The county record. [volume] (Kingstree, S.C.) 1885-1975, 1918-02-28
hE FAkIl2'S
Mli! e TAX.
IMPORTANT DECASii RENDERED
BY THE TRFAsUk ,EPART-
MENT At vi BiNGTON.

particularly lntefeSp1 III q 'ieoSui
decision. relative to their income
taxes. Collector D. CHeyward states
that there had beer considerable en-
euiry from farmen. who held their
crops over from one year to another
as to how to proceedin making their
.>returns. Mr.. Heywad stated that he
realized fully that there would be
some difficulty about the matter, but
that those who heldtheir cotton into
another year woulabe compelled to
keep at least fsirly accurate ac-
count of the expase of producing
the crop. He referrd to Treasury de-
cision 2153, which dealt exclusively
with the returns of farmers, and
stated that c. rtan extracts from
this decision wouldbe of great bene-
fit to farmers tbl c4hout South Car
! olina in making y income tax re-
Rturns.
'The term farm as herein used
embraces the farm, the ordinarily
accented sense, pF ,ations, ranches,
stock farms, dairy4. ms, fruit farms
and all lands USED for similar pur-
poses; and for tn rposes OF this
decision all perse who cultivate,
onerate or manaS farms for gain
or profit, either owners or tenants
are designated aSfarn.ers.
"All gains, prots and income de-
rived from the sie or exchange of
farm products, wfther produced on
the farm or purcbsed and resold by
a farmer. shall b<included in the re-
turn of income fd the year in which
the products wers actually marketed
and sold; and all llowable deductions
including the legitimate expenses in
cident to the projection Of that year
or future years, hay be claimed IN
the return Of incne for the tax year
in which the rigH to such deductions
shall arise, althog gh the products to
which such expeses and deductions
are incidental MY not have been
sold or exchange for money, or a
money equivalen ssns, the year
for which the tetu < rendered.
"Rseafs received >, crop shares
shsM likewise be rnned as of the
yeear in which the cp shares are re-
3iuced to money OBJ money equiva-
ent, and allowable, ,'eductions, like
ise, shall be GLAZED in the return
income for the TX year in which
y apply, altho.h expenses and
|iuctions may b iridant to pro-
.1cts which rema d unsoldat the
tSend of the year fol- which the due
tons are claimed. When for pro-
ducts are held for fav"rc' Market
prices, no deduction 1t of
shrinkage in we; = - val
tue, or losses by v shrink
age or deteriora. kge, shall
be allowed
Cost of stool d for resale
is an allowable etiun under the
item of expense, L money expended
for stock for bree-lg purposes is re-
garded as money inested, and amo-
UNITS so expended do ns constitute
allowable deductions ex ot as here
matter stated.
where stock has purchased
for any purpose and :. "rwards dies
from disease or injur, or is killed
by order of the ap' p''roities of a state
or the United hes and the cost
thereof has not beer claimed as an
item of expense, the actual purchase
price of such stock, lsss any deprecla-
ton which may have been previously
ciaimed, may be deducted as a loss.
Property destroyed by order OF the
authorities of stss ,r of the Uni
ted States may, In MANNER oe
claimed as loss; 4 reimburse
ment is made by y. or the UNI
ted States, in whole o. in part, on ac-
count of stock killed or property des-
troyed, the amount received shall be
reported as income for the year In
which reimbu .sement is made.
'"The cost of farm machinery is not
an allowable deduction as an item OF
expense, lit the cost of ordinary
tools may be included undeDth's
item.
Under The sixth deduction enum-
Grated in paragraph B, providing for
a reasonable allowance for the ex-
haustiop. wear and tear of property
arising out of its or employment >
=, there may be claimed a. reasonable
allowance for depreciation on farm
buildings (other than dwelling oc-
eupied by the ~wner), farm machine
ry and other / Jose rbo no claim
for depreciation on 2ca raised or
N