Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1914-02-28


farm and producing the farm pro-
ducts. live stock etc This would in
clude hired farm labor, farm supplies
purchased that are necessary to carry
on the business and not an investment
that represents principal, etc. Expens-
es for repairs on farm property may he
deducted, provided the amount de-
Quoted 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 ex-
coed the value of the old, No deduc-
ton may be made for the cost of addi
tional farm machinery, but credit may
be allowed for the annual depreciation
in the value of such machinery. Far
example, if a machine cost $1G0 and is
regarded as good for ten years service,
the actual depreciation would be 10
per cent, and deduction of $40 each
year could be made on this account DIS
part OF the expense 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 insur-
ance, insurance ON dwellings, store ac-
counts, family supplies, wages of do
nestle servants, and cost of board,
room or house rent for family or per-
sonal use. In case an individual OWNS
his residence he cannot deduct the es-
timated value of his rent. But a ten
ant operating a rented farm as propri-
etor may deduct the rent of the farm
as part of the expense Of his bust
ness.
Farmers are not required to include
in their income the produce from the
farm and consumed by the family. Only
produce sold off the farm is to be in
cluded. A farmer is not entitled to =
deduction for his own labor, OF for the
expense of feeding live stock. He may
however, deduct such items as cost G.
fortified and other supplies and ma
terials which are used up in the
course of his operations.
The law provides that for the year
1913 the tax shall be computed only
on the net income for the ten months
from March 1st to December 31st, and
that returns shall be made on the basis
OF five-sixths of the year. Therefore, if
the net income for the last ten months
Of 1913 amounts to $4,000 or more a
return on form 1910 is requirec. For
the ten months of 1918 every single
person is allowed $4,000 exemption and
in the case of husband and wife, living
together, $3,333.33 exemption. In COM
putting the net income for this period
deductions should be made for only
| five-sixths of the amounts properly al
lowed for the whole year. Returns for
1913 must be made by March 1st, 1914.
Blanks for making returns for the
income tax may be obtained from the
collectors of internal revenue through
out the country, or from the Bureau OF
Internal Revenue of the Treasury De-
partment at Washington, D. c. In case
of failure on the part of any one VINO
is subject to the tax to file the return
! by the first of March, the law fixes e
! penalty of so per cent of the amount of
the tax assessed and $40 to 81 900 fine
In case af false or fraudulent return
there is a penalty of 100 per cent and
$40 to $4,000 fine and one years inn
prisonment or both.
s The Bureau of Internal Revenue is
preparing regulations which may BE-
obtained by interested persons on ap-
plication to collector of Internal Rev.
cnue for the applicants district
Tn IMdTnTInATr