Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1914-02-10

| WOulQ De SIX months accrued inter-
est on such coupon, but inasmuch as
the coupon is not due and payable un-
til June, 1914, the six months accrued
interest will not be listed by individ.
uals as part of the income for the tax.
able year 1913.
| Another Of the disturbing problems
| is the amount of depreciation which
one may set down. On this subject rul-
ings of the treasury department are
pertinent. 1t holds that
l. A taxpayer should not claim de-
ductlon for depreciation of building
| which Is being rented and on which he
Is claiming expenses for certain re.
pairs, unless such depreciation is &C.
tually in excess or repairs made;
2 A taxpayer is not entitled to de-
duction by reason of repair on or de-
probation in value Of his dwelling
house;
g. A landlord is not entitled to
deduction by reason of replacing a
brick, stone or board walk. for illus.
tration, with cement walk, for the
reason that such expense is for the
purpose of permanently increasing the
value of such property:
4. Expenditures for painting dwell
ling or other building occupied by the
owner are not for allowable deduction,
5. A farmer replacing q fence with
new one is not entitled to deduction
therefor;
6. The amount expended in repairs
necessary to preserve the property is
a prorr" DEDUCTION from gross income
in cor ng net income, but repairs
such as are in the nature of additions
or which increase the permanent valne
OF the property, ARE considered better
ments and are not allowable dejuc-
TONS
A principle laid down by the depart
mel. as to corporations and applying
by analogy presumably to individuals
Is that the amount taken credit for on
account of depreciation in order to be
allowable should be so entered on the
books as to constitute a liability
against the assets of the corporation.
In other words, swearing to charge
for depreciation, one must be ready to
declare under oath that the value OF
the property has actually deprecated
in the amount claimed-that it was
worth less than the year preceding
the sum of the depreciation charge
The charge permitted for deprecia-
ton of property likely will not be as
large as seemed to be the opinion OF
the Sioux City real estate board. which
discussed the subject at recent meet.
ing. The United States governments
own allowance for depreciation is, in
the case Of brick building occupied
by the owner. from to IN per cent
when occupied by tenant, ~ to IL
per cent; on frame buildings occupied
by the owner 2 to 2H per cent, and
by tenant 211a to per cent.
It were we'll for prospective tax.
payers in doubt about how properly
to proceed, to solicit the assistance OF
the collector in person or by correspon
dence as one sure means Of getting the
return right.
Bankers and investors generally will
be interested in the announcement by
the treasury department Of it's pur
pose to furnish blank forms of certi.
ficates and other forms required to
be used in connection with collection
of the income-tax and the making OF
their returns.
Private corporations and others de.
string to have these forms printed for
themselves may do so il they will
strictly observe the requirements OF
the department as to size, print, and
contents Of the forms and certificates
as prescribed by the regulations.
Requests for forms of certificates
and other forms should be made OF the
collector of internal revenue at Du'
buque.