Greene County herald. (Leakesville, Miss.) 1898-current, 1920-12-10
Gains for 1919 Must Be Figured
Under U. S. LaW-Returns
Due March Is.
LAND SALE PROFITS TAXABLE.
Necessary Farm Expenses May Be
Deducted-Speclai Form for Farm
income-Cash or AccruaI
Basis for Computing.

A farmer, shopkeeper, or tradesman
must figure up his net income for 1915;
and Ii the farm or business income
plus his other income was sufficient to
require an income tax return a com /
plete return must be filed with the col
lector Of internal revenue by March 10.
A farmer should ascertain the gross
income Of his farm by computing all
gains derived from the sale or ex-
change Of his products, whether pro-
duced on the farm or purchased and
resold.
Farm Expenses.
From his gross income q farmer Ia
allowed to charge OF all Of his neces-
sary expenses In the conduct Of the
farm during the year. These include
costs Of planting. %cultivating, harvest
ing and marketing. In addition to
these costs he may deduct money spent
for ordinary farm tools Of short life
bought during the year, such as SHOW
els, rakes. etc. Also, the cost of feed
purchased for his live stock may be
treated as an expense In so far as this
cost represents actual outlay, but the
value Of his own products fed to AMI
mails is not a deductible item.
Other farm expenses allowable are
the cost Of minor repairs or buildings
fbut not the dwelling house), on fences,
wagons n farm machinery also bills
paid for h~orseshoeing, stock powders,
rock salt, services Of veterinary, insur-
ance Except on dwelling house), gas0-
line for operating power and sundry
other expenses which were paid for in
cash.
AS to hired help, all the productive
labor is a deductible expense; but the
wages of household servants, or help
hired to improve the farm, as In tree
planting, ditching. ETC.. cannot be
claimed against earnings. A farmer is
not allowed to claim q salary for him
self or members Of his family who
work on the farm.
Wear and Tear.
Purchase Of farm machinery, wag-
ons, work anipals. etc, also the cost
l VI ~OnStI NtAV WX0AtCnoAOn VI All
ings, silos, fencing, etc, should be con-
sidered additional Investments In the
farm and are not proper deductions
against income.
A reasonable allowance may be
claimed for wear and tear on farm
buildings Except the farmhouse),
fences, machinery, work animals, wag-
ons, tanks, windmills and other farm
equipment which is used In the con-
duct of the farm. q
AS to autos and tractors, the cost Of
these is not an expense. although the
cost of their upkeep Is an allowable
deduction, If the machines are used ex-
clusively for farm purposes and not
for pleasure. Also, In such cases, a de-
duction for wear and tear Is allowed.
Farm Losses.
The loss of a growing crop is not q
proper deduction from income, mas
much as the value of the CROP had net
been taken into gross income. The
loss Of a building or Of machinery
through storm. lightning, flood, etc, Is
an allowable deduction, but care should
be used to ascertain the correct loss
sustained. as restricted by income tax
regulations.
Ne deduction IL allowed In the case
Of loss of animals raised on the farm,
but q less is deductble from gross in
come IL the animals had been pur-
chased for draft er breeding purposes.
Shrinkage In weight or value of farm
~w~d-nkr hAyz g. An-AunAVA ~.~wvx~k
prices cannot be deducted as a loss, for
the reason that when such products
are sold the shrinkage will be reflected
in the selling price.
Sale Of Farms and Land.
The value Of agricultural lands has
been jumping during the past few
years, and during 1919 many owners
seld out part or all Of their lands at
big profits. All such gains constitute
income and must be taken into the net
income for the year.
Any person who sold part of a farm
or ranch, or part Of q parcel Of land,
must also show any gains realized by
the sale.
The method Of figuring gains and
losses on such transactions is pre-
scribed in the Income Tax regulations,
copies Of which may be secured from
Internal Revenue Collectors.
Forms for Returns.
The Internal Revenue Bureau has
issued an improved Form 1o40F for
the use of farmers. This form, to-
gether with Form 1040A or 1040, will
give the farmer explicit information
A. to how to properly figure his net
-~uo Co. 1910