Show FARMERS muar REPORT thou thousands dadds of farmers whose net income tor for 1920 equaled or exceeded the exemptions of 1000 for single persons will be required io to ille file 16 15 1921 income on or before march tax returns for or the year 1920 As an aid to farmers the bureau of internal revenue has prepared a special form I 1 for recording sal e ei ot of livestock produce and a summary of income and expenses this form should be attached to the taxpayers individual return on form 1040 or full instructions tor for making out the forms forma are contained in each under gross income a farmer is required to include all proceeds derived from the sale of 0 f airm arm products whether produced on a farm or purchased tor for resale when he be exchanges his produce tor for procer proc crea es clothing or other merchandise he be must include in his income the value of the articles received and e changed profit received from the p lie of farm land or rent received tir fit the use thereof must also be in eluded in determining his net income up on which the tax is assessed the far arner may deduct all necessary expenses sq s incurred in the operation of his citrin fi rm during the year these include c st of cultivation harvesting and n ar marketing arh eting ot of his crops the cost ot of s 1 id I and fertilizer use amount spent repair to farm buildings other t in tie the de welling and to encee fences ira chinery anery the cost ot of tarn farm s used up in the course ot of the ar wages paid to employees other dorp domestic estic servants and rent p for farm land and buildings er than dwelling are deduct il 11 le ie items farmers who keep no records or 0 records ot of cash receipts and dis b arsen ants should make their parts arts on the basis of 0 actual receipts 1 t farmers who keep complete accounts and who take inventories at t e beginning and the end of the v ar to determine their profits should lenort on the accrual basis both are fully explained on form copies ot of which may be obtained from the offices ot of collectors collector of internal revenue |