The Laurens advertiser. (Laurens, S.C.) 1885-1973, 1920-03-10

plus his other income was sufficient to
require an income tax return q com
plcte return must be filed with the col
lcctor 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
rcsold
Farm Expenses.
From his gross income a farmer Is
allowed to charge Off all Of his ncceS.
Sary expenses in tho conduct of the
farm during the year. These include
costs of planting, cultivatng, harvest
ing and marketing. In addition to
these costs lie may deduct money spent
for ordinary farm tools OF short life
bought" during the year, such as shov-
els, rakcs, 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 dcductible item.
Other farm expenses allowable are
the cost Of minor repairs on buildings
(but not the dwelling house), OH fences
wagons and farm machinery; also bills
paid for horscshoeng, stock powders
rock salt, services of veterinary, insur-
ance (cxccpt on dwelling housc}, gaso-
line for operating power and sundry
oil ,l,..
cash.
AS to hired help, all the productive
labor is n deductiblc 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 Il salary for him
self or members OF his family who
work Oh the farm.
Wear and Tear.
Purchase OF farm machinery, wag-
OnS, work animals, etc, also the cost
Of construction or extension OF build
ings, sios, fencing, etc, should be con-
sidercd 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.
AS to autos and tractors, the cost of
these is not an expense although the
cost Of their upkeep Is an allowable
deduction, IL the machines are used eX-
clusively for farm purposes and not
for pleasure. Also, in such cases, de-
duction for wear and tear Is allowed.
Farm Losses.
The loss Of a growing crop is not a
proper deduction from income, mas
much as 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 dcductible from gross in
come If the animals had been Dur-
chased for draft or breeding purposes.
Shrjnkage in weight or value of farm
products held for favorable market
prices cannot be deducted as loss, for
the reason that when such products
are sold the shr,nkage 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 1910 many owners
sold 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 farm
or ranch, or part Of parcel of land,
must also show any gains realized by
tho sale.
The method Of figuring gains and
losses on such transactions ia pre-.
scribed in the Income Tax regulations,
copies Of which may be secured from
Internal Revenue Collectors
Forma for Returns.
The Internal Revenue Bureau has
Issued an improved Form 104OF for
the use Of farmers. This form, to-
gether with Form 1040A or 1910, will
give the farmer explicit information
as to how to properly figarc his net
income for 1910.
There are two methods Of figuring a
farmers income tax return this year
He may make his return on the basis
Of the difference between the money
and goods received for his products