Deductions for let-out property limited to municipal taxes paid, standard deduction, and interest on borrowed capital. Deductions from gross annual value for a let-out property are limited to municipal taxes actually paid by the owner during the year, a standard deduction calculated on net annual value, and interest on capital borrowed for purchase, construction, repair, renewal or reconstruction of the property; municipal taxes due but unpaid and taxes borne by the tenant are not deductible and no other expenditures are allowable.