The Carlisle independent., 1920-03-04
FARMER'S INCOME
 SUBJECT TO TAX
Cams tor 1s1s Must Be Figured Under t. s. laW-Returns
 Due March 15.
laa8 SALE PROFITS TAXABLE.
Necessary faera Expenses May Be Deducted-Specia Form for Farm tncome-cash or Accrual
 Basis sas Computing.

4 farInes. efs0pkeeper, or tradesman sust figure up bis net income for 1919 snd IF the farTr or business income plus his other tacome was sufficient to srQuIre an Iacon1e tax return com- ssete rctura tnost De filed with the col iector of iaternai revenue by March h. 4 farmer should ascertain the gross iGCone of his earEn by computing all gains derived from the sale or ex- riangc of his products. whether pro ssuced on tile fHsrn or purchased and as.soid-
 f-aryr Expenses.
 From his gross lBedme farmer is sitowed to charge off ail of his neees- asey cxpenses ia the conduct of the farm during the year. These include casts of planting. cuitivating, harvest ins. and marketing. Tn addition to tazse costs he may deduct money spent fur ordinary farm tools of short life sought Curing the year, such as shov- e*s, rakes. etc. Also, the cost of feed purchased for tis live stock may be treated as an exaaase in so far as thls cast represents aetnal outlay, but the value of his own products fed to ani Insls IS not deductible item.
 Other ferin expenses allowable are tac cost of minor repairs on buildings Out not the dwelling housel, on fences wagons and farm machinery; also bills paid for horsashoeiag. stock powders rack salt. services of veterinary, insur- ance texcept on dwelling house), gaso- line for operating power and sundry other expenses which were paid for in cash.
 Gs to hired hep. all the productive labor Is a deductibie expense; but the wages of household servants, or helF hired to improye the farm. as in tres planting. dltching, etc. cannot bf claimed against earnings 4 farmer is nat allowed to claim salary for him sesf or members of his family whs wnrk on the farm.
 s@ear and Tear.
 Purchase of farm machinery, wsg ass. wor& aAifoais, etc. also the eos .k construction or extension of build snsS siioG. fencing, etc, should be con sttered additional investments in th, farus and are npt proper deductions against Income
 {. 6easouabfe allowance may b, c4afmed for wear and tear on farm buildings {exgept the farmhouse) fences. machinery, work animals. wag cns. tanks, windmills and other farm equipment which is used in the con duct Of the farm
 As to autos and tractors, the cost Oi eaese is moi ar expense. although tho cost of their upkeep is an allowable deduction, if the machines are used ex esusiveiy for farm purposes and nof for pleasure. Also. in such cases. a de auction for wear and tear IS allowed.
 Farm Losses.
 Tine loss of growing crop is not 2 proper deduction from income, mas much ss the value of inc crop had no been taken into gross income. Tht soss of building or Of machiner3 through storm. lightning. flood etc, q zn allowable deduction, but care shoult he used Go ascertain the correct los, sustained. as restricted by income ia, regulations
 No deduction Is allowed in the cast Of loss of animals raised on the farm hat loss is defuctihle from gross in come if the animals had been pur rhased for draft or breeding purposes
 tahrinkage sn weight or value of farn pfojscts held for favorable marke CFices cannot oe deducted as loss. fo the reason that when such product gre sold fine shrinksge will be refecte. in the seiiiag price
 Sale Of Farms and Land.
 rbe vsiue Of agricultural lands ha tsaea jumping during the past fe- years. and during 1919 many owner s1sd out part or all of fheir lands a tsg Drofits All such gains consrftut tDcome and must be taken into the ne sacsme for tine year.
 Any person who sold part of 8 farr CT ranch, or part of a parcel of lanC nud also show any gains realized b the sale.
 The method of figuring gains an tagses on sucfi transact ons is prs ss1rsbed in the Income Tax regulation, copies Of which may he secured fror Internal Revenue Collectors
 Forms for Returns.
 The Internal Revenue Bureau Ina issued an Improved Form l0iOF fO the use of farmers. This form. tt geiter with Form 1e40A or i0t0. wi give the fsrmer explicit informatio as to i,ow to properly figure his ne income for 1919.
 GAofe are t~e methods of figuring farmers lncosne tax return this yea Gae uaay tnake his return on the bas of ene 15H1r0nce between the none sf,d o1b f6teived for his producl eDl t1le cAxh paid out for actual alloy