The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-02-11

lowed on account of Shrinkage in
weight or value, for, the reason that
when such products are sold, the
shrinkage will be reflected in the SELL
ing price. The total loss BY frost
storm, flood or fire of a prospective
crop is not deductible. The reason is
that unless the crop reaches maturity
and is harvested and sold, it's value
never reached gross income, and
, therefore an arbitrary deduction of
such loss cannot be allowed. The loss
of growing crop simply means that
the farmer has so much less gross in
come to report and therefore would
pay a reduced tax, if any tax at all.
A loss in the value of animals raised
on the farm is not deductible, except
as such loss is reflected in an inven-
tory, if used. However, if livestock
was purchased for any purpose and
afterwards died from disease, exposure
( or injury, or was killed by order of
! the authorities of the state or the
/ United States, the actual purchase
! price less any depreciation which may
have been previously sustained with
/ respect to such stock, and any insur-
ance or indemnity recovered may be
deducted as a loss.
| Deductions of family or living ex-
! penses such as rent for a dwelling, re-
| pairs to dwelling, cost of food and
/ clothing for the family, education of
| children, servants wages and similar
I items are expressly prohibited by the
revenue act of 1921. General deduc-
! tons, such as for taxes, interest on
| personal Indebtedness. losses sustained
/ in transactions entered into for profit
aside from the farmers regular bust
/ ness, losses sustained by fire, storm,
or other casualties, bad debts and con-
/ tributions, are explained in instruc-
I lions on the form for filing returns.
1 The farmer must include in his return
of gross income not only the profits
/ of his farm, but all other income such
! as interest on bank deposits and prof
I its received from the sale or rent of
farm lands. The farmer who lets out
+ clude in his income tax return for the
year the cash when received. A farm
/ er who let's out a farm on a cash rental
! basis and is paid in crops must report
the exact cash rental agreed upon
whether or not the crops are dis
posed of.
Special Form for Farmers.
The bureau of internal revenue has
! had prepared for farmers a special
form-IO40 For recording sales of
/ livestock, produce and miscellaneous
receipts. All farm income from any
source whatever must be reported in
this schedule, which must be attached
to the form for making individual
! returns.
Forms 1O4O A for income of $4,000
! or less and 1910 for individual in
comes in excess of $4,000, may be OBJ
tanned in the offices of collectors OF
internal revenue and branch offices.
These. former will be mailed to per
| sonSsvho filed similar returns of in
come for the year 1920. Failure to
receive the form, however, does not
relieve the person from filing his re-
turn and paying the tax within the
time prescribed by law. The return
must be filed on or before March is,
1922. The tax this year, as last, may
be paid in full at the time of filing
the return, or in four equal install
ments, due on or before March Is
June Is, September Is and December
lis. Heavy penalties are provided by
the revenue act for failure or wilful
refusal to file return and pay the
tax on time.
Revenue officers are visiting every
county in the United States to assist
/ taxpayers in the preparation of their
income tax returns for the year 1921
The date of their arrival and the loca-
ton of thier offices will be announced
thru the press, or may be obtained on
inquiry at offices of collectors of in
ternal revenue and branch offices
This advisory service is without cost
to the taxpayer. Before seeking such
assistance. however, taxpayers should
read catefully the instructions on the
forms.