiOn, credit for dependents
etc; and eight per cent on the
remainder of such excess amounts.
Surtax rates begin on net incomes
in excess of $4,000.
deductions for business eX-
penses form a large item in the
return of many taxpayers and
must have certain qualities to be
allowed" the bureau said.
EXCUSE FOR DEDUCTIONS
"Such deduction must be for an
expenditure in connection with
the maintenance and operation of
the taxpayers business or buSl-
ness properties; it must be an
ordinary and necessary expense.
Typical business. expenses OF a
mercantile establishment listed by
the bureau include; amounts paid
for advertising, hire of clerks and
other employees, rent, light, heat,
water, stationery, stamps, tele-
phone, property insurance, and
delivery costs"
"The farmer" the bureau has
ruled. "may deduct all amounts
paid in the production, harvesting
and marketing of crops. including
labor, cost of seed and fertilizer
used, cost of minor repairs to
farm buildings (other than his
dwelling). and small tools used up
in the course of a year or two.
A professional man may deduct
all necessary expenses incurred IN
the pursuit of his business.
These include the cost of sup
plies used in his practice, expenses
paid in the operation and repairs
of an automobile used in making
professional calls, office rent, cost
of light, water, fuel, and telephone
in his office, and the hire of office
assistants.
SOCIETY DUES DEDUcTIBLE
Membership dues in profession
al societies are deductible.
Physicians and dentists who
keep in their waiting rooms cur
rent margazines and newspapers
for the benefit of their patients
may deduct this item as q bust
ness expense.
Losses from casualties and theft
are deductible if they are not
covered by insurance.
"a loss arising from fires,
storms, shipwrecks or other cas-
ualty need not be connected with
the taxpayers trade or business"
the bureau has decided.
Bad debts constitute a consider