Image provided by: Santiam Historical Society; Stayton, OR
About The Stayton mail. (Stayton, Marion County, Or.) 1895-current | View Entire Issue (March 4, 1920)
U. S. INCOME TAX EXEMPTS NOBODY Every Person Who Had Income in 1919 Must Determine Own Liability. MARCH 15 LAST FILING DATE. Surost W ay la to Follow Form 1010A. ' Frao Ad vie* In Doubtful Caaca. Stock Reducing Sale of Shoes Ini creel tilt mortgages ami miles la a ls o bitnil Intercut received from corporal Iona. A taxpayer who chm I ici I his Intuir- aru-e ritiriti« IMO m ild report na In canì« ant exi-ea» received over lite to tal o f pi .-miurna pulii. Mentitore nf piirlltei «hip» or perennai eorvlco corp ora tion »or henrAflarlaa o f an calale or (m al musi lep ori Ilicir 1 »barca o f Income distributable lo (bent «lie fh e r or mil ni'iually wltlnlrawn. Illvlrienria o f domestic corporal Iona amai Ite ro|iorted. Mnny oilier fortin o f Infoine are taxable, nnleaa »periti' all) excmpieil. IN ia b le : INCOME TAX IS DUE MARCH 15 ! T' * »'! . Penalties for Delay ana Failure to Make Returns— Early Compliance Urged. All Income lax reiurna cnverln* ilia year HUM mnal l>o flleil l#y Monday, Mnrcb 15. Kacli Inxnble return mnal be a rco m p H iile ri by c h o c k o r m oney o r d e r fo r llie fu ll a im iu iil » r a l leaal tuie- ip m r tc r o f ilte n ruo tini o f la x due. I'lta li p a y m e n t» « re a cce pted o n ly at llie e o lle e lo r'a niMlit nflb e"> If , e n i by h im II, they a re m tin* «e in le r'a ris k K rN lilcilla of lir e « Hi Mil l >11 1 f I It I <• tlic ir r d u r n » « lib , m ill lon ke p iiy n in iiia if liirim ie T u x to. M ilton A. M ille r, ('■ illcctnr of In to rn iil lle v o m ie . F o r t - ‘mid, Ore. T h n s e w h o m u st tile re tu riia bill h a v e not tlone so a r e w iim e d iInti the rev Cline law im p o se s h e a v y permit lea fo r f a ilu r e In « e l re tu rn » in on lim e o r o im ik f pH) m en i s m i lim e . K u r lv lilln « iim l curly p titn ie n i» h c n li«t*tl. In o r d e r to re lie v e llie itile m n l ret i-nilt* Iiltli'i'» n s m u ch ita poaallde o f i n o v c rh p id " a d ie lltinl iluy, M a r c h Ilk Under U. S. Law— Returns Wednesday, Mar. 3, to Saturday, Mar. 13,9 P. M. Due March 15. LAND SALE PROFITS TAXABLE, Entirely dibregHrdinK the advancing costs thi se shoes, which w e bought last year, must go to make room for the new ones now enroute. W ill have to move at L I T T L E O R N O P R O F I T at all. Only a small glimpse o f the good savings that m ay be had during this Sale. Necessary At the Electric Sign “SHOES” 167 North Commercial St. L IT T L E R 6c UPM EYER May B« B atu for Computing. . Every Pair Guaranteed Expanse« Income— Cash or Accrual Ladies' small sizes patent leather« button and :? Misses gunmetal or kid, English, lace, in lace« Cuban or low heels at - $1*70 :t sizes 11 to 2. $4,00 grades at - $2,90 2 pairs for - - $3*50 i Men's gunmetal English lace, $7,50 value Ladies' black kid cloth top French heels in for $5,40 in sizes from 3 to 65, would be valued Men's brown calf blucher, $8.50 grade $6,90 easily at $9.00« but they go for - $4 80 Boys' brown grain Much. $4,50 val, $3*65 Growing Girls' gunmetal button« low heels, Boys' brown Arm y Junior, $5.50 val. $4,15 broad toes« a $7*00 value at - $3,80 Small boy's gunmetal Much, $4,50 v a l $3*60 And then there are hundreds o f others. See the Salem Daily Papers o f M arch 2 or better still, come in and see the shoes them selves. It will pay you to go for miles and buy all you need for a year, as they will surely cost more later. Farm Deducted— Special Form for Farm EXAMPLE Law. lilt* d e p o s i t o r Gains for 1919 Must Ba Figured ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ n il ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Severe Ponaltlaa In Nobody I* v w i i i | i | Troni lino. lux. Ali olilliiiilimi I n Inl<l dlicetly <m ilo- n I io ii I i I i 'I' h o f f in ii elllr.i-ii unii realdont 10 foliNltlfr I i I n o u ii n i « ' alni lo gei (ilo n o u rli III oli Unii' If olio la (Ilio. Wli li fiifli rt'lurn »lu i« in« ii lux tlua 11 pii vinoni iiiiiNt iit'fonipiiny ilio roturn ! In Ilio full ii tiiiMint o f ilio lux or ni I I i ' iih I mio t| un ri t-r o f ilio lux All rt'iuriiN for lllll* iiiun I I h - fili ti on or I n *foro Murili 1Ó Muat Show T r u a F ig u re « . In tlgurlng up I i I m ■•nrnliiifN for Iti- ! foiiit' lux piirpoHfN ii |it'r»nii iiiiim I tabe litio l'onelili'riilloii itII II imiin o f tnxiililo Incoino, unti fin ii tifiti Itarlf iiiiihi Ito u f f urtiti* lo ninnimi tlticMaca unti m lllnati'N iiiiihi Ito nvnlded, for Ilio re- , Iurli I n mmlt* under o*th Kverybtsly « ho Itati un Incoine tlnr-1 Ing min niiiNt now dfii'rinliio « b e i beri lil» or In-r lift Incorno » « a Huntiifiit III 1 Hlnoillil to rrtpilrc mi Infoino Tnx re- inni, i i i f Itf ni way to liuti nul I n lo 1 « f i a Form tlMDA unti fo llo « Ilio In- Nirutilon» prlniftl imi II T im i forni udii nervo iin ii roinlnitfr o f ovcry lioiu o f Incoine ; iiu«t If * roturn I n tino. Il lolle liow lo preparo alpi filo II. One o f Ilio liuporlanl | m >I ii I n to koo|i| In minti I n limi a pomon'N m i Incuoio I le foiintl liy u foni pii In iloti prone rlltftl In ilio In«', nini lim i ondi litio « f In foino frolli ovory so uree munì Itf fon- eltlfroti, unii-«« «p fflllfiill.v exempted A noi ber tlilng lo retnember I n llmt in* |M-r<utiiHl fifin p tlo ii a llo « ed Inx- pHVore liy In « Ime no relation «iin lo v e r | io il»- m inlrcinonl io Ilio roturn. Thlaj f'Xoliipllon I n noi lo ho roiiNltleretl uni II h pi-r»on Ime liguri»! out lil» noi In- ! citino unti delermlned «iio tlio r II waal »ulti' leni lo roip ilrf hlm In Ilio ii ro- : iuni. Ttion, If a return iiiiihi ho Mieti,! Ile »Imitili remi rnrefull.V Ilio InefrUC- Iloti» for flnlm lng exeuipllon. unti eom- plete hle roturn I f III titilliti oli tiii.v |Milnl ne In Incoino | or titilliti Ione, ii |M'r»ou uiiiy e m ir e i f t t f mlvlce timi ulti frinii Ilio nwireat | Ini ornai Ile vomii* nitice Muny Imiika ■imi Ir iim I tiinipnnloN uro nleu fum l«lt- Ing aliiillnr eorvii-f dtiring Imnklng lioure. H «avy Penatile« In Law. l'or fu Ititi« lo niiike n roturn un llni«| thè pfiuilly le n tino o f noi inoro tinnì *1 lem enti un mlillllon of ‘.ifi por i-ont lo ilo- I hx . If uny For nmkluu u fu i»« or friiiiiliilonl return ilio peuiilt) le n Ano o f not moro Hmn $10,000 or Ini- liriNuniiifiil noi f X fffilln « olio yeur, or Imi li ; inni. Iti etiti II Ioli, .'«1 per cent of Ilio lux. iiie r e uro other penullle» for fu II tu« lo pny lux «b e n tino ami for unilerNtaiemont o f ilio tax i Inoligli ne «lis e neo M a n y S e u rce a of Incom«. A «Ilio front « h a i uno inay earn bv lila «orvleoa, iboro are many nllier «< ni ree» o f Infoino. I f ho eold any proporli- (turili* io n i Ite muel ll«tiro Olii Ilio rato reell/ed. If ho ronlotl hnildlligs. lenti. a pari nicol« or ronfia suoli ren i« mu»i lo* ciMi«ldoi%tl laxa- alilo, ami ho may tialni deduci lons for nefo«ear.r ei|M-n«ea Inclrtonlal to ronta. Munii Ini e reni la e common «o lin e of Ineome ami 1« INxablo whotlior wlth- •Irawn or noi. Any anioum o f iuioroat <• re tili*tl lit a rlfpoellnr 1« Ini onte in FARMER'S INCOME SUBJECT TO TAX SALEM, OREGON To The Public On Monday, March 1st. the railroad lines o f the Southern Pacific Company were returned to their owners for operation. As a war measure tney have been in charge of the government during the last two years and two months. The stockholders in that period had nothing to do with the management. In taking over the managemenfof this property, the policy of the owners will be to give as satisfactory service as lies in their power in return for the patronage given us: to seek the co-opera tion of shippers and pas sengers and of the whole people in having our service reasonably responsive to the public needs. We have to ask the patient forbearance of the public during the readjustment period of the next six months. It is true during these six months the Government continues the standard re turn allowed the lines while under its control, based on the pre war earnings. But this return is subject to certain legislative directions by congress that will affect operations during this period which ends August 31st next. We expect, however, within this six months to mature plans for toe future. These plans had to be held in abeyance thus far because of uncertainty as to the legisla tive conditions to accompany the return of the roads to their owners for operation, and these condi tions have been determined by congress only within the last few days. We now have to study what is before us in law and in fact and get our bearings anew. The operating organization as it existed under Southern Pacific management has been to some extent disarranged during the period of Federal control and operating practices have been changed, but the benefit of any new practices that may have proved efficient in the public service during the Government control period will, of epurse. be retained. , We could not purchase equipment after we entered the war because the Government took con trol and war financing occupied the field, while during the rest of the time the question o f adequate credit had to wait for answer in Congressional action. On the other hand, the locomotives and cars in service have been subjected to the most active use and new rolling stock has not been renewed throughout the country in normal numbers for the increase of normal traffic. The burden o f extra ordinary war movements fell heavily upon all kinds of rolling stock, making it impossible to shop the eqipment at the proper time, and repair work was further delayed by shortage during the larger part of the war period in both men and material. The problem before ns at once, therefore, is how to put to the best use the passenger train cars and the freight cars that are in service, and how to put into good condition for service every piece of equipment to be had. This problem is before every railroad. Abreast o f this is the larger question whether the earnings under the new law. the “ Transportation Act o f 1920.” will be enough to establish the credit of the railroads at a point where they can provide themselves with the facili ties of all kinds that they need to give the public proper service. W'e have the will if only we can find the wavs and means. The«* are not easy to find, for an assumed earning of even 6 per cent, and no assurance o f that, is not attractive to anyone having money to invest when money is worth 7 or 8 per cent In the open market. Hence, the effect of the new Act o f Congress upon earnings and upon the credit of the rail roads cannot be immediately determined. This Act provides for a rate-making structure, under which for the next two years the railroads will be permitted to earn up to 5A per cent annually on the value of the railroads as may lie determined by the Inter-State Commerce Commission. The Commission has power at its discretion to increase these possible earnings to 6 per cent. The added one-half of one per cent to be used only for improvements to the property. No guarantee of any kind is given 'to any railroad, but half o f any earning!* over 6 per cent are to be taken by the Government to make loans to railroads that may*need them for improvements or to care for obligations falling due. or to obtain and lease equipment to the carriers that cannot afford to buy it. Obviously these elements in the situation will have to be considered in making our plans. The Inter-State Commerce Commission is the deciding body witn respect to value o f the properties, as well as the rates which are to yield the 5A per cent return thereon, and much will depend upon the vision apd promptness o f action with which that body accepts its great responsibilities. * In the meantime, it is particularly desirable, in view of the shortage of equipment, that every effort be made by ship|>ers and the railway forces to continue heavy car loading and train loading, and to lose no time in loading and unloading ears. Relieving that we will have the full co-operation o f the people served by our lines in dealing with the problems-presen ted. it is due them that in thus aiding us they should know what problems we have to meet. You can rest assured that we are not idle with respect to them. W M . S P R O U L E . President. A farmin'. shopkeeper, or t.ado»icaii figure up hla not income for 191!«; anil If ttio farm or bualn« -» Income plus hi» other Income hum .» icient to inquire an Income tax .-"turn a Com plete return must be tiled wlih the col- Iti l*>r o f Internal revenue by March 15. A farmer ahoulri aacertalli the groan income o f hla farm by commuting all iioltia derived from the aula or e x change o f hla products, wlc ther pro duced on tlia farm or pur« i.ased and resold. Farm Expena««. From b l« «ross income a farmer la allowed to charge oft all o f hla neces sary expense» In the conduct Of the farm during the year. T lie»e Include costs o f planting, cultivating, harvest ing and marketing. In addition to I these costa he may deduct money spent fo r ordinary farm tool» o f -hort llfte j l.ought during the year, aur-b as shov- i els, rakes, etc. Alao, the coat o f feed purchased for hla live stock may be treated as an expense In so fo r aa this eust repreaenta actual outlay, hut the j value o f hla own product» fed to ani- ; mala la not a deductible Item. Other farm expense« a lio « able a re the cost o f minor repaint on building* (but not the dwelling house), on fence«, wagons and farm m achinery: m I so Mils paid for horseshoeing, stock ;>owd«ra. 1 rock salt, services o f veterinary. Insur ance (except on dwelling hou».*), gaso line fo r operating |»o«er and sundry other expenses which w ere paid fo r in cash. Aa to hired help, all the productive labor is a deductible expen se: hut the wages o f household servants, or help hired to improve the fa r m ,.«* in tree planting, ditching, etc., cain ot he claimed against earnings. A f;< rater is ! not allowed to claim a salary fo r him self or members nf his fam ily who work on the farm. , W aar and Tear. Purchase o f farm machinery, w ag ons, work animals, etc., also the cost |1 o f construction or extension o f build ings, silos, fencing, etc., should be Cpo- 1 ' | aldered ¡idditlnnnl investments in the farm and are not proper deductions against in<-oine. A reasonable allowance may he claimed for wear and tear on farm building» (except the farmhouse), fences, machinery, work aninuda, wag ons. tanks, windmills and o il er farm equipment which is used In the con duct o f tlie farm. As to autos and tractors, llie cost o f these Is not an expense, although the coat o f their upkeep la an allowable deduction, if the machine» are taed e x clusively for farm purposes and not for pleasure. Also. In au<-h ca»**a, a de duction for wear and tear is allowed. (* iiiuhi < ! Farm Leaatta. The loss o f a growing crop la not m proper deduction from Income, inas much as the valne o f the crop had nog. been taken into i r » . « lo-orae. The- loss o f a building o r o f UMi-biaory through storm, lightning, flood etc.. Is an allowable deduction, but care should be used to «»certain the correct l a « * sustained, as restricted by income tax regulations. No deduction is allowed in the ease o f loss o f anim al* raised on the form , hut a loss Is deductible from groan In come I f the animals had been pur chased for draft or breeding purpt Shrinkage In weight or value o f ) products held for favorable market prices cannot he deducted as a l< m ,fo r the reason that when aticlt pi "d a rts are »old the shrinkage will he reflected In llie selling price. S al« of Farm « and Land. The valne o f agricnltural lands has been jnmninc during the past Dew years, and during 1919 many owner* «old out pari or all o f tlielr lands at big profits. All auch gain« (»natttute income and nm*t tie taken into the net income for tlie year. , Any person wlio »old part o f x farm or raucli. or part o f a parcel o f land. mw»t also show any gaina realised b y the «ale. The method o f flgnrlng galM and losses on «ucli Iran «actions Ik pre scribed in the Income Tax regulation«, copies o f which may he secured from Internal llevenne < uPedors. Form » for Return«. The Internal llevenne Itnrvau lias '«sued an Improved Form 1040F fo r ilie u*e o f farmers. This form, to gether with Form 1040A or 1040, w ill give the form er explicit information « « to how to properl) figure his uet 1 income for 1019 There aid two methods o f figuring a farmer's income tax return this year. Me mat make his return on the hast* o f tile difference lielween the niMMT »m l good*- received for his product* «m l the »a»h paid out fo r actual allow able farm expense» within the year. Or he may make Ills return oil the ac crual basis, which lueiin- computing tlie receipt« nnd expense* that pertain . ii the luxnhle yenr, excluding incuuu* earned and expenses Incurred in NB* , (ous or auccccillug yoxr*.