Show r 1 Your Income Tax i I NO 21 for depreciation form forman an important Item in the returns of many taxpayers a ers and are the subject I or of frequent Inquiry The revenue act ot of 1928 provides a reasonable allowance f for r the exhaustion wear and tear of property used usell In the trade or business includIng EI a reasonable rca rea- allowance for obsolescence For convenience such allowance Usually is referred to by regulations relating to the income tax as de- de predation Itt In claiming a deduction for depreciation depredation de- de predation several fundamental principles principles prin- prin must be observed The rhe deduction de- de must be confined to property proper proper- ty used in the trade busness business bus busi- ness profession or vocation In general it applies to the tn taxpayers taxpayer's pa ers capital assets buildings machinery machin- machin cry ery the cost ot of cannot be deducted as as a business expense A building or machinery gradually becomes old and worn out On ac- ac court t of this depreciation the value of such assets is decreased Loss LossIs Is thereby sustained for which the taxpayer Is entitled to recognition In making hl his return of income |