The courier-index., 1918-01-25

luc SIldllcT lteIlS bought ana SOiQ It is counted as sale if one takes but ter, eggs, apples, potatoes or any product raised to the store and trades it out" for groceries, wear ing apparel, or what not Living ex- 1 penses cannot be deducted, so you must figure the value of the farm products traded for something, as though you sold the products fo cash. It is nothing to the tax collect or whether you got cash or sugar for the product.
 The same is true of real estate If you sold part or all of the farm they figure as profit or income the difference between the cash value March 1, 1913, and the price for which sold or the difference between its cost and selling price if acquired on or after March 1, 1913. Rents are considered income whether paid in cash or in part of the crop or otherwise.
 What Is Exempt
 Of course there are exemptions The single person who Is supporting dependent children or dependent parents or crippled relatives who cannot help support themselves is considered the head of family and has the same exenrptiOn-$2, ,000-.s "a married person Unmarried per sons with incomes of less than s1,OO0 and no dependents are exempt from the tax.
 When husband and wife both have incomes they can report separately, and divide the one exemption be- tween them. In case they are d. vorced or living apart, the one caring for the children can claim full ex emption and the other only s1,00J
 There is an exemption t0 the ex tent of S200 for each dependen child under eighteen years of age. Suppose your net income figured up, to $2,S00 and you have tour depei.i- ent children under eighteen years, you would be allowed $500 deduction for them.
 There is certain depreciation Ill the value of property which is ex- empt. It runs as follows: per cent on frame buildings and ? I-2 per cent a year on brick or stone buildings, 10 per cent on the cost of farm machinery and implements. But this deduction must be based upon actua depreciation through use or partial destruction. If its value is the same as the year previous there is no de- duction.
 In case of loss by fire, theft, or storms, not covered by insurance, you can deduct the fair market value .s the property. This applies also t' machinery, implements and farm buildings. You can deduct losses m trade or business provided the loss was actually suffered. But you can : deduct from hogs lost from choler ] or cattle from sickness unless you had bought them, and hen only ,- the amount you paid for them. i Neither can you deduct for loss Y any stock or grain feed that you have produced because you are no 1 required to report on these until sold. 1 All SdidIlCS Ot ihP1HSA'iNA% PVT by the state or political subdivisions of the state are exempt. That is. Il YOU are a county supervisor or some. thing whereby you get per diem or salary. this does not have to be counted in the income tax report.
 What is Not Exempt
 Your living expenses are not to be deducted from the total. And yo' cannot deduct any charge for any personal service rendered in ths business, or for any member of tn, family working at home You can'i allow for a salary to yourself. Bu you can deduct for cash paid hired help as a part of the running ex penses of the farm. Even where sons or daughters work for the par ents at a wage, the wage must o'
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