The Barre daily times. (Barre, Vt.) 1897-1959, 1921-02-01
Income Tax Facts You Should Know

income lax ATS ipu ohVG4N AANN"'
Increased rentals added largely to
TIE profits of the landlords last year,
very dollar of which must be included
the taxpayers return OF income,
ross income includes all amounts re-
eiyed a. rents. Both landlord and ten
int are allowed certain deductions.
Where property is held for renting
purposes. the owner may deduct the
cost Of securing tenants, such as adj
ertising. and the maintenance eX
lenses, such as light, fuel, ianitor seTV-
&c. insurance and ordinary repairs. a
cnant may deduct the rent paid Tor
business premises. but not for ms
.ome. which is personal or living eN
,ense Interest and taxes paid by the
.en0pt ON behalf of the landlord are
lciuc,ible by The tenant a additional
entail. provided the property i bus
,ess property. Such items represent
Incomes to the landlord and must be
ncluded in his return OF gross income,
BUT are deductible BY him also
Frequently tenant agrees to erect
building or make other permanent
improvements for the benefit OF the
landlord. The cost Of such improve
,ent is capital expenditure, and IN
rider to return 70 the tenant hls ~
cstmept of capital. an annual deduc
ION may lie made from gross income
an amount equal to the total cost
such improvements divided by the
,1mber II wears ii the term 81 the
ease ana such deduction shall be in
leu Of a deduction Tor depreciation
Under the head of depreciation own
r are allowed a reasonable amount
sar exhaustion. wear and tear Of prop.
rty used in trade or business. includ-
no a reasonable allowance for obSo-
resrencc." This deduction musf be made
+. a separate item on the return and
must be explained by showing sep
lrately each class Of property. its cost
~ fair market value on March !, 1918,
II acquired prior thereto, value at the
late 81 acquisition If acquired by gift,
leyise or descent. estimated HE, de.
nreciation charged for the year l"2u.
and total depreciation charged Tor an
taxable years.
No Specific Rate.
As the rate at which depreciation
NAV be claimed is dependent upon To-
al conditions. the use TO which the
property is put and its probable HE
lime under normal conditions, no spe
oi6c rate Is established by the law and
regulations. While each taxpayer must
compute the probable lifetime OF his
property without regard to the FOL
lowing figures. it has been estimated
that the probable lifetime OF frame
building IS - years, n brick building
"a wears. stone. steel or concrete
huilding 20 to 100 years.
To compute the proper amount Of
deprpciation the taxpayer should DC
termine the probable lifetime OF the
nropertv then divide the fair mar
IL; value a. IL March /, 1918, or the
,ost II acquired subsequent thereto, by
no number 81 years so determined.
This viii give the annual depreciation
allowable. For example, frame build
mo the probable lifetime Of which =
- wars. cost $1,000. Divide S4,Ooo
Nv y and claim sl2O each year as de-
probation
Deductions for depreciation are Inn
;tad strictly Is business property,
which included not only huilaing- but
machinery. automobiles. farm tractors,
mines and mill equipment, Office tnrnl-
tpre. instruments used by profession
al men. and hooks
7. III Burke
Deputy Collector m Charge