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Show The Utah Enterprise Review , March 9, 1977 Page 6b Death and Taxes Investment Credit by Rex Keeler The investment credit is a moneysaving device which is available to every taxpayer. This credit provides a credit against your tax liability for up to 10 percent of the cost of tangible personal property used in your business. A wide variety of property qualifies for this credit. To be eligible, the property must have a useful life of at least three years and must be eligible for depreciation or amortization. Automobiles and trucks are eligible for the investment credit if they are used in your business regardless of whether you use the 15 cent per mile deduction for operating expenses or use a small percentage for personal use. This deduction is often overlooked by salesmen. Buildings and other real property are not eligible for this credit. There is not a fine line of distinction between buildings and equipment attached or partially attached to the building. Most items will have to be studied separately to see if they qualify (elevators and escalators do qualify). Farmers have the largest selection of property which qualifies. All equipment, tractors, swathers, plows, etc, will qualify. Also, livestock, except horses, qualify depending on their use (dairy cows, bulls qualify). In addition, fencing, water wells, storage facilities, and mature citrus trees or orchards will qualify. The investment credit does not apply to rental property or equipment, such as a duplex or apartment complex. A motel does not fall into this category because it furnishes lodging predominately to transients. The major exception to this would be equipment (such as a laundry room) which is available to tenants and the public. Leased property is a double edged sword. The credit on the property can be taken by the lessor or by the lessee in some cases. The lessor can pass the investment credit to the lessee if the property is new and would qualify in the hands of the lessor. The investment credit is only temporary and has been already eliminated and reinstated twice in its short history. The present investment credit is scheduled for extinction by 1981. V I Housing Pulls Out of Recession fr'A. In a record fourth quarter building effort, the home builders of the greater Salt Lake area completed a very productive year. Total residential construction in the greater Salt Lake area resulted in 8,202 new dwelling units valued in excess of 4 0 iPuripatransMWeaevelopla! ,...y -- a X A ... SpnOUSl n. 1864 .SOUTH f STATE- ST.W SUITE 255 ; !:' , V-'- e , - : ? x (McKinley salt; V - f! I square) v. A- M LAKE CITYV UTAH : :v-- ;FOr APPOINTMENT ' 'r!'4S7-205- Y '' V - '' !? ' ' 4 ? ; Steve $444.8 million. Featherstone, executive vice president of the Home Builders Association, said last week that the 2,224 permits issued in the fourth quarter of 1976 is the highest number since the 1972 fourth quarter 2,413 units when a record 9,590 units were constructed. Featherstone said that following a slow start during the first quarter, the steady increase during the year was a very stabilizing influence on the metropolitan area economy. Of the 8,202 units, 5,954 were single family dwellings built on lots averaging just over 8,000 square feet. Water moratoriums, Featherstone added, threaten not only the industry' but the entire area econ- The $444 million market value of new housing represents employment for over 20.000 workers directly involved in the industry' and at least double that number omy. in consumer oriented busi- nesses and services. |