Idaho County free press. [volume] (Grangeville, Idaho Territory) 1886-current, 1914-03-05
THE FARMER AND THE INCOME TAX.

$4,000 year he bachelor $4,000 if married, he is
subject to the income tax and under the law each individual
make to the internal collector of his dis
rct before the first day of March he has net income
of $4,000 $5O0 for the ten months of 1879 While
the interest of most farmers in this subject purely academic
the department Of agriculture has received inquiries indicating
that wish to know just what is required Of them under the
new law.
The income law of October 3, 1913, places of
per upon all incomes Of $4,000 with additional
incomes of $4,000 The first question arising
in the minds of people what constitutes income
For receiving regular salary, business with
good system of bookkeeping it determine whether
not his income taxable But for the farmer who receives
stated income and who often fails keep of
receipts and expenditures difficult to calculate his
net income.
In order that farmers may be posted the income it
may Them the following information has been further
ed Internal Revenue treasury departments
In general income consists of amount derived from salaries
compensation for personal service paid orm
also from professions business sales dealings property
from rents interest bonds mortgages, dividends
stocks, other income from investments These items
stute income from which there should be deducted the
expenses of carrying the business interest paid indebted
worthless debts charged off, losses by fire. ship
wreck not covered by insurance. exhaustion and tear Of
property and income upon which the income tax has al
ready been deducted the source for instance dividends
the stock of corporation which has already paid the tax
its earnings.
The provisions regarding incomes Of $4,000 apply only
to persons or to married not living with
wife husband husband and wife living together
titled to exemption of 49, 900 their aggregate income.
This that in the wife has separate income this
added to the husbands income amounts to 1000 the total is
subject to the tax the wife separate income the
husbands income taxable only reaches But
return must be made if the aggregate income of both
for the 1913 The joint exemption however, would be
$3333.33
In arriving at his income farmer should start with
his gross income This would consist of any items of the kind
above enumerated and especially all receipts
products Of description from the farm This would
cude all received for produce and animals Sold
the wool and hides of animals slaughtered of the wool
hides od but he deduct from these items the
actually paid purchase for the animals sold saug
fara1 1lrpO fla Whon+
the owner sold slaughtered however, their value should
not be deducted
From the gross income there should deducted amonns
OF actually paid for operating the
producing the farm products live Stock This would
cude hired farm labor farm supplies purchased that
essary to carry the business and investment that
presents principal ETC. Expenses for repairs farm property
be deducted provided the deducted does
coed the amount spent for such repairs during the year
which the return made The of replacing tools or
machinery also be deducted the extent that the cost Of
the articles does not excel the value DID, No de
ducton be made for the cost Of additional farm machinery
but credit be allowed for the annual depreciation the
value OF such machinery For example, if machine 500
and regarded good for ten years of SERVICE annual
depreciation would be 10 cent and deduction of $40
could be made this account part of the expense
operating the farm.
The expense of supporting the family however, can not
be deducted from the gross income Among which
credit not allowed for medical attendance life in
insurance dwelling accounts family supplies
OF domestic servents and cost of board house
rent for family personal In individual owns
his residence he deduct the estimated value of his rent
But tenant operating rented farm proprietor may deduct
the rent Of the farm part of the of his business
Farmers not required to include in their
produce taken from the farm and consumed by the family
Only produce sold off the farm be included farmer
not entitled to deduction for his labor expense
feeding live stock He however deduct such items cost
OF fertilizer and other supplies and materials which
in the course of his operations.
HOW GENIUS DIFFERS FROM TALENT
That genius is capacity for hard work. long since
gained place favorite bromdiom Notwithstanding which,
have Ron 1nhncOn word that's
scripts showed scarcely blot