Cleveland County herald., 1920-03-04

Oi1er farm expenses allowable are @ cost of minor repairs on buildings thut not the dwelling house), on fences, - gane ard farm machinery; also bills = q for horScshoeing. stock powders. eock salt. services of veterinary, insur- ance fexcept on dwelling house), gaso- fine for operating power and sundry other expenses which were paid for in cash
 AS to hired help, all the productive labor is deductibe 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 work on the farm.
 Wear and Tear.
 Purchase of farm machinery, wng- 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 faym sand 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- clusively for farm purposes and not for pleasure Also. in such cases, a de ductien for wear and tear is allowed.
 Farm Looses.
 The loss of growing crop is not a proper deduction from income, inas- much as the value of the crop had noi been taken into gross income. The loss of a building or of machinery through storm. lightning, flood. etc, is an allowable deduction, but care should be used to ascertain the correct loss sustained. as restricted by income tax regulations.
 No deduction Is allowed in the case of loss of animals raised on the farm but a loss is deductibIe 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 loss, for the reason that when such products are sold the Shrinkage will be reflected in the selling price.
 Sale of Farr,s and Land.
 The value of agricultural lands has been juuning during the past few years, and during 1919 many owners sold out part or all of their lands at big profits All s'!ch gains constitute income and must he taken into the net income for the year.
 Any person who sold part of a farm or ranch, or part of a parcel of land. must also show any gains realized by he sale
 The ,ntthod of figuring gains and ssos on such transact ,onS is pre-
 lshed in the Income Tax resolutions. 'pies of which may he secured from nternal Revenue Collectors.
 Forms for Rc .urnsa
 The Internal Revenue Bureau has ssuea an Improved Form 1040F for the use of farmers This form, to- Sether With Torn 1040A or 1910, will gether with Form 1040A or 10f0. will give the farmer explicit Information as to how to properly figure his net income for 1919.
 There are two methods of figuring a farmers income tax return this year. He may make his return on the basis of the difference between the money and goods received for his products and the cash paid out for actual allow able farm expenses within the year Or he may make his return on the ac-
 basis, which means cOlnor ,s--r-- -