East Oregonian : E.O. (Pendleton, OR) 1888-current, 1920-03-13

| plete return must be filed with the col
lector of internal revenue by March 10.
A farmer should ascertain the gross
income of his farm by computing all
gains derived from the sale or eN-
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 neces-
1 sary expenses in the conduct of the
/ farm during the year. These include
| costs of plahting cultivating, 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 shov-
| 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 own products fed to ami
mails is not deductibIe item.
Other farm expenses allowable are
the cost of minor repairs on buildings
| (but not the dwelling bouse), 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.
As to hired help, all the productive
| labor is 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 salary for him
| self or members of his family who
work 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 be con-
sidered additional investments in the
farm and 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-
duction for wear and tear is allowed.
Farm Losses.
The loss of a growing crop is not a
proper deduction from income, mas
much as the value of the crop had not
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 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
pfiSeS Sdhhol ne ueuutteu as loss, IOf
the reason that when such products
are sold the shrinkage will be reflected /
In the selling price.
Sale Of Farms and Land.
The value of agricultural lands has
been jumping during the mast few
wears, and during 1919 MANY owners
sold out part or all of their lands at |
big profits All sucb gains constitute 1
income and must be taken into the NET |
income for the wear.
ANY person who sold mart of farm
or ranch. or part of a marcel of land Il