Evening star., 1927-10-29

Changes in the Federal revenue act
| Of 1926 held TO be essential to the
continued welfare Of the real estate
interests of the United States" are
al ell by the National Association of
Real Estate I ards in Il brief which
has Just been flied with the commit
to on finance of the Senate. the com
mittec ON ways and means of the
House of Representatives. and the
Joint committee ON internal revenue
taxa ton.
Where home owner sells his resi-
dence and almost immed atcly lNs
another. or sets the proceeds aside to
buy another within a year the pro.
ceeds should not be subj It t. "A
capital gains tax. the association
holds. 1t asks for an amendment To
the present act that would extend to
cases of sale and rcpurchase of
homes the same exemption from
recognition of gain or loss as is now
extended where r-nNo"tv held for
"od'Ictive use in trade or business or
investment is exchanged Ton properly
of a like kind to he 50 used.
100000 Change Yearly.
With the last census returns show
ing more than 11.000, 600 residences
occupied by their owners. it is not
unreasonable To suppose that every
year considerably more than 100. .000
of these owners change their resi-
dences, the assoc alton estimates We
are no longer living in society
where it is the general rule for the
home owner to spend his life in the
residence he first acquires.
Generally speaking the old home is
..,1
increased The strong population
trend of the past years from rural to
urban has created 4 general appre-
cation in urban land values. But
when other residential property is
purchased in the place of the home
sold it must. OF course, be purchased
at the pr.ces prevailing at the time
of the sale
\ man may move from his home in
Philadelphia to a home in Detroit.
and NAV sell for $4,000 the home in
Philadelph.a a which cost him $4,000.
He will probably have to pay about
$4,000 for a similar house in De-
troit. But in order to make that
necessary move he must pay the
Government tax on the gain of
$4,000, the association states.
Among other changes in the act re-
queSted by the association are the
following:
Adjustment of the rate of tax on
capital gain SO as TO give taxpayer
til same comparative advantage un-
der it a. was given when the section
was introduced in 1921.
Amendment Of the provision as to
capital gains so as to remove the in
equality of the provision under which
dealers in real estate are excluded
from taking advantage of the canital
gains provision. while at the same
time their commodity is held by the
Treasury Department not subject to
inventory.
Corporation Exemption.
Specific provision to put the owner
of a cooperative apartment house on
a par with other home owners by al
lowing him to take as deductions
from the gross income any assessments
made against him for the purpose of
paying interest on bonds or mort
cages, taxes. or any other expenses
which would be doductible by the in
diVidual co-oper~tive owner If paid
by himself.
Exemption Of corporations for the
construction Of cO-oneratiVe apart
ments, at least where these are 101
per cent. individually owned. from
corporation taxes and from the neces-
sity of making corporation income
taX returns: as in the case OF mutual