Evening Republican, Volume 21, Number 6, Rensselaer, Jasper County, 16 January 1918 — The Income Tax Law And The Fanner [ARTICLE]

The Income Tax Law And The Fanner

“What deductions are allowed the I farmer for 'business expenses’ on making out his income tax return?” This is one of the many questions which the revenue officers who will arrive here on January 18, will answer in detail. Breifly, they include the amount expended for labor in preparation of land for crops and in the cultivation, harvesting and marketing of the crop. Deductions may be made for the cost of feed ahd fertilizer, the amount expended for labor in caring for live stock, cost of feed, repairs to farm and farm buildings, but, not the cost of repairs to the dwelling. The cost to farm fences and machinery is deductible, as well as the cost of small tools and ' material which is used in the course *of a year or two, such as binding twine, pitch forks, spades, etc. The cost of machinery, suttj as tractors and threshing. machines cannot be deducted, but the cost of their operation is a deductible item. The value of farm products is not considered taxable until reduced to cash or its equivalent. If crops and stocks were produced in 1916 and sold in 1917, the amount received therefor is to be included in the farmer’s tax return for the calendar year 1917. . Crops produced in 1917 and on hand December 31 need not be considered. t Persons in doubt as to any of the provisions of the income tax section of the war-revenue act are advised by the Bureau of Internal Revenue tq see the revenue officer who will visit this county to assist taxpayers in making out their returns, which must be filled on or before March 1, 1918.