Show y Your State Income Tax I TilE THE FARMERS FARMER'S RETURN Individual In the eyes of the Utah income tax law net Income must be computed before deduction Is 18 made for personal living or family expenses expenses' All AlII residents are In the same class In this I respect whether they be wage earners salaried employees farmers farmers in In fact matter what their occupation or no DO horn what sources their Income Is 18 de de- de- de rived for some farmers the preparation of hIS MS 1843 1942 Income tax returns for filing with the state tax commission may be somewhat complicated for two re reasons First gust the farm provides the family di directly dl dl- with many living nece necessities such as vegetables vegetables fruits butte eggs dairy products and to some extent meat while occasionally occasionally oc occasionally oc- oc other Items of family expense are obtained through barter second the farmer too often for his hla own good aBhors bookkeeping and maintains inadequate In Inadequate In in- adequate or inconvenient records To assist the farmer fanner In preparing a proper return the state supplies a form known officially as Schedule of Farm Parm Income and Expenses Some Bome people refer to it as B 8 T T. O. O F. F. 40 This form is 18 for forthe forthe forthe of all persons persona having Income the use from farm or livestock operations It and the Instructions Instructions' that go with it will wUl steer the average farmer safely thru all the Intricacies of distinguishing be between between between be- be tween business and living expenses and between capital expenditure and maintenance and operation expense Two reg regulations make the farm tax tax- I Ibe payers payer's task much easier than It would be otherwise They read The value of farm produce which Is te consumed by the fanner farmer and his familY need not be reported as Income but expenses incurred in raising produce thus consumed must not be claimed as ded ded- value of products products' and The furnished by the farm and used in inn the board of hired labor is not a deductible i expense I When it comes to actual sale of farm produce whether for cash or for payment in other goods goods' of value the income Isto is isto isto to be reported since It Involves a business business busi busl ness transaction rather than a living expense The market value of groceries merchandise mer mer- chandise and the like Uke received in ex exchange exchange ex- ex change for butter eggs and other farm I products must be reported as Income The Instructs the farmer how to take depreciation on his farm equip equip- equipment I ment went such as machinery machinery- tools fences and buildings Incidentally the home of J the family is 18 part of the living expense and the farmer fanner may not take depreciation I tion tion on it though he may on his barn and sheds When a piece of equipment is used partly for the farm business and partly partly partly part part- is often the ly for family purposes purposes purposes-es as case with the po passenger automobile maintained on the farm only farm only such part of depreciation and of cost of gasoline oil oU and othe may be deducted to farm business bears as the use on the entire uSe use Other Instructions relating mating to the dis distinction distinction dis- dis between living expenses and business Include |