Independent from Long Beach, California on February 24, 1969 · Page 19
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Independent from Long Beach, California · Page 19

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Long Beach, California
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Monday, February 24, 1969
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Page 19
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YOUR MONEY'S WORTH Save on Income Taxes: Commuting and Moving RUSSIAN-EXPORT DISCS ARE PILING UP THE RUBLES By SYLVIA PORTER (In collaboration with the Research Institute of America) If you are among the millions who have to drive a car to work in order to carry along heavy or bulky iools or equipment, court decisions are shedding in creasing light for you on hmv much (if your d r i v i n g expenses you can deduct. A general tax rule is thai you cannot deduct commuting expenses -- but there are exceptions to this rule. The Treasury itself allows you, an employe, to deduct the cost of your car commuting expenses if you use t h e car to carry your tools, etc.. and if ynti wouldn't have used tlv. 1 car otherwise. Sixth in a Scries Some higher courts give the taxpayer an even bet- ler break. II you would have used your car to commute even though you did not have to carry heavy tools, etc.. the courts have nevertheless let you deduct a portion of your reasonable driving expenses which is allocable to transporting your tools. Last year, the Tax Court answered the question of how you figure the portion of costs allocable to carrying tools in the following situation: WHERE Ai\ INDIVIDUAL carried along a bag of tools weighing '.','. pounds and measuring 2-1" X IS" X fi", the court a r b i t r a r i l y decided t h a i he could deduct one-third of his car commuting expenses because that was th? portion attributable to tarrying the tools. If your tools and equipment arc even bulkier or heavier, t h e court may possibly allow a deduction for an even higher proportion of your car commuting expenses. liven if you don't carry any tools or equipment, you may be able to deduct commuting expenses if you have to travel by car to a remote place of work. The courts have made another exception to the general rule against deducting commuting expenses by allowing deductions for car commuting expenses to remote areas such as a logging area 20 to 40 miles from the nearest town, or a desert ·! miles from the nearest habitable area. Last year, one coun allowed a person who had to travel 27 miles from Bingham City. L'tah. to his plant, to deduct his commuting expenses It explained thai the plant was in a "remote" area because the nearest possible home site to the plant was a small town of 500 persons Jll miles from the plant and this town had no adequate water or sewage facilities. There also was im public transportation from Bingham City to the p l a n t . Since many employes travel 2;V;0 miles each w.n to work, the key to a possible commuting expense deduction is whether the area in which the place of business is located is isolated enough from other possible residential areas and from public transportation to he "remote." If it is, you might want to deduct your car commuting expenses, although you may have to fight the Treasury in court on the deduction. IF YOU ARE among the huge numbers of employes who shifted to a new job location in 1968, you may find that because of a court decision, you owe more tax than you expected. Here's why: Employers who shift employes or hire new ones who have to move, often pay all t h e i r direct moving expenses to t h e new location plus reimbursing them for post-arrival ine.ils and temporary lodgings u n t i l they can move into a permanent home. The lax law makes n clear thai the employe is not taxable if the employer reimburses him for. or pays the direct expenses. Hut the Treasury insists t h a t the pust- arrival reimbursements are income 10 ihe employe. The Tax Coun said th*; Treasury was wrong but an appeals court reversed and supported the Treasury. It held that reimbursements to you, an employe, for post-arrival moving expenses are in the nature of cash bonuses intended to induce you to make the switch. And you cannot deduct these actual expenses because they are nondeductible personal expenses. Tuesday: Investment expenses, interest. MOSCOW '.-? - Russian records sold in America .ire ringing c.ts'i regi*- ;-?.·· :v|N f o r Sn'!-': export · Ui.M-s i.!' Mi.-li Soviet v i r - :.:osus as vi'.ili:'.:-'. David Otstrakh have helped push total sales in a two-year export drive past 050.000. American buyers have responded enthusiastic 1 .illy to such albums as the Moscow PiiUiunr.unic. Orchestra playing " T h e i ' . i i - :nen Raiie: Sui'.o." a : ranged by Soviet compo-- er Rodion Shchedrin. I'nder .1 licet'..-ti:g ;:rangetnen: with Capitol Records. Stl Soviet musical recordings have been re leased in America since rebnury HIIS7. Retail sales have totaled about Si million, a recent Soviet announcement said. OFFICIALS of the Sovi et record tinn Melodiya were especially pleased w i t h sales of D m i t r i Shos i a k o v i c h 's symphonic poem "The Execution of Stephen Raxin." played hv It ; i ; e s and -45,000 as p a r : of :i Mil-order c.'uh While official figures , n pro-it are a secret, i n d u s - t r y -;';::vcs *.;y Cap:"' 1 ' pays ti-.e Soviets :'rum 51.000 to $10.000 pe: i f cording, plus about 10 per cent of retail sales. Soviet exporters may have received around S500.000 m '.'»· lat two yea;s Bernard baber. .1 I . S businessman \vhi helped e: up ;!ie Soviet a r r a n g e - ment with t'.ipitol avoir. i\ .-.iw Mr--. Vck.iteim.1 !· ur:sev;t. :.ie Soviet v ,1!- T i .i!0 m i n i s t e r . "SMK WAS \ P I A happy w i t h the sales." hf said L i t e r , "and she said t h i s was good for c u l t u r a l contacts, since music is the universal language. Luher, who is president of Celebrity Concert Corp.. a Beverly Hills. Calif., f i r m , added t h a t "obviously, music is one field where :iieie is no p o l i t i c s L ;ber .-aid he iiad s u j copies in Bested new tape recorv ::] for :he Soviets ' ::\axe and -t-rul :o Capi;^: tor com 1 ?'':!;:.: irv..j recorj^ ·',,.- t U ^ | :;y;r-;.;/i' These include n^trakii and SyatosKu Ru liter playing li:M:v::s So::.i:a- .md C.ennady Kn/hdev ver.skv c INDEPENDENT (AM) PRESS.TELERAM i 3«a BMCft. caii'. -Monday. ·;cw ivjr:'i;r::iance of Teh?:- :.-w .11 on t'ni. he added- FACE TO FACE INCOME TAX HELP HOME OR OFFICE 1SY DAY · ANY HOUR Machine-Tool Orders l)o\ui \.Y. Times Service NEW YORK -- Net new orders for machine tools declined in January from the high levels achieved as the fourth quarter ended, but the tot a l was still well above the level of a year before. The National Machine Tool Builders Association Admen Have Their Image Problem By JOHN CUNNIFF NEW YORK I/Pi -- Professionally skilled at convincing the public of the u t i l i t y or value or pleasure 10 be found in thousands of products, today's advertising people seem, nevertheless, to have d i f f i c u l t y selling themselves. Criticism of i n d u s t r y is abundant today. The insurers, automakers, tire manufacturers, drug companies, television producers, food packers and so on have been sharply criticized, sometimes u n f a i r l y . Much of the criticism comes from a public that has grown much more aware of marketing practices through congressional investigations and Ralph Nader and their own u n h a p p y experiences with products w i t h b e l t e r images t h a n performance. WHAT MAKES the ad people especially uncomfortable is that they share in the criticism of any industry, because it is they who publicize the products and to a degree m a i n t a i n the image. The presenl criticism, however, seems to be more direct. Rather than being hurt by fallout from attacks on other industries, the advertisers now seem to feel they, themselves, are under attack. Speaking in Washington before the I Hh a n n u a l Conference on Government Affairs, Walter Terry, chairman of the American Advertising Federation, commented: "In spite of the many positive steps we and other advertising associations have taken, our critics seem to m u l t i p l y and become more vocal." DURING t h e pasl year, said Terry, "advertising itself stood accused of escalating violence in the United States, of encour aging industrial monopoly, or promoting racism, or encouraging the use of lethal weapons among children and finally, of controlling the outcome of a national election." The list of complaints, just or unjust, could go on. for criticism seems to build upon criticism: A d - vertising promotes cigarette smoking that could be injurious to health; it promotes a u t o m o b i l e speed, with consequences to health even more conclusive. Terry scored some of the charges and warned of the increasing willingness of government In regulate and control the advertis- · ing industry. THE REASON, said Ter- ry, was a "gross misunderstanding" of advertising's role in society, a reason that could hardly be more basic and hardly less understandable, considering that it is advertising's role, among many, to teach. A couple of years ago a lop adman, Andrew Kershaw, chairman of Ogilvy Mather (Canada), expressed his feelings in a lalk to newsmen of various media. Some critics, he said, "rest their case on moral grounds," and he emphasized these words that follow: "I have always failed to understand why persuasion in politics, religion or philosophy i;; moral and persuasion in selling immoral." Aside from the difficult chore of trying to change opinions on such funda- m e n t a l issues, of defending its role as a mover of goods and maintaining its image, the industry is concerned about involvement from another area: taxes. Advertising is taxed in at least two states. New Mexico applied i t s t a x more than 30 years ago. Iowa has a relatively new :i per cent ad lax, to be paid by the person or group placing the ad. The Iowa tax was upheld as constitutional three months ago by the Iowa Supreme Court in a decision that some admen fear might lead to similar taxes in other states by revenue-hungry 1e g i s I a- tures. The ad people, therefore, seem to have then- work cut out for them. It will involve sound, convincing advertising of advertising's role in society. disclosed t h a t net new orders in the latest month came to SI27.75 million, down from SM9.7 million (revised) in December and $177.8 m i l l i o n in November. The December-io-Janu- ary decline was U.7 per cent. However, (he January total was s t i l l :!1 percent over ill? level of January. IflfiS. Eastman Sets Earnings Mark N E W Y O R K - - Sales and earnings of the Eastman Kodak Company last year surpassed all pie vious records in t h e U n i t ed States and abroad, t h e a n n u a l report from Rochester, N.Y. h e a d q u a r t e r s disclosed Sunday. Net earnings world wide in IflliS increased 7 per cem to 5;i75,370,000 or $2..T.! a share f i o i n 8352,257,000 or $2.lfl a share the year before. Co n so 1 id a t ed sales wo r d wi d e for 1!)HS climbed I I per cent to $2,644,064,000 f r o m $2,:i9I,542,0()0 in 1067. THE DAILY INVESTOR U K . r H A R I , K S H A R M ) \ V It is common for brokers and traders, to speak of the wild fluctuations in commodity prices. When soybeans move from S2.2f to $2.50 per bushel, it is regarded as a lantc move. Yet. a move in Ihe price of a common stock from 2 '/i lo 2i/ 2 per share is hardly noticed. The real difference is not the size of the move itself, but the size of the move in relation to the required margin. If a trader buys one contract: of soybeans (S.OOO bushels) at $2.25 per bushel, he musl advance $700 margin. The $700 controls $11,250 worth of soybeans. The commodity trader is not considered lo have borrowed any money; hence, he pays no interest charges. If soybeans advance In $2., r )0 per bushel, lie has a 25 cents per bushel gross profit, or $1,250, which is 178 per cent rate of return on his S700 margin. THIS PROCESS, known as leverage, provides not only Ihe tremendous potential but also the risk in the commodity markcls. Leverage can work both ways. For this reason, the I racier should not expect In engage in a game w i t h enormous profit potential without considerable risk. On Ihe other hand, he should not consider himself extremely successful if he achieves a 20 per cent a n n u a l r e t u r n on his c a p i t a l in view of the risk be runs. Q. If 1 am trading 5,000 bushels of May Wheat, what is the risk of having the wheat actually delivered? A. There is simply no basis for this fear in the futures markets. If the trader is short, he cannot ever receive delivery of any commodity. He must simply buy 5,000 bushels of May Wheat lo cover his shorl position some- t i m e before Ihe contract expires, usually eight business days before Ihe end of the contract month. If the trader is long May Wheat, he may get out of his position any- t i m e prior to May 1 with no risk of delivery. If he holds his position into the delivery month, he may receive notice of delivery anytime from May 1 on, which he merely re-delivers for a very nominal fee of $22. Delivery in the commodity futures m a r - kets can be easily avoided and. in any case, is seldom a major problem. /;' you /im'i tiny tjiios- /iniis aboitl the commodity markets, please write Or. Charles Harlow, partner. Ventura Research Co.. in cnre of Ibis newspaper. HOj Pine Avenue, Long Bectdt, Calif, Simple Matter to Change Stocks to Joint Ownership Ry W I L L I A M A. DOYLE Q. What must we do to get stocks registered in joint ownership -- in my name and my wife's name? The certificates tire now in my wife's name alone. We don't want to go through a broker and pay commissions. A. This can be accomplished by a few simple steps. Changing the registered ownership of stocks is really an easy thing. Here's what your wife has lo do: Sign each c e r t i f i c a t e in the place provided on ihr back, exactly as her name is printed on t h e from. Have her signature "guaranteed" by either a brokerage f i r m or a commercial bank. The broker or bank might charge a small .service fee for this. But. there's no reason to pay a full commission. Send the certificates, by regislered mail, to the transfer agent (usually a big bank, whose name is printed on the front of the rertifU'ate) wilh instructions to issue new c e r t i f i - cales in j o i n t ownership. The most common form of co-ownership is your name and you wife's name "as joint t e n a n t s , w i t h righl of survivorship, and not as t e n a n t s in common." THE TRANSFER agent will tell vou what small t r a n s f e r taxes, if any. are due. After your wife pays t h a t tax (never more than 2 ' . cents a share, for a t r a n s f e r t h a t does not involve a sale) the new certificates will be issued and sent to you. But. before you e v e n ' think about putting those stocks in joint ownership, I urge you to lalk things over with a good lawyer or accountant. If this column accomplishes nothing else, it will perform a real service if I can get across t h e following point: Put I in;; "everything in j o i n t " is nui ihe cure-all for fi'.mily financial prob Icms. as so m a n y people seem t" think it is. THIS IS a mighty complicated subject -- involving income taxes, capital- gains taxes, federal estate and state inheritance taxes. Joint ownership can be right for some families and dead wrong for o t h - ers. Q. My husband and I own about 1,400 shares of Axe Science Corp., a mutual fund. We'll be looking for income when he retires in seven years. In your opinion, should we redeem our mutual fund shares and put the money in a 5 per cent savings account, or should we hold on to what we have? SUICIDE PREVENTION CENTER (Memorial Hospital Dial: H-E-L-P N-O-W WESTERN TAX SERVICE 455 E Ocsan Blvd.. l.B. 435-4550 - 439-9549 II Busy Coil: 595-2353 ( D o y l 595-2351 ( N i g h l l ASffllMEMYF ASSOCIATESJ.U 1 W1SII TO ADVISE THAT 01.KNEW NAME IS SEClKITimMP. . A ALL-ELECTRIC/ BUILDING AWARD i l l l o c a U M l a l 4105 E. BROADWAY L01NGBEACH, CAUF. 4;M-6701 ALSO AT 13820 Bay Blvd.,!Soul ll.Mch, Calif. A. I would cast a strong vote to hang on to your m u t u a l f u n d investment -- at least u n t i l y o u r husband's retirement t i m e . This way your money will have more t i m e to work for you and grow. Now, 5 per cent interest (available from many savings institutions) is a nice safe thing -- in terms of tixed dollar income. But. with inflation eating away the purchasing power of the dollar, that amount of fixed income barely keeps you even. You could end up w i t h a much bigger r e t i r e m e n t nes] egg hy keeping your m u t u a l fund shares -which h o p e f u l l y w i l l grow in value. THERE'S always the danger that your fund or any other fund might go into a tailspin, but Axe Science Corp. has a good lung-term performance record and has more than protected its shareholders against the declining value of the dollar. Even last year, when it d i d n ' t du nearly as well as it had in the past, i t s t o t a l performance (gain in share value, plus dividend income) amounted to 'i.'-l pei cent. 'Ihat'.i counted as r e l a t i v e l y poor performance. It's belter, however, t h a n you would have clone by putting your money in a savings account. WESTERN-SOUTHERN LIFE 81st A N N U A L STATEMENT DECEMBER 31,1968 ASSETS Cash on Hand and in Banb $ 35,019,805.10 United States Government Bono: 120.315,537.32 Municipal and Corporation Bonds 24V;59,788.71 Stocks 10,939,310.21 Mortgage Loans--Guaranteed-- FHA VA 984,992,770.39 Mortgage Loans--Other ! 14,602,180.42 Home Office and Regional Office Properties 25,890,497.55 Ground Rants ,,..,, 10,748,386.32 Policy Loans 64,940,089.26 Accrued Interest and Rents 9,463,126.78 Net Due and Deferred Premiums, etc 63.887,641.27 TOTAL $1,685,259,133.33 INSURANCE IN FORCE ... $8,642,750,722.00 LIABILITIES Statutory Pofcy Rs:etve; $1,443,378,618.00 Policy Proceeds and Dividends Left w^b Company 25.487,200.80 Policyholders Dividends Payable in 1969 '. ,, 17,279,205.91 Policy Benefits Currently Outstanding 6,037,320.50 Premiums and Interest- Paid in Advancs 7,455,074.67 Accrued Taxes Payable in 1969 _ 5,337,581.49 Funds Held in Trust. _ 16,119,645.23 Other Liabilities 14,420,785.07 Security and Mortgage Loan Reserves 16,738,810.92 SURPLUS 133,004,890.74 TOTAL $ | ,685,259,133.33 SURPLUS AND SECURITY RESERVES .. .$149,743,701.64 WESTERN-SOUTHERN LIFE INSURANCE COMPANY CINCINNATI, OHIO · A MUTUAL COMPANY · WILLIAM C. SAFFORO, PRESIDENT

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