Lincoln County times. (Jerome, Idaho) 1911-1919, 1919-01-30
BE READY FOR COLLECTOR



"a farmer must figure up all In
come derived from the sale or ex-
change of products curing the year,
neither such produce was raised on
the farm or purchased and resold.
He is allowed to deduct from this
total his expenses of the year con-
nected with the planting, cultivation,
harvesting and marketing OF the crop
or the care. feeding and marketing of
livestock. He is not allowed, to de-
duct the amount expended in 1918 In
purchasing stock for resale; but
when such stock is sold Its cost is
to be deducted from sale price In as
pertaining the gain to be included in
his return OF income. The cost price
of stock bought prior to 1917 cannot
be deducted as in the case just cited.
duction made in the year OF pur-
chase.
1.-The farmer Is not required to in
clude In his income tax computation
the value OF farm produce consumed
by himself and his family But In
cases where he exchanges produce
for merchandise. groceries. etc, the
market value of the articles received
in exchange must be included.
"All other items OF income arising
during the year through personal SER
vice. business or trade. through use
of property or money. should be add
ed into the gains for 1918
Alimony Not Income
Everybody wants to know what
income is exempt from tax. Very
few plums that fall to the average
man may be legally disregarded In
figuring up his 1913 income. Gifts
and requests can be eliminated: also
proceeds OF life insurance received
by the beneficiary OF an insured per-
son. A person who cashed IN an en-
dowment policy need report as In
come only that portion which ex-
ceeds the total OF the premiums he
paid In all years on that policy An
nufties are not taxable, unless the
person received In the year payments
which represent. when added to ell
prior payments on the annuity. an
amount greater than the original cost
OF the annuity. Dividends on unex-
pired life insurance policies are not
taxable income; but dividends on
paid-up policies must be considered
income. Alimony Is not income to
the recipient. nor is 1t all allowable
deduction on the part OF the person
who pays.
From the total OF all items OF
income. there are certain deductions
allowable by law. All interest paid
on personal Indebtedness and all tax
es paid during the year are deduct
ible. except federal income and ex-
cess profits taxes inheritance taxes
and assessments for local improve
ments. such as sidewalks. sewers. etc.
Losses incurred In business or trade
ere allowable. also losses arising
from fires. storms. shipwreck or 9th
er casualty. or from theft. in cases
where such losses are not compensat-
ed for by insurance or otherwire
Losses incurred outside OF a persons
regular business are allowable to the
extent OF gains reported from SINH
lar transactions within the year
Debts due to the taxpayer actually
ascertained to be worthless during
the year are deductible.
Claims for Depreciation
Depreciation on property used in
a profession, in business, or In farm
Ing. Is another item that may be
claimed as a deduction. The store
keeper may claim depreciation on his
fixtures. and on his delivery horses
and wagons. but not on his stock held