The Weston leader. [volume] (Weston, Umatilla County, Or.) 189?-1946, 1920-03-05
FARMERS 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 Be
osduetsd-SpeeiAl Form for Farm
Ineoms--cash or Aeeruai
Basis for Computing.

4 farmer, shupkrcpcr, nr irndcsmnn
mu.t ngurr up hls net income for 1910
aud II tho farm or business iHcomc
plus his other income mrs sufficient Io
require an Income tax return com
pl"ls return must hc filcd with the col.
ltctor of Internal revenue by March 10,
4 farmer should ascertain The gross
Income of his farm by computing al
gains derived from the safe or cx.
change of his products. whether pro.
duccd on tho farm ar purchased and
rcsold
Farm Expenses.
From his gross lncolns farmer II
allowed to charge of all of his nerss,
Hnrr expenses In the conduct ~ tho
farm during the year These include
costs of planting, eultlFatinH, harvest.
Ing aud marketing IN addition TO
these costs he iesy deduct money spent
for ordinary farm tools NJ short lifc
bought during The year, such ns khov.
els, rnkcs. etc, Also. the cost Of feed
purchased for his live stock mny be
treated ns an expense In 10 far hs this
cost represents actual outlay, hut the
value OF his own products fed TO ant.
mails Ii not tciuctiblr item,
Other farm expenses allowable are
The cost of minor repairs an buildings
tbui not the dwelling hause). on fences,
Wagons aud farm machinery also bills
paid for hnrscshoclng. slock powders,
rock salt, services ~ veterinary. lnsur.
nnce toxcrpt on dwelling housed, gnso.
line for operating power and sundry
other expenses which were paid for In
cash.
As Ia hired help. all the productive
labor N "A deductiblo expense: but the
wages Of household servants. or help
hired 10 improve the farm, ms IN irco
planting. dllching. etc. cannot he
claimed against earnings, A farmer IL
NOT allowed 10 cinim n SALARY for him.
eclf er members of his family who
work on the farm
Wear and Tear.
Purchase of farm machinery. wng.
ms. work animals, etc. also tho cost
+ construction or extension of build.
ngs, silos, fencing. etc. should bc cou.
lderctl additional Investments In the
arm and nrc not proper deductions
gninet Income.
4 reasonable allowance iuny he
lnlmed for wear nnd tear nn farm
tcxeept the farmhnusc).
anccr, machinery, work animals. wug-
ny. tanks, wlndmllls aud other farm
qnipmcnt which Is used In the con.
uct Of the farm,
AZ n AUTOS HIA tractors, tho cost OF
iesc Is not un expense, although tho
pst OF their urkecp is an allowable
cduction, II the machines arc used en-
nslvely for farm purposes and not
" pleasure, Also, In such cases, n de.
ucilon for wear aud tCar Is allowed.
Farm Losses.
The less of growing crop II not ,
roper deduction from income, inas.
uch MS the vnluc of the crop lnd not
zen taken Into gross Income The
~ Of building or of machinery {
rough storm, lightning, flood, etc. is Y
! allowable deduction, but care should /
) used 10 ascertain the correct loss n
stained, MS restricted by income tax .
guiations !.
No deduction II allowed In the case
loss of animals raised on the farm,
II loss Is dcluctlble from gross In.
me II the animals had been pur. o
nsed for draft or breeding purposes. 8
IN weight or value Of farm o
oducts held for favorable market a
Ices cannot he deducted as loss, for ~,
0 reason that when such products a,
g sold the shrlnkage will be reflected =
the selling price. q
Sale Of Farms and Land.
The value of agricultural lands has g,
en- jumping during the past few fc
mrs, ana during 1919 many owners !,
ID out part or all OF their lands nt "
, profits. All such gains constitute ~
'ome and must be taken into the net ~
'ome for the year.
Any person who sold part of a farm ns
ranch, or part of n parcel of land, In
st also show any gains realized by
sale. IN
rhc method of figuring gains and III,
ses on such transactions is pre-. of
lbed In the Income Tux regulations, an
lies of which may be secured from an
ernal Revenue Collectors. ab
Forms for Returns. or
he Internal Revenue Bureau has CT
led an improved Form 10i0F for III
use of farmers. This form, to- 20
her with Form t0I0A or 1910, viii ca