Muncie Evening Press from Muncie, Indiana • Page 5

MUNCIE EVENING PRESS, WEDNESDAY, DECEMBER 27, 1978 PAGE 5 THE FAMILY CIRCL'S. By Bii Ke. Temperatures Tax breaks can help small businesses (15th in a series) Cut your own taxes do it, and that could cost anywhere from $300 to $600. There are some do-it-yourself books out on setting up a corporation without a lawyer, but it can be a tricky task. Beware the 'Hobby Loss' Rule When you start a small business, you have to be careful about running into the IRS "hobby loss" rule.

This means you can't turn a hobby, such as raising dogs, into a business just to get tax deductions. But if you start out really trying to make a profit by advertising your product, you can effectively show that you have a bona fide business venture and not a hobby. Once you have set up your small business, you can deduct tjie costs of maintaining a room in your home including the prorata share for depreciation, taxes, utilities, cleaning, etc. but the room has to be used "regularly and exclusively" for business. You're not allowed to use the den or kitchen part-time for business.

However, if you sell a product, you can store your inventory any place that's convenient even though the place is not used exclusively for business and then deduct the pro-rata share of all expenses incurred in maintaining that storage space. by King Features Syndicate Inc. an account of where you stand. Any income earned from your new venture can go into the checking account, and that makes filling out the forms much simpler at tax time. Forming a sub-chapter corporation, has one drawback: you probably should hire a lawyer to School board reorganizes staff High Low Albuquerque ....50 22 Asheville 57 26 Atlanta 59 30 Billings .22 13 Birmingham ....57 31 Boston 39 29 70 58 Buffalo .25 18 Charleston 65 44 Charlotte 62 30 Chicago 22 7 Cleveland 29 18 Columbus 32 21 Dallas 52 43 Denver 30 13 Des Moines .31 10 Detroit 27 16 Duluth 12 -10 El Paso 57 28 Hartford 35 17 Houston 66 52 Indianapolis 32 19 Jackson, Miss.

.61 38 Kansas City 38 20 Las 32 Little Rock 45 27 Los Angeles 63 44 Louisville 41 26 Memphis 49 27 Miami Beach ...80 67 Milwaukee 20 10 Minn 19 -6 Nashville 48 22 New Orleans ....61 45 New York 42 32 Okla. City 47 22 Omaha 26 13 Phil .42 29 Phoenix 68 43 Pittsburgh 32 17 Portland, ..35 17 Portland, Ore. ..39 24 Providence 37 24 Richmond 58 31 St. Louis 32 15 Salt Lake 37 20 San Antonio 64 46 San Fran 46 32 Seattle 43 32 Spokane 22 18 Tampa 68 55 Washington 48 32 Wichita 44 19 By PETER WEAVER Many of us dream of the day we can tell off the boss and move into our own small business. Helping this dream along are the tax breaks that ease the financial burden of setting up a small business.

But you have to know what you're doing. The Internal Revenue Service frowns on deductions for start-up costs of a new business venture. IRS considers the expenses incurred in starting up or looking into a new business the same as expenses encountered when you look for a new job in a different field: You are allowed to deduct job-seeking expenses for employment in a similar field, but not for a whole new line of work. How to Avoid IRS Objections According to Paul F. Galvin, a small-business tax specialist with the accounting firm Touche Ross Co.

in Boston, one way to get around IRS objections to start-up costs is to form a sub-chapter corporation. You can declare that one corporate objective is to look into new lines of business in whatever field interests you. Then, you can have the corporation pay for the exploratory and start-up expenses. Naturally, you have to put some investment capital into the corporation so you can be reimbursed in tax-deductible dollars. The best way to go about the start-up process is to open a small checking account that's completely separate from your personal account.

Keep a diary of all your expenses (lunches with prospective clinets, exploratory interviews, books on the subject, travel and transportation costs, supplies, stamps, telephone, everything). Every month, have your "corporation" reimburse you for current expenses. It's a neat way to back up all your claims and keep board was to expire in the spring. Another vacancy on the school board, resulting from the resignation of Jack Donati, who was elected county auditor, will be filled after Bruns takes office. Board members indicated they felt they should wait for Bruns' input into the selection of the new board member.

The board unanimously adopted the name of South View Elementary School for the new $4 million elementary school being constructed on the Wilson Middle School site. The name was the first choice of the selection committee. John Wean, committee chairman, told the board that a drive to seek possible names from the community had resulted in 73 suggestions. The board also approved a $200 mini-grant for the purchase of 15 pocket calculators which will be used by upper elementary math students at North View Elementary School. A reorganization of staff responsibilities was the result of Tuesday's meeting of Muncie Community Schools board of trustees.

The position of administrative assistant for personnel services was eliminated. The post is currently held by William Lyons who will retire at the end of January, 1979, after 14 years with the school corporation. Donald Slauter, school superintendent, said Lyon's duties will be assumed by Fred Burt, currently administrative assistant for extended services. Other administrative changes include the naming of John Parkinson, presently supervisor of industrial arts, to the position of assistant principal of the Muncie Area Career Center. Parkinson is presently supervisor of industrial arts.

The industrial arts supervisory post went to Joan McTurnan, who is already supervisor of home economics. Phyllis Ashley, elementary supervisor, and Malcolm Julian, supervisor of language arts, were named directors of instruction at the elementary and secondary levels, respectively. According to Slauter, the two directors will be responsible for writing federal projects. Willimiene Hofher, director of public relations, will oversee the school corporation's Clothing Bank, which was another of Lyon's duties. William DuChane, director of special education, will now report to assistant superintendents, Sam Abram on the secondary level, and John Wean, on the element level.

In other business, the board announced that Bill Bruns will be sworn in at noon Jan. 2 to complete the unfinished term of Hurley Goodall on the board. Goodall resigned after his recent election to the state legislature. Bruns was elected last May. to succeed Goodall whose second term on the MIL DOT II "78" Irliuv "Those oren't unmentionables.

Grandma They're bra and panties." Snow, rain replace dry Friday forecast By United Press International Earlier forecasts for mostly dry weather were scrubbed today by the National Weather Service, which inserted snow and rain into Friday's outlook. Much colder temperatures should develop over the weekend. The forecast said some light snow could develop in northwestern Indiana Thursday afternoon and a storm system would cover the state by Friday. The weather service said rain or snow was possible in northern Indiana Friday, with rain expected in central and southern counties. Highs today headed only into the 20s to lower 30s but readings Thursday may hit the 20s north, 30s central and lower 40s extreme south.

Lows tonight were forecast for the teens and 20s. Highs should be in the 30s and 40s Friday, the 30s Saturday but only the teens and 20s Sunday as cold Canadian air invades the state. Lows should dip into the teens by early Saturday and range from just 5 to 15 above Sunday morning. Sfcrfe drafts rules on free textbooks LAFAYETTE (UPI) State School Superintendent Harold Negley says his office is drafting written standards of eligibility for free textbooks for school children from needy families that will apply statewide. In documents filed Tuesday in U.S.

District Court at Lafayette, Negley said the standards should be ready by the middle of March and other procedures prepared by local school officials will be finished by the end of March. Negley's plan is contained in a memorandum for "Due Process Procedures" to provide for the uniform administration of a law calling for free textbooks for children whose families are unable to pay rental fees. Earlier this month. Federal Judge Jesse Eschbach issued an order directing Negley to see that procedures for carrying out the law were administered the same in all parts of the state. His decision came in a suit filed originally by the Legal Services Program of Northern Indiana on the situation in Tippecanoe County but which was expanded to include the entire state.

Negley, in a brief filed through the Indiana Attorney General's office, said the written standards of eligibility would be ready by the middle of March. He also said he would require annual notice of the law to be given to parents, Including an outline of how to apply for free textbooks. All school systems and school boards will develop witten procedures for notifying parents their application has been denied, with the plans to be filed with Negley's office by March 30, he said. In addition, all school corporations are to report to Negley on their efforts to comply with the order by April 13, Negley's brief said. Defendants in the still-continuing court action are the Indiana State Board of Education and Negley.

The memorandum contained in Negley's brief was mailed to all public school superintendents in the state. Negley's proposed procedures are still subject to approval of Eschbach. We Have Moved Hundreds Of New Items In From The Warehouse. ess HHt HI PRICES GOOD THRU 1 2-24-78 (f ass cnnrrtrTr. iiiii ir DUUo 1 1 1 Ml Inver House Scotch ft99 bid Old Grand Dd86 681 Calvert Extra 750 ML 1.751 mm STROH'S 1 2-pk.

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