The Abbeville press and banner. (Abbeville, S.C.) 1869-1924, January 28, 1919, Page SEVEN, Image 7
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S % - INCOME TAX EDUCATIONAL malt
SERIES. yeai
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The big Income Tax drive for 1919 unit
is now under way, and every preV
paration is being made to handle the an(*
largest collection in the history of
Income Tax. "I am not waiting fa? e<* *
the final passage of the new Revenue figu
Bill by Congress," said Collector D. "J
' C. Heyward today, "nor for the new 8T?S
regulations and blank forms to be The:
" issued. To git ttyis big tax in and infiT
get it accurate and complete, I- urge ce*v
j,; .'. that we all begin now. A E
"The Income Tax obligations im- ^n(*'
posed by the old laws, as well as the * -1
measure now in Congress, consist of ren'
two distinct operations.' One is, to
file return or statement of all income
and items of. deductions allowable by
law.'and to do this within the period e(* 1
named in law. The other is, to pay the
j|?: the tax, if:, any is due, mus1
."Neither of these obligations can
t&X6
be met without a careful review of
. income and expendiutre for the tax nece
' yenr. That^ the big job right now, anC
and thpt is why I say that Income
| Tax drive is already under way. Ev- ^
eryWhere the pencil is busy. The old . .
t year is gone; all its fruits are gleaned;
and every person who fared tell year
or earned a good 'competence, must
analyze his own case in cold figures. er y
. . f bala
. "When the new bill is enacted inf'
, calci
- to law, I will have, the pjroper return
forms distributed throughout .
the District, and everybody will be . .
? informed of the date when the sworn ni"*
' - , . . est <
return must be filed. It is my plan .
S>.: - be i
to sena my men out to central locations,
and to have them travel thruthe
Wstrict, aiding taxpayers in the
preparation ot the returns and in , .
deciding doubtful points. We will
gp right to the people with the Income
Tax, and' with the co-operation
which the public can give the governm&it
men, the returns will be comi
filed by everybody who comes under 8705
.the law's provisions, the right taxes not
will be naid. and the District will
have done its full patriotic duty to- a^01
; wards the govexoments' support.
% "Meanwhile, . let me. say again, chan
there is no need of delaying the pre- ye**
tparation qf figures. Anything that asce:
Congress does now will not affect the recei
; amount of a person's ^earnings for vent
5 1918. Let us avoid the belated and
h throwing together of figures that may sale.
hifor. miss. Guesses cannot be " ac- the
p. , cepted as the basis of taxation. It the ;
is clearly the duty of every person cost
fr'N to compile correct figures and as- nece
11 certain whether his income for i918 throi
was sufficient to make necessary a to b
fy ' sworn return. and
} "The year 1918 was a banner the
& , year for salaries and wages, and the "i
k; high war prices brought unusual pro- his i
l-i fits to the average &mall tradesman ing 1
Sp-i and to <he fanner. The opinion in dedu
v; Washington is that a millioit citi- conn
<V " zens and residents will make this his ]
year their first income tax returns. "i
"All signs indicate that the income comi
tax this year will reach nearly every char
!i ' . \ x
j':':;., working man and woman, and nearly whel
4 every merchant, shop keeper and the
farmer. Not all will have to pay the He i
tax, but nearly all will be obliged to tal
(D: I. GRI
Presei
iMir nnr t
inc. liKfiA
An ARTCRAF
< With Practically the Sai
'Saw in "The Birth
Including ,
' ' MAXFIELD STANL
GEORGE SIEGMAI
llMflMin HENRY WALTHAL
Nnpffl|]Si ROSEMARY THEB
m\m GEORGE FAWCET
.ROBERT HARRON,
' GLORIA HOPE.
LILLIAN GISH,
A Mighty Story of Worn
By Wa
Wiy.
Pnminor
OPERA Jt
SOON?WyATCH
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:e a sworn statement of the
:s' income. t
I am therefore, advising every c
tarried person who earned a c
>00,' or over during the year 1918, c
every qaarried person, who to- i:
?er with wife or -husband, earn- \
?2000, to sharpen his pencil and t
re out how he stands. a
Se must ascertain accurately his i
is income from all sources, p
re's his salary or wages, includ- c
overtime pay and any bonus re- j
ed as additional* compensation, i:
aarried person having children o
sr 18 who are working, should
ide the earnings of such child- c
/ .. * ' t
it he sold any property at a pro- a
the gain must be computed and e
ided in gross income. If he rent- g
my property to other., persons, tl
total rents received in the year n
t be ascertained, and from that
e a deduction may be taken for h
s paid on rented property, the S(
ssary minor repairs, fire insur- n
!, any interest he may have paid a
nortgage,. and a reasonable aline
q for annual wear and tear ^
ie rented property. The balance
icluded in gross income for the n
" . fi
n terest on bank deposits, wheth- a
withdrawn or added to his bank p
aces, must be included in all b
llations of income. Bond interest
ived during the year must also d
ncluded, except interest on mu- c
>al county or State bonds. Inter- ,
>n United States Bonds oieed not p
nciuded by the ordinary bond.n
er who purchased small amounts.' p
lers of large amounts of Liberty n
Is, however, should . ask their t<
cers to write to my office for the a
applying to tax on such inter- c
!u
>ividends on stock shares are in- n
e,- and must be included in the o
s figures, although the law does e:
impose the normal tax on dis- t<
itions made by domestic corpor- a
?8. |p
L person buying and selling merdise
must .find his profits for the ii
on the following basis: First, a
rtain the gross sales or total cash o:
ipts. Then add together the in- k
ory at the beginning of the year d
the purchases of goods for re- a;
From this latter sum subtract i
inventory of goods on'hand at p
pear's end, and the result is the e:
of goods sold. This cost, plus o:
ssary expenses incurred solely a
ugh conduct of the business, is v,
e deducted from the gross sales, tl
the result is the net earnings of n
business. - | o
I professional man arrives at o
jrofessional income by ascertain- a
the total of fees for services and p
icting therefrom all expenses v,
lected directly and solely with ti
practice. ? | v
1
farmer must figure up all in- d
e derived from the sale or e^ige
of products during the year,
ther such produce was raised on f
farm or purchased and resold. c
s allowed to deduct from this to- ^
his expenses of the year con- ^
WmM ' i i
FFITH
v
| LOVE"
T Picture
me Cast That You
of a Nation."
. \
lan's Regeneration v
r
> the
JOUSE
FOR DATE
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acted ^ith the planting, cultivation,
tarvesting and marketing of the crop
ir the care, feeding and marketing
if live stock. He is not allowed /to
leduct the amount expended in 1918
n purchasing stock for resale; hut'
trhen such stock is sold its cost is
o be deducted from sale price in
.scertaining the gain to be included
n his return of income. The cost
trice of stock bought prior to 1917
annot be deducted as in the case
ust cited, if such cost was included
a the deduction made in the year
f purchase.
"The farmer is not required to inlude
in his income tax the value of
arm produce consumed by himself
nd family. But in cases where he
xchanges produce for merchandise,
roceries, etp., the market value of
lie .articles received in exchange
lust be included.
"All other items of income aris
- J : ai J.V U
uurmg uic ycor biuyu^u pciovuM
ervice, business or trade, through
se of property or money, should be
dded into the gains for 1918.
"Everybody wants to know what
icoihe is exempt from tax. Very
ew plums that fall to the average
lan may be legally disregarded in
guring up his 1918 income. Gifts
nd bequests can be eliminated; also
rooeeds of life insurance received
y the beneficiary of an insured per3ii.
A person who cashed in an enowment
policy need report as inome
only that portion which ex?e'ls
the total of the premiums he
aid ii\ all years ?n that policy. Annuities
are not taxable, unless the
erson received in the year paylents
which represent, when added
3 all prior payments on the annuity,
n amount greater than th6 original
ost of the annuity. Dividends ofj
nejy?ired life insurance policies are
ot taxable income; but dividends
n paid up policies must be considred
income. Alimony is not income
3 the recipient, rjor is it an allowble
deduction on the part of the
erson who pays.
"From the total of all items of
icome, there are certain deductions
llowable by law. All interest paid
n personal indebtedness and all
ixes paid during the year are deuctible,
except Federal Income
nd Excess profits, taxes, inheritance
ixes and assessments for local imrovements,
such as sidewalks, sewps,
etc., Losses incurred in business
r trade are allowable, also losses'
iioiiig xiuiii nitra, ai/Uiius, sniprreck
"or other casualty, or from
left, in cases where such losses are
ot compensated.for by insurance or
therwise. Losses incurred outside!
f a " persons' regular business are
llowable to the extent of gains reorted
from similar transactions
rithin the year. Debts due to the j
axpayer actually ascertained to be
worthless duriny the year are deuctible.
"De jjreciation on property used
i a. profession, in business, or in
arming is another item that may be
1 _ ? j i _ i ? mi ..1
iaimea qs a aeaucnon., rne store; i
:eeper may claim depreciation oni
lis fixtures, and on his delivery j
lorses and wagons, but not on his'
tock held for sale. The professionil
man may claim similar deduction
in his instruments; and. in case of
I
i physician who maintains a team
ir auto for making his calls on pa-'
ients, reasonable depreciation may
>e claimed. The farmer may claim
lepreciation on his farm ^buildings,
isidc from his professional residence,
dso on his farm machinery, his work
lolses and farm wagons. The theory
>f deprecation, in connection with
T.come tax, is that wear and tear
;aused by use in earning income is
i real expense in the earning of that
ncome. The rate is determined by
he number of years that the ?to
>erty ordinarily would be useful !
md the cost of the property is thej
jasis of the computaion. If the
>roperty suffering depreciation was
) ought or acquired prior to March
>he 1, 1913, the market value as of
;hat date is used, instead of the
:ost, in figuring depreciation.
"Contributions or gifts actually
nade in 1918 to organizations oper
iting exclusively for religious, chartable,
scientific, pr educational purposes,
and to societies for ?the prevention
of cruelty to children or animals,
may be deducted, to an anount
not exceeding 15 per cent, of
;he net income computed without
;he benefit of this deduction.
,
Engraved Cards and Invitaions?
rhe Press? and"Banner Co. .
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lanuary 31st
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