The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1918-02-07
THE INCOME TAX
RETURN MUST Be
MADE AT ONCE BY ALL PERSONS
WITH INCOMES OVER GER
TAIN AMOUNTS
DEPUTY COLLECTOR At CITY HALL
No Escape for Anyone Who Does Not
Comply With the Law Passed
BY Congress.

Here is a statement issued by the
deputy collector now at the post Office
helping the people to make out their
return. This is a vital matter to every
man in the country. Read this and
avoid trouble with your government.
Mr.. Houlihan says:-
"The income tax from a farmers
point of view is a question of much
importance at this time.
Income to a farmer is all the money
or its equivalent which he has re-
ceNed for crops or stock or farm pro-
duce sold during the year 1917, this
means produce traded for groceries.
merchandise, etc, as well as the arti.
cles or things sold for cash. In fig.
uring income from crops and stock
sold, a farmer should bear in mind
that it means every bit Of the crop or
stock sold regardless of the year in
which they were raised. Therefore,
if he sells his 1915-l916 or 1917 crop
VI ~ ioIf ~ lloHty VI us tuulN dIcuL
received from the sale thereof is all
income in 1917. Crops and stock not
sold but on hand in the granary or on
the farm are not subject to the in
come tax until they are sold.
All money, or its equivelant, re-
ceived for rents, interest on notes,
mortgages, or bank deposits, any mon
ey or its equivelant, received for the
services of any animal. any money re-
ceived from the operation of threshing
machine, or tractor, and any money re-
ceiNed as wages, salary. commission,
bonus or pension, unless said salary,
etc, was paid by the state or any
political subdivision Of the state must
be included in the farmers income tax
return, and added to the income re-
celVed from the operation Of the farm.
Also, any profits made from the sale
of any kind Of real or personal prop
erty. The date said property was ac-
quired must be given, and the price
paid for the same. If the property or
thing was acquired prior to March /,
1913, its actual fair value on that date
should be given in lieu of the purchase
price. This actual fair value or pur-
chase price, deducted from the price
received at the time of sale will de-
termine the amount of profit. And all
Of the profit is subject to tax in the
year that the transaction Is complet.
ed.
In arriving at his net income a
farmer is allowed to deduct all items
OF legitimate expense incurred in pro-
ducing the income. He can take out as
expense all the money or its eQuivelant
paid out by him for hired help on the
farm, but he cannot deduct for a hired
girl in the house. He can deduct his
thresh bill, his Irvine bill, and all the
insurance he pays for on his crop,
stock or buildings, except the house
he lives in. He cannot deduct any vet.
Urinary fees, service fees. stock foods,
or stock medicines, hat he buys or
pays for during the year. He can de-
duct all the. seed and feed that he
buys, but not what he raises on the
farm. He may deduct his expense for
horse shoeing, for coal, Oil, gas, etc,
used in a farm tractor or threshing
machine. He cannot deduct any
amount expended In the purchase of
farm machinery or in the erection or
permanent improvement Of farm build
ings, but he can claim depreciation on
the buildings or machinery, ascertain.
ing the amount Of depreciation by
divining the cost Of building or ma
chine by the number of years Of its
life in the business.
The farmer can deduct the purchase
price of all stock bought for resale,
in the year that he buys them, and he
must include as income the total
amount he receives for them in the
year that he sells them. He cannot
deduct any amount used in purchasing
livestock for breeding purposes or for
work on the farm. The farmer can
deduct all the money he pays out for
taxes and interest in the year that he
pays said taxes and interest, and he
may also deduct any money paid for
cash rent. After making these deduc.
tions from his gross income. il the
farmer has 100000 left. in the case
OF a married man. he must make an
Income Tax return, il a single man he
he must make a return ~ no hao q.