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TIME TO TACKLE xt - 

 M TAX RETURNS 



Failure to file an income tax return on or before Monday, March 1, 

 is punishable by a fine of from $20 to $1,000. All florists who received 

 an income of $3,000 or more during the year ended December 31, 1914, 

 must fill the report, no matter wJiat the amount of their exemptions. Have 

 you started on yours? 





|HEN, a year ago, florists 

 faced for the first time the 

 problem of making out an 

 income tax report, they 

 found they had a puzzling 

 proposition on their hands. 

 It was with relief, as a 

 number of them have said, that they 

 read a detailed explanation of the way 

 to go about it in The Review for Feb- 

 ruary 19, 1914. Those who have seen 

 the blanks for the returns to be filed 

 this year have found them so different 

 from those of a year ago that they 

 are glad of further enlightenment. So 

 The Review, taking the same person as 

 last year, is giving herewith a speci- 

 men tax return for the guidance of 

 those whose prosperous condition de- 

 mands that they make 

 out a report. 



Not only the persons 

 who make out the rej)orts, 

 but also Uncle Sam, who 

 receives the returns, had 

 much to learn about this 

 new form of tax. This 

 fact accounts for the dif- 

 ference between this 

 year's return and that of 

 last year. Like Mr, New- 

 papa about his baby, 

 Uncle Sam has had to 

 learn by experience, but 

 he is learning fast. 



Points of Diffeience. 



ject is to obtain greater exactness in 

 the figures, for it is a general failing, it 

 appears, for those who fill out returns 

 to be overconservative when they make 

 their estimates in round numbers. 



Maldng the Beport. 



All those who received an income of 

 $3,000 during the year 1914 are required 

 to file a return. If there is any doubt 

 about it, the best plan is to play safe 

 by making the report, as the govern- 

 ment officers are not likely to be as 

 lenient this time as they were last year, 

 and the various information being ob- 

 tained by the authorities through more 

 detailed corporation reports, etc., is 

 giving them clues as to who the mon- 

 eyed persons are. 



The principal point of 

 difference in this year's 

 report is the prominence 

 given to friend wife. In 

 1914 the instructions stat- 

 ed that her income might 

 be included with her hus- 

 band's or she might make 

 out a separate report. 

 Evidently the collectors 

 of internal revenue 

 thought the married ladies 

 were not taking as prom- 

 inent a part in income 

 tax paying as they 

 should, for this year 

 friend wife is given a 

 separate line on every 

 entry, although she still 

 lias the privilege of mak- 

 ing out an individual re- 

 turn. 



In addition, some en- 

 tries are this year divided 

 into two separate items, 

 and on some more details 

 are asked for. The ob- 



nKnuaiHMUflK. 



Atussmnt List 23-B 

 Folio Lit 



Form 1040 (RerlMd). 



nKniam 



(itmi'i' 



INCOME TAX. 



bM* HK* to kfe Maaf^ 1 



THE PCMAI.TV 



roi tktivn TO lAVt iws tirviN m 



IVf lAMIS or TK COUICTOI Of 

 wniNAI. HVtNtC ON 0* HfOd 

 MAICI I IS t20 TO «M>00. 



(•n iNsrmjcTioMs om »*•■ 4.) 



UNITED STATES INTERNAL REVENUE. 



Fill Mo 



txaminulbf.. 

 Audittd by . . 



DfPOBTAHT. 



RMd lhi« fiara throvili carthilly. 



nil In fttttl ud ] Ixion mtkla* 



entri«« on Aral pag<> 



RETURN OF ANNUAL NET INCOME OF INDIVIDUALS. 



(At pr«TVl«d bj Act o( OMgnai, cpprarad Octobar S, ItU ) 



DICOKB RECEIVBD OR ACCRDBO DOSIIIO THB YBAR BHDBO DKCIMBBR Jl, 191... 



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( Post -oAc« Mill n 



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COMPLETE AKSWSRS SHODLD BE GIVEH TO THB FOLLOWIRO QOBSTIOIIS. 



Did )'ou render a raturn of income for the preceding yeer? CcC4^ If lo, in wbat Interajki Revenue Diatrict wm it filed? , . . . . 



Wen you mngU at married 'w\t\i vife or hiuband living wits you on December 31, of the yew for.whicli this return ii rendered? 



II married, give full name of wife or hurt>and . . LMVtt-a^ /SSI^'Xtf^ O^i^^-i^AT. 



jfKoAAUxL 



Hh your yriit or husband incom« from lourcM indepeudeDt of your awnX 

 Havc you included your wife'i or husb*nd'i income io this rvtum? 



1. GiOM Incomi (brougfat from line 28) 



3. OBjriKAX, PsDVcnovt (brought from Um M) 



3. Nit Iwcomk. 



Specific dednctioaa and OBrnptiocu •llowad Lo campatlnf sormal liz of t fW c*^!. 



4. Divideodfl (brought from line 27) 



&. Income on which the normal tax faaa been paid or ii to be paid at the 

 ■ource (brought from line 23, Column A) 



6. Specific exemption of 93,000, or 94,000, ■« the caae may be . . 



mm 



oo 

 (Koo 



Note-— If aeparate return la made by huaband or wife and exemp-l"**"*^" ' * 

 tion ia prorated, etate amount claimed by; jrr-i • 



7. Total d«ductiona and exemptions (Itema 4, 5, and C) 



S. Taxabli Income on which the normal Ux of 1 per cent ia to be calculated . 



nOTB.— Whu the sal iacaaa ih««n aboet an Una J aicaads $20,000 tka addManal lax thanoB Boat be calcolatad aa par schadnls balsw. 



Form 1040, revised, is the blank re- 

 quired. On page 1 are some general 

 questions which may be filled out first, 

 but in figuring the income, page 2 is 

 the place to begin. The pages repro- 

 duced herewith show how A. F. Lorist 

 did it this year, using but one blank 

 for himself and his wife. 



The $96 he received for contributing 

 weekly news-letters to The Keview and 

 the $60 received for lecturing form the 

 $156 entered on the first line of page 2. 

 His wife has no income that can be 

 classed as a salary or wage. Neither 

 of tljem receives anything that can be 

 entered under "professions and voca- 

 tions." A. F. Lorist runs a retail store 

 in a town of some size, and his total 

 receipts for the year were, according 

 to his books, $20,104, for 

 business was not quite so 

 good as in 1913. To this 

 he adds $980 he cleared 

 on a real estate transac- 

 tion. In this transaction 

 his wife shared, so that 

 the sum of $530 is entered 

 on her line. 



Profits on Real Estate. 



It should be noted that 

 in reckoning profits in real 

 estate transactions, the 

 cost of property purchased 

 before the incidence of 

 the income tax, March 1, 

 1913, includes the price 

 paid for the property, tho 

 expense of the purcha'se 

 and also of the sale, and 

 the carrying charges of 

 interest, insurance and 

 taxes actually paid before 

 March 1, 1913. Of prop- 

 erty purchased since that 

 date the cost shall be the 

 price paid for the prop- 

 erty, the expenses of pur- 

 chase and subsequent sale, 

 and the actual price paid 

 for betterment or im- 

 provement, if any, the 

 carrying charges having, 

 of course, been deducted 

 in the tax report. 



From the rooms over 

 his store he received dur- 

 ing the year $360 rent. As 

 interest on notes he re- 

 ceived $60; on mortgages, 

 $75, and on his bank ac- 

 count, $23, making a total 

 of $158. His wife's in- 

 terest on her bank account 



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