Evening star., 1920-02-07
WILL EXACT FULL INCOME TAX
ON RENTS COLLECTED IN 1919

I prior to March l. 1919. its fair mar
ket value at that time.
1t is important here to point out
that the cost or market value Of
land must not be included in any
| computation for wear and tear. for
I land is ordinarily not subject to
wear and tear and exhaustion. Where
| loan. gravel clay. sand. etc. is re-
ductian allowable for depletion.
The other factor in computing the
| annual wear and tear on rented
property is the number Of years con-
stitutinE its estimated usefulnes IS
! after date OF purchase or after
March i. 1919. if owned before then.
The cos: value, as explained above,
is divided by the years OF usefulness,
and the result is the proper annua !
allowance.
ImprOvements-Add
If improvements or additions have
been made to rented property tsince
March ]. 1919. their cos. may he
property. and the annual allowance
for wear and tear will thus DE ad-
justed.
There arc not specified rates for
W ear and tear deductions. Each
ease must be considered in the light
OF facts as to the use to which such
property is put and the local conhi-
tons which may affect life Of prop
CRY.
Property Iosses-lf the taxpayer
sustained a loss during the taxable
year which was not compensated
for by insurance or otherwise. a de-
duction against income foi' the year
nlay be taken. When the loss oc-
CURED through destruction by nre.
food or ether casually the amount
deduc,ibIe is the difference between
the cost Cor its fair market value
a., OF March i. 1913. i: owned PRIOR
TO that date). and the salvage value.
There must also be considered IN
which the property susta aimed prior
to being destroyed. And. II lh'
property was insured; care must hs
taken not to claim Il loss on any
proportion recovered.
Interest-lf the taxpayer paid any
interest on mortgages or other IN
dsbtedness incurred in connectlon
with the rented property. such inter-
est is deductible as all expense
against the rentals receiveG. me
taxpayer is not allowed TO deduct an!
payments made toward liquidation
Of the indebtedness.
Taxes-All property taxes are de,
ductible, except assessments TOR ioCai
improvements. such as sewer. ' siof,
block e." care should be taken that
the same taxes and interest paid are
not again deducted in block 'I' OF
the return.
Other expenses-These include wa
ter rates. light, fuel, janitor hire and
other paid expenses that were neceS-
sary and were incurred through
rental of property.
Renting Part Of Homo.
In the case of the owner of an
apartment house who occupies one OF
the apartments and is renting the
others. the repairs and other ex-
penses allowable are confined to such
items as are incurred in connection
with the rented parts of the house,
With respect to wear and tear, the
owner should claim only a proper
tionate part of the computation for
the entire building.
In the case of a landlord or land
lady who rents furnished rooms,
there may be claimed against the
rent received a deduction for wear
and tear on the furniture and for
minor expenses incurred. e3ch as
laundry, fuel, light, etc. also a proper
proportion of tie rent paid. il any.
for the entire home or apartment. In
computing such division of the rent
paid. in order to arrive at the pro-
portion for rented rooms, considera-
tion should be given as to the size.
loca ton and desirability of the rented
rooms.
If the landlord orlandlady furnishes
meals to dodgers the gain realized
should be figured on the basis Of
household budget and included with
the ient received.