The Devils Lake world and inter-ocean. (Devils Lake, N.D.) 1915-1920, 1920-03-10
FARMERS INCOME
SUBJECT TO TAX
Gains for. 1919 Must Be Figured
Under U. S. Law-Returns
Il Due March IS.
AND M SALE PROFITS TAXABLE

- ~ 'NEEs|G- 49, SrEIE- .aFH4 raL 49,.
Deductsd-spsclaI4 Form for Farm
lncoms-cash o. AceruaI
b4sis for Computing.
A farmer, sh0pkeeper, or tradesman
must figure up his net income for 1919;
and II the farm or business income
plus his other income was suficient to
require an income tax return a com
plete return must be filed with the col
lector Of internal revenue by March 16.
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 off all of his
sary expenses in the conduct of the
farm during the year. These include
costs of planting, cu%ltivating, 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 as SHOW
els, rakes, 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 w products fed to ami
mails is not q deductible item.
Other farm expenses allowable are
the cost Of minor repairs on buildings
sbut not the dwelling house), on fences,
wagons and farm machinery; also bills
paid for horseshoeing, stock powders,
rock salt, services Of veterinary, insur-
ance Except on dwelling house), gaso-
line for operating power and sundry
other expenses which were paid for in
cash. =
tAs to hired help, all the productive
labor is a deductible 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 a salary, for him.
self or members Of his family who
tawork 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 econ;
i o{.lnuoH 4HIl{k3nrnl f~,.Dc<,nork IT, 7 <hn
farm and are not proper deductions
against income.
A reasonable allowance may be
claimed for 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 col OF
these is not an expense, although the
cost Of their upkeep is an allowable
I deduction. II the machines are used ex.
! clusively for farm purposes and no,
for pleasure. Also, in such cases, a de.
duction for yea and tear is allowed:
! * Farm Losses.
The loss Of a growing crop is not d
proper deduction from income, mas
! muchHas the value of the crop had not
been taken INTO gross income. The
loss Of a building or of machinery
through storm. lightning, food. ETC., is
an allowable deduction, but care should
be used to ascertain the correct loss
sustained. as restricted by income tar
regulations.
): No deduction is allowed in the case
:; of loss Of animals raised on the farm
but q loss is deductible from gross in
come If the animals had been pur:
chased for draft or breeding purposes.
Shrinkage in weight or value OF farm
products held for favorable market
! prices cannot be deducted as a loss, fol
lIssihe reason that when such products
are sold the shrinkage will be reflected
Gin the selling price.
Sale Of Farms and Land.
The value Of agricultural lands ha.
Ebeen jumping during the past few
! !. years, and during 1919 many owner,
sold out part or all Of their lands a,
big profits. All such gains constitute
income and must he taken into the ne,
income for the year.
Any person who sold part OF farm
81 ranch. % part Of a parcel OF land
must also show any gains realized b!
the sale. %s
The method Of figuring gains ant
losses on such transactions IL pre-
scribed in the Income Tax regulations
copies Of which may be secured from
interim! Revenue Collectors.
Forms for Returns.
The Internal Revenue BureauAha.
issued an improved Form 1O4OFs' fol
the use: Of farmers. This form, 10
gether with Form 1Ga0A or 100. vii
give the farmer explicit Information
a. I how to properly figure hisss me-
income for 1919. Sss e
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