Mohave County miner and our mineral wealth., 1919-01-25

professional income by ascertaining the total of fees for services and de- ducting therefrom all expenses con- nected directly and solely with his practice.
 A farmer must figure up all income derived from the sale or exchange of products during the year, whether such produce was raised on the farm or purchased and resold. He is allow ed to deduct from this total his ex- penses of the year connected with the planting, cultivation, harvesting and marketing of the crop, or the care, feeding and marketing of live stock. He is not allowed to deduct the amount expended in 1918 in purchas- ing stock for resale; but when such stock is sold its cost is to be deduct ed from sale price in ascertaining the gain to be included in his return of income. The cost price of stock bought prior to 1917 cannot be deduct ed as in the case just cited, if such cost was included in the deduction made in the year of purchase.
 The farmer is not required to in clude in his income tax computation the value of farm produce consumed by himself and family. But in cases where he exchanges produce for mer- chandise, groceries, etc., the market value of the articles received in ex- change must be included.
 Everyone desires to know what in come is exempt from tax. Gifts and bequests can be eliminated; also pro- ceeds from life insurance received by the beneficiary of an insured person. A person who cashed in an endowment policy need report as income only that portion which exceeds the total of the premiums he paid in all years on that policy. Annuities are not tax able, unless the person received in the year payments which represent, when added to all prior payments on the annuity, an amount greater than the original cost of the annuity. Divi- dends on unexpired life insurance poli- cies must be considered income. Ali mony is not income to the recipient, nor is it an allowable deduction on the part of the person who pays.
 From the total of all items of in come, there are certain deductions allowable by law. All interest paid on personal indebtedness and all taxes paid during the year are deductable, except federal incomes and excess profits taxes, inheritance taxes and assessments for local Improvements, such as sidewalks, sewers, etc. Losses incurred in business or trade are al lowable, also losses arising from fires, storms, shipwreck or other casualty, or from theft, in cases where such losses are not compensated for by in surance or otherwise. Losses incurr- ed outside of a persons regular busi- ness are allowable to the extent of gains reported from similar transac- tions within the year. Debts due to the taxpayer actually ascertained to be worthless during the year are de- ductable.
 Depreciation on property used in profession, in business. or in farming is another item that may be claimed as deduction. The storekeeper may claim depreciation on his fixtures, and on his delivery horses and wagons, but not on his stock held for sale. The professional man may claim similar deduction on his instruments; and, in the case of a physician who main tains a team or auto for making his calls on patients reasonable deprecia- tion may be claimed. The farmer may claim depreciation on his farm build ings, aside from his personal resi- dence, also on his farm machinery, his work horses and farm work wagons. The theory of depreciation, in con nection with the income tax, is that wear and tear caused by use in earn ing income is real expense in the earning of that income. The rate is determined by the number of years that the property ordinarily would be useful, and the cost of the property is the basis of the computation. If the property suffering depreciation was bought or acquired prior to Mar. 1, 1913, the market value as of that date is used, instead of the cost, in figuring depreciation.
 Contributions or gifts actually made in 1918 to organizations operating ex- clusively for religious, charitable, scientific or educational purposes, and to societies for the prevention of cruelty to children or animals, may be deducted, to an amount not ex- ceeding 15 per cent of the net in come computed without the benefit of this deduction.
 After the total of all income is found, and the deductions allowable by law have been computed as an offset, the amount of income in ex- cess of such deductions is the net in- come, which forms the basis of the as- sessment of tax.
 If every person in this district will examine his own 1918 income and his allowable deductions, in line with the data that I have given he will know