davidaulloa/AmericanStories huggingface dataset:
Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1957-02-07

from the sale of capital or bust
ness assets, such as dairy cows,
breeding animals, machinery,
equipment, standing timber and
all other assets whether or not
used in the farm business.
In using Schedule D for report
ing these items, only one-half of
the net long-term gain is includ-
ed in taxable income and all of
the net loss may be fully deduc-
tible. These types of income
should not be reported on Seized
ule F.
Schedule d is a single page
form and is reproduced on page
81 of the Farmers Tax Guide.
Before filling out Schedule D,
read Chapter 10 in the Farmers
Tax Guide and pages 81 and 55.
In a general way, assets will
fall into two broad groups. One
group includes property owned by
you but not used in the farm
business to produce income. Some
examples are standing timber
held as an investment, dwelling
occupied by farmer, and personal
automobile not used In the bust
ness. Another example is stocks
and bonds held by the farmer as
an investment.
If you hold these assets for
less than 6 months, the gain or
loss from their sale is reported
at the top of Schedule d under
"short-term capital gains and
losses" If held more than 6
months, the gain or loss is re-
ported on line 5 of Schedule D
under ''long-term capital gains
and losses"
The other group of assets in
cludes items which are used in
your farm business or used to
produce income. Some examples
are machinery, equipment, build
ings, land, and livestock held for
dairy, breeding or work purpos-
es. The gain or loss from the sale
of these items is sometimes re-
ported on line 5 of Schedule D
and sometimes reported at the
bottom of Schedule D under
property other than capital as.
SETS" depending upon whether or
not the gains exceed the losses.
You also include in this group
gains and losses from involuntary
conversions (as by fire, theft, con-
demnation or threat thereof) of
depreciable property or real es-
tate used in your business and
held more than 6 months, or II
months in the case of livestock.
Generally, most farmers do not
Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1957-02-07

have many entries on Schedule
D in one year Dairymen have
entries from the sale of dairy cat
tie and livestock raisers may have
some entries pertaining to the
sale of breeding animals. If the
sale of standing timber is added
to the list most situations encoun-
tered in one year are covered,
Farmers are advised in the case
of several complicated problems
dealing with the sale or exchange
or involuntary conversion of cap
ital or business assets to seek
advice from competent tax advis.
ors.
To illustrate some of the pro-
cedure in filling out Schedule d,
assume a farmer sells, during the
year, dairy COW which he bought
and held for more than II months
at gain of 500; two dairy cows
he raises, are sold at a gain of
5000; one purchased dairy COW is
killed by lightning, loss $500; and
he sells standing timber (held for
more than 6 months) at gain
of $500.
First, compare the gains and
losses from the sale of the cows,
including the casualty loss. In this
case, the total gains add to $500
and the loss is 500. Since the
gains exceed the losses, the items
pertaining to the cows would be
recorded on line 5 of Schedule
D under "long-term capital gains
and losses" If the losses are
greater than the gains, the trans
actions pertaining to the cows is
recorded at the bottom of Seized.
ule D under property other. than
capital assets"
hegardleSS OF how the gains
or losses of the cows are handled,
the transaction concerning the
sale of the timber is always re-
corded on line 5, of Schedule d.
In this example, all of the items
are recorded on line 5 of Schedule
D, and the net long.term 'gain is
$500 $500 total gain minus 500
loss). Only $3.50 of the long term
gain is transferred to Form 1910
and included in taxable income
(see line 10, Schedule D..
For the method of determining
the amount of gain or loss, read
Chapter II in the Farmers Tax
Guide. These guides are avail
able, free of charge from your
county agent.
Next week: Preparing now for
your 1857 tax return.
Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1957-02-07

vilah Road. Rockville a son, William r.
wing.
Mr. and Mrs. Melvin Lee chrisman, 5e1a
Wilmett Road, Bethesda, a daughter, Lee
Ann.
Mr. and Mrs. Edward Cannon wratten.
4 Lawrence Court, Rockville, a daughter,
Annette Louise.
Mr.. and Mrs. Gordon jefferson Morgan,
Jr., 101 Grant Avenue Takoma Park, q
son, Gordon jefferson III.
Mr.. and Mrs. Arnold c. Duquette 317
Bradley Avenue, Rockville, a daughter,
Judith Anne
James Wallace Quick, Rockville Pike,
Rockville, son, Joseph Warner.
Mr.. and Mrs. Albert Hagy, Jr., 50
Elm Avenue, Takoma Park, a daughter.
Peggy Sue.
Mr.. and Mrs. jeremiah c. Beal, Route
2, Rockville, son, Bruce jeremiah.
Mr.. and Mrs. Clarence Wilbur Fair
fax, Route 3, Potomac, a son, Clarence
Ernest.
Mr.. and Mrs Frederick E. Bergstras-
ser, 1927 Flanders Avenue. Kensington,
Mr. and Mrs. Keith Mitchell Mccoy,
1920 East-West Highway, Bethesda. a
daughter, Karen Michele.
Mr.. and Mrs. John Deving Carrico,
6509 Fairfax Road, Bethesda, a daugh-
ter. Katherine Anne.
Mr.. and Mrs. Donald Lunn A. Sawyer,
3716 Cardiff Court, Chevy Chase, a son,
Donald Lunn Appleby, Jr.
Mr.. and Mrs. Rodney r. McCathrin,
is Maple Avenue. Washington Grove, a
daughter. Cheryl Lesley.
Mr.. and Mrs Robert Hans Raab, 2621
Nicholson Street, Hyattsvlle. a daughter.
Dehbie Kay.
Mr.. and Mrs. Harold Dean Barnes,
7O11 Clarendon Road, Bethesda, a daugh-
Ter Darlene Melinda
Mr.. and Mrs. Robert Lee Nicholson,
Route 1. Dervood, son, Nicky Lee Jo-
seph.
Mr.. and Mrs Richard Peter Moran.
Route /, River Road, Rockville, a son,
Richard Peter, Jr.
Mr.. and Mrs. Albert Deimar KraIl,
1907 Atlantic Avenue, Rockville, a
daughter, Nancy Patricia.
Mr.. and Mrs. Harry Windsor Kirk, 8506
Greenwood Avenue, Takoma Park, a
daughter, Virginia Ruth.
Mr.. and Mrs. William Slack, mi
Scott Avenue, Rockville, a daughter.
Lynn Elizabeth.
Mr.. and Mrs. Charles Wilbert Bruce,
211 Frederick Avenue. Rockville, a son,
Charles Wilbert. Jr.
Mr.. and Mrs. William Henry Klebold.
6G13 Henning Street, Bethesda, a son.
Kurt William.
Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1957-02-07
Watch Depreciation Claims
The Farmer and
His Income Tax

| depreciation will be the cost or
other basis to the donor.
In the case of trade, the basis
of the newly acquired property is
usually the uncovered cost lori
ginal cost minus depreciation of
the item traded plus the cash diff
ference paid. For example, a
farmer trades his tractor which
has an uncovered cost of 5000
for another tractor and pays
81, 800 cash difference. The cost
basis of the new tractor for fig
uring depreciation will be 81, 700
Isl, 500 plus 5000.
After determining the basis
for depreciation, the next step is
to determine the useful life of
each item in your depreciation
record. There are no set rules for
determining useful life. 1t de-
ponds upon the circumstances on
your farm and type of farm oper-
alton. However, it must be rea-
sonable. Some suggestions are
listed on the inside cover of the
Maryland Farm Income Tax Rec
ord Book.
The final step in figuring de-
probation is to divide the cost
basis of the item (minuS rea-
sonable salvage value) by length
of life and the result will be the
annual amount of allowable de-
probation. This method, known
as straight line, is the one most
frequently used by farmers. 9th
er methods are explained in the
Farmers Tax Guide.
Following is a simple example
of figuring depreciation by the
straight line method. A farmer
buys a tractor for $2,100 and de-
cides that its useful life is 10
years. He also decides that the
tractor has a salvage value of
500 at the end of its useful life.
He subtracts 500 from the cost,
leaving $1,000 as the basis for
depreciation. He divides 10 into
$1,000 and the result is an annual
depreciation charge of 5000 for a
period of 10 years. He deducts
this 5000 on page 8 of Schedule
F under Depreciation.
Schedule I'D" Role
Schedule D should be used by
farmers for reporting income
Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1957-02-07

event, you are required to submit
information concerning any sale of
your home at profit. whether or
not the gain is taxable.
When you buy a home you gen.
orally agree with the previous
owner on a schedule of adjustments
for taxes, insurance, water rates
and similar items. However, you
and the previous owner can deduct
this real estate tax in proportion to
the number Of days of the property
tax year that each of you held the
property--whether or not you have
agreed to apportion the tax. You
are considered to have paid your
share OF the tax when you bought
the home. This applies to any real
estate you may have purchased
during 1856.
Deductible Auto Expenses
From the time you buy an auto.
mobile you begin to have other ex.
penses which are deductibIe on
your federal income tax return.
Any state or local sales tax you
paid on the car purchase is deduc-
tible. So is the cost of your license
plates. state inspection fees and
interest on an auto loan.
A common deduction in many
taxpayers returns Is for state gas.
oline tax. 1t is best to keep a rec
ord OF your gasoline purchases dur
ing the year, but IL you don't have
such a record you can still make
a reasonable estimate.
If you had a collision, you NAV
be able to deduct for the damage
to your own car not covered by in
surance. Although driving may
have been faulty. you are entitled
to the deduction If the accident was
not due to your negligence.
Such loss,. or loss from fire..
theft or other accidents Is deter
mined in the manner described
above in connection with damage
to a house.
The instruction book which comes
with your tax forms gives further
information. Help is also available
by telephone or at Offices Of the In
ternal Revenue Service. The Rev
enue Service urges you to consult
q properly qualified advisor IL you
decide to seek outside help.
Next Article: Claim All Exemp.
lions for Yourself and Dependents.
Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1957-02-07

gomery) has put in two bills
which, taken together, would
establish a separate Montgomery
County Planning Commission di-
rectly under the Council and a
separate planning staff directly
under the County Manager. The
bicounty agency would remain
only to handle parks and to per-
form planning functions in Prince
Georges County.
Her bills call for a centraliza-
ton of planning and coming
powers that ought to make a
defenseIess home-Owner quake
in his boots.
She defends her bills on a num-
Der Of grounds which l find quite
unrelated to planning. Chief
among them is Home Rule.
Well, what about Home Rule?
Win it ever be 1907 complete in
Montgomery County? Indeed,
should it ever be 1907 complete?
How does our semi-autonomous
elected school board fit in with
Home Rule? And the bi-county
Sanitary Commission? And the
Health Department and Welfare
Board, which get most of their
rules from Washington or Balti-
more? And the independent fire
districts? And, most of all, the
militant municipalities, which
now have an ironclad, constitu-
tional Home Rule of their own,
which is entirely out of step with
the basic concept of our County
Charter?
Speaking of municipalities, /
can report that Dave Cah0on,
the City Attorney of Rockville,
has been doing some good re-
search ON the possible conflict
between extension of the Re
giOnal (pIanning) District on
one hand and the independent
planning and coming powers of
up-cOunty municipalities such
as Rockville, Gaithersburg,
Washington Grove and LaytOns-
vile on the other.
I am inclined to agree with him
that those towns must necessar-
lily be excluded from the planning
and coming domains of the Coun-
ty Council and the County Plan
ming Board.
Sanitary Bills
The bills from the Sanitary
Commission are beginning to
come along now. Many of them
are non-controversial; others will
be quite difficult.
One bill already drafted by Mr..
Duckett would transfer the Com
missions entire refuse disposal
system to the two counties. 1t
is my personal intention not to
vote for this proposal unless the
County Council advises me in
writing that it is ready, willing
and able to go into the garbage
business.
I trust the doctrine of Home
Rule won't be flung up at me!
Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1957-02-07
Births
SUBURBAN. HOSPITAL

SUBURBAN HOSPITAL
Mr. and Mrs. William Kenneth Mills, Da-
mascus, a son, Johnnie Wayne,
Mr.. ard Mrs. William McNew Howard
Potomac a daughter, Cynthia Gail
Mr. and Mrs. Lester Leroy Whitacre,
1851 Plaza Place, Rockville, son, Harry
jerome
Mr.. and Mrs. Harold McGraw, 10421
Tullymore Drive, Adelphi, a daughter,
Mr.. and Mrs. David Glenn Boyer, 6s11
Fairfax Road, Bethesda. son, Michael
Wayne.
Mr.. and Mrs Francis Wellington Smith.
Rockville. a daughter, Lynne Regina.
Mr.. and Mrs. Lloyd Hall. Jr., Stone
Avenue, Rockville, a son, Craig Bernard.
Mr.. and Mrs. Howard Lee Thompson,
Mason Drive, Rockville, daughter, Deb
orah Ann.
Mr.. and Mrs. Ralph William Murray.
1921 Macarthur Boulevard. Glen Echo. a
son, Michael William.
Mr.. and Mrs. Edward Patrick Leonard,
6O04 Walhonding Road, Bethesda, daugh-
Mr.. and Mrs. Thomas Delmar Smith.
1918 Kincaid Terrace, Kensington, son.
Mark Timothy.
Mr.. and Mrs. Dewey Love Cregger, 7036
Strathmore Street, Chevy Chase, a son.
Gerald Ellis.
Mr. and Mrs. Michael John Gleason,
13401 Heating Street. Rockville, a daugh-
ter, Bridget Mary.
Mr.. and Mrs. Bennett Graham Jonscher,
5003 Bradley Boulevard, Chevy Chase, a
daughter, Penny Lou.
Mr.. and Mrs Frederick Lystone Thame.
2225 Washington Avenue Silver Spring. a
son, Frederick Lyston. Jr.
Mr.. and Mrs. Frank Richard Edginton,
1903 Bradmoor Drive, Bethesda, daugh-
ter. Lee Ellen.
Mr.. and Mrs. Harry Phillip Marshall,
Caithersburg a daughter, Shelia La Verne.
Mr.. and Mrs. Lawrence Edward Ingberg,
1918 Hampden Lane. Bethesda, a daugh-
ter. Phyllis Louise.
Mr.. and Mrs. Ferris Thomson, Jr.. 6725
Fairfax Road, Chevy Chase. a son, Peter
Haviland.
Mr.. and Mrs John Richard Merson. 1903
Autre Court. Rockville, a son, John Bruce.
Mr.. and Mrs. Thomas Scott Adams, 4704
Morgan Drive, Bethesda, daughter, Deb
orah Anne.
Mr.. and Mrs. William Walter Cornell.
Hoyles MIL Road. Boyds. a daughter, Rob
in Louise.
Mr.. and Mrs. James Samuel Keeney,
Poolesville, a daughter. Jill Kifer.
Mr.. and Mrs. William Elmer Davis, Ira
Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1957-02-07

pocket. FOR persons with higher
incomes the possible savings are
even greater.
The interest on a mortgage is
deductible ON your federal tax re
turn. In most cases, payments ia
bank include both interest and
principal; as the mortgage is re
duced the interest is less and a
larger portion is applied to the prin.
cipal. Only the interest is deduc.
tible in the case of your residence.
Real Estate Taxes
Sometimes the monthly payment
also includes an additional amount
which the bank holds for the pay
ment of taxes, insurance, etc. In
this case the bank is acting as your
agent in paying tax on your prop
erty. Real estate taxes paid by the
bank for you are deductible as if
you had paid them directly.
If your home had been damaged
by fire, storm or flood, your loss not
covered by insurance is deductible.
The amount of the loss is calculated
by comparing the fair market value
OF the property just before and just
after the casualty. This loss, or the
cost of the property, whichever is
lower is reduced by any insurance
recovery to determine the loss for
tax purposes.
When large amounts are in
volved 1t may be wise to have an
expert appraisal made Immediately
after the casualty.
When You Sell Home
You are not allowed to deduct
any loss you may suffer on the sale
Of your personal residence. How
ever, You may be required to pay
tax on gain resulting from selling
the house at a profit.
II, however, you buy and occupy
another home within one year, be-
fore or after the gainful sale of
your former home, you are not
taxed on the gain at the time of the
sale. Alternatively, you can start
construction of a home within a
year, and occupy 1t within 49,
months after the sale of your old
home. If the new home costs as
much as you received for your old
one with allowances for certain
"fxing-up" expenses), you are not
taxed on the gain. II your new home
costs less, the gain Is taxable to
the extent OF the differences. In any
Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1957-02-07
Delegate Blair Lee Hrs
Inside Annapolis

fMr Lee IS Chairman of the Montgomery Countu Dedication
to The Maryland State House of DelegatesJ
BY the time this weeks column light of day. all of
the various bills to reoganze the Park Planning
should be in the hopper later this
House Bill 252 introduced by Perry Wilkinson myself
as the ocouny planning and keeps
from being scattered to the
adoption and amendment of the plan whole area
portions OF IT. remains with the Commission and its staff
Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1957-02-07

On the other hand, III. b. 252
also closes the gap between the
Planning Commission and the
two local governing bodies =
the County Council here and
the County Commissioners in
Prince Georges.
The Commission would be com.
posed of ten members, equally
divided between the two counties.
The five Montgomery County
members would also serve as the
entire membership of the Mont
gomery County Planning Board,
which would be directly in charge
of all planning and coming func-
tons of a local nature.
Such functions are spelled out
in the bill. They include the
handling of all subdivision plats
and all of the advisory opinions
that are rendered to the Council
on coming petitions. These are
the day-to-day functions that are
of greatest concern to the aver
age home-owner.
All Of the board members
would be appointed by the Coun-
Gil and they would be paid by the
Council = as a regular item in
the annual County budget. In adj
dition, the Council would retain
control over the levy of the spec
ial tax to pay for planning admin
istration. The Planning Board
would be required by law to meet
with the Council from time to
time and to perform such plan
ming chores as the Council might
assign to it.
If that doesn't provide a good
measure Oe Responsiveness"
then i will gladly eat my new
Willard Morris flat-top fedora
at the next meeting of the
League of Women Voters.
incidentally, the bill also requir-
es that not more than three mem
bers of the Planning Board be
from the same political party and
that at least one be from the
farming community. Mote to
Ward Fetrow ct al: Sorry, that's
the best 1 could do.)
The original draft would have
permitted four from the same
party, but this is Be-Nice.to-the-
Republicans Week at Annapo-
lis.
Hervey Machen 3D., Prince
Georges) was scheduled to intro
duce bill embodying the Com
missions own idea of how it
ought to be recognized, as draft
ed by T. Howard Duckett.
Mr.. Duckett favors a Commits
sion of eleven members, with
three of them appointed by the
Governor. Inevitably one of the
counties would have more mem
bers than the other, just as it
used to be with the Sanitary
Commission in the old days be-
fore we Strengthened that out.
/ do not think that the Mont
gomery Delegation will be inter
ested in the odd-numbered mem
bership or in the gubernatorial
appointments.
Peggy Schweinhaut Cd, Mont
Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1957-02-07


lowable or are not willing to take
time to set up a depreciation
schedule (record of depreciable
items and amount of depreciation
allowable).
Failure to claim allowable de.
probation leads to two serious
errors in income tax reporting.
They are:
l, You may pay more federal
income tax than necessary, and
2. Your self employment in
come will be incorrect.
The Social Security law requires
that all allowable depreciation be
deducted when calculating self
employment income for Social Sc.
curity coverage.
On many farms the annual de-
duction of allowable depreciation,
when figured properly, may be
larger than the fertilizer bill. The
time spent preparing a deprecia-
ton record and charging off the
proper amount of your income
tax returns may be highly profit
able. Depreciation records are not
difficult to set. A good explana-
ton of how to do this job Is
found in Chapter 8 of the 1856
Farmers Tax Guide. Also the
new Maryland Farm Income Tax
Record Book has two pages on
which you can prepare com
plete depreciation record for your
farm. This book is available from
county agents for 25 cents.
The only legal way a farmer
can recover the cost of machin-
cry, equipment, farm buildings
and other property used to pro-
duce income and which has a use
full life Of more than one year is
through depreciation. These items
may not be charged off entirely
within one year. Almost all prop
erty or assets used to produce
income are depreciable provided
they have a cost basis from
which to figure depreciation.
Some depreciable items used in
farming are:
1. Bull dings (other than
dwelling occupied by owner),
2. Machinery and equipment.
3. Livestock used for work,
dairy or breeding purposes, pro-
viding such animals were pur-
chased and not included in in
ventory in case of the accrual
methods.
4. Fences and tile drains.
5. Orchards, groves and vine
yards upon reaching producing
age,
6. Trucks used for business
and automobiles business por-
ton only, and
Z. Tanks, watts, water wells
and loading pens. There are
other items which may be de-
preciable and this list Is not
complete.
Land is never depreciable. Tim.
Der held as an investment and
not as part of your business is
not depreciable from year to year
but a depletion charge may be de-
Quoted when the timber is sold.
Depreciation cannot be claimed
on any animals raised by you. If
you have already charged off the
cost of some items, do not at
tempt to start depreciation on
them now. This is a serious vio-
lation of the tax law.
In figuring depreciation, the
first step is to determine the cost
basis Of your depreciable items.
In most cases, the cost of the
property will be its basis. There
are exceptions to this general
rule, and these are discussed in
Chapter 9 of the Farmers Tax
Guide. The cost basis of property
acquired by inheritance or
through a bequest or a devise un-
der will generally will be the
fair market value of the property
at the time of death of the owner.
If property is acquired by gift
after 1920, the basis for figuring
Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1957-02-07

Your home and of deductions that will
lower federal
auctions because Of the savings involved
2O9each So may mean dollar in v
Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1957-02-07

fThis is Of series Of articles fedora, income tar
Ming These articles based Information prouded by
the American Institute Of Accountants the Marvlqnd
Society Of Certified Public Accountants cooperation qeih
the Internal ReUenue Servce)
Evening star., 1957-04-28

MeryMoids with their oreh-supportine feotue uItro
comfortable yet smorty styled Pumps, strops ties;
white potent with mesh, plain white, black brown.
Sizes 4h-lo, AAA TO b.
Kdnns-Fourh Floor. Washington: Street Floor Arlington
Evening star., 1957-04-28
Club to Present
Annual Concert

The music section Of the
Women's Club of Chevy Chase
viii present its annual spring
concert In the clubhouse on
Friday at $50 pm.
Evening in Vienna" will be
the theme, and will be directed
by Adolf Torovskysand accom-
panied by Myrtle Alcorn. The
music Of Franz Schubert,
Strauss and Romberg will be
featured. The chorus will be
assisted by the following art
lists: virginia Houghton. So
prano; George Myers. tenor:
Rosamond Davis. clarinet, and
the cap Telephone Glee Club.
Evening star., 1957-04-28
Many Best-Seller Styles!
200 and 300 JeWelry for
Now and Summer, Too!
99c
plus tar

Now-eet z and pieces Of eweIry for
the price Of one! CoIorfuI pIostic. stone
sets, toiIored gold and siIver-toned
metals; types for every occasion. Some
con be matched in sets; others l-of-o-
kind. Necklaces. pins. bracelets, eor-
rings.
Kanns-Street Floor Both Stores