The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1919-10-16

Schedules of farm incomes and ex-
penses will be given to every Wayne
county farmer, sometime within the
near future, Albert N. Logan, deputy
collector of the United States treas
ury department, who has established
an office in Richmond, has announced.
The farmer will be expected to re-
turn the schedules to the collector on
or before March Is, 1920.
This work sheet, as it Is commonly
known, is primarily used to help de-
termine the net income of the farm
eres who work their own farms or
rent out on shares, or by tenants.
It is desirable. according to notices
by the treasury department, for a
farmer having 2 or more farms to fill
out separate sheet for each farm.
Logan is intending to devote his
time at present to farm incomes ex-
cluslvely, he announced. Facts con-
corning the income tax law follow:
All the farm income from whatever
source must be reported in this sched-
ule. Only income actually received
need be included, but this does not
mean that the taxpayer must receive
cash. Anything OF value received in
stead Of cash must be considered in
come to the extent of its cash value.
Thus, the value Of groceries, merchan-
disc, etc, received in exchange for
eggs, butter, or other produce must
be reported as income.
The value Of farm produce which IS
consumed by the farmer and his fam
lily need not be reported as income;
but expenses incurred in raising pro-
duce thus consumed must not be
claimed as deductions.
If timber sold in 1918 was grown in
part before March l, 1913, the income
to be reported is the difference be-
tween the fair market value Of such
timber on March l, 1913, and the price
received, less any expenses Of grow
ing the timber that have not hereto
fore been claimed as deductions. Re-
port such income in the same manner
as income from sale of land, in Seized
ule D of Form 1040A or Form 1040.
Expenses and Other Deductions.
Report as farm expenses only
amounts actually paid out in carrying
on the farm business.
Labor-Only that part of the board
of the hired labor which is purchased
should be included as a deduction,
The value of products furnished by
the farm and used in the board of
hired labor is not a deductible ex.
pense.
Rations purchased and furnished
to laborers or share-croppers are de-
ductible as part of the labor ex,
pense.
Do not deduct the value Of your own
labor or that of your wife or depend
ent minor children.
Do not deduct amounts paid to per
sons engaged in household work eX
cept to the extent that the services
Of such employees are used in boarding
and otherwise caring for farm labor
ers. Services of employees engaged
in caring for the farmers own house
hold are not deductible expense.
Fertilizers, manures, etc.-The cost
of manures, commercial fertilizers
lime, raw rock phosphate, ETC., that
were bought during the year may be
included as an expense.
TaXes-Do not deduct inheritance
or estate taxes. Federal income taxes
drainage taxes, or taxes for any i'm
provement or betterment tending tc
increase the value of the property. Be
ready to show tax receipts if possible
Do not deduct taxes on your dwelling
Or household property.
Interest on indebtedness-All inter
est paid on farm mortgages, notes
and other obligations incurred to car
~ on the farm business should be de
Quoted.
Bad debts-Report only debts, arts
ing from the sales that have been re
ported as income, which have been