Metropolis weekly gazette. (Metropolis, Ill.) 1???-19??, 1920-04-02

itaH us p.iiti ihibBis was sathti'ht "
require an income tax return a com
pIeie return must be fled with the col
iertor u Internal revenue b. March 10.
) farmer should ascertain the gross
income Of his farm by computing all
gains derived from the SHE or cx-
change Of his products, whether pro
eaced On Tie farm or purchased and
resold
Farm Expenses.
From his gross income 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, cultivatine, 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 50 far us this
cost represents actual outlay, but the
value Of his own products fed 10 ami
mails Is not deductible item.
other farm expenses allowable are
The COST of minor repairs on buildings
Out not The dwelling house,, on fences,
Wagons and farm machinery also bills
paid for horseshoeing. stock powders,
rock salt. services Of veterinary, nsur-
nnce Except on dwelling honse), gaso-
line fof operating power and sundry
other expenses which were paid for in
eash
As 10 hired help. all the productive
labor Is dednetible expense. but the
wages Of household servants. or help
hired 10 improve the farm, rs IN tree
planting. dlteing ETC. caunot be
claimed against earnings. \ farmer Is
pei allowed Ia claim "a sai8fg for him
sell or members Of lis family who
aark 81 fhe farp
Wear ard Tear
Purchase af faEm machinery, wag-
eHs' work animals, etc, also lle cost
Of consfuci $50 on extension OF build
iHgs. sllas feHe.ng efe. should be con-
siderr8 additional investments ia fhe
6ann ard are NOT proper DEDUCTIONS
asa.naI income
reasonable allowance may he
eHned Tor sear and tear on farm
buildings (ekeept the faruhouse),
feHces. machinery. work animals wag-
eHs laBte windmHls and other farm
equipment which is used IN the con
aaer ~ he farm
As re- autos and tractors fhc cost Of
fhese Is not IN expense, although the
cost Of their upkeep is an allowable
deduction II tie machines are Used ex-
elgsiYelg for farm purposes and NOT
fot pleasure Also. in such eases. de-
ane,ion for wear and tear Is allowed
Farm Losses.
The loss of 4 growing crop Is not
proper deduction from income mas
much rs the value Of thc crop had not
been taken into gross income. The
less 81 building or Of machinery
through storm. lightning flood etc, Is
N allowable deduction, but care should
be used To ascertain the correct loss
sustained. us restricted by income tax
regulations
So deduction Is allowed IN the ease
Of Toss Of animals raised Oh The farm.
bnf n loss Is aeduclible from gross in-
come IS the animals haa been pur-
chased 9rdsaff or breeding ~. Doses
Shrlnfage II weight orVaiae Of farm
products held for favorable market
prices cannot be delneled a loss. for
the reason that when such products
are sold tie shrinkase will be reflected
in the selling price
sale Of Farms ard Land.
The value Of agricultural lands has
been jumping daring The past few
EARS, asd during 1919 many owners
sold ouf part or an Of their lands at
big profits Al such gains constitute
income and mist be taken into tie net
income for the year
Any person we sold part OF a farm
or ranch. or part Of a parcel Of land,
NEST also show any gains realized by
the sale
The method Of figuring gains and
losses on such transactions IL pre-
scribed IN the Income Tax regulations.
copies OF which may be secured from
Internal Revenue Collectors
Forms for Returns.
The Internal Revenue Bureau has
issued an improved Form 10i0F FOR
the use Of farmers This form, to-
gether with Form 104OA or 1910, will
give the farmer explicit information
as 10 how 10 properly figure his net
income for 1919.
There are two methods Of figuring
farmers income tax return this year.
He may make his return on tlle 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-
crual basis. Which means computing
the receipts and expenses that pertain
10 the taxable year, excluding income
eesned and expenses incurred Ia pre-