Show farmer deductions wages seed repairs repair tools fertilizers fertilizer depreciation in general a former farmer who operates abarm a farm for Is entitled to deduct from gross income as nece enry expenses all amounts actually expended in carrying on the bust nesi of forming tile the wages paid for hired labor are deductible the value of products furnished by the form farm and used in the board of hired labor is not a deductible expense but food purchased and furnished to hired hands is deductible farmers may deduct the cost of grain and hay amounts paid for grinding and processing teed feed amount paid for hire of machinery cost of farm supplies gasoline for farming repairs and upkeep of cars amounts expended for repairs and maintenance of farm buildings ex capt the dwelling fences drains and other farm improvements and for repairs and maintenance of farm machinery and equipment are deductible amounts expended for replacement of or additions top to farm machinery farm buildings or other farm equipment of n permanent nature are not deductible as such expenditures tures are regarded as investment of capital which is returned to the owner through depreciation allowances during the useful life of the property the cost of small tools of short life may be deducted the cost of commercial fertilizers and lime the benefit of which is of short dura tion is deductible as an expense the amount expended in the restoration ot of soil fertility preparatory to actual production of crops and the cost of timing liming soil to increase productiveness over a period of years are capital expenditures and thus are not deductible fees paid for advertising farm products expenditures for stamps stationery account books and other office supplies purchased for farm use expenditures tor for travel in connection with the farm business and other similar miscellaneous ex expenditures are arc deductible an allowance for depreciation of buildings improvements machinery or other farm equipment of a permanent nature Is deductible the amount claimed on account of depreciation should not exceed the original cost of the property repairs on depreciation on the dwelling occupied by the farmer or on his personal or household equipment are not it is not permissible to claim as a separate item depreciation on livestock or any other property included in the farmers inventory as such depreciation Is taken care of in the reduced amount of the inventory at the close of the year however depreciation may be claimed on livestock acquired for work breeding or dairy purposes which are not included in the inventory of livestock purchased or raised for sale |