The Richmond Virginian. (Richmond, Va.) 1910-1920, 1920-01-12
.INcOME.TAx FACTS
~
YOU SHOULD KNOW


Deductions from gross income IN de-
t4rmintng net income include all bust
mass expenses. which are the amounts
Actually Incurred during the tax year
II the conduct of business, trade, or
profession.
Amerohant may claim ~ deductions
the amount paid for advertising, hire
Of clerks. and other employss' the
cost OF light. fuel. heat, water. ana
telephone used in his place OF bust
ness. the cost Of operating delivery
wagons, motor trucks. ana fncadcnLa
repairs to such vehicles.
A physician may claim ~ deductions
the cost OF medicines and medicinal
supplies used by him in his practice,
rsaSonAhle proportion OF the expenses
said in the maintenance and repair of
an automobile used in making profess
sional calls, the expenses Of attending
medical conventions, dues to medical
societies and subscriptions to medical
Journals, the rant paid for Office rooms
md the cost OF heat, water, light tele-
phone, efc-, used IN such office roorns-
and salaries paid to Office assistants
rhs same DEDUCTIONS are allowed .
senttst-
FaxnaAxs Alao Conatdared.
Tho farusr may deduct al amounts
paid 10 preparing his land for crop.
Ind the cultivation hArvesting. and
marketing Of the crop. The cost Of
seed and fertilizer used and amounts
xpAnt In caring for live stock are de-
31e4ahle items The cost of minor re-
pairs to farm buildings. other than
he dwelling. and OF fences farm ma
ehinery. and wagons may be claimed
also the cost OF farm tools which are
rsAd UP In the course OF . year or
swo- The cost Of machinery of a per-
nAnent character, such as Z thrashtn 6
machine or tractor, 10 held to be cap
ttxi Investment and lie not an allow
able deduction. Rant paid for farm
= deductible.
The principles underlying thase al
.owaucAs are equally applicable to tina
sonducs OF any trade. business. or pro-
fessinn-~ In short. all expenses con-
aac,ed solely and directly with the CON
iuct OF an income producing business
.rAdA, profession. or vocation are AL
owahie
Deductions For Lossea-
LoAses incurred by . taxpayer Ia any
raneaction entered into for pront out
side OF his regular business are AL
lowed Under the 1917 act deductions
Tor such Losses were allowed only TO
he axtAnt OF Eains in similar trans
actions II, for example, q person
made $1,000 in ono stock market trans
lotion aad IN another lost $4,000 he
ras required to include the $1,000 in
lis return az gross income, and could
ieGucf Only tina. amount a. losS-
UrtAr the current act he is allowed .
deduction % $4,6eo.
4 reasonable allowance 10 made for
appreciation OF business propercy and
,nsciescence. and for the depletion OF
iii and gas wells and other natural de-
soeitx
Contributions ~ gifts made during
Re year 1919 70 corporations organized
'or charitable, eciAutinc- religious. OK
EDUCATIONAL purposes, or for the pre-
e.nsion Of cruelty to animals or 70 the
tlon may he deducted 10 an amount not
'xseediaS Is par cent OF the taxpayer
ncona
other DednctfbIe Items
Other items which may b deducted
re as follows
Taxes paid or accrued during the
ear 1914. except incorue. war pronts
ar excess profit taxes, and those as
eassed against local benefits OF kind
ending 70 improve the value Of the
,ropeytr
Legs OF property not eonaActed With
rade or business rising from 6rsa
storms. ehiprreck. or other caxua1ty,
~ fror, theft II not compensated for
by Insurance. or otherwise
Debts asoArtatred to Be worthless
and charged OF within the year.
Interest paid or accrued on Indebted
i.ss except Indebtedness incurred to
purchase securities. the interest uror
rhich Is exAmpt from tar.