Gross Income Includes

B-l B-2 B-3

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Professions

Vocations

Businesses

1.

Salaries

Trade

Wages

derived or accrued from

Commerce

Property, Real and Personal

Gains and Profits, Compensation for personal service

Sales or Dealings in or Growing out of Ownership or use of

- also -

B-4

Interest

Rent

2.

Income received from or accruing from

Dividends

Securities

Transactions of any lawful business carried on for gain or profit

Gains, profits or income accruing from any source whatever.

Net income for the purpose of the income tax is the amount of the gross income less the deductions 1, 2, 3, 4, 5 and 6.

NOTE - See deductions for the normal tax.

Gross Income Excludes

1. Money or value of property acquired by Gift Bequest Devise Descent But the income from these is taxable.

2. Proceeds of Life Insurance Policies:

(a) Paid on the death of the insured;

(b) Credited to the insured on surrender of contract, as:

1. Endowments.

2. Annuity contracts.

Corporations' Income Tax. Amount Of Tax

The normal tax of one per cent only.

On What The Tax Is Assessed

1. Domestic corporations: (a) Entire net income.

2. Foreign corporations:

(a) Net income accruing from business transacted and capital invested in the United States.

What Is Net Income: Gross Income Less

1. Expenses of maintenance and operation, including rentals.

2. All losses not compensated by insurance or otherwise.

3. Reasonable wear and tear.

4. Amount of interest paid on its indebtedness.

5. Sums paid for taxes.

What Return Must Contain

(See Forms 1030 to 1035, inclusive, pages 80-90.)

1. Total amount of capital stock outstanding.

2. Total amount of bonded or other indebtedness.

3. Gross income.

4. Deductions as above specified.

5. Net income after making these deductions.

By Whom Report Must Be Signed

(See Instructions.)

1. By president, vice-president or other principal officer, and:

2. By treasurer or assistant treasurer.

3. Return to be under oath or affirmation.