Mineral Point tribune. (Mineral Point, Wis.) 1869-1938, 1920-03-04

plus his other income was sufficient TO
require an income tax return n com
plete return must he filed with the col
| IcCtor 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 ex-
, change OF his products, whether pro-
duccd on the farm or purchased and
resold
Farm Expenses.
From his gross income q farmer Is
allowed to charge off all OF his neces-
| sary expenses In the conduct OF the
farm during the year These include
costs Of planting. 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, ral,cs. 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 ~ his own products fed to ami
| mails IS not q deductihlc item
| other farm expenses allowable are
the cost of minor repairs on buildings
| tbut not the dwelling house,, 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 10 hired help, all the productive
| tabor Is Il deductble expense; but the
| wages OF household servants or help
hired to improve the farm, as in tree
| planting. dltching, etc, cannot he
| claimed against earnings A farmer is
| not allowed to claim a salary for him.
self or members ot 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
| ous, tanks, windmills and other farm
| equipment which is used In the con
duet OF the farm.
| As 10 autos aud tractors, the cost Of
| these is not IN expense although the
cost of their upkeep Is an allowable
| deduction, II the machines are used ex-
cluslyely for farm purposes ana not
| for pleasure Also. IN such cases. de-
duclion 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 building or Of machinery
through storm, lightning, flood etc. is
am allowable deduction, but care should
be- used 20 ascertain the correct loss
sustained, as restricted by income tax
| regulations
No deduction is allowed IN the case
ut loss OF animals raised on the farm.
| but "a loss Is deductible from gross in
| come In the animals had been pur-
| chased for draft or breeding purposes.
Shrjukage i'm weight or value OF farm
products held for favorable market
prices cannot be deducted as loss. for
The reason that when such products
ure sold the shrnkago will be reflected
in the selling price
Sale Of Farms and Land.
The value ot agricultural lands has
been jumping during the past few
! years. and during 1919 many owners
! sold out part or an of their lands at
! big profits An such gains constitute
income ana must be taken into the net
Income fer the year
| Any person who sold part Of a farm
or ranch or part OF parcel Of land,
must also show any gains realized by
tha sale.
Tho method Of figuring gains and
LOSSES ON such transactions Is IRE
scr.hcd In the Income Tax regulations,
/ copies of which may bee secured from
! Internal Revenue Collectors.
Forms for Returns
The Internal Revenue Bureau has
! ~sued ana improved Form lOiOF for
! ,he use 90 farmers This form, to-
-glhyr with Form lu40A or 1910. viii
r1Np rho farmer pNplfFit tp FnrYnYt B.,t,