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Show -reacnes the products . ductiWe as an ex'M, I Amounts expended i , ' mg work, breeding, o "P ' mals are regarded as lty m it of capital and may Z T 1 unless such animals Jci in Inventory. re mcl l Lehman narnTGeT 'j director of field relief "l Tax i EXPENSES OF FARMERS A farmer who operates a farm 1 for profit is entitled to deduct from gross income as necessary expenses expens-es all amounts expended (other than those constituting capital ex- J penditures) in the carrying on of the business of farming. The cost of feeding and raising livestock may be treated as an expense de- duction insofar as such costs re-; quest actual outlay, but not in-, eluding the value of farm produce grown upon the farm or the labor of the taxpayer. Also deductible is the cost of seed, minor repairs to farm buildings (other than the dwelling of the farmer), and small tools used up in the course of a short period. The cost of fuel and oil used for mart of the board wmcn is pur-i chased for hired laborers are deductible. de-ductible. The value of products furnished by the farm and used in the board of hired laborers is not a deductible expense. Rations purchased pur-chased and furnished to laborers or sharecroppers are deductible as a part of the labor expense. Amounts paid to persons engaged in household work to the extent that their services are used in boarding and otherwise caring for farm laborers are deductible, but amounts paid for services of such employes engaged in caring for the farmer's own household are not a deductible expense. Amounts expended in the development devel-opment of farms, orchards, and ranches prior to the time when the productive state is reached may be regarded as investments of capital. capi-tal. The cost of planting trees, as well as the amounts expended by a farmer in the restoration of soil fertility preparatory to actual production pro-duction of crops and the cost of liming soil to increase productiveness productive-ness over a period of years are capital expenditures; but the cost of commercial fertilizers, the benefit bene-fit of which is of short duration and which have to be used every year or so, even after a farm farm work, as well as repairs and maintenance of farm machinery, is deductible as a business expense; but the cost of farm machinery, equipment, and farm buildings represents a capital investment and is not an allowable deduction. The cost, however, may be recovered recov-ered by depreciation allowances. In the case of a farmer, the farm dwelling is not depreciable, except such part of it as may be used directly di-rectly in farming operations. The cost of gasoline, repairs and upkeep up-keep of an automobile if used wholly in connection with the taxpayers' tax-payers' farm operations, as well as depreciation thereon, may be deducted, de-ducted, but if an automobile is used partly for business and partly part-ly for pleasure or the convenience of the taxpayer or his family, the cost of operation may be apportioned appor-tioned according to the extent of the use for purposes of business and for pleasure or convenience, and the portion attributable to business will be deductible as a necessary business expense. The cost of hired laborers and hired machines on a farm and the |