The Courier News from Blytheville, Arkansas on January 5, 1953 · Page 3
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The Courier News from Blytheville, Arkansas · Page 3

Blytheville, Arkansas
Issue Date:
Monday, January 5, 1953
Page 3
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MONDAY; JAN. 5, 1953 Y*ur Income Tux Primti BLYTKEVILLE (ARK.) COURIER NEWS How Average Taxpayer Reports Property Sales EDITOR'S NOTE: Here's (he elibth of 14 articles In NKA's UZh annuil Income Ta« Primer, prepared by « lop-notch Washington tax authority and designed for use with (he official tax rule pamphlet. • » • • By RICHARD A. MTJM.ENS NEA Income Tax Expert Moit everyone owns property of eome sort. Not everyone knows, however, that If he sells that property he might have Income to be reported, or a loss which cnn be Used to save tax dollars. This article describes what jirop- kerty sales of an average taxpayer w should be reported and how to report them. It also tells how to sell vour home at a profit, yet pay no tax on the gain. Tile rules given here do not apply to the sale of merchandise to customers or property used In a trade or business. * If you had one or more of the following three transactions In 1952. read this article carefully. 1. Sale of your liome, car, household furnishings jewelry, or other personal property for MORE tllnn It cost you. If you sold nny of these items for less than it cost, you CANNOT deduct the loss. 2. Sale of securities you bought for investment or speculation. 3. Securities or non-business loans which became worthless in 1952. Any of [he nbovo transactions must be reported on the separate Schedule D that comes with the blank returns. If'lhc transaction involves your residence, you may not have to pay any tax. In other cases, you may be entitled to report a loss that wljl reduce your tax. The first step in filling out Schedule D Is to determine whether your transaction should be shown under the part marked ^f'Short term capital gains and loss*«s" or miller the part for long-term gains and lasses. Here is the rule: A non-business or persona! loan which became worthless in 1952 is a short-term capitalloss regardless of how long ago you made the loan. The rest of the transactions will be short-term if you held the property for six months or less and long-term jf held for more than six months. If It was your residence that ynu so'd In 1952, rC3rt over the special rules on prize 8 of the official instructions. Then clipck over the fo!-. lowing additional information and \ tips': The term "residence" includes a house, houseboat, or house trailer. If the taxpayer lives in more than one place, it must be his principal residence. When part of the property. Is used by the taxpayer as his principal residence, am! part is u.^ed for business purposes or rented out, o^lv the allocated gnin on that pa-t of the property used as the pr i: ldpal resilience is not taxed. The p->;n on the business or rented part of the property reported. For example, if a taxpayer, rent- Ing one-third of his residence, sells It for S6000 nrofit. he must report one-third of the gain, or SZOOO, but need not report S4COO of the profit if he otherwise complies with the special rules on sale of a residence. The "selling price of the oirf residence" is the amount of cash plus rvou. «• other Mcurtty put up by Joint return. Thereafter, no matte <h. „,„.„»,,.., „,,„ ..... ,.„. how h|gh your lnconHe . g ' et( ._ ( ™ a « ae on the reported capital gain is limited to 50 per cent. After the separate Schedule D Is filled out, transfer either the gain or loss to the small Schedule D on page 2 or Form 1010. Tomorrow's article discusses Income from rents, royalties, annuities, pensions and other soiirces. fox Primer Q & A — Q. We »old our house at a substantial profK when my husband vat ordered into lite Army. We won't buy a new house until he ftlf out, which will be more than one year from the sule of our old the purchaser plirt any mortgage, trust deed or other Indebtedness on the property at the time of the sale which Is not paid off as part of the Bale.- Commission* and other selling expenses are not deducted In order to arrive at the selling price. What Is the purchase price of the new residence? Include in purchase price the same Items as for sale of an old residence. Where any part of the new residence Is acquired by gift, the' value of such part Is not included In determining the purchase price of the new residence. If you claim the benefit of special rules on the sale of your residence be sure to attach to Schedule O the Information asked for In the official instructions. Even though you haven't purchased a new home by Dec. 31, 1952, If you think you may either buy or build within the required period, you need not report a tax on the profit from the sale of your old residence on your 1952 return. If It develops that you don't buy or build and occupy a new residence within the specified time, then you must file an amcndod 1952 tax return and pay a tax on the profit Here are some tips to help you fill out Schedule D: 1. After filling In columns 2 and 3 (the dntc acquired and the date sold) check to make sure all property listed under long-term capital gams and losses was held for more than six months. 2. Put "0" In column 5 (depreciation) unless nt some itine you rented out the property. You must show depreciation for any period during which the property was rented Watch for Article 2 for Instructions on how to compute depreciation. 3. Remember to include in column 6 the cost o/ any Improvements. such as an additional room, front porch or the like. Do not include ihe cost of repairs and ordinary maintenance such as painting the house. Any cost you Include here, reduces your taxable gain. Your cost or other basis, which also goes in column 6, is what yon paid for the property if you bought It. If it was Inherited. It is the fair market value at the time you acquired the property. If It was a gift the last . Include whatever it cost person who bought It. Note that If you end up with a capital loss, you cannot show more than S1000 of it on the Form 1040 even though you file n joint return. If you and your wife each have capita! losses, you may save money by filing separate returns Each would then get to deduct his capital losses up to S1000. Work out your tax both ways and use the cheaper method. . The schedule automatically Includes only half of any long-term capital gain in taxable income. This half becomes part of your income taxed at the same rule as your oth- cem br'^ket , y ° U Pa " '" e 5 ° per " That occurs when your ad<<:sl«t' gross ncom.; exceeds SH.OOO on an individual return or ,$28.000 on n home. Do we have to profit? report the I,. 'A. The one year period 'is suspended for up to four years during the period your hustand is In the Army, provided, however, Iriat he serves SO days or more. That means if he gets out anytime before four years from the sale of your old home, you will have one year from the date he gets out to buy a new one. Q. I sold some olil furniture and clothing tliat had keen stored Jn (he attic for years. Do I have to report the money I received? ' A. Only If you sold the properly for more than It cost, which is "very unlikely. Since this was personal property, you cannot deduct any loss. Q. I sold my Summer house at a S.5000 iirnflt nml e.vpeff to Inly a lieu one. Do I have to report the profit? A. Yes. You can forget the tax only when you sell your principal residence and purchase or build another within the specified time. The Cherry Plan— Here's Question-and-Answer View of State Fiscal Proposaf (Editors Note: This is the last of a series of articles explaining Governor-Elect Francis cherry's proposed reorganization and consolidation of the financial management machinery of the state government. This article Is In the form of questions and answers, with the questions answered by Judge Cherry.) Q. What total volume of purchases per year will-the new Purchasing Division handle directly? A. The quarterly allotment procedure will be applicable to Items totaling about $15,000,000 annually; while the Department of Finance and Administration' will actually purchase about 55,000.000 worth of commodities each year. Q. What total yolume of purchases per year will be Indirectly controlled througli purchasing procedures set up in the new system? A. Approximately $25.000,000 in State, bank and Federal funds. Q. How much money are we go- Ing to save as a result of establishment of "the new cycle of fiscal management?" A. Until the system has been established and in operation for a year or so. nobody could possibly estimate the probable savings over the long haul. However, we do have the experience nnri results of other state governments with systems containing some of the features of the one proposed in the new Fiscal Code. In these states, savings have ranged upward to as much as 20 per cent of the governmental expenses directly handled through centralized purchasing control; and relative economies have been achieved throughout the entire <TQV- ernmental organizations. Q. What control does the new system exercise over expenditures out of so-called "Cash Funds?" A. All of Ihe original bank checks must be transmitted to the Department of Finance and Administration for inspection with the exception of special grants, private donations, and expenditures on account of auxiliary enterprises (dining hall, athletics, etc.). Expenditures of "Cash Funds" bill be subjected to the regulations and procedures set up by the Director of Finance. In addition the origin of "Cash Funds" together with the purpose for which they arc used will be subject to the scrutiny of Q. Underline buiigcfcontrol features of the new bill, if savings.are affected in one department can they be thereupon used for necessary operating expenses in another department? A. No. No administrative transfer will be permitted. Q. Under the old fiscal procedure, if a department made a savings in one item of appropriation the savings so marie could be transferred to another item for "BilSJ 299 - 85 Sitll. Forget H. Mnylng does all Die work. Sec il today. by Felix Carney . As we previously had estimated, thfc end of 1952 saw some 150 applications for new television stations around the country 'okayed by the Federal Communications Commission. These video outlets will take to the see-waves within the iifc.vt few months to bring tWe total throughout^ the country to some 250 active stations, p. The strongest video station ~ in the country (according to applications to date) will 'he the UHF commercial outlet of John Poole in Los Angeles, which will operate with 540,000 watts of power.-. . Htre's a note on upcoming wonders: the battle between kinescope and costlier filming lias been deepened by a new process of electronic kinescpping being perfected by NBC-TV which provides pictures claimed to be better and sharper than film... and new magnetic tape for recording TV programs will set the whole shebang on its ears if upcoming demonstrations by its processors live up to advance promises. Charles Laughton of the scheduled to begin a TV scries this month in which he will read from the Bible and from major works of literature. With a new year in sight, we want to express our gratitude to all our friends t and customers of '52 for 'their patronage and loyalty . . . and we in turn pledge to serve you honestly and diligently in '53 as always. BIA'THEVILLE SALES CO 309 B. Main Street... Phone- S616. Adams Appliance Co. Inc. is the price too high? mrr f C ° St ,,°! providin g increased water supplies under current conditions will be high. Will if be too high? It might appear Io be more economical (o wait for a downward curve m the whole structure of prices and wages before undertaking Ihe kmd of construction programs retiuired to meet our needs. Hut where are <he signs that such a curve is in the making? And how long can we afford to wail? It took just one hot, dry summer fo imperil (he water supply of many millions of people. Suppose next year _ or the year after _ brings similar conditions? ' " f" rllige lh , a( S° e s beyond the critical sla B e. New '' Picture a water supply inadequate (o handle a serious fire. • r ™ H Wa , SUPP , Iy ms " fficie "l In mainlain proper snnilalion. ' '' "° ^ "^ tD kCe " in(llls(rial ° hirt rf > , CE W e high, but what about the price of failure? nee<1 for walcr Inn, £". C , Un . c . nnlro " c(1 f !f e > «ne epidemic, a group of major in.lus- nes lost to the commumly _ sny of these could involve an expense beside, which the price of improved water supplies - even wifh costs « hat they are — would hardly be noticeable. », ,v, lifc ~ lhe !ife of « ci( >' as wc " as <'»= nfc rm r CnK ,i Wllhoul WRUr> a ™ n riics - Without writer, a communily faces (he same fate. nairl /" ' he f 1" ° f - a . CnS1 ' S ,' "" Pn ' Ce can l)e lo ° h 'g h - "'Sh ibices paid to prevent a crisis are low prices! Blytheville Water Co. "Water Is Your Cheapest Commodity" sonic other purpose and there expended. Under the new procedure may transfers be made ; r om one item to Another? A. Not if (he appropriation items are for cWferent purposes. For example, If savings are made in the salary appropriation the unexpended-balances crmnol be transferred to nn Item for maintenance and spent for supplies, or tor any other purpose than Hint for which il «'ns originally appropriated. And of course no savings may be Irans- /errcrf from one item io another for l the purpose of increasing salaries. \ * » • \ Q. What happens to the savings? •jA. They are returned Io the fund frpm which the appropriation orig- innted. to be placed'at. Ihe disposal of the nexL General Assembly. Q. What about the cost of the combined operation for the Department of Finance and Administration, the Office of Slate Auditor and the Legislative Post Audit Department — the complete new cycle of fiscal responsibility? A'. It will be a little more than the old scL-iip. However, the extra cost will IMS small indeed when compared to the savings achieved through strict economy measures which the system iclll apply throughout, the whole government and the substantial savings to be achieved through the reforms being made In the purchasing system. Q. What Is the difference between the "Quarterly Allotment" procedure under the new syslem and that set up by Acl 214 of 1013? A.,Tlierc are many differences A basic difference Is that the new system establishes for the first time a legally constituted "Budget Cou- Rhee Visiting With Gen. Clark TOKYO (/Pi-President BynRman Rhee of Ihe Republic of Korea arrived by plane today for-a visit with Gen..Mark Clark, u. S. Far Eastern commander. His flight from Korea was shrouded with secrecy Uhee's trip — regarded as potentially explosive politically because of his differences will, u, e Japanese government — was made at Clark's Invitation. N.O.TI CE In flit Probate. Court of Mississippi Oonnly, Chlckasawl)* r>ls(rlet, Blvthevllle Arkansas, in the Matter of the .Estate of William 1. Wheat, Jr., deceased Last known address of decedent: Blythevnie, Arkansas. Date of death: December M, 1952. Tho undersigned WRS appointed administrator of Ihe estate of the above-named decedent on the 2nd day of January, 1953. All persons having claims against the estate must exhibit them, duly verified, to Ihe undersigned within elx month from the date of the first publication of this notice, or they shall be forever barred and precluded from any benefit In the estate. • This notice lirst published sth'day of January, 1053. J. B. Fisher, Administrator Route No. 4 fllytlieville, Arkansas James M. Gardner, atty for administrator. r trol" department with powers to en- orce budget allotments. Provisions written Into the appropriation bills themselves will, by force of law. subject the appropriations i o procedures, ami controls administered in the new Department of Finance and Administration. Under the old allotment syslem of Act 214 of 1013 and without legally constituted budget controls, the Comptroller was obliged Io Igi-e approval of nny and all spending so long as it wns wiih- In the amount appropriated by the General Assembly. So. in effect, the only controlling factor in the past has been the amount of money appropriated. Under the new system we expect to save some of this appropriated money by better management and control procedures. World's largest inland sea In the Caspian, which lies between Europe and Asia, and covers an area of nearly no.000 square mites. V ARMING oaont Ixwls W. Collins k hereby < to appear In the Chance'rjr Oowt. Chickasawba District, M4s*Mpp< County, Arkaneai within thirty days, as defendant, to plead and to answer to the cause of action of Ruby Collins Perkins filed tgtlnjt him In said court Case No, 11,186, Upon the failure of aald IxjuU W. Collins so to do, the allegation »nd complaint of Huby Collins Pwklni aealnst him will be taken u confessed . WltncRs my hand as clerk of MM court artd the seal thereof this 1 day of January, 1053. Gerakiino Uston .Clerk By: Cherry Sue Barnei, D, O Held & noy, attorneys for Ruhy Collins Perkins. James M. Gardner .attorney ad lltem. SO UPSET BY 'CHANGE OF LIFE' ^SCREAMED AT MY HUSBAND!" done tor other./ of life" flashes," • Are you going through "change . . sutlcrlng the "hot nervous tension, Irri- lability, weakness and other types of functionally-caused distress of this difficult-time?, What Dollar,' resti Showcdl t«™$ «oc l -o^m^^,£, I ?,° lL U n K"mi[ i ri f ; ri : b : eui ,rL e % rc "n ! <i % wmm (rnpccllvel?) ol tlie coses ttsled. Com. IKnfilM pttte or tlriktng rellofl AltVflJ! uoa'V'Mnt ^? U kn °? Wtmt " "'" do '»' your Not If you haven't eKtierlDjicfid l h f. «"«' or tension, "flushes 5 ™; dim. lability It sooner, brings atsuoh tlrnell Mi'ioro another day has nassrrt ir. i ~ * of meiwlruallou - rind wonderful tool It contain. ttinff <trugst i »cls Ihrougli • m! »i1 M fc rrinin .,««„ („ ,««,,. 406 W. Main Phone 4591 WHITE SALE-LOW CUT PRICES 72x99-IN. LONGWEAR SHEETS Wardf Ihrifly, sturdy muslini now cut-priced for evengreatersavings.l32threadspersquareinch. -i 81 x 99 in. SIZf, 1.75, 81 x 108 in. SIZE, 7.U I • > 42 x 3i in. LONGWEAR PILLOW CASES, now «c SPECIAL-LARGE CANNON TOWELS Big, abtorbenr, barfl-siied buys. Thickly-packed collon terry for tingling rub-downs. Aqua, green- spray, yellow, pink, flamingo, -while. 22x4.4 in. FACE TOWEL, now 32c ; WASHCLOTH, now ISt OUR USUAL 98c QUALITY TOWELS ' REGULAR 2.29 SHEET BLANKETS Man-sized 24x46-in. Hioleah in Cannon brillionli and while. You'll enjoy their fluffy lodness, absorbency and excellent service for many years. FACE TOWEL, now 44c, W*ASHCLOTH, now 22t TREASURE CHEST MUSLIN SHEETS, 61 x 108 in. 145 slurdy Ihreadj per square inch. Cut-priced. TREASURE CHEST MUSIIN PILLOW CASES, 42 x 36 in. 145 threads per square in. Now rsduced. FITTED SHEETS, twin size. Cannon type-130 muslins. Four fitted corners. Regular 2.49. FITTED SHEETS, double site. Cannon type-130 muslins. Fit wilhoul winkles. Regular 2.o9. PLAID BATH TOWELS. Specially priced. Fluffy, medium-weigh! collon terry. 20 x 40 in. CANNON DISH CLOTHS. Slrong, abjorbenl open-weave collon. 15 x 17 in. Reg. 6 lor 59c. KITCHEN TOWELS in decoralor-bright sef. of 3. Assorted woven plaids, jlripes. Reg. 3 for 41. BLEACHED MATTRESS PADS, full .i«. Quilled muslin filled with new collon. Regular 3.98. BLEACHED MATTRESS PADS, twin size. Quilled rtwslin filled wilh new collon. Regular 2.98. MATTRESS COVERS. Unbleached cotton sheeting. Full-width zipper. Full, twin. Regular 3.98. STEVENS TOWELING. All-linen. Bleached whit, crash weave. Goy borders.-,Regulor 4ie. FRINGED BEDSPREADS at our lowest pric* «ver. Coltori chenille in solid colon. Extra wids. Slurdy, selected American cotlon with soft, fluffy 7lRc " aPi C ' eam Y wll ' le - 70 X 95 in. I'/j-lb. weight. / O REGULAR 2.59 Sheet Blankels, 80 x 95 in. 2.27 REGULAR 2.98 Pastel Blankets, 72 x 95 in. 2.67 2 C4 PLAID BLANKETS. Closely woven American cotton. 5 plaid colon. I 'A-\b. weight. Regular 1.89. PEPPERELL BLANKETS. 25% wool, 75% rayon blend. Wide color range. 3 'A-lbs. Regular 7.98. 2 34 304NCH FLOUR SACKS. Opened, laundered, and ironed for a multitude of uses. Regular 25c. 2 54 CACHED MUSLIN. Extra-smooth, long-wearing. liO threads per squars inch. 36 in. Reg. 35c. goc UNBLEACHED MUSLIN. Slurdy, lypc-128 quality. Cream color whitens in wash. 36 in. Reg. 24c. 6 AQc A.C.A. TICKING for modern homes, wardrobes. '" Heavy 8-oz. cotton. Blue-white pattern. Reg. 63c. 3 Q Qc PILLOW TUBING of fine quality Longwear muslin. '"' 132 threads per square inch. 42" wide. Reg. 59c. 3 57 G ° OD IRON PAD ' C °VER SET. Thick pad with non-slip back, muslin cover. Regular 1.79. 2 67 BETTER IR ° N PAD - COVER SET - '/«" pad wilh non-slip back, twill cover. Regufor 2.19. 3 57 BEST ' RON PAD - COVER SET - K°me\ (op, non' ' tlip back, drill cover. Regular 2.98. *)-f f BETTER IRONING BOARD COVER. Sanforized v> ' ™. twill with elastic edge. Regular 89c. O O/ B£ST IRONING BOARD COVER. Sanforized dfill ' ' with bias clastic edge. Regular 98«. 1.97 1.67 6.97 1.34 1.64 2.24 67' 74" L

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