The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1920-03-19
FARMERS IN(l
SUBJECT 70 |
Gains for 1919 Must ). !:
under U. S. Lau-RstII
Due March IS. ]
LAND SALE PROFITS TAI
necessary Farm Expense.
oedueted-speclaI Form -
'0o0ms-cash or Assru,
Basis for conputi,,
LAND SALE PROFITS TAI

"A farmer shopkeeper, Or ri
must ngure up his net income /
ana II the farm or business
plus his other income was snsl
require an income ia, retprn
plete return must be filed v1thI
lector of internal reyepna hr
4 farmer should ascertain !
income of his farm by comma
gains derived from the said
change OF his products, Wheel
duced on the farm or purchaI
resOld.
Farm Expenses
From his gross income a j
oA'o"0u " Charge Off all of hi
sary expenses in the condro,
farm during the year. These
costs of planting, eultivatjng
ing and marketing. In add
these costs he may deduct monI
for ordinary farm tools of 4
bought during the year, such
els, rakes, etc. Also, the cost
purchased for his live stock
treated as an expense in 50 fa1
cost represents actual OUTLAW.
value of his own products fed
mails is not deductible item. |
Other farm expenses allow
the cost of minor repairs on h
(but not the dwelling house,. a
wagons and farm machinery: /
paid for horseshoeing. stock I
rock salt, services of veterinari
ance Except On dwelling housl
line for operating power and
other expenses which were nal
| cash.
AS to hired help, all the prl
labor Is a deductible expense 1
wages of household servants.
hired to improve the farm, al
planting, ditching, etc, cad
claimed against earnings. A f
| not allowed to claim a salary
self or members of his fam
work On the farm.
Wear and Tear.
Purchase of farm machinel
ons, work animals, ETC., also
of construction or extension /
ings, silos, fencing, etc, should
sidered additional investment
farm and are not proper de-
| against income.
A reasonable allowance
claimed for wear and tear
buildings Except the farn
fences, machinery, work anims
| ons, tanks, windmpls and 9th
equipment which is used In
duct of the farm.
AS to autos and tractors, tn
these is not an expense, althe
cost Of their upkeep Is an 9
| deduction, if the machines are.
clusively for farm purposes
for pleasure. Also, in such cas-
duction for wear and tear Is al
| Farm Losses.
The loss Of a growing crop
| proper deduction from incon
| much as the value If the crop
been taken into gross ll,com
loss Of a building or OF III
| through storm, lightning, fooo
| an allowable deduction, but Cal
| be used to ascertain the cofl
sustained, as restricted by inc
| regulations.
| No deduction is allowed In :,
| of loss of animals raised on =
| hut a loss is deductible from
| come if the animals had pc
| chased for draft or breealns y, ~
| shrjnkage in weight or value
| products held for favorable
| prices cannot be deducted as a
| r.. rooson that when sucn
| are sold the shrinkage Will Oe
in the selling price.
Sale of Farms and Ian n
The value of agricultural !, Il
been jumping during tl NEW :
| years, and during 1917 u t h'dr'
biz profits. All such gains st. T.
| income and must be taken ''''
income for the year. 81 .
Any person who sold l par. !
or ranch, or part OF a pa', 10
must also show any gains ~
the sale. .;,c 9
The method of figuring ms .
losses on such trans mu re,
scribed in the Income :. las secu
copies of which may as,,octors.
Internal Revenue o''''
Forms for Returns ns
The Internal Revenue nue. Dd !
issued an improved fo %ais
s sns us. with tn Form 1o4oA OF o.
sether with Form 1o4oa i I'M
1--WE the farmer e1 l'p f;sur'
as to how to prope'''
income for 1919. mods Of
''1 There are two METHODS ''Stsr n
farmers income tax re. On
81 me the he difference between ''s his 5
o. ond 10 Goods received tor az, aet,
ana j. soo ea Oh Maid out for ae'
able able farm expenses ,'.s r m1,,
Or he may make his ron {
crual basis, which ,.a mses1 iii
the receipts and expel,se1
to the taxable year. ;ncurrl
earned ana expenses .n ,a
v yious or succeeding years