The Bridgeport times and evening farmer., 1920-02-20
Income Tax Men To Keep Good Tabs On Landlords INTERNAL REVENUE TO CHECK UP ON ALL
 RETURNS OF RENTS

Thtat the government has sharp I eye this Spring, to see that tuu m come tax is paid on rents received during 1919, is acknowledged Dy the Internal Revenue officials. Collector James J. Walsh issued the following statements in this re- gard:
 Every income tax blank has Q special space set apart for reporting rents received. And this space will be watched as the returns come in, to check up the rents of landlords and landladies
 These are bonanza days for real estate owners Rents for all kinds of property have advanced; in some To- calities, to prices never dreamed of. The keepers of lodging houses and boarding houses have shared in the general prosperity from rents. And even the cottage and apartment-dwel- Ter has made little money on the side by renting the rooms he could spare.
 The higher prices of 1919 induced many landlords to sell all or part Of their property, and generally at substantial gains. All such gains are income, and must be figured out in black and white on the annual re- turn
 Persons who held leases on prop erty, and during 1919, sublet at a profit, must show such gains in their Income Tax returns.
 The forms for personal Income Tax are designed so that income from rents and royalties shall be separated from other income. The information and figures should be carefully and accurately entered in Block "E.'
 tod G1 be indicated. If it is a building il should be shown whether the con struction is of wood, cement, bricl or stone If a farm, or vehicles, ma ofinery, etc, it should be so stated If the taxpayer received royalties the word S'royalties'' should be uset to denote the source of income. Ant for convenience in checking the re turn, the taxpayer should separate the various kinds of property, ant show separately the figures of rents expenses, etc, incident to each class If any of your tenants or lessee paid you $1,OOO or more in rents dur ing 1919, you should show the name of such tenants or Iessees separatel, in the second column of Block ''E, together with the amount of rent re ceived from each
 In column you should declar the amount of income whether il cash or its equivalent received dur ing the year from each class of rent ed property.
 REPAIRS: Under this title the tax payer may claim only actual expen ditures for small repairs such as re placing broken glass, fixing wate pipes, papering, interior painting an other small necessary repairs neces sary to keep the place in rentabl condition. You are not allowed include the purchase of a new rang' a new boiler, or other replacem ent If the entire property is rented, eS terior painting may be include under repairs, but a new roof, ne7 cement walks or steps, or other sim: lar expenditure that adds to tn value of the property may not be iI cluded as an expense. WEAR AN. TEAR: If the charges for repail are made strictly in accordance wit the above, a reasonable allowanC may be claimed for wear and tear the property caused by it's use du ing the year. The ba@is for compu ing such a charge is the cost of u property, or, if owned prior to Marc 1, 1918, its fair market value at tn time.
 It is important here to point o the cost or market value of lal must not be included in any comp tation for wear and tear, for land ordinarily not subject to wear al tear and exhaustion. Where 1oa- gravel, clay, sand, etc. is removed f sale, there may be deduction allo' able for depletion
 INCOME TAX a.
 The other factor in computing { annual wear and tear on rent property is the number of years co stituting it's estimated usefulne after date of purchase, or aft March 1, 1913, if owned before the The cost or value, as explain above, is divided by the years of us fulnessz and the result is the proT annual allowance.
 If improvements or additions ha been made to rented property (sir March 1, 191S), their cost may added to the cost or value of | property. and the annual a11owa1 for wear and tear will thus be : justed.
 There are no specified rates
 wear and tear deductions. Each G must be considered in the light facts. as to the use to which sI property is put and the local con tions which may affect life of