The Alaska daily empire., 1918-03-08
INCOME TAX PRIMER FOR
 BUSY PEOPLE

9. If I enter into a contract in ! 1917 which will not be completed until 1918, and which requires me to make expenditures for material and labor, provide for possible loss es, etc, must I include the advance payments I receive in 1917 in my return for that year?
 No As you are unable to deter mine what amount Of gain or profit you will derive from the contract until it is completed, the payments received thereon during 1917 need not be included in your return for that year. When the contract is completed the net gain or profit de- rived therefrom should be reported under Gross income" in your re- turn rendered for the year 1918.
 26. How am I to determine what amount of gain or profit derived from a sale of property is returnable for income-tax purposes?
 If you asquired the property sold prior to March 1, 1913, you should take its fair market price or value as of that date, add thereto all amounts subsequently expended in making permanent improvements. then deduct the aggregate of all claims for depreciation in value of the property claimed as deductions on previous returns, and the differ ence between the result thus ob- tained and the selling price is the amount to be reported under Gross income"
 If you purchased property on or af- ter March 1, 1913, the difference be- tween it's cost, plus all amounts sub sequently expended for permanent improvements less depreciation pre- viously claimed, and it's selling price, is to be returned.
 If the property came to you on or after March 1, 1913, as an inheri- tance, the difference between the ap- praised value placed up it at that time plus all amounts subsequently expended for permanent improvement less depreciation previously claimed, and it's selling price, is to be re turned.
 27. How is the value as of March 1, 1913, of property sold determined No method of determining this value can be stated which will ade- quately meet all circumstances. What ;, of f0 nf to be established by any evidence which will reasonably or adequately make it appear
 28. When is a farmer to return and stocks produced?
 The value of grain, stock, and oth- CT products produced on farm is not considered taxable income un- til reduced to cash or the equiva- lent of cash. Therefore, if crops and stock were produced in 1916 on a farm owned by you and they were sold in 1917, the total amount re- ceived therefor is to be included un- der Gross Income" in your 1917 re turn. Crops and stock produced in and on hand December 31 of that year, need not be considered; but | the amount received therefor should | be included in your return rendered for the year during which they are sold Farmers who keep books according i to some approved method of account ing, which clearly show the net in come, may prepare their returns from such books, although the method of accounting may not be strictly in ac cordance with the above paragraph | 29. I rent farm on shares. When is my share of the crop and stock to be taken into consideration?
 Only for the year in which sold. l 30. Is a farmer required to report the value of the farm produce which is consumed by himself and family! No; but any amount of expense incurred in producing garden truck or other products so consumed. can not be claimed as a deduction.
 31. If a farmer exchanges produce for merchandise, groceries. etc, is the value of such merchandise to be returned for tax purposes?
 Yes; the price placed by the mer' chant upon the goods exchanged for | farm produce is to be included as i income in the farmers retuSR
 32. A tenant, under the terms oi lease. is required to pay a certain cash rental and in addition make certain improvements. Is the cast oi these improvements held to be tax able income to the property owner Report cash rentaf for year in which received. The difference be tween cost of improvements and a reasonable allowance for the ex haustiOn. wear and tear of the property arising out of it's use or employment in the business or trade ] of lessee during the period of its life under the lease should be re turned as income to the lessor for