The Washington times., 1928-11-17
PLAN SURVEY Of
Old BUILDING
LOSSES

recommendation as to the num-
ber of years which practical expert
ence points may be expected to be-
the normal life of various types of
buildings will be made to the Com.
missioner Of Internal Revenue this
week by the National Association of
Real Estate Boards.
The association will make the rec
omnlendation at the request Of the
bureau which has asked for such
a statement in order to enable it to
set up a schedule of normal rates
of depreciation and obsolescence of
buildings for the purpose Of deter
mining allowable deductions In the
making of income tax returns.
In preparation for the making Of
the recommended schedule OF normal
life expectancy rates for various
types of structures the association
called on its member boards IN cities
throughout the country to give the
opinion Of committee of their most
experienced real estate observers as
to actual lcngth of life which build
ings of the types specified have been
found to have In their communities
Reports from III Cities
Reports from III cities So given
have been tabulated ard analyzed
by a special committee of the assoc
citation working through the ma.
chinery Of its research departments
The findings Of the committee. of
which Walter G.. Schmidt, Of Gin
cinnati, Is chairman. have been ap.
proved by the board Of directors Of
the association and have been
authorized to be submitted to the
Treasury Department.
They constitute the most careful
study that has ever been attempted
of the normal expectation ais to the
length Of useful life of office build
ings. stores. warehouses factories.
apartment buildings, single family
dwellings, theaters, hotels. and other
types of structures under every tyne
of constructions
Length Of probable useful life Isl
estimated In the associations find
ings for steel frame fireproof con-
structfon, REINFORCED concrete con.
struction, masonry OF slow burning
construction with or without steel
frame, masonry with frame interior.
and for all frame construction.
To Concern Financing
The study is expected to form an
authoritative basis for estimating
life expectancies of buildings, not
only In connection with income tax
returns, but for real estate financing
and for all real estate operations and
transactions. It's relation to Federal
tax practice is of very great Inn
portance to all Industries owning
their own plants and all businesses
owning their own business f4tfarters.
Publication of the results Of this
study win be highly beneficial in
avoiding disputes concerned in de-
probation and obsoIescence deduc.
tons for income tax purposes, not
only In the real estate business, but
for all industries in which deprecia-
! ton and obsOlescence Of buildings
| is factor" ID. H Blair. Commits
sioner of Internal Revenue. has
| pointed out.
The recommendation of the asso-
1 citation, when made to the bureau,
/ will, 1t Is expected, be sent out by
the bureau to a wide number of peo.
! pie in various fields of activity con.
cerned with real estate and building
for recommendation and criticism.
1t is expected that If an agreement
can be reached as to the normal
amount of depreciation and obsoles.
cence encountered in various types
of buildings, rate of allowable de-
duction for depreciation and obsoles.
cence may be established by the bu-
reau for use in making out the
March income tax returns.