1
TODAY
is the
. TOMORROW
that we worried
i about
YESTERDAY
and it didn’t
HAPPEN
The Times Will Do that Job of Printing RIGHT
r^^^aftiy ..1
RESOURCES OVER 11 j) A MUTUAL
TWO MILLION UlOll / SAVINGS
DOLLARS gLV SOCIETY jj|
‘ The Modern Way of Saving I
is by mail where Uncle Sam protects jijj
your funds until they reach us. |||
Our funds are invested only in first mart- .jjjl
£a£es on improved real estate, in city, jjjj
state and U. S. Government Bonds jjjj
For over 17 years per annum pji
we have never on savings Ip;
paid less than v y left with us jjjl
BOOKLET MAILED FREE
PUGET SOUND SAVINGS S' LOAN ASSOCIATION
Founded 1901 • III
Third S' Pike St. ♦ * ♦ * Seattle. "Wash. [||[
HOW TO FIGURE
INCOME TAX
FOR PAYMENT
Exactly how to figure the amount
of Income tax one must pay is ex‘
plained by David J. Williams, United
States collector of internal revenue
for the Seattle district' Mr. Williams
said the collection of the 1919 internal
revenue taxes in the district, which
are expected to be the largest in the
history of the law, will begin at once
and not at some future time when
congress passes the new revenue bill.
His statement follows:
The income tax obligation imposed
by the old laws, as well as the meas
ure now in congress, consist of two
distinct operations. One is to file re
turn or statement of all items of in
come and items of deduction allow
able by law, and to do this within the
period named in the law. The other
is to pay the tax if any is due.
Neither of these obligations can be
met without a careful review of in
come and expenditure for the tax
year. That is the big job right now,
and tjiat is why I say the income tax
drive is already under way. Every
where the pencil is busy. The old
year is done; all its fruits are gleaned
and every person who fared well or
earned a good competence must an
alyze his own case in cold figures.
To Distribute Return Forms
When the new bill is enacted Into
law I will have the proper return
forms distributed throughout the dis
trict, and everybody will be informed
, of the date when the sworn return
must be filed. It Is my plan to send
my men out to central locations and
to have them travel through the dis
trict, aiding taxpayers in the prepara
tion of the returns and in deciding
doubtful points. We will go right to
the people with the income tax, and
with the co-operation which the peo
ple can give the government men, the
returns will be filed by everybody who
comes under the law's provisions, the
right taxes will be paid, and the dis
trict will have done its full patriotic
duty toward the government’s sup
port.
Meanwhile, let me say agin, there
is no need of delaying the fiMparatlon
of figures. Anything that congress
does now will not affect the amount
of a person’s earrings for 1918. Let
us avoid the belated throwing to
gether of figures that may hit or mins.
Guesses can not be accepted as the
basis of taxation. It is clearly the
duty of every person to compile cor
rect figures and ascertain whether his
income for 1918 was sufficient to make
necessary a sworn return.
The year 1918 was a banner year for
salaries and wages, and the high war
prices brought unusual profits to the
farmer. The opinion In Washington,
D. C„ is that a million citizens and
I
residents will make this year their
first income tax returns.
Mlist Make Sworn Statement
All signs indicate that the income
tax this year will reach nearly evary
working man and woman, and nearly
every merchant, shopkeeper and
farmer. Not all will have to pay the
tax, but nearly all will be obliged to
make a sworn statement of the year's
income.
I am therefore advising every un
married person who earned $1,000 or
more during the year 1918, and every
married person who, together with
wife or husband, earned $2,000, to
sharpen his pencil and figure out how
he stands.
He must ascertain accurately his
i gross income from all sources. There’s
his salary or wages, including over
time pay and any bonus, received as
additional compensation. A married
person having children under 18 who
are working should include the earn
ings of such children.
If he sold any property at a profit,
the gain must be computed and in
cluded in gross income. If he rented
any property to other persons, the to
tal rents received in the year must be
ascertained, and from that figure a
ucuuuliuu 111ay uc laivcii iwi taAcn pcuu
on rented property, the necessary mi
nor repairs, fire insurance, any Inter
est he may have paid on mortgage,
and a reasonable allowance for annual
wear and tear of the rented property.
The balance is included in gross in
come for the year.
Interest on Bank Deposits
Interest on any deposits, whether
withdrawn or added to his bank bal
ances, must be included in all calcu
lations of income. Bond interest re
ceived during the year must also be
included, except interest on municipal,
county or state bonds. Interest on
United States bonds need not be in
cluded by the ordinary bondholder
who purchased small amounts. Hold
ers of large amounts of Liberty bonds,
however, should ask their bankers to
write to my office for the rule apply
ing to tax on such interest.
Dividends on stock shares are in
come, and must be included in the
gross figures, although the law does
not impose the normal tax on distri
butions made by domestic corpora
tions.
A person buying and selling mer
chandise must find his profits for the
year on the following basis: First,
ascertain the gross sales or total cash
receipts. Then add together the in
ventory at the beginning of the year
and the purchase of goods for resale.
From this latter sum subtract the In
ventory of goods on hand at the year’s
end, and the result is the cost of goods
sold. This cost, plus necessary ex
penses incurred solely through con
duct of the business, is to be deducted
from the gross sales, and the result
is the net earnings of the business.
Professional Man’s Income
A professional man arrives at his
professional income by ascertaining
the total of fees for services and de
ducting 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 al
lowed to deduct from this total his
expenses of the year connected with
the planting, cultivation, harvesting
and marketing of the crop, or the
care, feeding and marketing of live
stock. He is not allowed to deduct
the amount expended in 1918 in pur
chasing stock for resale, but when
such stock is sold its cost is to be
deducted from sale price in ascertain
* U __1 _ i. 1. ... , . . . .
•**c* «-v» UO IUV1UUCU 111 1110 III
come. The cost price of stock bought
prior to 1917 can not be deducted, as
in the case just cited, if such cost was
included in the deduction made in the
year of purchase.
The farmer is not required to in
clude in his income tax computation
the value of farm produce consumed
by himself and family. But in cases
where he exchanges produce for mer
chandise, groceries, etc., the market
value of the articles received in ex
change must he included.*
Other Sources of Income
All other items of income arising
during the year through personal serv
ice, business or trade, through use of
property or money, should be added
to the gains for 1918.
Everybody wants to know what in
come is exempt from tax. Very few
plums that fall to the average man
may be legally disregarded in figur
ing up his 1918 Income. Gifts and be
quests can be eliminated; also pro
ceeds of life insurance received by
the beneficiary of an insured person.
A person who cashed in an endow
ment policy need report as Income
only that portion which exceeds the
total of the premiums he paid in all
years on that policy. Annuities are
not taxable, unless the person re
ceived in the year payments which
represent when added to all prior
payments on the annuity an amount
greater than the original cost of the
annuity. Dividends on unexplred life
insurance policies are not taxable in
come, but dividends on paid-up poli
cies must be considered income. Ali
mony is not income to the recipient,
nor is it an allowable deduction on
,lhe part of the person who pays.
May Deduct Losses
Losses incurred in business or trade
are allowable; also losses arising
from fires, storms, shipwreck 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 trans
actions within the year. Debts due
to the taxpayer actually ascertained
to be worthless during the year are
deductible.
Depreciation on property used in a
profession, in business 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 instruments; and, in
the 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 depreciation on his farm build
ings, aside from his personal resi
dence; also on his farm machinery,
his work horses and farm work wag
ons.
The theory of depreciation in con
nection with the income tax is that
wear and tear caused by use in earn
ing income is a real expense in the
learning of that income. The rate is
determined by the number of years
that the property ordinarily would be
useful, and the cost of the property
is the basis of the computation. If
the properfy 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.
Contribution* or Gift*
Contributions or gifts actually made
in 1918 to organizations operating ex
clusively for religious, charitable, sci
entific or education purposes, and to
societies for the prevention of cru
elty to children or animals, may be
deducted to an amount not exceeding
15 per cent of the net income com
puted without the benefit of this de
duction.
After the total of all income is
found, and the deductions allowable
by law have been computed aB an
offset, the amount of income in ex
cess of such deductions is the net
income, which forms the basis of the
assessment of tax.
If every person in this district will
examine his own 1918 income and his
allowable deductions in line with data
that I have given, he will know be
yond doubt whether he must file his
return when the blanks arrive. And
here is how he will determine his lia
bility to file a return. If he iB single
:ie must file if his net income was
$1,000 or more, and this requirement
is enforced whether or not he is the
head of a family. If he is married,
lie must file his return if his net in
come, including that of his wife and
minor children, was $2,000 or more.
Plans to Compute
I want to emphasize the co-opera
tion feature of the collection of the
income tax this year. The policy of
the internal revenue bureau is to aid
taxpayers to meet the requirements
of the law. We are going right to the
people, not to swing clubs or to mulct
the wage earner of his savings, but
offering every helpful government
function that will assist people to do
their duty.
Income tax blanks for the year 1918
will be distributed as soon after the
enactment of the new law as possible.
-«
French lessons, private and class,
for children and adults. Ida Dowald
sr, experienced teacher. Adams build
ing, C street. 34-3t
Alaskan Grill
FRANK A. DOUGLAS, Proprietor
“The Home of Quality and Attention”
The Popular Restaurant of Cordova. Everything First-Class
Special Attention Given to Parties
One Visit to the Alaska Grill Will Make You a
s Regular Patron
1 NORTHERN MEAT MARKET I
« *i%
■& Wholesale and Retail Dealers in $
:•:• $•
1 Fresh Beef, Pork, Veal, Mutton |
and Provisions
Particular Attention and Prompt Service Given to Ordera from
Mining Camps, Roadhouses and Interior Points
Halibut and Other Fresh Fish of All Kinds Will Be Kept |
in Stock When Available if
SMITH & GLASSBRENNBR, Props. |
1 - ■■■■■ MM——
Copper River
and Northwestern Ry.
FOUR TRAINS WEEKLY BETWEEN
. CHITINA AND KENNECOTT
Leave Cordova, Second Street Depot, on Mon
days, Thursdays and Saturdays
Leave Chitina for Cordova Sundays, Tuesdays,
Thursdays and Fridays
Leave Chitina for Kennecott Sundays, Tuesdays
and Fridays
Leave Kennecott for Chitina Mondays, Wednes
days, Thursdays and Saturdays
The above schedule subject to change without
notice.
Dining Car in Connection with all Regular
Passenger Trains between Cordova Chitina.
Freight received and delivered at Cordova
Wharf from 9 a. m. to 5 p- m., except Sundays.
Tickets on sale at Second Street Depot office
<me hour before departure of trains.
CALEB CORSER Superintendent
D. L, LEATON, Ticket Agent
| NOTICE TO WATER CONSUMERS
IThis Company has spared neither time
nor expense to give Cordova a continuous
WATER SUPPLY. To do this the Company
g
must have your co-operation to stop the waste
that occurs from letting the water run to avoid
freezing the pipes. Where we find this con
dition still to exist we shall SHUT OFF THE
WATER for the winter without further notice.
ALASKA PUBLIC UTILITIES
jjj First Street Phone 13 |