GIFT OF ■'i'j'fi AM •••noBJAs vojg pjo|A«o The National City Company National City Bank Building New York Income Tax Record Book COPYRIGHT, 1917, BY THE NATIONAL CITY COMPANY Income Tax Record Book and Synopsis of the Federal Income Tax Law (Amended September 8, 1916) As Affecting Individuals The National City Company National City Bank Building New York A National Investment Organization possessing the resources, management and distributing facilities which make it possible to offer the widest range of attractive investment bonds which we have purchased for our own account. The National City Company National City Bank Building New York Correspondent Offices Philadelphia, Pa. 1421 Chestnut Street Boston, Mass. 55 Congress Street Pittsburgh, Pa. Farmers Bank Building Cleveland, Ohio.\ . , ' ; • Guardian Building Detroit, Mich. Dime Bank Building Buffalo, N.Y. Marine Bank Building Kansas City, Mo. Republic Building London, England 3 Lombeurd Street Chicago, 111. 137 So. La Salle Street San Francisco, CeJ. 424 California Street Baltimore, Md. Munsey Building Washington, D. C. 741 15th Street, N.W. Albany, N. Y. Douw Building St. Louis, Mo. Bank of Commerce Building Los Angeles, Cal. Hibernian Building Wilkes-Barre, Pa. Miners Bank Building INDEX Applies to Whom 9 Amount of Normal Tax 9 Amount of Additional or Surtax 9 Absence 16 Accrued Interest on Bonds i5 Bonds Exempt from the Tax 10 Bonds Not Exempt from the Tax 10 By Whom Tax Deducted from Interest on Bonds 11 Deducted from Interest on Bonds at the Source 10 Deducted from Foreign Coupons and Interests 11 Deductions Allowed 12 Executors 15 Fiduciaries 15 Foreign Bonds Not Exempt 11 Guardians 15 Husband and Wife, Exemption of 15 Head of Family 15 Income, Definition of 14 Income, Exempt from the Law 9 Illness 16 Municipal Bonds Exempt 10 Notes Not Exempt 10 Nonresidence 16 Nonresident Alien 9 Payable When 14 Partnerships 15 Public Utility Bonds Not Exempt 10 Railroad Bonds Not Exempt 10 Return — Form of 33 Who Must File 14 When Filed 14 Where Filed 14 When Time Extended for Filing 14 Where Forms Secured 16 Record of Bond Coupons 20-22 Record of Dividends 24 Stocks, When Dividends Exempt 10 Tax Payable When 14 Trustees 15 United States Government Bonds Exempt 10 34'J476 Synopsis of the Federal Income Tax as Affecting Individuals Applies to Whom The Federal Income Tax applies to every individual, a citizen or resident of the United States, as to their income received from every source within and without the United States, and non-resident aliens as to their income received from sources within the United States. Amount of Normal Income Tax A tax of two per centum shall be levied upon the entire net income of citizens or residents of the United States re- ceived in the preceding calendar year from all sources, in- cluding interest on bonds, notes or other interest-bearing obligations of residents, corporate or otherwise. A like tax of two per centum shall be levied upon the en- tire net income received in the preceding calendar year from all sources in the United States upon every individual, a non- resident alien, including interest on bonds, notes and other interest -bearing obligations of residents, corporate or other- wise. Amount of the Additional or Surtax A chart showing the additional or surtax on incomes from $5,000 to $3,000,000 and an explanation of same is given on pages 17, 18 and 19 of this book. Income Exempt from the Law The proceeds of life insurance policies paid to individual beneficiaries upon the death of the insured; the amount re- ceived by the insured, as a return of premium or premiums paid by him under life insurance, endowment, or annuity contracts, either during the terms or at the maturity of the term mentioned in the contract or upon the surrender of the contract ; the value of property acquired by gift, bequest, de- vise or descent (but the income from such property shall be included as income), shall be exempt from the provisions of the law. Bonds Exempt from the Tax All bonds of the United States Government, any state or political subdivision thereof (which includes city bonds) or its possessions, or any securities issued under the pro- visions of the Federal Farm Loan Act of July 17, 1916, are exempt from the payment of the Income Tax. Bonds Not Exempt from the Tax All bonds of public utility, railroad and industrial corpora- tions are subject to the normal tax of two per cent. All bonds of foreign governments and foreign cities are also subject to the normal tax of two per cent. Notes Not Exempt Notes of railroad, public utility and industrial corpora- tions, like bonds of such corporations, are not exempt from the tax. However a promissory note not exceeding one year in time is not subject to the withholding of the tax at the source unless the amount of interest during the year exceeds $3,000. Stocks, When Dividends Exempt "For the purpose of the normal income tax only the income embraced in a personal return shall be credited with the amount received as dividends upon the stock or from the net earnings of any corporation, joint stock company or asso- ciation, trustee or insurance company, which is taxable upon its net income." In other words, dividends from stock of corporations doing business in the United States shall not be subject to the normal tax, but to the additional or surtax. Deducted from Interest on Bonds at the Source The amount of the normal tax shall be deducted and with- held from fixed or determinable annual or periodical gains, profits and income derived from interest on bonds and mort- gages or deeds of trust or other similar obligations of cor- porations, joint stock companies, associations and insurance companies, whether payable annually or at shorter or longer periods, although such interest does not amount to $3,000, subject to the provisions of the law, requiring the tax to be 10 withheld at the source and deducted from the annual income and returned and paid to the Government. Deducted from Foreign Coupons and Interest The normal tax shall be deducted and withheld from cou- pons, checks or bills of exchange for or in payment of inter- est upon bonds of foreign countries (including foreign cities) and upon foreign mortgages or like obligations (not payable in the United States) and also from coupons, checks or bills of exchange, for or in payment of any dividends upon the stock or interest upon the obligations of foreign corpora- tions, associations and insurance companies engaged in busi- ness in foreign countries. By Whom Tax Deducted from Interest on Bonds On coupons and interest paid by corporations in the United States, the corporation is required to deduct the nor- mal tax from the face of the coupon or interest. Where a corporation in the mortgage securing a bond or by other contract has agreed to pay the coupons or interest in full without deducting the normal tax, it is necessary for the cor- poration to pay the Government the normal tax in addition to paying the holder the full amount of the coupon or inter- est. However, the individual, when making his return, will show the normal tax paid at the source the same as he would if it had been deducted from the face of the coupon. It is the practice of banks paying coupons and interest to deduct the normal tax of 2% from the face of all coupons, unless a certificate is attached by the owner or his agent claiming exemption, except U. S. Government and Munici- pal bonds, which are exempt under the law from the tax and consequently no certificate claiming exemption need be at- tached. When, however, the corporation issuing the bond pays the normal tax and has so agreed with the bank paying the cou- pons or interest, to pay the amount of the normal tax, then it is the practice of the banks to pay the coupons in full, whether exemption is claimed or not. On coupons, checks or bills of exchange for and in pay- ment of interest upon bonds of foreign countries (including 11 foreign cities) and for mortgages or like obligations (not payable in the United States) or in payment of any dividends upon the stock or interest upon the obligations of foreign corporations engaged in business in foreign countries, the Income Law provides the tax in such cases shall be withheld, deducted and returned for and in behalf of any person sub- ject to the tax by : "(1) any banker or person who shall sell or otherwise realize coupons, checks, or bills of exchange drawn or made in payment of any such interest or dividends (not payable in the United States), and (2) any person who shall obtain payment (not in the United States), in behalf of another of such dividends and interest by means of coupons, checks, or bills of exchange and also (3) any dealer in such coupons who shall purchase the same for any such dividends or interest (not payable in the United States), otherwise than from a banker or an- other dealer in such coupons." All such deductions are considered under the law as hav- ing been made at the source. Deductions Allowed In computing the net income in the case of a citizen or resident of the United States, for the purpose of the tax, there shall be allowed as deductions : "First. The necessary expenses actually paid in car- rying on any business or trade, not including personal, living, or family expenses ; Second. All interest paid within the year on his in- debtedness ; Third. Taxes paid within the year imposed by the authority of the United States, or its Territories, or pos- sessions, or any foreign country, or under the authority of any State, county, school district, or municipality, or other taxing subdivision of any State, not including those assessed against local benefits ; Fourth. Losses actually sustained during the year, in- curred in his business or trade, or arising from fires, 12 storms, shipwreck, or other casualty, and from theft; when such losses are not compensated for by insurance or otherwise: PROVIDED, That for the purpose of ascertaining the loss sustained from the sale or other disposition of property, real, personal or mixed, acquired before March first, nineteen hundred and thirteen, the fair market price or value of such property as of March first, nineteen hundred and thirteen, shall be the basis for determining the amount of such loss sustained ; Fifth. In transactions entered into for profit, but not connected with his business or trade, the losses actually sustained therein during the year to an amount not ex- ceeding the profits arising therefrom; Sixth. Debts due to the taxpayer actually ascertained to be worthless and charged off within the year ; Seventh. A reasonable allowance for the exhaustion, wear and tear of property arising out of its use or em- ployment in the employment in the business or trade ; Eighth, (a) In the case ot oil and gas wells a reason- able allowance for actual reduction in flow and produc- tion to be ascertained not by the flush flow, but by the settled production or regular flow; (b) in the case of mines a reasonable allowance for depletion thereof not to exceed the market value in the mine of the product thereof, which has been mined and sold during the year for which the return and computation are made, such reasonable allowance to be made in the case of both (a) and (b) under rules and regulations to be prescribed by the Secretary of the Treasury: PROVIDED, That when the allowances authorized in (a) and (b) shall equal the capital originally invested, or in case of purchase made prior to March first, nineteen hundred and thirteen, the fair market value as of that date, no further allowance shall be made. No deduction shall be allowed for any amount paid out for new buildings, permanent improve- ments, or betterments, made to increase the value of any property or estate, and no deduction shall be made for any amount of expense of restoring property or making good the exhaustion thereof for which an allowance is or has been made." 13 Who Must File Return Every citizen or resident of the United States having a net income of $3,000 or more for the taxable year is required to file a return, although all or a part of said income may be exempt or the tax may have been deducted at the source. When Retum to be Filed On or before the first day of March, 1917, and on the first day of March in each year thereafter. Where to be Filed The return shall be filed with the Collector of Internal Revenue for the district in which the person making the re- tum has his residence or principal place of business, or, if there is no local residence or place of business in the United States, then with the Collector of Internal Revenue at Balti- more, Maryland. Extension of Time for Filing The Commissioner of Internal Revenue has authority to grant a reasonable extension of time, in meritorious cases, for filing returns of income by persons residing or traveling abroad who are required to make and file returns of income and who are unable to file said returns on or before March first of each year. When Tax Payable All assessments shall be made by the Commissioner of Internal Revenue and all persons shall be notified of the amount for which they are respectively liable on or before the first day of June of each successive year, and said amounts shall be paid on or before the fifteenth day of June. Income, Definition of The net income of a taxable person shall include gains, profits, and income derived from salaries, wages, or compen- sation for personal service of whatever kind and in whatever form paid, or from professions, vocations, business, trade, commerce, or sales, or dealings in property, whether real or personal, growing out of the ownership or use of or interest 14 in real or personal property, also from interest, rent, divi-^ dends, securities, or the transaction of any business carried on for gain or profit, or gains or profits and income derived from any source whatever: PROVIDED, That the term ^'dividends" as used in this title shall be held to mean any distribution made or ordered to be made by a corporation, joint-stock company, association or insurance company, out of its earnings or profits accrued since March first, nineteen hundred and thirteen, and payable to its share- holders, whether in cash or in stock of the corporation, joint-stock company, association, or insurance company, which stock dividend shall be considered income, to the amount of its cash value. Partnerships Persons engaged in business in a partnership are consid- ered only in their individual capacity. The share of the prof- its of a partnership to which the partner would be entitled, if the same were divided, whether divided or not, is to be included in the return of such partner. Fiduciaries Guardians, executors, trustees and other fiduciaries are re- quired to file a return of the income of estates or any kind of property held in trust by them. Exemption of Husband and Wife, Guardians or Trustees That for the purpose of the normal tax only there shall be allowed as an exemption m the nature of a deduction from the amount of the net income of each of said persons, ascer- tained as provided herein, the sum of $3,000 plus $1,000 addi- tional if the person making the return be a head of a family or a married man with a wife living with him, or plus the sum of $1,000 additional if the person making the return be a married woman with a husband living with her ; but in no event shall this additional exemption of $1,000 be deducted by both a husband and a wife: PROVIDED, That only one deduction of $4,000 shall be made from the aggregate income of both husband and wife when living together: PRO- VIDED FURTHER, That guardians or trustees shall be 15 allowed to make this personal exemption as to income de- rived from the property of which such guardian or trustee has charge in favor of each ward or cestui que trust. Absence, Illness, Nonresidence In event of the absence, illness or the nonresidence of the individual, the return may be made by an agent, who is then responsible for the correctness of the return. Accrued Interest on Bonds Accrued interest received by the seller of a bond is income and the purchaser in his return need only include that part of the interest received by him since purchase. Forms All the necessary forms may be obtained at the office of the Collector of Internal Revenue of the various districts. 16 Explanation of Income Chart The chart on the following pages illustrates graphically the rate and amount of tax to be collected under the new law as compared with the tax under the old law on incomes rang- ing from $5,000 to $3,000,000. In making the calculations in each instance $4,000 has been deducted from the total income assumed and the tax payable is based on the amount re- maining after making this deduction. This $4,000 is the exemption allowed by law when the taxable person is a mar- ried man living with his wife, a married woman living with her husband, or a person the head of a family. If the taxable person is unmarried and not the head of a family the ex- emption is but $3,000. It will be observed that unless the taxpayer's net income exceeds $20,000, in which event if married his taxable in- come is $16,000, the tax is only 2%. If the income of $20,000 is capitalized on a 5% basis the taxpayer's income-producing property will have a value of $400,000. His income tax, how- ever, will amount to only $320 per annum. As most incomes are derived in part either from municipal bonds which are tax exempt, or from dividends, or tax free bonds of Ameri- can corporations, some of which pay the normal tax, there- fore the actual tax payable by the individual will usually be materially less than the amounts indicated in the calculations on following pages. Typical Example Net Income $100,000 Normal Tax (2% of $96,000) . . $1,920 Surtax : 1% on amount by which $40,000 exceeds $20,000 (1% on $20,000) 200 2% on amount by which $60,000 exceeds $40,000 (2% on $20,000) 400 3% on amount by which $80,000 exceeds $60,000 (3% on $20,000) 600 4% on amount by which $100,000 exceeds $80,000 (4% on $20,000) 800 Total $3,920 17 INCOME NORMAL TAX ai 2% 1% 2% 3% 4% 5% 6% On excess $20,000 $40,000 $60,000 $80,000 sioo.ooo $150,000 $2 Income of to to to to to to $4,000 $40,000 $60,000 $80,000 $100,000 $150,000 $200,000 $2 $5,000 $20 10,000 120 15,000 220 20,000 320 25.000 420 $50 30.000 520 100 35,000 620 150 40,000 720 200 45.000 820 200 $100 50,000 920 200 200 55,000 1.020 200 300 60.000 1,120 200 400 65.000 1.220 200 400 $150 70.000 1,320 200 400 300 75.000 1,420 200 400 450 80,000 1,520 200 400 600 85,000 1.620 200 400 600 $200 90.000 1.720 200 400 600 400 95.000 1,820 200 400 600 600 100,000 1,920 200 400 600 800 110,000 2,120 200 400 600 800 $500 125,000 2.420 200 400 600 800 1,250 135,000 2,620 200 400 600 800 1,750 150,000 2,920 200 400 600 800 2,500 175.000 3,420 200 400 600 800 2.500 $1,500 200.000 3.920 200 400 600 800 2.500 3.000 225.000 4,420 200 400 600 800 2,500 3,000 *. 250,000 4,920 200 400 600 800 2.500 3,000 t 275.000 5.420 200 400 600 800 2,500 3.000 « 300.000 5.920 200 400 600 800 2,500 3.000 ' 350,000 6,920 200 400 600 800 2,500 3,000 • 400,000 7.920 200 400 600 800 2,500 3,000 450,000 8,920 200 400 600 800 2,500 3,000 500,000 9.920 200 400 600 800 2,500 3,000 550,000 10,920 200 400 600 800 2,500 3.000 600.000 11.920 200 400 600 800 2,500 3,000 ' 650,000 12,920 200 400 600 800 2,500 3.000 700,000 13,920 200 400 600 800 2.500 3.000 , 750.000 14,920 200 400 600 800 2.500 3,000 800,000 15,920 200 400 600 800 2,500 3,000 850,000 16,920 200 400 600 800 2,500 3,000 900.000 17,920 200 400 600 800 2,500 3.000 950.000 18,920 200 400 600 800 2,500 3.000 1.000,000 19.920 200 400 600 800 2.500 3,000 1,250,000 24,920 200 400 600 800 2.500 3,000 1,500.000 29.920 200 400 600 800 2.600 3,000 1.750 000 34.920 200 400 600 800 2.500 3,000 2.000,000 39,920 200 400 600 800 2,500 3.000 2.250,000 44,920 200 400 600 800 2,500 3,000 2.500,000 49,920 200 400 600 800 2,500 3,000 2.750,000 54,920 200 400 600 800 2.500 3,000 3.000,000 59.920 200 400 600 800 2.500 3,000 18 AX CHART TOTAL TAX 8% 9% 10% 11% 12% 13% oo $250,000 $300,000 $500,000 $1,000,000 $1,500,000 to to to to to Excess of Under new Under old [)0 $300,000 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,000,000 law law $20 $10 120 60 220 110 320 160 470 260 620 360 770 460 920 660 1,120 660 1,320 760 1,520 1,720 1.970 2,220 2,470 910 1.060 1.210 1.360 1.510 2,720 1.710 3,020 1,910 3.320 2.110 3.620 2.310 3,920 2,510 4.620 3,010 6,670 3,760 6,370 4,260 7,420 5,010 9,420 6,260 11.420 7,610 13,670 8,760 15,920 10,010 $2,000 18.420 11,610 4,000 20,920 13,010 4,000 $4,500 26.420 16,010 4,000 9,000 31.920 19,010 4,000 13,500 37,420 22,010 4,000 18,000 42,920 26,010 4,000 18,000 $5,000 48,920 28,610 4,000 18,000 10,000 54,920 32,010 4,000 18,000 15,000 00,920 36.610 4,000 18,000 20,000 66,920 39.010 4,000 18,000 25,000 72,920 42.610 4,000 18,000 30,000 78.920 46.010 4,000 18,000 35,000 84,920 49.610 4,000 18,000 40.000 90,920 63.010 4,000 18,000 45.000 96,920 66.610 4,000 18,000 50.000 102,920 60.010 4,000 18,000 50.000 $27,500 135,420 77.610 4,000 18,000 50,000 55,000 167,920 96.010 4,000 18,000 50,000 55,000 $30,000 202,920 112.610 4.000 18,000 50,000 55,000 60,000 237.020 130,010 4,000 18,000 50,000 55,000 60,000 $32,500 276,420 147.610 4,000 18,000 50,000 55,000 60.000 65,000 312,920 166,010 4,000 18,000 50,000 55,000 60,000 1 97,500 350,420 182,510 4,000 18.000 50,000 55.000 60,000 i 130.000 387.920 200.010 19 Record of Bond Coupons DATB BONDS FROM WHICH DETACHED MATURITY 20 Concerning Exemptions, Taxes and Amounts Received EXEMPTION NOT CLAIMED . * EXEMPTION TAX ' AMOUNT CLAIMED DEDUCTED CREDITED ! • 1 _JIj , *— "■ "" f""" — i 1 i ': ! ■ i I! 1 ^ li 1 i i ' i L^_ ■ _ ! i 1 .__ J li i f. ' ' L 1 [ ^1 ^ T i ii 1 1 1 li nr ^ 1 j il i H-+- -f- t .„ ,,. .! 1 \ _L ,, 1 1! • ! ^ ; j 11 1 1 ii L I ^ ! 1 21 ' Record of Bond Coupons DATE BONDS FROM WHICH DETACHED ■ MATURITY ~ — .^ J..,. 'i ^ 22 Concerning Exemptions, Taxes and Amounts Received EXEMPTION EXEMPTION TAX AMOUNT NOT CLAIMED CLAIMED DEDUCTED CREDITED 1 ■ 1 1 1 1 . j j i ,/ 1 i ! i i , t i i i 1 ' j J 1 • ___ '\ . 1 1 ., ii i__: 'i ■ t" "ZT Record of Dividends Received ■ ': 1 ■if- ■ ■ . ■ 1 DATE ! SBCUI^ITY i AMOUNT • • 24 Record of Dividends Received DATE SECURITY AMOUNT j 1. . " ! i r -x — ^^ j 1 i i , f. a ! r~^- , . , , i(. „■,, ., L ■ r ■i - f ■ i r ■ r h '' ' L 25 Income from Miscellaneous Sources DATE ITEMS 1 AMOUNT 1 ! 1 . , , ., ... , ., , , „. "^ Deductions Claimed DATE ITEMS AMOUNT ' 1 - I i ' - i •' 1 — ■ -- - — --^™— »»_.-_— ^ — 1^_™™ ■■ -~f— ■ J T~- — i .. I • ■ \ I I y^'^' '"'' 27 Bonds Owned (exempt from Normal Income Tax) NAME OF BOND "STtS^ MATURITY RATE TAX ASSUMED BY li 1 1 i !l 1 !' • !* 1 1 1 11 1 28 Bonds Owned (Taxable) ft n ^ NAME OF BOND INTEREST DATES MATURITY RATE =^=^=^ sj AMOUNT SUBJECT TO TAX ! il i- ji li !! 1 i I ■ 1 i ■ 1 '■ 1 i ^: i: ;: 29 List of All Holdings and Bonds and Shares Name of Security Annual Int. Price Purch'e Income Pay'le Paid Date i ' 1 r n { 1 » 1 1! 1 ■ ■ ■ i '' ' 1 " ! 1 1 1 II 1 ' " i 1 ! i r 1 . ! i 1 : . ,, It — . 30 Total Interest Due Each Month Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 31 Memoranda i 32 i TOBEnilfDINBYCOLIICTOR. Assessment List 23-B .. Folio Line. Foriu 1040 (Revised October, 1916). (bowing district and date received. INC OME TAX. THE PENAUTY FOR FAILURE TO HAVE THIS RETURN IN THE HANDS OF THE COLLECTOR OF LNTERNAL REVENUE ON OR BEFORE MARCH 1 IS $20 TO $1,000. (see instructions on PAOE 4.) UNITED STATES INTERNAL REVENUE. TO BE FILLED IN BY nrONAL REVENUE BOREM, File No. ... Audited by IMPORTANT. Read this form through carefully. Fill in pages 2 and 3 before making entries on first page. Write legibly, using typewriter if possible. RETURN OF ANNUAL NET INCOME OF INDIVIDUALS, (As provided by Act of Congress approved September 8, X9I6.) FOR YEAR 1916. Filed by (or for) ., of, (Street and number.) ("post-office address.) (State.) Mi $ ioo. 1 H 0»i. 2 (trvprat. DnnTTmnMS fhrmitrlit frnm Iitia 40^ . . . 1 1 $-.. :i: ...1... Dividends and personal exemption to be deducted in computing income subject to normal tax. Mil $-- $- lion ... Tl. - ... H ... C»u 5. Personal exemption (single, $3,000; married or head of family, $4,000). . 6. Total dividends and personal exemption (Items 4 and 5 $ 1 1 8. Amount of Normal Tax at rate of 2 per cent on income shown on line 7 9, Ceedit by amount of normal tax paid or to be paid at source (1 per cent of on line 25, Column A) „ $.- ... ... amount of income shown 10. Balanck of normal tax due _ $... KOTE. — When the net income shown above on line 3 exceeds $20,000 the additional tax thereon must be calculated as per schedule below. Income. Tax. One per cent on amount over $20,000 and not exceeding $40,0P0 .. .. Mi $- $ liM ... Th "" Dda ^ mOr •d> C.U Mi lio. Th "** H jodr •d< Cu ... ... ... ... ... ... Three per cent on amount over $60,000 and not exceeding $80,000 Four per cent on amount over $80,000 and not exceeding $100,000 „.,..... Five per cent on amount over $100,000 and not exceeding $150,000 Six per cent on amoimt over $150,000 and not exceeding $200,000 Seven per cent on amount over $200,000 and not exceeding $250,000 Eight per cent on amount over $250,000 and not exceeding $300,000 Nine par cent on amount over $300,000 and not exceeding $500,000 Ten per cent on amount over $500,000 and not exceeding $1,000,000 Eleven per cent on amount over $1,000,000 and not exceeding $1,500,000... Twelve per cent on amount over $1,500,000 and not exceeding $2,000,000... Thirteen per cent on amount over $2,000,000 $- $ ... ... ... ... ... ... $-- _. ... ... ._ ... - - $... $-. ... ... _ - ... $ $... $.-- ? ... ... ... ... ... ... ... ... - ... ... ... ... ... U Total additional tax 12. Balance of normal tax due, as shown on line 10 $ 13. Total Tax Due ■. $.. ... ... ... 33 GROSS INCOME. This sutement must show in the proper spaces the ENTIRE AMOUNT of gains, profits, and income from all sources received during the year speoified on page 1, EXCEPT interest received from the obligations of the United States or any of its possessions, or of any State or political subdivision thereof, including district drainage bonds; from securities issued tmder the provisions of the Federal Farm Loan Act of July 17, 1916; and amounts paid by a State or any political subdivision thereof for services rendered as an oflBcer or employee. DESCRIPTION OF INCOME. NOTE.— Tf bu«1»nd .nd wH« n-nder Mptrat. retu™, only the iaoome and d«3aetlon. of the hu.- fcend or wU« (u the cuo may be) who rende™ thi. return shsll ba inelud-d herein: but if sepaf«t« ntuTMsrenot rendered by both husband mnd wife theinoomo»nd deduotion» of both husband and wife shall be included separately as provided on this form. A. Income on which the tax has been paid or is to be paid at the source, at the rate of 1 per cent. (See Note 2. ) Income on which the tax has NOT been paid or is not to be paid at the source. (See Note 2.) Total Amount Derived from— 14. Salaries, wages, and conunissions : — : Wife's income Uil lOD The . 21. Partnershin gains and profits, whether distributed or not (excepting dividends from domestic corporations, which must be entered on line 28 below^. (Net gains or profits must be reported here and in - Wife's income Note.— Give name and full address ol partnersliip-of wlilch you arc a member. 22. Interest upon bonds, etc., issued in foreign coimtries, and dividends upon the stock of foreign corporations, etc., engaged in business in foreign countries ... Wife's income ■ ... ... ... ... £3. Boyalties from mines, oil wells, patents, franchises, or other legalized -- ... ... ... ... Wife's income ~ - Note.— State here sources from wliicli income entered on line 24 is received and amount received from each. 25. Totals (Note. — Enter 1 per cent of total amovmt of Column A on $.- «... 26. Aggregate Totals of Columns A and B I- 1 27. Dividends on stock of corporations, etc., subject to like tax f 28. Dividends received through partnership. (See line 21) ..... ... ... ... ... ... .... 29. Dividends received through fiduciaries. (See line 20) w„ Wife's income ... ... ... ... ... .... 80 TriTAT. DrvrnnNna. (Linps 27, 28, and 29 ) (Fnter on line 4) 81. Total Gross Income (to be entered on line 1) $... ♦ There should be Included under this Item all income received from guardians, trustees, executors, administrators, receivers, conservators, or other persons acting In a fidi;ciary camclty , Note 1 .—If incomB derived from sale of property acquired before March 1, 1913, is returned above, attach a statement showing (o) fair market price or value as ol March 1, 1913, (6) price at which property was sold, and U) how fair market price or value as of March 1, 1913, was determined. ... „ ^ Note 2.— Enter In column A only the income on which the normal tax has been or is to be paid at the source. Other income should be entered in column D. For example: A salary of «io.()00 is rcreived and personal exemption of $4,000 claimed. Enter In column A 16,000 (ttie amount Of Income on which the normal tax was witl»- hold) and in column U H.OUO (t^ie amount of salary on which no tax was withheld). • •i—tni 34 GENERAL DEDUCTIONS. NOTE.— Claims for deductions may not be allowed unless the information required below is clearly set forth. 32. The amount of necessary expenses actually paid within the calendar year for which the return is made, in carr j-in^ on any individual business. (There must not be included under this head personal, living, or family expenses, business expenses of partnerships, or cost of merchandise. Amounts- paid for permanent improvement or betterment of property are not proper expense deductions).*,. Mil Uom Th Ids H mdn da ... -- ._ 33, All interest paid within the year on personal indebtedness of taxpayer Wifp'a f1iv?,,r.tinTl _. , ~ 84. All national, foreign, State, county, school, and municipal taxes ortaxes imposed by other taxpaying Wiffi'nd<»Hiirtir>n ,, . -.- ... ... ... ... ... ... 35. Losses actually sustained during the year, incurred in my business or trade, or arising from fires, storms, shipwreck, or other casualty, and from theft, not compensated for by insurance or other- WisA , . ' , , Wiffi'n Hpdiirtjnn Note. — State (a) of what the loss consisted, (6) when it was actually sustained, (c) how it was determined to be a loss, and (d) if sustained by sale of property acquired before Marchl, 1913, the fair market price or value as of that date and how such value was determined. 86. Losses sustained during the year in transactions entered into for profit but not connected with my business or trade. (No amount in excess of aggregate income from these sources is allowable) Wiffi'H Hpdiirtinn , ... ... ... ~- "- ... Note.— State toul income during the year from such tranaactionB (I ). Give the same information called for in note under linp 35. 87. Debta past due wbt'nh have been actually ascertained to be worthless and which have been chained Wiff'f dfd'irtion . ... ., ... ... ... ... - Note.— State (a) oi what the debts consisted, (6) when they were created, (c) when they became due, (d) how they were actually determined to be wortnleas, and («) whether included as income in tms or previous return. 88. Amount representing a reasonable allowance for the exhaustion, wear, and tear of property arising out of its use or employment in business or trade. (No deduction is allowable for any amoimt ol expense of restoring property or making good the exhaustion thereof for which an allowance is made in this return, or for depreciation of residential property not maintained for rental. In the' Cfl-ip of hnJldinf'a dpprfirirvtion ifl tt^ he cmipiitfid exclupive 01 COflt "f Inid) ,, ,, , Wife'oHpHiiPtinn ,..., ,.. Note.— State (a) the kind of property on which depreciation is taken (if buildings, state when erected and of what material constructed), (6) coat of same, and (c) what percentage of deprecia- tion is claimed. 89. Amount representing a reasonable allowance for depletion (a) in the case of oil and gas wells for actual red uctiou in flow and production, and (6) in the case of mines not exceeding the market value ' Wjfp'p d