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Show INCOP71ETAX FACTS Lm 4 4- Deductions for depreciation form an Important item in the return of many taxpayers, unci are tho subject J or freuuent inquiries. The word "dc-preclatlon" "dc-preclatlon" Is not used In the revenue act of 1921, which provides "a rea-BOnable rea-BOnable allowance for the exhaustion, wear and tear of property used In i trade or business, including a reason- I ',9 in ci. lining depreciation the fol- to. -in 'bbV 1 be observed: Only such depreciation pi it. resulting from 'S JL vocation Is allowed Depreciation in : the value of a home .r property such fH ; as an automobile used for pleasure or convenient - can not be claimed. Depreciation due to changes in tho social or business condition of a neighborhood, or changes of street grado. or fluctuations of market aval- Depreciation in the value of land. whether improved or unimproved, Cr j I When in the course of years, the FH claimed Its full ' m cla im I I red for by le- 1 A proi osl ( the property. f M However, in the ease of property ac- Hfl Quired prior to March 1. 1818, the do-ductlon do-ductlon shall he computed upon tn of Its fair market price or valu Iffl as of March l. 1913. l 'epreclatlon may lie claimed on all 'iHssa business property which includes not wlM onlv buildings, hut machinery of a SmH sVp ment, office furniture, and books. BaWkl ii COMPUTED VhM To compute the amount of depre- Bani elation which may be claimed, a In- 9H payer should determine the probable Ball life of the property, then divide bv ' . 4 j nrhlch i f : pre- U sent the amount which may be claim- Htfl e, u 0 deduction For example, a Iflu frame building, the probable life ttm WmE Di. ' I. 1 clain 200 each ''y' year as a deduction. kmi While each taxpayer may deter- 1 .. the p of his - lowing figures, lt has been estimated laaWi 1 that the average ustble lifetime of a BBani frame building is 2 years; a brick HB building years; a stone or cOn- BanB i crelc building BO lo 100 years. Th-; Banfl estimated life of ordinary machinery Ifm i that of automobiles used for busine. s Hal ! or farm purposes and farm tractors, H9 o B If s taxpayer claims the full BH amount of depreciation, hi in nol gg' . proper t3 during the sam wq J EM 88 , .-mi ni" H kind t.-ndlng to mak.- t ne depr- A M SS roof If the taxpayer wishes to claim I their cost must be deducted from the gsfl i full amount of depreciation, and the i.tl nice may be claimed as depre- Deductions for depreciation must be made a.s a separate Item of tho return, and must be explained by knflB showing .separately each class of property. Its cost or value at the date . . I of purchase i fair market price or g4 value . f March l; ti3, .if ac- BBaal inlred prior to that date), estimated ! life, depreciation charged off for tho Lmaafl hai ged off for ill taxable ; ! " |