Polk County observer. (Monmouth, Polk County, Or.) 1888-1927, February 20, 1914, Image 1

Polk County observer., February 20, 1914, Image 1

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Newspaper Page TextTHE HOME PAPER .VOL. 25 DALLAS, OREGON, FRIDAY, FEBRUARY 20, 1914 NO. 101 I0II uinr nn n w MAUtW QUESTIONS AND ANSWERS ON THE NEW LAW . Treasury Department Issues A Book let. ' " The following Explanations of the requirements are taken from . the . Government 'a official document: turnf Answer Anytime after January 1, and not later than March 1. Question What period must my first return under this law covert AnswerFrom March 1, 4913, to December 31, 1913. " Question Where can forms of re turn be hadf Answer At the office of the collect or or internal revenue in tne f ederal Building. Question Who are required to . make return t Who Must Moke Reports? Answer Every person of lawful age having a net income of $3,000 or more for the taxable year must make a return to the collector of internal revenue for the district in which such person resides or has his principal place of business. If the normal 1 per cent tax has - lwen flfullictnfl nt Ilia HnnrcA nil nil nf the income of an individual, suich in-j " dividual need not file a return unless bis income exceeds $20,000, in which pnoe hp will bp linhlp fnr flip aililitmn- al tux on individuals and must make return therefor. If an individual is liable for the normal tax only, and his income eon sisfc entirely of dividends on stock of corporations subject to the tax, no re turn is necessary. -' Guardians, trustees and others act ing in a fiduciary capacity must file an annual return if the annual inter est of any beneficiaiy in the income exceeds $3,0,00, and also a list return containing the name and address of each beneficiary ami the share to which each is entitled. Corporations Must File. Every corporation, except certain trade, civic and charitable associa tions, etc., must file a return of in come, irrespective of .the amount thereof. Corporations are liable only for the normal tax of 1 per cent, Question If my net income is less than $3,000, must I file a return t Answer No. If married, however, see question pertaining to married persons' incomes. Questions If my gross income is $3,500, but payment of taxes and interest-Tin mortgages aggregating $000 give me a net income of only $2,900, must I file a return t Answer No. A Common Question. uuestion lr my gross income is $3,500, but $600 of that income con sists of dividends on stock of cor porations, must I file a return t Answer No. Question When must married per sons living together file returns f Answer If each has a net income nf $3,000 or more, each must file a return, or the husband may file a joint return. If one has a net income of $3,000 or more and the other has a net income of less than $3,000, the husband should file a return of the joint in eotue of both notwithstanding the pos sibility that such income does not ex feed $4,000. If each has a net income of less than $3,000 and their aggregate in come exceeds $4,000, the husband should file a return of the joint in eome. If each has a net income of less than $3,000, but their aggregate net incomes do not exceed $4,000, no re turn is required. IF You're Married. In each instance a' total deduction of $4,00 only is allowed to be deduct ed from their aggregate net incomes. If bushistid and wife living together file separate returns, the $4,000 ex empted may be deducted by either or! apportioned between them by. their. own" agreement) or in proportion their relative incomes. In case the husband or wife has coupons or other income subject to deduction at the source, he or she should, before filing certificates claim ing exemption, arrange with the other as to the proportion of the $4,000 ex emption .to be claimed by them re spectively, s6 as to prevent overclaim ing and resultant penalty. Question When must widows or widowers file returns? Exemption is Only $3,000. Answer When . the net income amounts to $3,000 or more, The ex emption allowed in this instance is only $3,000. Question From January 1, 1913, to December 31, 1913, my net income amounted to $2,900, but' from March 1 to the "end of the calendar year. such income amounted to $2,500. Must I file a return? Answer There1s no express pro vision of tHie statute or regulations on the point. For 1914 and after, no return would be required; but in view of .the fact that for the year 1913, your income is computed for only five- sixths of the' calendar year, and that five-sixths only on the exemption of $3,000, and $2,500 is allowed for such year, ;a return should be filed where the income from March 1, ,1913, amounts to $2,500 or more for a single person, including widows or widowers, or married persons living perman ently apart. '' iWhat An Income Is. Question What! income must be in cluded in an individual return? Answer The statute provides that income shall include "gains, profM and income derived from salaries, wages or compensation for personal service of whatever kind and in what ever form paid, or from professions, ocatiuns, businesses, trades, com merce or sales, or dealings in proper ty, whether real or personalr growing out of the ownership, use of or in terest, rent, dividends, securities, or the transaction of any lawful business carried on for gain or profit, or gains or profit and income derived from any source whatever, including the income from but not the valuj of property acquired by gift, bequest,' dev:; oi descent." Certain Proceeds Exempt. The statute exempt the proceed; of life insurance policies, salaries if certain public officers, also interns! ipon obligations of the Uifited .Stales government and of any state, city. county Town or village. Such items need not be included in the return Question A hundred shares of stock purchased at $90 in April, 1913, sold at $93 in November, 1913. Must that profit) be listed as income under this act? Answer, Yes. Question One hundred shares of stock purchased at $90 in April, 1913, were found to have appreciated in value to $93 on December 31, 1913, Must the increase in value be listed as income? Answer No. A Few Examples. Question Property purchased 1909 for $10,000 sold in November, 1913, for $12,500. Must this total profit be included in the 1913 return, or can it be apportioned? Answer Unless it can be establish ed that such profit accrued subsequent to March 1, 1913, such profit should be apportioned according to the num ber of years the property was held. Where property .purchased ' after March 1, 1913, is sold at profit several years hence, the profit will be consid ered as income for the year in which the sale is made. Question Must, the owner of his own residence propertyMnelude in his return of his gross income a fair rent al value of the property? " Answer No. Question Must a legacy received in the year be included in the year's income ? Answer Gifts are not taxable un der this statute and need not be in- eluded, but the interest on the sum must be included in (he return. On Individual Returns. Question What can be deducted in an individual's return? ' Answer (1) Necessary expenses actually paid in carrying on any bus iness not including personal living or 'family or partnership expenses. (2) Interest pa indebtedness. (3) Taxes, nod including assessments for local benefits. (4) Losses actually sustained in trade or from fires, storms and .shipwreck, not compen sated by insurance or otherwise.- (5) Debts due to taxpayer, actually curtained to be worthless and charged off in the year. Not to be deducted, however, until after determined worthless by legal procedure. (C) A reasonable allowance for depre ciation. (7) Dividends upon the stock of any corporation or associa tion raxaoie upon its net income. (Not deductable in determining ad ditional tax.) (8) Amount of in come upon which tax has been deduct ed or paid at source. (9) - Three thousand dollars of income, or in case of married persons living together, $4,000. Can't Deduct Living Expenses. Question Can personal, living or family expenses be deducted? Answer- No. Question Can the owner of a resi dence mortgage for $5,000 deduct in terest on the mortgage, repairs, fire insurance, premiums or taxes? Answer Interest and taxes may be deducted, but not the cost of repairs or fire insurance. Question I have an income of $20,000, all from investments, and upon which the tax is levied at the source. Must I make a retunr? Answer No. Note--Such income would be the income from the' ownership of stock or bonds of a corporation, itself taxa ble under the income tax act ; there fore, the levy of tax upon the inter est or dividends received by such own er would be a double tax, Therefore it is exempt ' ( Question I am the executor of estate, the testator of which died De cember 20th, 1913. Must I make return on the property? Answer Yes. Administrators, ex ecutors and fiduciary officers are quired to make returns on incomes of dead persons for that part of the year the person was alive. Question Should false return be proved against an individual, which false return the individual refused to correct. Upon what basis would the individual's income be taxed? The Fenalty Made. Clear. Answer Provision is made for the internal revenue collector of each dis trict to make returns in such cases. The tax would be assessed on his re turn, with 50 to 100 per cent penalty added. Refusal or neglect to file re. turns, except in cases of absence or illness, will result in a penalty of 50 per cent, For false or fraudulent re turn, 100 per cent of the amount of the assessment will be added. Per sons required to make, render, sign or verify returns (notaries) who make fraudalent statements, will be sub ject to a fine of not more than $2,- 000, imprisonment for one year, or both. An extension of thirty days will be given in case of absence or sickness when applied'for by the per son concerned. June 1 Is Limit. Question What time limit is fixed for the payment of the income tax? Answer June 1 of each year. Question What penalty is assess ed for failure to pay on or before June 1? Answer A penqlty of 5 per cent., after ten days' notice with an ad ditional 1 per cent, a month for all additional lapsed time. Question Are corporation returns to be treated as confidential? Answer AH returns shall be con sidered as public records, subject to inspection on the order of the Presi dent of the United States tinder rules prescribed by the Secretary of the Treasury. Copies of returns can not be sent to any person except the cor poration concerned or its attorney, butt on request of a governor, officers of a state imposing a general income tax may have access to returns of corporations doing .business in that stale. ' - - "United States district attorneys under certain restrictions, may have access to such returns. - Disclosure by any solicitor or other information whatever, set forth in any return of annual net income, is made a misde meanor punishable by a fine of $1,000 and one.year's imprisonment, and if the person found guilty is a United States employe, he will be dismissed and thereafter be incapable of ever holding office under the government." The fanner is required to include in his net income all money from pro dire and animals sold, for wool and hides of slaughtered animals, provid ed they are sold.. Be may deduct the siims actually faid for !be animak, slaughtered or sold . in the yr, but the valueof anitiialsrajsed shall net be deducted as expe lses or loss. The farmer also may deduct money paid as expenses for producing farm pro ducts, live stock, etc., and for repairs of the current year. The cost of tools or machinery is deductable, but not to exceed the value of those repl.iced. Oregon Schools. State Superintendent Churchill says that " The estimated reports from our county superintendents show that the value of school, houses and grounds for 1913 wat $10,813,193. The disbursements foe public schools including high schools amounted to $6,450,638. There are v 2562 school houses in Oregon and 5315 teachers." A SOCIAL AFFAIR ' The Philogia literary society gave a party at the home of Miss Maude McDonalds Tuesday evening, Feb ruary 17th, 1914. After a short business meeting games were enjoyed by all. High school yells were given in memory of our absent basket ball team. The girls decided to send a telegram to give the boys courage for their game at Ashland. At a late hour a dainty luncheon was served. The evening was enjoyed by all. Next Tuesday evening, literary will be held at the high school building. Carl Gerlinger made a business trip to Portland last week. NAPnl FnM S TRIRTTTF - rv.v i. .... i l J : X ---rr 1 III . . - SPENDS MONE IT COSTS A VAST SUM TO KEEP THIS GOVERNMENT Fred J. Haskins Writes From Wash ington Where The Money Goes. ASHINGTQN is dead This great man struggled against tyranny. He hat achieved the liberty of his country. His memory will be cherished forever by the French people, at by all freemen of the two hemispheres, and especially by the French soldiers, who, like Washington and the American soldiers, fought for equality and liberty. Therefore the First Consul directs that for ten days craps be hung on all the flags and guidons -of the republic. Napoleon (Order to the Army, Champs de Mars, 1800). THE BAND CONCERT The third band concert of the ser ies to be given was well attended last Wednesday evening at tin? armory. The program was well received and all present were well pleased with the concert. Mrs. Harry H. Volheim's character reading was very good and she gracefully responded to an en core. The masterly manner in which the band rendered the selection from Verdi's Opera II Travatore, was a credit to the director. Miss Eva Lu cas in a solo, "The Kiss," with the band as accompanist, was received by the audience with much favor and the youngTady was the recipient of many a compliment. Mrs. J. W. Downey in her characteristic sketch as "A Coon- ville Suffragist" brought down the house and as an encore, responded with a heel and toe shuffle, but as the style of the to-day's suffragists is tight skirts it somewhat handicap ped the ability that was clearly shown by the performer. Tlie select on by The Moose Orchestra was also a pleasing number. penses of the club will be partially deferred by their contents. The subject of discussing modern styles through the news papers was talked about, as the young women are desirous of learning other ideas as to modest modern dressing. It is the intention of this club to provide sqcial entertainment for the young men and women of this city. The next meeting will be held the second Tuesday in March and the sub ject for discussion will be, "Modern Womanhood." This should be an in teresting one and all members are urged to be present. Well Known in Polk County. Word has been received in Dallas announcing the marriage df MK Sid ney Johnson to Miss Dorothy Dan hauser of Tacoma, Washington, both popular in social circles of that city. The groom is (lie son of Mr. W. Wynn Johnson, who until a few weeks ago resided on a, fruit farm south of Dal las leaving there to accept the posi tion as manager of the Tacoma Times. Better Take a Look. Hare you noticed the beautiful Cas cade range these mornings? If not, take a look and see the grand old mountain peaks standing out in prom inenre like sentinels with Mt. Hood to the left, Mt. Jefferson in the renter, and the Three Sisters to the right. Beats all the high price paintings and does Bot cost von a cent. . Young Women'! Tea Party. The Young Women's Section bf the Women's Club, which is the social section of the club held their regu lar monthly Tea Party in the library at 6 o'clock, Tuesday evening. They report a very pleasant and entertain ing evening which all enjoyed. These young women make a practice of dis cussing some subject, and their Tues day night's subject was "Dress." This is always a common subject with women, but the manner of the origin of dress proved a very interesting discussion. Some of the boots which were dis tributed in a previous meeting were Miss Opal McDevkt has returned returned well filled with pennies, and to Dalian after a short visit to Indc- i iw gnoa won u ceH np, ine ei- prurience. Only 611 Registered, Get Basy. Total registration of the voter of Polk County up to yesterday morning i 511 with the following parties represented : Republican, Democrat, Prohibition, Progressive and Socialist. The item of pay for the navy is one of the largest expenditures in the government, for the American fight ing man afloat is the best paid sailor in the-world. The personal active and retired, draws about $40,000,000 year for its services. About $7,000,- 000 is being spent this year for or dinance and ordinance, stores, includ- ing the manufacture and purchase .of smokeless powder, while the bill for increase of the navy will come to twenty-two million. The expenses of the United States Marine Corps ag gregate about tight million dollars, covering its activities in all parts bf the world. - The provision bill for the navy this year is $7,592,441. Con tracts for fuel include not only the supply of the vessels of the navy, but coal dealers all over the world are asked to give the figures at which any time during the ensuing year they will supply coal to the vessels of the United States navy in sevepty-three different ports as widely separated as Wellington, Zanzibar, Hong Kong and Lota. Since the Republic of Panama re volted and entered into the treaty with the United States which per mitted a beginning of canal construc tion in 1904, congress has appropri ated for the period up to June 30th, 1914, a little more than $349,000,000, chargeable against the total authoriz ed Panama Canal bond issue of $375,- 000,000. The purchase of equipment for the great task of cutting a ditch across the Isthmus has taken a large part ot this sum. So closely has the steam shovel been identified with the Her culean labor that most Americans will be surprised to learn that only 102 American steam shovels have been used in the work. A part of the ex cavating and construction equipment brought to Panama by the French was utilized, but most of the French locomotives and excavators remained untouched in the jungle where they were deposited after arrival from Eur ope. The other equipment purchased included sixty-one cranes, seventeen pile drivers and ten track shifters, in addition to drills innumerable and all the lesser equipment, as well as a large number of dredges utilized at the entrances of the canal and, since the water has been turned in, in the Culebra cut, in clearing away the earth deposited in the canal by the troublesome slides. As the work of lock construction was neared in 1909, one contract for 4,500,000 barrels of Portland cement was let to a single firm. Since Americans talk more about the weather than any one other sub ject, it is interesting to know that the weather bureau will cost this year $1,356,750. The inspection of meat, including the work for the eradica tion of diseases of meat animals, is costing $645,000, and the protection of our food from adulteration costs $675,000 to which should be added enough more of salaries in the bureau of chemistry to approach the million mark. Tor the single item of pre- renting the spread of moths $300,000 was appropriated. The activities of the department of agriculture are held by its officials to come peculiarly close to the interests of all the people. It is increased in size more rapidly than any other de partment of the government, and the appropriations have grown from $3, 72fi,(r2 in 1800, to $17)86,945 for 1914. Retired officers of the army re ceive 4877,000 and retired men, $2,- 4lSl,fl.(o. The federal . government pays half of the expenses of the dis trict of Culumhia, amounting to ap proximately $5,000,000 a year. . The government s ninety-aix senators draw $720,000 a year, and the mem be in of the bouse of representatives. $3,304,500, in addition to $175,000 mileage for representatives, and $51,- (NNl for senator. The police of the, capital building cost $41,200, while the stationery bill for the house and senate is nearly $100,000. The library of congress will cost this year $608,385, of which only $100,000 is available, for the purchase of books. The salary and official ex penses of the president and vice-president of the United States and their employees is only $183,040. , - The rivers and harbors act for the current fiscal year authorizes projects and work to the extent of $41,000,000, but much of this will not be expended until years to come. For education in Alaska $200,000 is expended, and the government hospital for the insane costs $302,000. The maintenance of United States courts comes to $7,004,- 576. To keep the beacons burning bright ly for the benefit of mariners, the cost of the light house service is more than five million dollars, while the protec tion and propagation of fisheries costs more than a million. The immigration service will re quire $2,776,000, and the preserva tion of good relations with Canada through the instrumentality' of the in ternational joint commission, $100,000. The government printing office and binding the proceedings and debates of the various departments. ' The largest appropriation bill, with the ex ception of that for the postal service, is the shortest. In twenty-five lines the pension appropriation act votes out of the treasury $180,300,000. To the special delivery letter car riers the government makes a carfare and bicycle allowance of $475,000 a year. For suggestions which will im prove the postal service, the post master creneral is authorized in nnv L'J rewards not exceeding $1,000 in any single instance, or ten in number. Letter carriers receive nearly forty million dollars, exclusive of the rural free delivery service which costs $47,- 000,000. Railroads are paid $51,500, 000 for carrying the mail,, and the gov ernment spends twenty-five million more for the force that handles the mail in transit. The transportation of foreign mails cost $3)900,000 a year. Postoffice inspectors are employed in considerable numbers to deteet crimes against the service, and the cost of this protection exceeds a million dol lars a year. The greatest government work yet undertaken, the Panama canal, is un der the charge of the engineer corps of the army, and the largest indi vidual purchases made in connection' therewith have been steamships cost- ' ing in the neighborhood of a million dollars. COURT NOTES The case of Leslie Stone, whose first trial resulted in a hung jury, was dis missed by the judge on account of a faulty indictment. Harry Belt, the prisoner's attorney received many compliments by the able manner in which he handled the case. Probate Notes. In re-estate of George Dee; report approved and ordered that adminis trator pay claims. In re-estate of Mary Swarts, de ceased; will admitted to probate, Tay lor A. Dunn apiointed executor. Bond fixed at $2,400. In re-guardianship of James M. Carlisle, insane; Geo. H. Bronson ap pointed guardian-ad-Litem for Eugen ia M. Carlisle, Cecil E. Carlisle, Helen M. Carlisle, Alice 1L Carlisle, Ellis L. Carlisle and Tom A. Carlisle, Min or children of Charles Carlisle, deceased. ReHirt of guardian-ad-Litem filed and petition for sale of real property heard and prayer of petition granted. In re-estate of Mary Ann Morrow, deceased ; final account filed Wednes day, 18th day of March, 1914, at 10 o'clock a. m., set for hearing. In re-estate of Martha Conner, de ceased; order approving final account entered of record; approved and es tate closed. In re-estate of Geo. II. Eilers, de ceased; inventory and appraisement, filed and approved. In re-estate of Isaac Dyrk, deceas ed; annual report filed and approved. Maniac License. Lewis V. Marken, age 25, to Elsie L. Keyt, age 25, February 13th, 1914. Frank F. Fisher, age 22 to Hat- tie E. Black, age 16. E. F. Black of Independence gave his written consent to his daughter's wedding, February lath, 1914. . Mr. and Mrs. Geo. Anderson from Missouri are here and erfiect to make Dallas their home.