-Lancastor Farming. Saturday. April 11.1970
34
,11
Income Tax Return
(This Is the* sixih and last of a series of articles prepared
bs the Pennsylvania Institute of Certified Public Accountants
on mono-sav ing tax hints in preparing your Federal income
lux return.)
I'se Home for Business?
Then Claim Deduction!
In making out then Fedeial
income tax telurns, taxpayers of
ten ove. look expenses which may
be tax deductible because they
use their home for business pui
poses Such deductions may be
available whether the taxpayer
owns his house, rents an apart
ment 01 owns a co op.
Deductible items fall into two
geneial categories incidental
and icgular The fiist would in
clude, foi example expenses in
curred foi home entertainment
of customers of food, liquor,
catering service The taxpayer
should be able to establish the
bonafide business element in
such entertainment
The second category of expen
ses pertains to use of the home
on a regular basis for business
purposes, generally as an office
This may be either by an em
ployee 01 a self-employed tax
payer.
Deductions under this category
include not onlv dnect expenses,
such as telephone, stationeiy and
office supplies, but also pait of
the cost of maintaining the resi
dence
The Internal Revenue Seivic/
takes the position that incidental
use of the home, either to do
■work taken from the office or
for enteitainment, does not per
mit deduction of anv part of the
expenses of maintenance But
regular use of the home foi busi
ness is recognized foi deductions
by a large variety of taxpayers
including architects, lawyers,
doctois, accountants, artists, in
ventors, consultants, authois,
real estate agents, and otheis
For employees, as distinct fiom
self-employed- persons, the In
ternal Revenue Seivice requires
that, in order to have any part
of home maintenance deductible,
use of the home for business
purposes must be a condition of
then employment
The couits, howevei, have fre
quently taken a moie lenient
view, lequinng onlv that use of
the home be helpful to the con
duct of the employers business
An employee mav be able to
assure himself of additional de
ductions by making piopei ai
rangements with his employei as
to wheie he will be lequncd to
cany out his woik assignments,
particulaily woik done outside of
usual business houis
Foi self emplo\ed peisons
othei factois detei mining the de
ductibility of costs foi business
use of a home include whether 01
not theie is leasonable expecta
tion of piofit fiom the activity
•whether books of account aie
kept, and whethei attempts aie
made to make the business pio
Stable if it is not so alieady
Once a taxpayei shows he is
entitled to some deduction, he
faces the problem of what items
are deductible and in what
amount
For example, if one room in a
six-room house is used foi busi
ness, it might be leasonable to
deduct one sixth the expenses of
the house But the numbei of
100 ms is not the only cnteuon—
an allocation may be based on
the total squaie feet of the house
compaied with the numbei ot
squaie feet used for business Ex
penses to be appoitioned can in
clude light, heat, cleaning, insui
ance, and othei costs applicable
to the premises
The amount of business cost
assignable is affected if an aiea
ot a home is used for business
only part of the time Thus, if a
study were used for business
three hours out of 24 daily, the
Internal ‘Revenue Service would
limit the deductible amount to
3/24ths of the total expenses ap
plicable to that aiea
The lesson to be learned heie
is that when a room has substan-
FARM EQUIPMENT SALE
WEDNESDAY, APRIL 15,1970,9:00 A.M.
MARTIN’S SALE BARN
Blue Ball, Pa., Lancaster County
Tractor - Machinery - Implements - Supplies - Equip
ment - Posts - Hay and Straw.
We sell on commission.
PAUL Z. MARTIN
Ph. (717) 354-6671
Next sale May 13,1970.
VIRGINIA FEEDER
Calf - Yearling Sale
400 TO 1000 LBS.
(State Graded)
THURSDAY, APRIL 16
7:30 P. M.
Sponsored by:
Marshall Feeder Cattle Assn.
FAUQUIER
LIVESTOCK
EXCHANGE
INCORPORATED
MARSHALL, VIRGINIA
FOR FURTHER INFORMATION CALL 1-703-364-4861
WE USE QUALITY PAINT
AND IT DOES STAY ON!!!
Aerial Ladder Equipment Used
To Paint Your Farm Buildings
Modern and Efficient Method
Reasonable Prices
Over 14 Years Experience
Spray-on and Brush-in Method Has Proven
Satisfactory On Over 1110 Barns Of Our Well
Pleased Customers.
C. RALPH MILLER
Spray-On and Brush-In Painter
R. D. 4, Manheim, Pa. 17545
ti.il business use, it should not bo
pul to other use. In that way,
ison thiough the 100 m is used
only Ihiee horns a (lay, all the
cost applicable to that room can
be deducted
II should be emphasized that
the laxpayei should keep in mind
that it is up to him to prove (1)
he uses his home foi business.
(2) the extent of the use. and
(3) the expenses incurred To
suppoi t his tax return he should
retain invoices, cancelled checks,
leceipts, and all other records.
Ph. 665-3388
’ ANNOUNCING
Ist Spring Stocker
& Feeder Sale
Friday, April 17, at 7:00 P.M.
Annual Show & Sale, May 15, 1970
Final Sale June 5, 1970
To consign cattle call (717) 768-8204
Vintage Sales Stables, Inc.
10 miles east of Lancaster on Route 30
P.O. Box 100, Paradise, Pa. Kenneth Hershey, Mgr,
2000 HEAD
THURSDAY, APRIL 16
2 FEEDER
CATTLE SALES
(State Graded)
I P.M. Culpeper Feeder Calf Assoc. 1000 head
at Culpeper Enterprise, 3 miles
south of Culpeper on Rt. 29
Phone 703-825-9188
7 P.M. Marshall Feeder Cattle Assoc. 1000 head
at Fauquier Livestock Exchange
1 mile East of Marshall on Rt. 55
Phone 703-364-4861
FREY FREE STALL
Lifetime Free Stall Housing
Cut bedding 75%, reduce labor for barn
and cow washing; reduce teat and udder injury to tbe '
minimum house your milking herd in free stall .
housing. Each cow provided a stall for loafing. She"
won’t be stepped on, the rear curb forces manure out,
into alley for mechanical cleaning or washing. A few',
minutes twice a day cleans the stalls.and curbs, bedd-.
ing lasts almost forever if your stalls fit the cows.'
Popular sizes are 6’6”, 7’ and 7’6”. Size ’em by breed.
Our free stall partition may be mounted on wooden
head boards or we make a steel divider Set the
legs in 8 to 10” concrete curbs to hold and retain
bedding Stall floor can be soil, sand or giavel.
Bedding straw, sawdust, peanut hulls, ground
coin cobs, etc Should be installed with paved alley
surface 8 feet wide for mechanical cleaning or
washing.
• 8 Models al! steel welded farm and feedlot gates
• 2 Models all steel welded head catch gate
For prices, contact: Fred Frey, Mgr.
786-2235 (7IT) fIJQJ
•vV. *•
R. D. #2
Qnarryville, Penna. 17566
"{*