If you are a life tenant, you deduct allowable depreciation and depletion. If you are an income beneficiary of property held in trust or an heir, legatee, or devisee, you may deduct allowable depreciation and depletion, if not deductible by the estate or trust.

Deductible losses on sales or exchanges of property are allowable in determining your Adjusted Gross Income. (See Chapter 20.)

You also deduct 50% of the excess of net long-term capital gains over net short-term capital losses in determining Adjusted Gross Income. (See Chapter 24.)

Certain other deductions are not allowed in determining Adjusted Gross Income. They may be claimed only by itemizing them on page 2 of Form 1040. These deductions may not be claimed if you elect to use the Standard Deduction or tax Table. (See Chapters 30 through 37.)

A minor is subject to tax on his own earnings even though his parent may, under local law, have the right to them and might actually have received the money. His income is not required to be included in the return of his parent.

A minor child is allowed a personal exemption of $600 on his own return regardless of how much money he may earn.

If your child is under 19 or is a student you may also claim an exemption for him if he qualifies as your dependent, even though he earns $600 or more. See Chapter 5.

Your 16 year old son earned $720 in 1961. You spent $800 for his support. Since he had gross income of $600 or more, he must file a return in which he may claim an exemption deduction of $600. Since you contributed more than half of his support, you may also claim an exemption for him on your return.