Crossville chronicle. [volume] (Crossville, Tenn.) 1894-current, 1920-03-03
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
Dedueted-SpeeiaI Form for Farm
Ineoms-cash Or AeeruaI
Basis for Computing.

Basis for Computing.
A farmer, shopkeeper, or tradesman
must figure up his net income for 1919 !;
and IL 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 a farmer is
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 Ms shov-
els, rakes. etc. Also. the cost Of feed
purchased for his live stsek may Be
treated ~ an expense In - far as this
cost rsprsssnts actual outlay, but the
value Of his own products fed 10 AMI
mails 10 not dsAuctihle itsc.
Other farm expenses allowable are
the cost Of niasr repairs on buildings
(bat not the dwelling houss), on fences.
wagons and farm machinery; also bills
paid for horssshosiAG, stock powders,
rock salt, services Of veterinary. insur-
anes Except sn dwsiiins hssss). gaso-
line fer operating power and sundYy
other expsnses which were paid fer in
cash.
As to hired help. all the productive
labor 10 . dsductibie expense: bat 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 a salary for him.
self or members Of his family who
work on 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 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 If the machines are used ex-
for farm purposes and not
for pleasure. Also, in such cases. de-
duction for wear and tear Is allowed.
Farm Losses.
The loss Of growing crop is not a
proper deduction from income, mas
much as the value of the crop had not
oss Of building or of machinery
through storm, lightning, flood etc, is
IN allowable deduction, but care should
'e used to ascertain the correct loss
as restricted by income tax
equations.
No deduction is allowed in the case
# loss of animals raised on the farm.
tut loss Is deductible from gross in
ome II the animals had been pur-
hased for draft or breeding purposes
Shrinkage in weight or value of farm
roducts held for favorable market ,
rices cannot be deducted as a loss. for
he reason that when such products
re sold the shrinkage will be reflected
the selling, price. 8
Sale of Farms and Land.
The value Of agricultural lands has
cen jumping during the past few
ears, and during 1919 many owners s
Old ont part or all Of their lands at
ig profits. All such gains constitute t
lcOme and must be taken into tho not q