Show THE BALANCE OF INCOME TAX instructions if you are tingle single and arid soul u port in your home one or more persona persons closely re late latel I 1 to you and over whom ou ex enelse family control you are the heal of a family and entitled under the rev cane act of 1924 to the same il exemption allowed a married person WOO 2500 in addition a taxpayer Is en titled to a credit of too for each per on son dependent upon him for chief sup port if such person is either under 18 years of age or incapable of port because mentally or physically ghyst cally defective such dependent need not be a member of the taxpayers house hold por for example an unmarried eon son who supports eup port in hie his home an aged agad mother ie is entitled to an exemption of 2500 plus tho the credit for a de pendent a total of 2900 it if from choice tho the mother lived in another city the eon son although her chief sup support Porto would be entitled only to the 1000 exemption plus the credit the me mother not living with him he ia is not considered the heid he id of n family an exemption as the head of a fam lly ily can be claimed by only one mem ber of a household the credit doe does not apply to the wife or husband of a though one may be totally dependent upon the other the revenue act of 1924 provide provides that the status of a taxpayer relative rel rela atle tiie to the amount of his personal exema eions shall be by apportion meni ment in accordant accor dante e with the number of months the taxpayer was ingle single mar inar ried or the head of a family under the preceding act the hamount of the ex emption to which the t taxpayer was ae ne titled was determined by ills stat katafis is to a tingle single pern n ft d married person cf ef the head of it family on the last day of the taxable year december 31 it if the me return was made oa on the calendar calendar year basis as an moat most are lor example a tax taxpayer married 01 september 30 19 1924 24 would be entitle d to an all exemption itsou of 1375 1373 for the first nine month months ho he is classi classified lied as a single man want entitling him to an ex emi emIt lon of three fourth fourths of the 1000 exe mitlon al allowed loed a single per pee S gm nn 1111 i for tho the last three montt 9 ho be il li entitled to an exemption of 1625 one fourth of the tile 2500 1500 2 exemption exem al at lowed a married person if on june 30 a taxpayer ceased be ile lug log the head of a family the support in lit one household of a relative or rela thes being discontinued he ie is allowed an nm exemption of 1750 one halt balf of the exemption of 1000 granted a single perron person plus one half of the exemption of 2500 the tile head of a family with regard to the credit for a dependent the taxpayers tatus status i Is de tie ter mined as of the lt day of the tax able yera ift if during the tile year 11 ills sup port of nuch such dependent lent ceasel cease 1 he be is rot entitled t ti this credit in making out ills income tax foi for the ye beir tr 10 11 the bui business iness man pro tees fess lonal ional man mail ant fanner lj Is required aired to use lorm 1040 rep adless of cheth cr er hie ills net income or waa was not in excess at of the smaller form Is i used for reporting income of or lea less derive chiefly from eal gal aries or wages wage 8 forms have havo bem be m sent to persona persons who last lait year filed returns of income full fail ure to receive a form however doel dots not relieve the taxpayer from his ob gatlon li to file a return and pay the I 1 tax within the time prescribe on or before march 15 25 1923 copies of the forme forms may be obtained from offices ot of coll collector tors of inter internal fial revenue and branch office offices the tax may be pall m full at the file time of filing the return taint or in four estial e trial due on or before march 15 jual 15 sep amber 15 wid december 15 the tile taxpayer must li elude in ills hi income tax return for the year 1924 all 01 items of gross income specified by li hw in the tho case of a storekeeper gross income usually consists of groi profits on sales r with income from other sources th return must show the grosa gross siles purchases ind ti t cost of good goods old sold the professional onal man la lawyer viyer doctor dentist mu mus in dude elude all fees and other compensation received from fromi professional services the farmer must report as grosa gross in come tho tile proceeds of iles ailes a or exchange of products raised on the farm or whether purchased haseLl by him hira and ind resold lie ile must report also gross income from all other sources such aa as rentals or profits from the ale sale of farm lands nt income upha which the tax is aee essed Is gross income less certin cert in deductions for business expenses loss es bad debts contributions etc to take full advantage of the deductions to they are entitled taxpayers should read carefully the instructions on the form under the heads of in come for business busl nees or profession ision net income upon which fir the income tax is assessed ass ased is grosa gross income less certain aed deductions for busl bust ness expenses bosies contributions bad boa debts etc A A storekeeper may deduct as a business expense amounts spent for rent of his place of business advertising premiums for insurance against fire or other losses cot of water light and heat beat used in his place plate of business drayage ant an I 1 freight billat bills and the cost of maintenance and repair to delivery magone magons and trucks and a reasonable allowance for salaries sal arlei A professional man such as a law ver doctor or dentist may deduct the cost of supplies eup plies used in his profession expenses paid in operation opera tim and repair of automobiles used in making proves calls dues to professional jour nals office rent cost of water light and heat beat used in his office and the hire of f office assistants assistant the farmer may deduct as necessary expense all amount amounts actually expend ed in carrying on the it iciness of farm ing such as amounts paid in the pro and harvesting of his hi crop crops cost of seed and fertilizer used cost df of minor repair repairs to farm building buildings and cost of email small tool tools used up in the course 1 ff I a year or two tle the eort cost of farm machinery equipment and farm build ings is in not deductible as a expense deductions bione tione for personal or living ex bensen such as repair repairs to the erts ere dwelling cost of food clothing education jt of children ctet etc are nt al at lowed losses if incurred in a taxpayers arale or bu burmen busmen or pro professor fesson or in diany any transaction entered into for prof itta it not compe natel for by insurance or otherwise an ari deluc deductible tible from gross income in let net income up on which the income tax is assessed to be allow allowee pases not incurred it i trade busl nee nr or profession must eon con form closely to the wording of at the statute I 1 or example a loaa loss incurred in the sale of a taxpayers home or automobile at the time of pur chase chose was wa not bought with the anten tion of resale i 1 not deductible be cause it was mas not a en terel luto for profit 11 losses BUS sus tallied in the op eraIn of a farm as a a business buin cs venture venturo are deductible it if sustained in the cre operation ration of a farm faim ore iterated rated merely for the th pleasure of the taxpayer they are not deductible losse 1 arising from tires fires storms shipwreck or other casualty or from rom theft whether or not with a taxpayer business rn mi ia be deducted ducted le from the gross income in fit IN 1 Is 1924 income tax return if rf lie lits home or r automobile is I 1 destroyed bv by tire fire or his lr opert dam ngel by storm the to 41 is for the ear ar lit which it occurred LOM nf of p by theft or burg alry is I 1 ail all allowable dd ami leel i eil not te I 1 e In eluted 11 in the rn ern trade or business A lose lo 10 from te to atlo 41 1 fliK lot tilIe tible all losses tie only ta A the extent ent liy IT which dixy are n no ef empen iff or by insurance iu uran or other il 1 1 1 debt discovered to be wort worth lil 1 e A an ani I 1 charge I 1 off or books of tl th tax ax pier P ker for the belf 1954 may be de ducted dueled frem from the grow gross income in eom com pitting net income tor for that year the return must show evidente evi lente of tho the man ner in which tho the worthless nc is of the debt was disco discovered ered ant on I 1 that ordinary 11 means ifor for its collection ion have been ot or would be una unavailing bad depts may be deducted in whole or i I 1 pirt bei delu deducted ted the tax payer must be able ablo to elow show with a rea degree of certainty ta tho amount partial induction are allws all wiil with 1 fo ilat only 1 valid debt prove I 1 to be worthless mr not always alays be a proper for example exa oa 01 mlle unpaid amounts cepro benting wages rent renthie ren tnie nis or similar nillar ei item items aro are not allowed as a deduction deductions litile included as grass gross income in the ardt tors return for tho the year in which tho the deduction ie Is bought sought or in a previous year tha the act net that expected income was not received does not deluce re luce the amount of taxable income of the bredl tor unpaid loans mado to reli tivee tives or friend friends with little cr no ex pec tation tint tt at they out 1 be repaid are not deductible but are regarded as gifts IN here by reason of illness or nb ab nerce from home additional time for filing an income tax return Is I 1 repaired required the tax taxpayer should address to the comi of internal revenue Kev eime washington D 0 a request toe for an extension exten aion collectors of internal rev denue are not as under preceding neta acts permitted to grant euch such extensions the tile request roust be made before the return is duen due n or before march 15 1935 51 if made on the he calendar yur ba sis mis and ind must contain a full recital for the auses of the delay in n extension of time for filmy filing the return docs does not extend the time for payment of the tax or any installment thereof unless so specified in the vs ex tension As a condition of granting an exten extension alon the commissioner may require the submission of a tentative return and estimate of the amount of the tax an ani I 1 the payment of at least one fourth cf tho the estimated amount under the revenue act of 1921 1924 thoua anila ands of persons are required to file returns of cincone Ail although though the fae ornes are not taxable tho the act p avides that returns iball shall be filed by every single person whose net income for 1921 1924 was 1000 or or chome grus gross income was or more and by married couple living together whose aagre gato gate ret income was 2500 or nor or whose whoso aggregate gross income was or more the exemptions ore are 1000 for nigle persons and for mart married lett persons living together plus a credit for each dependent A person may havo have a grose gross income of and by reason of the deduction deductions for business bu alnes expense bad debt debts losses etc ete a net let income of less lee than tham 1000 A single person may have an exema alon of 2300 2500 as the hea heal I 1 of 11 family nevertheless returns are re ired in both instances heary penal tle are pro provided videl by the act for failure to file a return and riny pay at nt least east one on fourth of the amount mount of tux tax le due within the timi prescribed on or before march IS 15 1023 1925 |