Norwich bulletin., 1921-01-15

on any\ trade, business, profession, or vocation. Typical expenses of a mercan- tile establishment are amounts paid for advertising, hire of clerks and other employees, rent, light, heat, and water telephone, insurance, delivery expenses, the cost of operating delivery wagons and motor trucks, and incidental repairs to such vehicles. The expenses of a manu- featuring business include labor raw ma. terials, supplies, repairs. light and heat, power selling cost, administration, and similar charges.
 Professional Men. A. professional man may claim as de. auctions the cost of supplies used by him Tn ms practice, expenses paid in the op- eration and repair of an automobile used used in making professional calls, dues to professional societies and subscrip- tions to professional journals, office rent, the expense of fuel, light, water, and | telephone used in such office, and the hire of assistants
 | A travelling man, working on salary or
 commission, is allowed to deduct certain
 business expenses. Reasonable and ne-
 cessary travelling expenses include rail-
 road fares and meals and lodging. A
 travelling man working on salary with. out reimbursement for travelling expenses. w
 no expense allowance, may deduct his
 expenses for railroad fare, and also his | expenses for meals and lodging in an
 amount in excess of the ordinary cost Tor such living expense when at home | IT he receives salary and Is repaid his actual travelling expenses he must in. clude as gross income an amount equal
 to the ordinary expense for meals and
 lodging when at home, as such amount
 IS held to be additional compensation tc
 the taxpayer. Payment for the use of q
 sample room for the display of goods is q
 business exepnse
 The farmer may deduct all amount,
 paid in the production. harvesting, ant
 marketing of crops, including labor, cos
 of seed and fertilizer used, cost of mfnol
 repairs to farm buildings (other than tn,
 dwelling), fences, and machinery. an, of small tools which are used up in tn, course of the year.
 Erroneous Claims. l Taxpayers frequently make the mis take of claiming as deductions expendi ] lures for articles more or less perma nent in character or for permanent I'm . provement of their property. In the cas
 of the business man they include Laain t for the erection of new buildings or in stallation of machinery. A farmer claim : as a deduction the cost of a new thrash e ing machine or tractor, or the expens i. of putting new roof on his barn. Sue . deductions are expressly disallowed D . the revenue act, and are held to be in e vestments of capital
 = Allowances fer Losses. d Allowable deductions, in addition : business expenses, include losses su.
 tained by the taxpayer in any transa, ton entered into for profit outside of h e regular business
 t A reasonable allowance Is made for d. n preciation of business property, incIu, 1t ing obsolescence, and for the depletic h of oil and gas and other natural depo ,t it's.
 E, Contributions mado during the ye Id 1920 to corporations organized exclusiv 'e ly for charitable, scientific religious,
 educational purposes, or for the preve S. tion of cruelty to children or auirna. is or the special fund for vocational I 8: mobilization may be deducted to re amount not exceeding Is per cent of t tt: taxpayers income. computed without | of benefit of this deduction
 Tt Other items which may be deduct Is. are as follows:
 is Taxes paid or accrued during the ye
 1920. except income, war profits, or c r. cess profits taxes, and those assess of against local benefits of a kind tendt he to improve the value of the taxpaye od property.
 D. Losses of property not connected VI IS. trade or business arising from fires, ly other casualty, or from theft, if not CO by pensated for by insurance. an Debts ascertained to be worthless a ce charged off within the year 1920. fe. Interest paid or accrued on indebt,