The Lakeland evening telegram. (Lakeland, Fla.) 1911-1922, 1918-02-27


a sale of property is returnable for
income tax purposes?
II you acquired the property sold
prior to March LIST, 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
claimed as deductions on previous re-
turns, and the difference between the
results thus obtained and the selling
price is the amount to be reported I'M
der gross income.
If you purchased the property on or
after March list, 1918, the difference
between its cost, plus all amounts
subsequently expended for permanent
improvements less depreciation pre-
vlously claimed and it's selling price,
is to be returned.
(2). When is farmer to return for
tax purposes the value of crops and
stock produced?
The value of grain, stock and other
products on farm is not considered
taxable income until reduced to cash
or the equivalent of cash. There
J fore, If crops and stock were pro-
duced in 1916 on a farm owned by
you and they were sold in 1917, the
total amount received therefor is to
be included under gross income in
your 1917 returns. Crops and stock
produced in 1917, and on hand Deem
Der 3lst of that year need not be
considered; but the amount received
therefore should be included in your
return rendered for the year during
which they are sold.
| (9) rent farm on shares. When
is my share of the crops and stock to
be taken into consideration?
Only for the year in which sold
I (4) 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 in
Cured in producing garden truck, or
other products so consumed, cannot
be claimed as deduction.
(5) If farmer exchanges produce
for merchandise groceries, ETC., is the
value of such merchandise to be re-
turned for tax purposes?
Yes. The price placed by the mer.
chant upon the goods exchanged for
farm produce is to be included as in
come in the farmers return.
CO. A tenant, under the terms OF
lease, is required to pay certain
cash rental and in addition make GER
tain improvements, is the cost OF
these improvements held to be tax
able income to the property owner:
Report each rental for the year in
which received. The difference be
tween cost of improvements and @
: reasonable allowance for the exhaus
! ton, wear and tear for the property
] arising out of its use or employment
Z in the business or trade of the lessee
! during the period of its life under the
J lease, should be returned as income
I by the lessor for the year during
which the lease terminates.
(7) Special payments, designated
Z as bonuses" are often made to off
: GERS and employees of corporations
Z firms and individuals, are such items
: of income subject to tax in the hands
] of their recipients?
] Any bonus, or other items Of com
: pensation, paid to an employee in ad
= dition to his regular salary or wage
q under a contract expressed or i'm
q piled, as additional compensation TO
Il services rendered, as a reward TO
q past endeavors, or as a stimulus Il
= further zeal and enthusiasm in tn
Z discharge of his duties, is held t
q constitute taxable income, WhicI
q should be reported under gross in
y come in the employees return rer
: dered for the year during which re
] ceived Christmas remembrance
J anniversary gifts, etc. from an en-
pIoyer to an employee do not cor
stitute such items as are subject t
Z the income tax.
80 If an employer agrees to pa
an employee certain stipulated sa
4 arv and furnish him with room an
? hoard. are the latter items to be cor
sidered in computing income tax |