The Holt County sentinel., 1914-03-06

edness; worthless debts charged oil:
losses by lire, storm or shipwreck,
not covered by insurance: exhaustion,
wear and tear Of property. and any
Income upon which the income tax
has already been deducted at the
source, as, for instance, dividends on
the stock Of q corporation which has
already paid the tax on Its earnings.
The provisions regarding net In.
comes OF 5000 apply only to unmar.
ried persons, or to married persons
not living with wife or husband. A hus.
band and wife living together are en-.
titled to antexemption OF $4,000 on
their aggregate income. This means
that IN case the wife has a separate
income, II this added To the nus.
bands income amounts to $1,000 the
total II subject TO the tax; or, II the
wife has no separate income, the hus.
band income:is taxable only In case
IL reaches 1900. hut q return must
be made II the aggregate income OF
both Is a., 300 for the year 1913. Tie
Joint exemption, however, would be
s3,3l3.aj.
In arriving at his net Income The
farmer should start with his gross In.
come. This would consist Of any
items Of 'he.kind above enumerated
and especially all receipts from the
On La az nrnpuctS AT .yurp ,l.S.fI AL ln,,
from the farm. This would include
all money received for produce and
animals sold,:and for the wool and
hides OF animals slaughtered, II the
wool and hides.are sold; but he may
deduct from these items the amounts
actually paid asipurclase money for
the animals sold or slaughtered dur.
Ing the lyear. When the animals
raised byl the owner are sold or
slaughtered, however, their value
should not be deducted.
From:ihe gross:income there should
be deducted amounts Of money az.
tually paidIas expenses for operating
the farm and producing the farm pro.
ducts, live stock, etc. This would
include hiredsfarm labor, farm sup.
plies purchased that:are necessary to
carry on:the businessland not an In.
vestment that represents principal,
etc. Expenses for repairs on farm
property may be deducted, provided
the amount deducted does not exceed
the amount spent for such repairs
during the year for which the return
Is made. The cost OF replacing tools
or machinery may also be deducted
to the extent that the cost OF the
new articles does not exceed the
value OF the old. No deduction may
be made for the cost OF additional
farm machinery, but credit may be
allowed for the annual depreciation
In the value of3such machinery. For
example, II o machine cost 800 and
is regarded as:good for ten years OF
service, the annual depreciation
would be 10 per cent, and a deduc.
ton Of $40 each year could be made
on this account, as part OF the ex-
pense Of operating the farm.
The expense Of supporting the fam.
lily, however, can not be deducted
from the gross income. Among items
for which credit.is not allowed are
expense for medical attendance, life
Insurance, insurance on dwelling, |
store accounts, family supplies, wages
If domestic servants, and cost OF
board, room or house rent for family
,r personal use. In case an individ-
ial owns his residenceihe cannot de-
luct the estimated value Of his rent.
But tenant operating rented farm
. proprietor may deduct the rent of
his farm Is . part of the expense OF
Farmer, squ'rsd to include !