the property, but was allowed to devote the income to restoration. 1 Int. Rev. Rec. 180.

That repairs should be distinguished from permanent improvements. 2 Int. Rev. Rec. 61. See Little v. Little, 161 Mass. 188.

That expenses for ditching, etc., new land were for permanent improvements, and not deductible. 7 Int. Rev. Rec. 58.

That "permanent improvements" and "betterments," as used, were nearly synonymous, and referred to that class of improvements, permanently increasing the value of the property, while "repairs" were those improvements which prevented the property from becoming useless or depreciating; and that in ascertaining the amount to be allowed for repairs, the assessor must determine, according to circumstances, how much of the improvements were to prevent depreciation and how much were to give permanent additional value. 5 Int. Rev. Rec. 130. See 41 U. S. Rev. Journ. 77.

That the replacing of worn-out tools, etc., was repairs, so far as the new article equalled the estimated value of the old on January 1, 1862, and was permanent improvement in the amount by which the value of the new article exceeded that of the old on that date. 2 Int. Rev. Rec. 61.

That the removal of an old roof and the substitution of a modern one, and raising the walls of the building to conform thereto, were improvements. Bout. (1863), 306.

That amounts expended by the purchaser of a building in repairing injuries thereto prior to his purchase were, so far as he was concerned, betterments made to increase the value, and were not deductible. 7 Int. Rev. Rec. 60.

That expenses in putting property in better condition than when purchased, or, if purchased before January 1, 1862, than it was on that date, were not deductible. 11 Int. Rev. Rec. 73.

That the laying of a new floor, or putting on a new roof, was generally ordinary repairs; but the replacing of a shingle roof by a slate one, or a board floor by a tile one, or indeed the substitution of a higher-priced article for an inferior, was not ordinary repairs, and only the value of the inferior article would be deductible. 11 Int. Rev. Rec. 50.

Amount received as dividends upon the stock or from the net earnings of any corporation, etc., which is taxable upon its net income as hereinafter provided.

This is deductible for the normal tax but must be reported for the additional tax.

The amount of income the tax upon which has been paid or withheld for payment at the source, etc.

See the provisions as to collection at the source, pages 83 et seq.

DEDUCTION OF $3,000 OR $4,000 - HusBAND AND WIFE.

C. That there shall be deducted from the amount of the net income of each of said persons, ascertained as provided herein, the sum of $3,000, plus $1,000 additional if the person making the return be 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.

There is a marked difference between this provision and that in the act of 1894, Sec. 28.

"It is clear that guardians, trustees, executors, administrators, agents, receivers, conservators, and all persons, corporations, or associations acting in any fiduciary capacity are also authorized to deduct the specific exemption of $3,000 in the return of net income they are required to make for the person for whom they act. The law is not specific as to this but provides that no return in such cases shall be made if the income does not exceed $3,000." Speer, 22.

It was held under the old law that an association so formed that its gains were the property of the whole association, and were not divisible among the members, was only entitled to the statutory exemption, and was not entitled to the statutory exemption for each member. 10 Int. Rev. Rec. 39. But see Bout. (1864), 154.

Old decisions and rulings as to husband, wife, etc., may be found in 11 Int. Rev. Rec. 89, 153; 7 Int. Rev. Rec. 59; 2 Int. Rev. Rec. 61; 1 Int. Rev. Rec. 156, 171, 188. See also 41 U. S. Rev. Journ. 77.

D. The said tax shall be computed upon the remainder of said net income of each

person subject thereto, accruing during each preceding calendar year ending December thirty-first: Provided, however, that for the year ending December thirty-first, nineteen hundred and thirteen, said tax shall be computed on the net income accruing from March first to December thirty-first, nineteen hundred and thirteen, both dates inclusive, after deducting fivesixths only of the specific exemptions and deductions herein provided for. On or before the first day of March, nineteen hundred and fourteen, and the first day of March in each year thereafter, a true and accurate return, under oath or affirmation, shall be made by each person of lawful age, except as hereinafter provided, subject to the tax imposed by this section, and having a net income of $3,000 or over for the taxable year, to the collector of internal revenue for the district in which such person resides or has his principal place of business, or, in the case of a person residing in a foreign country, in the place