Show income tax facts no 3 the revenue act of 1921 provides that an income tax return shall be filed by every person married or single whose gross income for or the y year ear 1922 was 5 or more broadly speaking gross income in eludes all income received by the tax payer during the year from salary or wages or from business trade pro bession or vocation dealing in prop erty or the transaction of any bus bust ness carried on for profit net in come upon which the tax is assessed Is gross income less certain specified deductions tor for business expenses los ses bad debts taxes contributions etc among the most important items in the returns of many taxpayers are the deductions tor for business expenses in the case of a storekeeper they in elude a reasonable allowance for salaries paid employees amounts spent tov for advertising premiums tor for ansur ance against fires or other business losses the cost of water light heat and fuel used in his place of business drayage and freight bills A professional man doctor or lawyer may claim as deductions the cost of supplies used in the practice of his profession expenses paid in the operation and repair of an automobile used in making professional calls dues to professional societies subscriptions to professional journals office rent and the cost of fuel light heat and water used in bla his office and the hire of assistants the farmer may deduct all amounts paid in the production harvesting and marketing |