New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-22
Morris F. Frev.

Iar Consultant Of that institutes.
a 'ead'"g authority on the sa5ieot ' a'u
@@S'0er questions submitted 10 S t'.'
through this department rclatino 70 10" ~
o'V'd"oh corporation or partnersb;n :. IT.
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once that they aciu rcceipe ornoxt '''"''
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, lax Service Department. Tr;b,,.
Business News Bureau l,l H f,oahe
Street, New York CITY. ' NASSAU
Questions-(A) am widowor
Owl War veteran and a nensionor
l conduct a small Job PRINTING eStob
hshment, the receipts of which ast
year exceeded Tho eDnord;.,,r '"S'
$4,000. F0''"' uieS aoo''
81 l own and rent a house tbo
estimated value of which is $4,000 on
winch there Is mortgage of $3.50
purchased two Liberty bonds durin
1918 Of $1,000 each.
What per cent depreciation on tvns
|nlcn IS short lived, and presses NAV
What per cent depreciation on nv
frame dwelling, for wear and tear NAV
| deduct? '''''
Is my veterans pension taxable?
Are the Liberty bonds, or the interest
receivable therefrom tasabIe9
AS understand it the interest paid
on the mortgage of my house. and
taxes, are deductble. Also. such neces-
sary repairs and Improvements on nv
plant and dwelling are deductble. Am
| right? But the amount | receive
from my tenant of the house is taxable.
IS the premium paid for fire insur-
ance on house and plant deductibe2
Are contributions to the war chest,
Red Cross, Salvation Army, Y. NJ. c. A.
and churches deductible?
Also is the amount paid for compen-
saton insurance on help exempt?
Answers-The law provides no fixed
rate OF depreciation. The amount to
be taken in each case depends upon the
lite of the property and other relevant
facts and circumstances. You should
distribute depreciation ratably over 4
period representing the probable life
of your property, and take for the
taxable year the portion attributed TO
such year.
Pensions paid by the Federal govern
ment are classed as taxable income
Interest on the amounts which you
have invested in Liberty bonds is en-
firely exempt from income tax.
In the case of the house which you
own and rent to a tenant: interest paid
IN the mortgage, taxes. repairs not in
he nature of improvements or be
ments and fire insurance premiums
1eductible. You may also deduct fire
insurance paid on your plant
amounts paid for compensation il
ance on employees.
You may also deduct contribute
made to the War Chest, Red Gro
Salvation Army, y. NJ. c. A.
churches. provided such contribute
are not in excess of Is per cent OF your
net income computed without benefit OIL
this deduction.
Rent received from your tenant Is
taxable income.