The Coconino sun. (Flagstaff, Ariz.) 1898-1978, 1914-03-20

$3.50
investment that represents prin-
cipal, etc. Expenses for repairs
on farm property may be deducted,
provided the amount deducted
does hot exceed the amount spent
for such repairs during the year
for which the return is. made. The
cost of replacing tools or ma
chinery 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 deprecia-
ton in the value of such ma
chinery. For example, if a ma
chine cost SIoo and is regarded as
good for ten years of service, the
annual depreciation would be 10
per cent, and deduction of $40
each year could be made on this
account, as part of the expense of
operating farm.
The expense of supporting the
family,s however, can not be de-
Quoted from the gross income.
Among items for which credit is
not allowed are expense for med
cal attendance, life insurance, in
surance on dwelling, store ac-
counts, family supplies, wages of
domestic servants, cost of board
room or house rent tor family or
| personal use. In case an individ-
ual owns his residence he cannot
| deduct the estimated value of his
rent. But tenant operating a
rented farm as proprietor may
deduct the rent of the farm as a
part of the expense of his business.
Farmers are not required to in
clude in their income the produce
taken from the farm and consumed
by the family. Only produce sold
off the farm is to be included. A
farmer is not entitled to deduc-
tion of his own labor, or for ex-
pense of feeding live stock. He
may, however, deduct such items
as cost of fertilizer and other sup
plies and materials which are used
up in the course of his operations
The law provides that for the
year 1913 the tax shall be COM
puted only on the net income fol
the ten months from March Ist to
December 3Ist, and that returns
shall be made on the basis of five.
sixths of the year. Therefore, il
the net income for the last ten
months of 1913 amounts to So, soc
or more a return on form Io4o is
required. For the ten months OF
1913 every single person is allowed
81, 500 exemption and in the case
of husband and wife, living to.
gether S3,333.33 exemption. In
computing the net income for this
period deductions should be made
for only fve-sixths of the amounts
properly allowable for the whole
year. Returns for IoI 8 must be
made by March 1st, 1915.
Blanks for making returns for
the income tax may be obtained
from the collectors of internal
revenue throughout the country,
or from the Bureau of Internal
Revenue of the Treasury Depart.
ment at Washington, d. c. In
case of failure on the part of any
one who is subject to the tax to
file the return by the first of March,
the law fixes penalty of 50 pei
cent of the amount of the tax
assessed and $40 to 81 900 fine.
In case of false or fraudulent re.
turn there is a penalty of 100 pei
cent and $40 to $4,000 fine and
one years Imprisonment or both.
The Bureau OF Internal Revenue
is preparing regulations which
may be obtained by interested
persons on application to collec.
tor of Internal Revenue for the
applicants district.
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