Decatur Daily Democrat, Volume 23, Number 13, Decatur, Adams County, 15 January 1925 — Page 5

,Nt 'SE M p E AR r TM X ENT -Brut L. SEIDMAN.C. P.A. ■ ———■w EDITOR’S NOTE TUM w * ,he Mrie# we h * vo J tld who is subject to tax. who ftlP a return, and what exemp- ■“ .u »' w| '' , ‘ u nero the returns niuwt be filed. Keturna prepared on a calendar ¥( ,„. basis, as is the ease with most returns must he Ned on or betora March 15 of lhc f * llowinß yeßr ’ ;„ rns covering the calendar /ear v ,24. therefore, must be filed not later than March 15. J 925. Returns may also be prepared on what is known as a fiscal year basis. \ fiscal year means a period of twelve months ending on the fast, day of any month other than December. Thus the period from February 1 to lhl , ~’ext January 31 would be a fiscal year, or May 1 to the next April JO. the case of returns made on a fiscal year basis, the returns must be filed by the 15th day of the third month following the close of the fiscal year ending January 31, the return would be due by the next April 15, and if the fiscal year ended on May 31. the return would be due by the next August 15. It is important to bear in mind.’ however, that the only time returns iati be prepared on a fisigl year basis is where the taxpayer’s books are | kept on that basis. If no books are kept, the return must be made on a calendar year basis.

Now as to where returns must be filed. It is provided in the law that returns must be filed with the Colle tor of Internal Revenue for the distret in which the taxpayer resides, or he may, if he desires, file the return in the district where he has his principal place of business. The country is divided into sixty-five collection districts, each supervised by a Collector of Internal Revenue, is with that officer for the taxpayer’s district that the return must be filed. If a person has no legal residence or place of business in the United States the return must be filed with the Collector at Baltimore. Md. Let us now consider the tax rates. The net income of an individual may I be subject to two taxes; a normal tax ' and a surtax. The normal tax rates begin at 2 per rent for the first $4,000 of income in excess of the exemptions, then go to 4 per cent, on the next $4,000 of income, and finally 6 per cent on the rest of the net income. z Thus, if a married individual, with m dependents, had a net income of $15,500, his normal tax would be computed as follows: the exemption of $2,000 is first deducted, leaving $13,000, subject to the normal tax. On the first $4,000 of this $13,000, a 2 per cent, tax is imposed, of SBO. Ou the next $4,000, the rate is 4 per cent, or $l6O. On the rest of the income, or $5,000, the rate is 6 per cent., or S3OO making the entire normal tax $540. it is interesting do note that the normal tax rates this year are much less than what they were last year. Lnder tite law that then existed, the tax was 4 per cent on the first $4,000 in excess of the exemption, and 8 per *cent on the balance. Then there is the surtax. The surtax rates range from 1 per cent, to 4 per cent., depending on the size of the income. The lowest rate begins with incomes over SIO,OOO. In other words, where an individual has a net income of less than SIO,OOO. lie need not pay any surtax at all. The income between SIO,OOO and $14,000 h subject to a 1 per cent, surtax, of 54" The income betweeh $14,000 and $16,000 is subject to a 2 per cent, surtax; and so on up the line. Income in the SIOO,OOO bracket is subject to 36 per cent.; $200,000, 38 per cent.; $300,000, 39 per cent.; and

Our stock still contains some good values at greatly reduced prices on the following items Suits Hats Shirts Overcoats Sweaters Coats Underwear TEEPLE & PETERSON *

’5500,000 or over, tho maximum of 40' per cent. These rates are considerably less than what was imposed lust year, when the maximtun rwbj was 50 p«r cent. Last year, the maximum tax rates were 5 per cent., 50 per cent, for surtax, and 8 per cent, for normal lax. This year the maximum tax rates are 46 per cent. 40 per cent, for surtax and 6 per cent for normal tax. The total of the normal tax and tbo tax that is due, except for the special treatment accorded so-called earned income, capital gains and losses, and certain credits that are allowed. These will be explained in detail in subsquent articles. Estates and trusts being regarded as individuals, are subject to tax al the same rates as already outlined. Corporations, however, pay a flat tax or 12 H percent on their net incomes in excess of the exemption. The difference between the tax rates on individuals and those on corporations immediat.ely luring* up the questian us to the advisability of carrying on business under the one form or another. An indivkinal does not come into the 12*£ per cent, rate class until his income is about $25,000. If his income is less than that, it it obviously to his advantage to do bnsiness as a sole proprietor, because the maximum tax rate would be les than the 12per cent, rate impose'' on corporations. However, if his in come exceeded $25,000, he would ordinarily be better off doing business as a corporation, since the rate of the corporation tax is per cent. Thus, an individual having a SIOO,OOO income would have to pay a tax of about $23,000 because of the high surtax rates. A corporation, however making SIOO,OOO pays a tax of only $12,500, resulting in a saving of $lO,000 thru the corporate form. There are many other factors to consider, such as salaries, dividends, etc. that need be carefully studied in each particular case. As a general proposition, however, it can be said that where the income is in excess of $25,000, one is better off from a federal income tax standpoint, doing business as a corporation, and where the

WHO Deposits Your Money? The real, substantial citizen does not come from the spendthrift class. The chancss are ninety-nins to one that he started with a savings account. Each of us chooses the class to which he belongs. In the interest of good citizenship, to the end that your future may be happy and assured, we urge that you start an account with us now. To Which Class Do YOU Belong? The SUCCESS or the SPENDTHRIFT? Somebody is always depositing your money in the bank. Is it you who are saving part of your income and putting it where it will work for YOUR benefit? Or is It all slipping through your fingers ' into the pocket and bank account of some one who appreciates its value more than you ? A savings account with us will solve that Old Adams County Bank Decatur- 1 nd ia na

DECATUR DAILY DEMOCRAT, THURSDAY, JANUARY 15, 1925.

Income Is less than that amount, it ia best to carry on business as a sole proprietor. In tho next article, the subject of earned income and bow it affects the computation of the tax will be discussed. —— -o— . Buses Carry 90,000 Children To School Lafayette, lnd„ Jan. 15.—" The fact that 90,000 Indiana school children were carried back and forth in busea to and from 1,000 consolidated schools iu the slate during 1923 shows how closely ielated are good roads and education,” said Hen 11. Petty, associate professor of high way engineering at Purdue University, in connection with remarks made recently regarding the Eleventh Annual Road School which is to be held at Purdne. January 19 to 23. That road building and maintenance rank close to education is shown by figures given by Prof. Petty. Os the total tax distribution for 1922, 20.5 cents of each tax dollar went toward roads, and 41.6 cents toward education. The continued growth of these consolidated schools means that the road program of the state must keep pace with educational facilities. This educational factor is only one example of the ihcreasing use of Indiana highways calling for corresponding increases in the road repair fund. Bciffit the complaints made concerning the large sums o money expended on our state, county and township roads, is an utter lack of appreciation of the astounding changes in volume and type of road traffic which has taken place during the past few years, according to the Purdue professor. "Too many are thinking of road traffic today in terms of 25 or 30 years ago,” said Prof. Petty. He pointed out that tho same road which carried 40 or 50 hourse-drawn vehicles per day 30 years ago, today bears the burden of 500 to 2,000 vehicles most of which are high speed automobiles or heavy trucks. Problems of every nature connected with all phases of road building ■and road repairing will be discussed

at the Road Hchoo). Experts from over tho country, in addition to prominent h ghway men from Indiana, have been placed on the program for the week's meeting to discuss and explain problems which confront tho modern highway engineer and those in charge of state highways. Co-operating with the i School of Civil Engineering at Purdue in the Road School are the Indiana State Highway Commission, the Indiana County 11 ghway Superintendents' association, the Indiana County Surveyors and County Engineers Association and the City Street Commissioners Association of Indiana. Auto Company To Hold Regular Monthly Meeting The monthly conference of the salesmen and employes of the Ad-

Stop Child’s Cough (Juick-To-day Ccfnro It has a chnn'-o to d—.-■•ton into croup or aomethlng get right aftor that couoli ot your rhlld’s. No use to dose with ordinary couch sytups. At once give Kemp’a Balsam—a tine old-fashioned tried and iroven mediclno safe tor childr :i. It teals the throat and prevents the col l rotn going thmngh the whoio s/st-ia. Only 39 cants at nil stored.

Only 2 Days More to get in on Our Footwear Bargains 20% Reduction on all Our Goods

One lot Black QK Satin Slippers Patent Leather Strap Slippers for QX Ladies One lot of Patent Leather and Tan Suede Strap, Low Heel was $4.50,0*2 One lot of Womens Warm Maska Overshoes -* 51.95 values for.. tzOC

Many, Many BARGAINS Not Listed In This Ad. This is YOLK CHANCE to Outfit the Whole Family in Shoes for a Song.

i ams County Auto company, together i with the officers, will be held this • evening. At six-thirty o'clock the men will be the gueets of L- C. Waring at a chicken dinner to be given 1 at the Peoples Restaurant. A business session will bo held following 5 the dinner. About twenty men will ’ attend the dinner and conference. — o Call 436 for Taxi. ts S 0 Dance. K. of C. Hall, Thursday night. Beginner’s class 7:30. Asembly 8:30. Come.

: ;\'w . ' Wk nv W7j JI

■A FLORSHEIM w * -liliS> "IL- — / SATE / Any man who has worn a / pair of Florsheims know’s how much real worth you , . can buy at $8.85 during $ sale. Florsheim Shoes » are not sold at any other time at such a low figure. This sale includes all Florsheim shoes—also cushion soles —and all oxfords. Elzey Shoe Store

DEMOCRAT WANT ADS GET RESULTS

Gift & Hat Shoppe JANUARY 17— SATURDAY OUR FIRST DOLLAR DAY BUSINESS FOR US—SAVING FOR YOU Yarn—Best Brands dj i j Baskets—A large assortment BA Up to $1.75 each <pA«VV Hose—Silk and Silk & Wool fWi 2 pairs for V 1 •V V Collar and Cuff sets, 2 sets u* 1 A A Different styles tpI.VV Toilet Goods—Lady Grey Face Powder, Talcum Powder, Cold Cream, A A Lemon Lotion, Shampoo—3 for JL • W Hats—Some Wonderful Bargains SI.OO Mid Season Hats below our usual low prices. Other items at money saving to you.

SPECIAL Men’s Alaska OVERSHOES All sizes — first class values. This rubber sells regularly for $1.95. An unusual bargain at 05 C pair.

One lot of Tan Suede Oxlords, low heel,d* 4 G’a was $7, now.. One lot of Mens Dress Shoes, values d*Q 4JT to $10; Now.. One lot of Lion Brand Work Shoes; values up to One lot of Childrens Shoes, <S/2 to 11, values “ p . , "’ i75: .. $2.15 Black Kid Strap, Junior Spanish Heel, J QT was $8; at... eYI.t/O