The Bridgeport times and evening farmer., 1920-01-21
INCOME TAX FAOTS
 YOU SHOULD KNOW

Numerous inquiries are received by collectors of internal revenue con- corning depreciation and the allow ances therefore in the filling of an 1ncome-tax return. As the rate at which depreciation may be claimed IS dependent upon local conditions, the use to which the property is put and its probable lifetime under normal business conditions, no specific rate is established by the jaw or regulatto
 The word 'tdepreciation'' is not used in the law, which provides a reasonable allowance for exhaustion wear and tear of property used in trade or business, including a reason able allowance for obso1escence."
 To compute the amount Of depre- ciation which may be claimed, tax payer should determine the probable time of the property, tf en divide the number of years it will be usabIe in the business in which employed The result thus obtained will repre- sent the amount which may be claim ed as a deduction. For example, a. frame building, the probable lifetime Of which without repair or replace ment Is 25 years, cost s5,000. Divide s5,o00 by 25 and claim $200 each year as an exemption.
 Average Depreciation.
 While each taxpayer must deter mine the probable lifetime of his property. without regard to the fol- lowing figures, it has been estimated that the average 1lsa able lifetime of d frame building is 25 years; a brick building. S5 years; a stone. steel, or concrete building, 50 to 100 years. The estimated life of ordinary ma- chinery is \10 years, that of auromo- piles used for business or farm pur- poses and farm tractors, 4 to 5 years.
 If a taxpayer claims the full amount of depreciation he can not claim as a deduction the cost of re- pairs to the property during the same year. If he wishes to claim a de- duction on account of repairs, their cost must be deducted from the full amount Of depreciation, and the bal ance may be claimed under the head ing of Depreciation"
 Repairs in this connection means repairs and rep1acements of a kind tending to make good the depreqia- uon, such as a new flooring or new roof. Small items such as replace ments or broken windows, papering and minor repairs are allowable, ever i though the full amount of deprecia- i ton is claimed.
 i Principles to be Observed. 1 In claiming depreciation the fol l lowing fundamental principles mus l be observed:
 l Only such depreciation as result. l from exhaustion, wear, and tear O. l property arising out of it's use ir l business or trade is allowed. De 1 preciat;o in the value of a home, ol l property such as automobiles useG l for pleasure or convenience can no 1 be claimed.
 Depreciation due to changes in tn, social or business conditions of ; 1 neighborhood, or. changes of stree l grade, or fluctuations in marke | values can not be claimed. | Depreciation in the value of land whether improved or unimproved l due to erosion, exhaustion, or an
 other cause can not be claimed. T When, in the course of years, tn
 owner of property has claimed it
 full cost as depreciation, no flirthe
 claim will be allowed.
 The value to be cared for by de
 preciation is the actual amount in . vested in the property