The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1920-03-03
FARMER RS INCOME:
subject TO TAX
Gains for 1919 Must Be Figured
Under U. S. LaW--Returns
Due March Is.
LAND SALE PROFITS TAXABLE.
Necessary Farm Expenses May 30
Deducted-Special Form for Farm
income-Cash or Accruai
Basic for Computing.

a farmer, shopkceper, or tradesman
must figure up his net income for 1910;
and If 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 Is.
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 Is
allowed to charge Off all Of his neces-
sary expenses in the conduct of tie
farm during the year. These include
| costs of planting, cultivatlng, 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 us shov-
els, rakcs, etc. Also, the cost of feed
purchased for his live stock may be
cost represents actual outlay, but the
value of his own products fed to ami
mails is not a deductible item.
othcr farm expenses allowable are
the cost Of minor repairs on buildings
(but not the dwelling house), on fences.
wagons and farm machinery; also bills
paid for horscshocing, stock powders.
rock salt, services Of veterinary, insur-
ance (except on dwelling hOuse), gaso-
line for operating power and sundry
other expenses which were paid for in
cash.
AS to hired help, all the productive
labor Is dcductible 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 4 farmer IS
not allowed to claim salary for him.
self or members Of his family who
"crk Cyl the farm.
Wear and Tear.
purchase Of farm machinery, wag-
ons, work animals, etc, also the cost
OF construction or extension Of build
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 ond tear on farm
buildings (eXcept the farmlouse).
fences, machinery, work animals wag-
OILS, tanks, w;ndni!l!s and ether farm
equipment which Is used in the con.
duct Of the farm.
AS to autos and tractors, the cost of
these Is not an expense, although the
cost of their upkcep is an allowable
deduction, If the machines are used ex.
cluslvely for farm purposes and not
for pleasure. Also, In such cases, de-
ductlon for wear and tear Is allowed.
Farm Losses.
The loss Of growing crop Is not n
proper deduction from income, mas.
much rs the value Of the crop had not
been taken into gross income. The
loss Of building or Of machinery
through storm, lightning, flood, etc. Is
an allowable deduction, but care should
be used to ascertain the correct loss
sustained. rs restricted by income tax
regulations.
No deduction is allowed in the case
of loss of animals raised on the farm,
but loss Is deductible from gross In.
come II the animals had been pur.
chased for draft or breeding purposes.
Shrinkage in weight or value of farm
products held for favorable market
prices cannot be deducted rs loss, for
the reason that when such products
are sold the shrinknge 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
sold out part or all OF their lands at
Dig profits. Ali 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 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 1OlOF for
the use of farmers. This form, to-
!. gether with Form 1O4OA or 1910, will
give the farmer explicit information
as to how to properly figure his net
, income for 1919.
There are two iietiluGs Of figuring =
farmers income Tux return this ycnr
He may make his return on the bnsis
Of the difference between the money