Show T TM TAX 1 r TIPS Its It's that season of the year when farm managers should t. t LJ getting out the records sharpening sharpen sharpen- ing pencils and getting ready to give Uncle Sam his ibis piece of last years year's profits With this in mind Western Crops and Farm Management Management Management Man Man- departs slightly from the regular Tax Tips to refresh your memory on some of the most often overlooked devices for fot fixing With enough time left before final filing date you may I Ice a co close look at how these matter matters may be used by you in compiling your 1959 returns 1 Dont Don't pay tax on loans twice Some farmers count this as income during the year when the loans Joan s are are borrowed and next y year ar when the crop is sold Its It's only Income once need not be br taxed twice e. e 2 2 If you are using the cash method of reporting dont don't forget forget forget for- for get to deduct cost of livestock lost strayed stolen or which died durin during the year I I I 3 3 Deduct as much expense of auto utilities telephone etc ete as was actually used in farm bus bus- i I iness In most cases half of the tho t total cost of t these ese is not i yet many arbitrarily use 50 percent percent percent per per- cent as an estimate g 4 Take rake advantage of all depreciation depreciation de de- de on allowable depree I j lable fable Improvements machinery I f and purchases woi Ing breeding and d dairy livestock I 5 5 Keep records to protect you so you can deduct for such often overlooked items as farm larm magazines magazines mag- mag organization memberships membership bank bonk service fees overnight i i business trips portion n of dwelling dwell dwell- dwelling ing used for farm business losses on household goods used for farm jt elp lp cash rash outlay to board hIred workers I I 6 8 Itemize o on bank deposit slips s s sI all gifts borrowings sale of f I bonds etc so that they will wll no not i ibe be bo con considered farm business In in- i i come rom 7 Keep records records' of all medical dental and hospital bills b Including including I j ing payments for accident and health insurance i i 8 Keep exact records of dates of purchase cost and dates of I sale lIe on all items sold I 9 9 Dont Don't Include as Income any for tor diseased animals if the payment payment payment pay pay- ment has been or will be used to purchase like or similar animals within one year I 10 Dont Don't forget to deduct social so social social so- so cial security tax paid on farm laborers 11 Records cannot be to good Keep all paid bills Invoices cancelled checks etc elc for at atI I least live five years Including checks Used l to pay lay income and social security taxes Pay bills by check cheat whenever possible ns as con conceited celled checks are excellent records Write down all other payments as soon sn as ns possible In an account book Get the bank statement every ery month and check it against I the farm account book |