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Show Income Tax Facts You Should Know Frequent inquiries are received by collectors of internal revenue from storekeepers and other business men as to whether the taxpayer in business busi-ness for himself may deduct from his gross earnings an amount of salary paid to himself. Wages or salary drawn by a taxpayer from his own business are more in the nature of a charge out of profits than a charge against profits. If deductible deducti-ble they would merely be added to his income and the effect would be to take money out of one pocket and put it in another. Therefore, claims for such deductions are not allowable. Salaries paid to minor children, employed em-ployed in the conduct of a taxpayer's busjness are not allowable deductions. deduc-tions. If, however, a son or daughter daugh-ter has attained majority, or is al lowed free use of their earnings without'1 restriction, a reasonable! amount paid as compensation tor their services may M claimed. t A fanner who employs a man to assist in the operation of bis farm may deduct from gross income the amount paid for such service;-.. Likewise, Like-wise, if be employs a woman whose entire time is occupied In taking j .are of the milk, cream, butter, and churns, or if her services are devoted entirely to the preparation and serving, serv-ing, of meals furnished farm laborers : and in caring for their rooms, the compnsation paid her is an allowable deduction. If. however, she i:; employed em-ployed solely in caring for the farmer's farm-er's own household no deduction can be made. j In arriving al net income upon 'which the tax is assessed, deductions I may be made ior ordinary and pecep- sary business expenses. The revenue j act specifically prohibits th dedue I tion of personal, family, or living expensrs. Such expenses Include (rent for a home, waces of servants, fnsi of f.nd and clothing for the family education of rhildrrn. "and .all items connecied wi h the maintenance, main-tenance, wedl-beliig. and pleasure of the taxpayer and his family." |