The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1921-02-02
LANDLORD AND TENANT
Each Is Allowed Certain Deductions
In Elaurlna Income Tax


According TO rul ngs OF the inter
nal revenue bureau, beth landlords
and tenants are allowed certain de-
ductions In their income tax. In
creased rentals added largely TO the
profits of the landlords last year,
every dollar Of which must be lnclud-
cd In the taxpayers return Of income.
Gross income Includes all amounts re
ceived as rents
Where property S hcid for renting
purposes. the cwner may deduct the
cost Of securing tenants, such AS adj
vertising, and the maintenance eX-
penses, such as light, fuel. Ianitor
serv &c. insurance, and ordinary re-
pairs. 4 tenant may deduct the rent
paid for business premises. but not
for his home, which is a personal or
living expense. Interest and taxes
Eaid BY the tenant on behalf OF the
landlord are deductlble by the tenant
as additional rental, prov ded the
property ia business property, such
items represent income 10 the land
lord and must be included in his re-
tarn OF gross income. but are deduc-
tlble by him also
Frequently d tenant agrees TO erect
n lM.ld. ng or make other permanent
improvements for the benefit Of the
landlord The cost OF such impry =.
ment Is q pauital expenditure, and in
order 10 return 70 the tenant his in-
yestmcnt Of 'calitai. an annual deduc-
lion nay D. TlH}eTfrOm gross income
Of an aniounx edaal 70 the total cost
of such impi @ements divided by the
number CO sseHrs oof tine term of the
lease. and slchVdealuctio ton shan be In
lieu OF q deduction ior depreciation.
Under the hes1 Of dcpreciat on
owners are allowed q reasonable
amcunt for exhaustion, wear and tear
PROPERTY used IN trade OF business,
pcluG ng q reasonable allowance for
tsso!escence. This deduction must
be made az q sefarate item ON the re-
tu,n and must be explained by show
lrg scr cately' each c'ass Of proper
Ity. .t5 cost o. fai. market value on
MarcA 4, 1913. IL acquired prior there
to. yalha ~ The date OF acquisition II
acqured by gilt devise, or descent,
estimated li.c depreciation charged
&C.. the year 1890, and total deprecia.
on charged for all taxable years
As the rate az which depreciation
nay be olu'mod Is dependent upon
local eondit ons, the use to which the
property Is put, and its probable life
time under normal condit ons NJ spe,
cifc rate is cstab ished by the law
and re liIatons. While each taxpayer
computes the probable lifet me OF his
prosperity without regard 10 tho follow
INK figures. has been est mated
that the lrttab.e lifetime Of q frame
building Is IS years. a BRICK building
So years, stone steel, on concrete
bu iding so to 100 years.
TO comln.e the proper amtunt OF
lderreciat on the taxpayer, then di.
vide the ialr market value as Of
March I, 1919, or the cost II acquired
subsequent thereto. by the number Of
years so deterin ned. This viii give
THE unnNal depreciation allowable.
Fer cxGmblc, frame bu ldmg, the
probable lifetime Of which Is rs
years. cost $4,000 Divide $4,000 by
IS aud claim $40 eoch yeas as de-
probation
Deductions f.r depreciation. are
united strictly to business property
which includes not only buildings but
machinery automoh les, farm trac-
tori, mMe ana mill equipment, office
furniture Instruments used by pro
! tes5ional men, and books.