The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1921-01-29

business, profession, or vocation. Typ
lcal expenses of a mercantile estab-
ishment are amounts paid for adver-
Using, hire of clerks and other en-
ployces. rent, light. heat. and water,
telephone. insurance, delivery wagons
and motor trucks, and incidental re-
pairs TO such vehicles. The expenses
Of manufacturing business include
labor. raw materials, supplies, re-
pairs, light and heat, power, selling
cost, administration, and similar
charges
Professional Men.
A professional man may claim as
deductions the cost OF supplies used by
him in his practice, expenses paid in
the operation and repair of an auto
mobile used in making professional
calls, dues TO professional societies
and subscriptions TO professional Jour-
rails, office rent, the expense of fuel,
light, water, and telephone used i'm
such Offices, and the hire OF assist
ants.
A travelling man, working on salary
or commission, is allowed 10 deduct
certain business expenses. Reasonable
and necessary travelling expenses in
cluding railroad fares and meals and
lodging. \ travelling man working on
salary without endorsement for
travelling expenses, or employed on a
commission basis With no expense al
iowance, may deduct his expenses for
railroad fare, and also his expenses
for meals and lodging in an amount in
excess Of the ordinary cost for such
! living pNnpnSp Whnn hnpna
| If he receives a salary and is repaid
his actual travelling expenses, he must.
include as gross income an amount
equal 10 the ordinary expense for
meals and lodging when at home, az
such amount is held to be additional
compensation 20 the taxpayer. Pay
ment for the use Of a sample room
for the display Of goods is a busi-
ness expense
! The farmer may deduct all amounts
paid in the production, harvesting,
and marketing of crops, including Ia
/ Dor. cost Of seed and fertilizer. used.
cost OF minor repairs to farm build
ings (other than the dwellingl,
I fences and machinery, and Of small
! tools which are used in the course
OF the year.
Erroneous Claims.
Taxpayers frequently make the
mistake of claiming as deductions ex-
penditures for articles more or less
permanent Improvement of their
property. In the case OF the husi-
ness man they include claims for the
erection OF new buildings or instaJla-
ton Of machinery. A farmer claims
as deduction the cost of new
thrashing machine or tractor, or the
expense Of putting new roof on his
bar Such deductions are express
) ly disallowed by the revenue act, and
are held TO be Investments of cap
| ital.
Allowances for Losses.
Allowable deductions, in addition
to business expenses, include losses
sustained by the taxpayer in any
transaction entered into for profit out
side Of his regular business
y reasonable allowance is made for
depreciation of business property, in
Guiding obsolescence, and for the de-
lpletion Of oil and gas and other nat
ural deposits.
year 1920 to corporations organized
exclusively for charitable, scientific,
religious, or educational purposes, or
for the prevention of cruelty TO chill
dren or animals, or the special fund
for vocational rehabilitation, may be
deducted TO an amount not exceeding
Is per cent Of the taxpayers income,
computed without the benefit Of this
deduction.
Other items which may be deduct
ed are as follows:
Taxes paid or accrued during the
year 1920. except income. war pro-
fits, or excess profits taxes, and those
assessed against local benefits of q
Kind tending to improve the value OF
the taxpayers property.
Losses of property not connected
with trade or business arising from
fires, or other casualty, or from theft.
If not compensated for by insura noe.
Debts ascertained to be worthless
and charged off within the year 1899.
Interest paid or accured on in
dcbtedneSs. except interest incurred 10
purchase securities (other than secu-
rites of the United States issued SUBJ
sequent to September. "a. 1870. the
| interest on which is exempt from tax
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