the home news
published ever, Frida, at McCror^Arl,
WALTER W. RANEY, Ed. and Pub.
Subscription $100 per Year in Advance.
Phone: 40
iTntpred as second-class mat
August 26, 1915 at the post
fffioe at McCrory, Ark under
t Ad of March 3, 1879.
FRIDAY, JANUARY 24, 1919
The Home News’ Service Flag
*
E. Dupree
Howell’s Bitter Tonic at Red
>oss Drug Store. Advll-15tf
-Buy W.S.S.
For sale:— six eighty pound
jhoats, Otis Jernigan, l-24tf.
-Buy WS.S.
Eversharp pencils and Wahl
rempoint fountain pens at
-arson’s. adv. l-174t
--Buy W.S.S.
Mr. J. M. Candlish and the
editor were business visitors in
Kensett Sunday.
-Buy W.S.S.
Mr. Carl Patton of Little
Kock, came out Sunday and
spent the day here the guest
h friends.
--Buy W.S.S.
Misses Ruby and Margaret
were visiting relatives
in Memphis the first of the
week.
—-Buy W.S.S.
Was Weak and Run Down
nio-L fought my kidneys
be the cause of my
np‘" ,pwi\ condition and weak
S, writes W. H. Frear, 63
‘‘so Tet Albany, N. Y.,
+u°ok Foley Kidney Pills
ZJhf did the work. I
W;11 y recommend them,
evpr ,an use.m.V name wher
rheumoi1- They stop
Drug pains* Bed Cross
Ug St°re. Adv.
* '• — — —
| We Pay You|
s~
Par value for Liberty Bonds and |
| War Savings Stamps in merchan- I
$ disc, either groceries, clothing, fur
‘I
\ niture, hardware and farming im- |
£ I
jj plements, wagons, buggies, wire i
8
| fencing, feed and any other mer- |
chandise that you wish. See us be- ^
I f
fore you sell your bonds or War \
I
| Savings Stamps.
Planters Merc. Co.
i
umfifimussiLmsssmajit
The Income Tax
(Continued from front page)
by ascertaining total of fees
for services and deducting
therefrom, all expenses con
nected directly and solely with
his practice.
“A farmer must figure up
all income derived from the
sale or exchange of products
during the year, whether such
produce was raised on the
farm or purchased and resold.
He is allowed to deduct from
this total his expenses of the
year connected with the plant
ing, cultivating ^ harvesting,
and marketing of the crop, or
the care, ieecnng anu mai&ct*
ing of livestock. He is not al
lowed to deduct the amount
expended in 1918 in purchas
ing stock for resale; but when
such stock is sold its cost is. to
be deducted from sale price
in ascertaining the gain to be
included in his return of in
come. The cost price of stock
bought prior to 1917 cannot
be deducted as in the case
just cited, if such cost was in
cluded in the deduction made
in the year of purchase.
“The farmer is not requir
ed to include in his income tax
computation the value of farm
produce consumed by himself
and family. But in cases
where he exchanges produce
for merchandise, groceries, etc
the market value of the arti
cles received in exchange must
be included.
“All other items of income
arising during the year thio
personal service, business or
tradd, through use of property
or money, should be added to
the gains for 1918.
\ Everybody wants to know
! what income is exempt from
tax. Very few plums that fall
to the average man may be
legally disregarded in figuring
up his 1918 income.
Gifts and bequests can be
eliminated; also proceeds of
life insurance received by the
beneficiary of an insured per
son. A person who cashed in
an endowment policy need re
report as income only that por
tion which exceeds the total
of the premiums he paid in all
years on that policy. Annui
ties are not taxable unless the
person received in the year
payments which represented
when added to all prior pay
ments on the annuity, an
amount greater than the orig
inal cost of the annuity. Divi
dends on paid up policies must
be considered income. Alimo
ny is not income to the recipi
ent, nor is it an allowable de
duction on the part of the per
son who pays.
-From the total oi ail items
of income, there are certain
deductions allowable by law.
All interest paid on personal
indebetedness and* all taxes
paid during the year are de
ductible, except Federal In
come and Excess Profits taxes
inheritance taxes and assess
ments for local improvements
such as sidewalks, sewers, etc.
Losses incurred in business or
trade are allowable also losses
arising from fires, storms, ship
wreck or other casualty, or
from theft, in cases where such
losses are not compensated for
by insurance or otherwise.
Losses incurred outside of a
person’s regular business are
allowable to the extent of
gains reported from similar
transactions within the year.
Debts due to the taxpayer ac
tually ascertained to be worth
less during the year are deduc
tible.
“Depreciation on property
used in a profession, in busi
ness or in farming is another
item that may be claimed as a
deduction. The storekeeper
may claim depreciation on his
fixtures, and on his delivery
horses and wagons, but not on
his stock held for sale. The
professional man may claim
similar deduction on his in
struments; and in case of a
physician who maintains a
team or auto for making his
calls on patients, reasonable
depreciation may be claimed.
The farmer may claim depre
ciation on his farm buildings,
aside from his personal resi
dence, also on his farm ma
chinery, his work horses and
farm work wagon. The the
ory of depreciation, in connec
tion with the income tax, is
that wear and tear caused by
use in earning income is a real
expense in the earning of that
income. The rate is determin
de by the number of years the
property ordinarily would be
useful and the cost of the
property is the basis of the
computation. If the property
suffering depreciation was
bought or acquired prior to
March 1. 1913, the market
value as of that date is used,
instead of the cost, in figuring
depreciation.
Contributions or guts actu
ally made in 1918 to organiza
tions operating exclusively for
religious, charitable, scientifi
cally or educational purposes
and to societies for the preven
tion of cruelty to children or
animals, may be deducted, to
an amount not exceeding 15
per cent of the net income
computed without the benefit
of this deduction.
After the total of all income
is found, and the deductions
allowable by law have been
computed as an offset, the
amount of income in excess of
such deductions is the net in
come, which forms the basis
of the assessment of tax.
If every person in this dis
trict will examine his own in
come for 1918 and his allow
able deductions, in line with
data that I have given, he will
know beyond doubt whether
he must file his return when
tne DiariKS arrive. Ana nere
is how he will determins his
liability to file a return. If he
is single, he must file if his net
income was $1,000 or more,
and this requirement is enforc
ed whether or not he is the
head of a family. If he is
married, he must file his return
if his income, including that of
his wife and minor children
was $2,000 or more.
“I want to emphasize the co
operation feature of the col
lection of the income tax this
year. The policy of the Inter
nal Rvenue Bureau is to aid
taxpayers to meet the require
ments of the law. We are going
right to the people, not to
swing clubs or to rob the wage
earner of his savings, but of
fering every helpful govern
mental function that will as
sist people to do their duty.
JACK WALKER,
Collector.
-Buy W.S.S.
County Clerk, Walter Jim
erson, of Augusta, was a busi
ness visitor in this city Sun
day.