The Republican journal., 1914-03-05
farmers Should Compute Their
Incomes.
,as, $4,000 MOI Affected by In

,>GTON. d. G., March z, 1914.
r,-r is so fortunate as to have a
,o- Of over So, 900 a year in case
.ssbelor. or $4,000 if married, he
Of te the income tax, and under
.,n individual must make re-
.,. Internal Revenue collector of
,.t m or before the first day OF
= he has a net income of So, 900
$50 800 for the ten months of
While the interest of most farm
subject is purely academic,
.rtment of Agriculture has re-
.lrles indicating that some
snow lust what is required of
the new law.
lax law of October 3, 1913,
e.. If | per cent upon all net
...l $1,000, with an addition
ZONES of $4,000 or more.
on arising in the minds of
what constitutes net
man receiving a regular
uslness man with good
keeping, it is easy to de-
.-,.er or not his income is
TOR the farmer who re-
...t.s income, and who often
... I.curate account of receipts
..-.lrs. it is more difficult to
.- u,r income.
..,..4t farmers may be posted
r tax as it may concern
r. owing information has
r -o.j by the Internal Revenue
The Treasury Department.:
an income consists of
red from salaries. wages,
tln for personal service.
.. r9sn, also from professions,
..ss or dealings in property,
...I- interest on bonds or mort
-nds on stocks, or other IN
avestments. There items
5ri.- income, from which there
o., -ducted the expenses of
t1- business; interest paid
. ... worthless debts charged
v fire, storm or shipwreck,
r ay insurance; exhaustion,
ar Of property. and any In
.r iich the income tax has al
ucted at the source, as
fines dividends on the stock OF
which has already paid the
"ings.
us regarding net incomes
..ay only to unmarried per-
4Hrled persons not living
husband. A husband and
.gpther are entitled to an
= 400 on their aggregate
- means that in case the
sri rate income, if this added
income amounts to S4,-
subject to the tax; or, II
no separate income, the
me Is taxable only in case
. @0. But a return must be
sgregate income of both is
-u, year 1913. The joint ex-
..Nps. would be So, 1913 80.
his net income the farm
.. with has gross income.
slst of any items Of t! e
.4merated, and especially
the sale of pr ducts of
-.u from the farm. This
Iii money received for
amals sold, and for the
uf animals slaughtered,
. A hides are sold; but he
rom these items the
- y paid as purchase money
...> sold or slaughtered dur
} When the animals raised
are sold or slaughtered,
value should not be de-
.- loss income there should
mounts of money actually
l.rs for operating the farm
al The farm products, live
,h.s would include hired
o4 !4'm supplies purchased that
&c. TO carry on the business
a i.Eestment that represents
e etc. Expenses for repairs on
mt.4y may be deducted, provid-
ttrs7i teducted does not exceed
'- spent for such repairs during
a which the return is made.
# "' r-raclng tools or machinery
q ee @-ducted to the extent that
The new articles does not
be- value Of the old. No deduc-
BIT made for the cost of addi-
arm o,achinery, but credit may
az .Hr the annual depreciation in
ST. # such machinery. For ex-
u macnine cost 500 and is re-
as =Og4 for ten years of service,
.la. iepreciation would be 10 per
deduction of $40 each year
'e marie on this account, as part
>psns- If operating the farm.
t-yHse If supporting the family,
q. .aunJJ be deducted from the
Among items for which
".l Flowed are expense for
auce, life insurance. in
yelling, store accounts,
't. wages of domestic SER
t If board, room or house
,+-a & or personal nSe In case