The patriot. (Glenmora, La.) 1918-1955, 1920-11-19
Gains for 1919 Must Be Figured
Under U. S. LaM-Returns
Due March is.
LAND SALE PROFITS TAXABLE.
Necessary Farm Expenses May BE
Dsducted-SpecjaI Form for Farm
Incnme-caah or AccruaI
Basis for Computing,

require an income tax return a com.
pIete return must be fled with the Cd
! lectOT Of internal revenue By March 6.
A farmer should ascertaIn the gross
iRc0zns az his farm by computing all
gains derived from the sale OF ex.
change Of his products. whether pro
duced on the faKm 0f purchased and
reeol6
Farm expeNss&
From bis gross income o farmer ID
allowed to charge OF AL Of bis AeceS.
sary expenses in ths conduct Of the
Farm dnring tho year. These Include
cOsts Of planting. caltivatiaas harvest
ing and marketing In addition To
these costs he may deduct mORey spent
tnr ordinary farm tools Of short life
bought during the rear. such az shO~-
Ois. rakeS. etc. ALSO. the cost OF feed
purchases for his live stOck may be
tRAateA a. sn expense In % far as this
enat repreas0ts actual outlay, but tho
Vs1He OR bis own products fed to anf-
saAia y not q dedUctibls item.
Other fnRD expenseS allowable are
thO cost Of mipOr repairs On buildings
(bat not the dwelling housel. On fences.
wagons and farm machinery: also bllls
paid tnr hoEseshoelnE stock powders,
Tock salt, services Of veterinary, InsIHr-
aRce (except on dwelling hCuSO), gasO-
IlD9 for operating power and Ssndry
Othar expenses which were paid fDs IN
eaaA
As to hired help all the productive
lRbor is q de6nctIbte expense: bot the
wages Of hOusehOld servantA or help
hired to improve the farm. az In tree
planting. Gtching, etc. cannot be
claimed aGnInst earOlngA A farTnef 10
not allowed to claim q salary for hIul-
sea1 or members o1 hlS family who
~oGE on the farm
wear and Tear.
Purchase Of farm machBaafy, waR-
OsG work animals. etc, also the cost
06 construction or exteneloo Of build
inGs, silCs. fsOclng. etG, should Be cOO-
GidaRed ADDITIONAL Investments Ia the
farm and ara nOt proper deductions
sGsainst inc0me
4 reAAnnAble allowance may 0e
claimed f0r wear and tear On farm
buildings (except the fArmhous0}.
fences, machinery, work animals, wae-
onS. tanks, wtndmills and other farm
equipment which is used IN the con-
duct Of the farm.
As TO autos and tTactOTA the cost al
these ts not an expense. although the
cost Of their upkeep is an allowable
dsducfIoN, IL the machines are used ex-
cIHsively for fnrm purposes and not
tor pleasure. Also. In such cases. de.
ducti0n 1ar wear and tear is allowed
Farm LesoeA
The lOGB Of q growing crop Is not Q
proper DEDUCTION from tnc0ne, mas
much a. the value Of the crop had not
been taken into gross income The
Ioas Of O building or OF machinery
through storm, lightning, food, etc.. b
an allowahle deduction. bWt care should
he used to ascertain tho correct loss
sustained, as restricted By income tax
FegalatioQG
No deducti0n 10 allowed Ia the case
ef loss o2 animals raised on tie farm,
hut a lose 70 dBdnctible from gross IN.
come II the anlmals had been puR-
chased for dfaft or breeding purposes.
GhFinkaRa 10 weight Or value Of Inrm
products held 0Oe favorable market
prices cannot be deducted as loss, :Or
the reR1On that when such products
are sold the shrinkage wiz be redected
IN the selling pE1cA
Sale es FasWas and Land.
Tha value II agricultural lands has
been Jumping during the past few
years. and during 1919 many owners
sold cut part or al Of thesr lands at
big proAtS. an such gains c0nstitnta
income and mng3 be Taken into the net
incDme nnF the year.
Any person who sold part Of q farm
or ranch. or part of parcel Of land.
mns& also shOw any gains realized BY
the saias
The method Of 6auF3ng gains and
losses on such transactions 10 pre-
scrshed In the Income Tax regulations.
cophAe at which may be secured from
inteenAI ReveAue Collectors.
Ferns for RetuEns.
I1e internal Revenua Bureau has
EsS,AeG an impgOved Form 1O4Or Tor
the use ef fAfmeTR This form, To-
gethef with EoFm lO4OA &c 1910 wiM
give the farmer explicit information
as to how to property figure his nsa
income 6Or H9dN
There are two methods OF AgnE4ng .
farmers, iicoma tax return this yeAf.
10 may make bis. retmn % the iDaGss
Of tho difference between tie money
and goods reCaived nOF hi products
ana the 0Rsh paid cut SOr actual allow
abs fhTp expenses within the year
or be nay make his return On the acs
crual basis, which means computing
he recelptB ana expenses that pertain
10 tle taxable year, excluding income