The Ward County independent. [volume] (Minot, Ward County, N.D.) 1902-1965, 1918-01-31

pense of fertilizing and seeding to
keep up the fertility of the soil.
| A farmer cannot deduct as an ex-
pense his own labor. Should he be per-
mitted to do that he would be required
to include in his income like amount.
The department in Washington will
not fix an arbitrary rate to cover a
reasonable depreciation on rented
buildings. A person must figure the
cost of the rented buildings, the esti-
mated life and the construction. Where
money is expended for the ordinary
citation is reduced.
The income of a farmer is based on
the business of the calendar year.
J. r. H. of Great Bend has two mo-
tor cars-one a pleasure car and the
other he designates his 'freight" car.
His freight car is used exclusively in
hauling supplies and machinery to
and from his farms. He asks if he
may deduct his expenses-such as re-
pairs, gas. oil, replacement of tires,
etc.--of his freight" car in his in
come tax return.
He buys mules to work on his farm
and gets about ten years service out
of them. Can he charge off one-tenth
of the original investment of these
mules each year to expense?
Answer:
The expenses of his "freight" car,
such as he enumerates, are certainly
necessary expenses in his business and
proper deductions. l do think the
government would not object to charg-
ing off one-tenth each year on the
mules However, should the mules be
sold after ten years service, the en-
tire sale price would be reported as
income the year in which sold. If the
mules lasted more than ten years he
could not charge off anything on them
after the tenth year.
P. of Home City, Kas., desires to
know if farmer figures income tax
on the amount of stuff he sells during
1917. Is there a deduction of $500
figured on the amount of products con-
sumed, that is, taken from the exem-
ption of $4,000? If he sells over ST.
600, but is exempt, does he have to
make his report to the collector?
Answer:
All grain, stock and other products
sold during 1917 should be reported as
income in his tax return, regardless OF
when same was raised. He should then
deduct as expenses all money paid by
him in 1917 for labor in preparing
land for a crop and the cultivation,
harvesting and marketing of the crop,
the cost Of the seed and fertilizer used,
the amount expended for labor in car
ing for livestock and the cost of the
feed, the cost of stock purchased for
the purpose of resale. He also is en-
titled to deduct money actually paid
in making repairs to farm buildings,
but not the dwelling house, the cost
Of materials for immediate use and
farm tools which are used up in the
course of year or two, such as
spades, rakes, pitchforks, etc. The
rent paid for farm also may be de-
Quoted. Money paid for live stock
used for breeding purposes are held
to represent investment of capital and
may not be deducted as expense.
A farmer may not deduct cost of
food, fuel and clothing for his family.
A farmer is not required to report as
income the value of farm produce con-
sumed by himself and family. How
ever, if he exchanges farm products
for merchandise, groceries, ETC., he
must include as income the price plac-
ed bV the merchant upOn goods ey-