The Natchitoches enterprise. (Natchitoches, La.) 1888-1965, 1920-02-26
FARMERS INCO';lff:
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
Oeduct0d-SpeciaF Form for Farm
lncome-Cash or AccruaI
Basis for Computing.

A farmer, shopkeeper, or tradesma
must figure up his net income for 1915
and if the farm or business incon
plus his other income was sufficient t
require an income tax return Il con
rletc return must be filed with the co
lcctOr of internal revenue by March /.
y farmer should ascertain the groS
income of his farm by computing al
gains derived from the sale or ex
change Of his products, whether pro
duced on the farm or purchased an,
h,SOld.
Farm Expenses.
| From his gross income n farmer /.
! allowed to charge off all of his neccs
s:ry expenses in the conduct of tn.
, farm during the year. These include
costs of planting, cultivating, harvest
ing and marketing. In addition tc
these costs he may deduct money Spen,
for ordinary farm tools of short life
h0usht during the year, such as shov-
els, rakes, etc. Also the cost of feed
purchased for his live stock may be
treated as an expense in so far us this
rest represents actual outlay, but the
value of his own products fed to ami
RAILS is not deductible item.
Other farm expenses allowable are
Tie cost Of minor repairs on buildings
fhut not the dwelling house), on fences,
wagons and farm machinery; also bills
raid for hOrSeshOeing, stock powders,
rock salt. services of veterinary, insur-
arce Except on dwelling house), gasO-
Ene for operating power and sundry
other expenses which were paid for in
cash.
AS to hired help, all the productive
labor is a deductible expense; but the
wages at household servants, or help
Eired to improve the farm, as in tree
Planting, dtching, etc, cannot be
claimed against earnings. A farmer is
rot allowed to claim a salary for him
elf or members Of his family who
work on the farm
Wear and Tear.
Purchase of farm machinery, wac-
onS, work animals, etc, also the cost
OF construction or extension of build
lngS, silOs, fencing, etc, should be con-
sderea additional investments in the
farm and are not proper deductions
against income.
A reasonable allowance may be
claimed for wear and tear on farm
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-
fer farm purposes and not
for pleasure. Also in such cases, a de-
iuction 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
'ecn taken into gross income. The
oss Of q building or Of machinery
Trough storm, lightning, flood, etc, is
n allowable deduction, but care should
% used to ascertain the correct loss
ustnined. rs restricted by income tax
equations.
No deduction is allowed in the case
+ loss of animals raised on the farm,
ut loss is deductible from gross in
ONE If the animals had been pur-
based 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
10 reason that when such products
re sold the shrnkage will be reflected
the selling price.
Sale Of Farms and Land.
The value Of agricultural lands has {
cen jumping during the past few ;
'ars, and during 1919 many owners
I'D out part or all Of their lands at
g profits. All such gains constitute
come and must be taken into the net
come for the year.
Any person who sold part of a farm
ranch, or part of a parcel Of land,
net also show any gains rea !izetf by
q sale. ~
The method Of figuring gains and
;ses on such transactions is pre-
rihed in the Income Fax regulations,
pies Of which may be secured from
ternal Revenue, Collectors.
Forms for Returns. !,
The Internal Revenue Bureau has b,
ued an improved Form 1O4OF for d.
> use Of farmers. This form, to- q,
her with Form 1O4OA or 1910, will
e the farmer explicit information III
to how to properly figure his net m
ONE for 1919.
There are two methods of figuring tn
mer's income tax return this year If
may make his return on the basis r,
the difference between the money q,
] goods received for his products
| the cash paid out for actual allow bu
e farm expenses within the year 20
he may make his return on the ac. fo
al basis, which means computing n
receipts and expenses that pertain
the taxable year, excluding income mr.
ned and expenses incurred in pre- 30
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