The Courier News from Blytheville, Arkansas on January 24, 1956 · Page 3
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The Courier News from Blytheville, Arkansas · Page 3

Blytheville, Arkansas
Issue Date:
Tuesday, January 24, 1956
Page 3
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_-. TUESDAY, JANUARY 24, 198« BLTTHETILLE (ARK.)' COWSIER NEWg PAGE THREE Income Tax Primer VII: Small Business, Professional Men Need Separate Return By RICHARD A. MULLENS Written for NBA Service Today's article of the Tax Primer is for the small business or professional man. Such taxpayers are required to report the income or loss from their business or profession on a separate Schedule C of Form 1040. They cannot file on Form 1040A. Schedule C is more complicated and generally raisesjnore^ problems than the rest of For-m 1040, especially if the business requires considerable property In its operations. If your business income is substantial, it is advisable to have ar expert give his personal attention to your tax problems. Many of you, however, have only small businesses, perhaps a hobby or sideline business, with relatively little income or property. If you have kept proper records during the year, you should be able to fill out Schedule C yourself with the help of the official instructions and this article of the Tax Primer, Only persons in business by themselves should use Schedule C. This means the man who owns his own shop or practices a profession by himself. Do not use Schedule C to report income from a partnership or any payments received as an employe. Even thougn you are an emlpoye, you may also operate a separate business on the side. In that case, report your employe income on page 1 of Form 1040 and your business income and expenses on Schedule C. Before filling out Schedule C, read over the information on page 1, of the official instructions under "Business or Profession." Then refer to a copy of Schedule C as you read the following tips: Line 1 calls for your total receipts. This is largely a matter of keeping adequate records throughout the year. If you made any allowances for returned goods, rebates, or discounts, subtract such amounts from your total receipts as indicated on the form. If you produce, buy or sell merchandise, use lines 2 to 9 to compute and deduct the cost of the goods sold. The important thing in thh computation is to show the correct amount of inventory on hand at Jan. 1, 1955, on line 2, and the inventory on hand at Dec. 31. 1955, on line 8. The official instructions on the back of Schedule C tell how to figure inventory. You may have difficulty in determining which expenses you may deduct on the various lines provided. Deductions must meet the following three rccruirements: 1. Expense must be incurred in your trade or business. 2. Expense must not be for a capital item. This means that if you buy something which would ordinarily last more than one year or H yon Improve your property, such expenditure is not deductible except through depreciation spread over the life of the property. 3. The expense must be ordinary and necessary In the carrying on of your business. Do not deduct expenditures from your business for your own personal or family comfort. Deductions are allowed to professional and business men for expenses incurred in attending business conventions in other cities. However, if you take your wife .or . family along as part of a vacation, their expenses cannot be deducted. If it turns out that your deductible expenses exceed your business Income, you will end up with a net loss on line 23 of Schedule C. This loss can be deducted from your other income reported on Form 1040. If the loss exceeds your other income, you have a net operating loss which can be used to offset income in other years. Some taxpayers may have special circumstances which require adjustments to such losses. If you have a loss, It is advisable to check the computation with your tax collector or tax advisor. Page 3 of Schedule C contains spaces for computing the self-employment tax which most business men have to pay. This is the tax that buys social security benefits. For 1955, the tax is three per cenFTB the nrst $4,2UU income. 11 you are also employed and have the social security tax deducted from your wages, the three per cent self-employment tax is applied only if such wages are less than 54,200 and then only on the difference between $4,200 and such wages. If your business income is less than $400, there is no self-employment tax imposed. This tax does not concern you if you had no income from a partnership, business, or profession. And many people with such income are not subject to the tax. A com- plete list o£ people and income not subject to the tax is shown on the back of Schedule C. Note that you may have self-employment income as a member of a partnership. Partnership income itself is computed on a separate return (Form 1065). This is an information return which shows how the partnership income is divided among the partners. Each partner then reports his share of the income on Form 1040 where it becomes part of his taxable income. The self-employment tai will never be more than $126. It will be less if your self-employment income is less than $4,200 or if you had wages from which social security tax was deducted. Be sure to fill out Schedule SB at the bottom of page 3 carefully and completely. This information establishes your rights to valuable social security benefits. Note that only one name is shown on Schedule SE. If both you and your wife alive .self-employment tax to pay, use a separate Schedule C and SE for each. After you have completed the separate Sechdule C, transfer the net profit or loss to line 8, page 1 of Form 1040 and the self-employment tax to line 15 on page 1 of Form 1040. NEXT: There's even a place to report your winnings. Drought in Central Peru Threatening Nations Economy LIMA, Peru (if)—The fertile central zone of Peru, the nation's breadbasket and chief dollar producer, is in the grip of a severe and damaging drought. The dry spell that began with the advent of the Peruvian spring—fall in the United States—has had its crippling economic effect not only on agriculture but on mining as well. The few rivers that course down to the sometimes arid coastal areas are far below their normal levels, or entirely dry. Mining of zinc, lead, copper and vanadium, is almost at a standstill because there is no water to turn the hydroelectric generators. The rivers usually are fed by melting Andean snows and spring rains. They are the life arteries for fertile valleys that produce Peru's Sudan Wonts Arms Deals CAIRO, Egyvt (if} —Newly independent Sudan is joining the Arab countries lining up for possible arms deals with Soviet-bloc nations. But the Sudanese are ready to buy from the West, too. Foreign Minister Mubarak Zar- rog said Sudan has sent arms-shopping missions to Britain, France. India, Pakistan and Czechoslovakia. He told a news conference "nothing definite has been decided yet," but added that his government has no objections to purchasing arms from Communist Czechoslovakia. The Sudanese defense forces total 12,000 men, Zarrog said, representing a doubling in strength in the past two years . Sudan declared its independence Jan. 1 after nearly 57 years of joint British-Egyptian rule. "white gold," the cotton that_yields more dollars to the nation's economy than any other product. Rice, the basic Peruvian food, and sugar also have sufered. Experts blame the drought on an 'unexplained retreat of the Andrean glaciers. Murder Trial Date Set In Pemiscot CARDTHEBSVILLE — The second degree murder trial of O. Z. Johnson, Hayti Negro, is set for Wednesday morning in Pemiscot County Circuit Court. Johnson is charged with killing Fred Pitman, another Negro, at Hayti, April 11, 1954. The court has appointed A. D Abernathy of Steele and John Hayes of Caruthersville as defense attorneys. Trial.was postponed las! June 27 because Johnson didn't have a lawyer to represent him. Representing the state will be Prosecuting Attorney James (Tick) Vickrey of Hayti. Circuit Judge Fred L. Henley of Caruthersville will preside. Hacksaw Rescue EAGAR, Ariz, tirl — For reasons best known to himself, 3-year-old Mulford Bigelow Jr. climbed into a milk can. He got stuck. Frantic efforts of his parents and friends failed to unstick him. His father finally picked up the can — Mulford and all — and took it to a garage. A mechanic cut off the top with a hacksaw and pulled Mulford out. HOMEMAKER — Selected to represent Harrison. High School in the state finals in March, is Ollie Mae Evans, who won the local Betty Crocker contest for American Homemaker of Tomorrow. Ollie Mae is secretary of both her senior class and • the Harrison Ohn.nt.Br of the National Honor Society. She is also active in church and community activities. Family of 5 Die as Fire Bums Home MILFORD, Conn. Vet— Five members if a family burned to death in their home a block from a fire station early today. An 11-year-old son, the only survivor, leaped to safety from his second-story bedroom window. Richard Junsch, barefooted and wearing only pajamas in 20-degree cold, screamed lor his 6-year-old brother Peter to follow him. But the younger boy didn't jump and perished in the blaze. The dead, besides the young son, are Mr. and Mrs. Julian Junsch and Mrs. Junsch's father and mother. All were in their bedrooms and apparently asleep when the fire broke out shortly after midnight. An alarm was telephoned by a neighbor, Mrs. Peter Maizio. Mrs. Maizio, who lives across the street from the two-story, wooden Junsch home, said she was awakened by Richard's screams. "When I looked out the window I saw the house an inferno. Richard was outside screaming for his brother peter to jump. I looked to the window but couldn't see anyone. The flames and smoke were too thick. Then I heard Richard call for his father." Sports Cor To Ik Is New BALTIMORE, Md. Ufl — Members of the Baltimore Local of the Motor Sports Car Assn., like other small car enthusiasts, speak a special jargon that is difficult for the average citizen to understand. A hood is a bonnet, a get-together is a rallye, and words like tachometer and overhead can split the air. For the uninitiated, however, some of the Baltimore speedsters have offered a few handy translations. Here are a few: R.P.M. — Number of repairs per month necessary. M.P.H. — Monthly payments will be heavy. B.H.P. — Basis for the high price of sportscars. F.O.B. — Prices given in Fernch or British currency. New Books Are Added To Library Recent books donated to the Public Library in memoriam were announced today. Followinng, with names of their contributors, is the complete list. In memory of Mrs. Ei-by Appleton: Airs. CarroU Blakemore, Pun Encyclopedia: Harbin; BlytheviUe Duplicate Bridge Club, The Fabulous Originals, Wallace; Mrs. C. B. Lunsford, The Smiling Rebel, Kane; Mrs. S. S. Paterson & Mrs. M. L. Skaller, Indian Paint, Balch & ."" Treasure Mountain: Mrs. Geraldine j 7oj ^ ( Green, Why the Chimes Rang and Other Stories, Alden; Mr., Mrs. Ncal Gesell, Stanley, Invincible Explorer, Benet; Mr., Mrs. Chester In metnofy at Mr*. AHie Pearl Hardy: Mr., Mrs. Harrell Davis, The Four Winds, Bcnty. In memory of Mr. William Crawford Higglnson: Mr., Mrs. Kendall Berry, Edge ol the Sea, Carson; Mr., Mrs. p. J. McCalla, Selected Poems, Coffin. In memory of Mrs. Kittle Lancaster: Mr., Mrs. J. P. McCalla, Down Memory Lane, Murray; In memory of Mr. Arch Linusey: Mr., Mrs. J. F. McCulla, Paul Bunyan and His Men, Benson. In memory of Mrs. Hattie Secoy Little: Mrs. Paul Westbroock, Decorative Arts, Holme, Rathbone, and Frost & Music Hound the Clock. Wolfe. In memory of Mrs. William Word Lowe: Mrs. Perm's Sixth Grade at Sud- How to Draw People, Caldwell, Royal children Today, Herbert; Mr, Mrs. Harry Kirby, Picture History of Great Discoveries, Button; In memoy of Bobby Lee Bratton: Lange school Teachers, Stranger on the Sky, Stoutenberg; Mrs. Charles R. Penn, Rose Bowl Ail- American, Jackson. In memory of Cr. Clarence B. Dowdy: Mrs, Mrs. Joe Shanks, Webster's Biographical Dictionary. In memory of John Q. Elliott: Mrs. Carl Tate & Mrs. Tom Halter, Golden Cloud, Sillman. In memory of Air. August Erdman: Mrs. Jane Welch, Home Owners Complete Guide to Remodeling, Cobb. In memory of Mr. Luther Welch Foster: Mr, Mrs. Raleigh Sylvester, Memoirs of Herbert Hoover v-1; Mr., Mrs. Ernest Roe, Memoirs of Herbert Hoover v-2; Mr. Dick Gettie, Memoirs of Herbert Hoover v-3; Mr, Mrs. F. E. Black How to Live 365 Days a Year, Schindler; Mrs. S. S. Patterson, Captain Explores the South Sea; Sperry & The Mississippi Bubble, Costain; Mr, Mrs. Charles Roe, The First Winchester, Parsons; Mrs. Carl Greene & Mr Mrs. George Green & Carl, Jr.. Thinking Life Through, Sheen & The Genius and the Goddess, Huxley; Mr, Mrs. F. J. McCalla, The Pursuit of Happiness, Ma elver; Mr. Mrs. Tom A. Little, High Moment, Brockway; Mr, Mrs. Joe P. pride, Heroes, Kings, and Men, Paul; Mr, Mrs. Harry A. Haines, Dictionary of Mind, Matter and Moral, Russell; Geraldine Greene, This I Believe, Murraw; Mr, Mrs. Marvin Nunn, Jr. Liberators and Heroes ol South America; Lansing. In memory of Mr. Lendennie Fowler: Mrs. Lendennie Fowler, Sr, Squire for King Arthur, Stone The Life of Saint Patrick Reynolds. In memory ot Mrs. Llllie pearl McDearman: Miss Irene Crowder & Miss Eunice Brogdon, Indians, Settlers and Pioneers, UreU. In memory of'Mrs. Ralph L. Odley: Mrs. C. B. Lunsford, The Song of Ruth, Slaughter, Mr., Mrs. Louis Greene & Mrs The Junior Cookbook, Better Homes and Garden; Mrs. John Evans. American Annual of Christmas Literature and Art 955, Mr., Mrs. Max Logan, The Answer is God, Davis: Mr., Mrs. Chester Caldwell, The Greek Myths, Graves; Judge, Mrs. H. G. Partlow, Heavens to Betsy Funk; Mr., Mrs. C. W. Garrigan, Poems of Childhood, Field. In memory of Mrs. H. L. Pophan; Mr., Mrs. Joe Shanks, Mozart, Davenport. In memory of Mr. Hayivood Riddle Partlow: Mr., Mrs. Edgar P. Borum, Fall- Trial, Morris; Mr., Mrs. Oscar Fendler, The Life of Rudyard Kipling, Garrington. In Memory of Mrs. Joseph P. Pride, Sr.: Mr., Mrs. Floyd L. Harralson, How to Live with,Cats, Gay., Dr., Mrs. M. L. Skaller & Joy, Highway Design and Construction, Bruce, Mrs. Joe Ferguson, Caesar's War Commentary & The Tiger at the gate, Fry; Mr., Mrs. Kendall Berry, The Genius and the Goddess, Huxley. In memory of Cecil Mick Kobertson: Mrs. C. B. Lunsford, Pastry Cook Book, O'Connor. In memory of Mrs. James Thedford: Mr., Mrs. C. M. Smart & Mr., Mrs. Lloyd Sticktnon, The letters ol Richard Wagner, Burk. In memory of Mrs. F. E. Utley, Sr.: Ml'., Mrs. F. G. Reichel, A Treasury of Christmas Songs, Simon: Mrs. Lillian Frank, Living Stories of Famous Hymns, Haurian; Mrs. Welch Foster, Better Homes and Garden Junior Cook Book; Mr., Mrs. Max Logan, A Night to Re- member, Lord; Dr., Mrs. Hunter C. Sims, The World We Live In, Life; The Rupert Crafton Family, The Story of Painting for Young People, Janson; Mr, Mrs. Max O. Usrey, Anita Colby's Beauty Book, Colby. In memory of Rev. Joseph Allen Webb: Mr, Mrs. J. G. Barnes, Religions of America, Rosten. In memory of Mrs. Carl Zone: Mr, Mrs. Marion Williams, Flower Decorations, Spry; Mr, Mm. Chester Caldwell, Betty Cornell's Teen-age Popularity Guide. NAMED FOR, ARTISTS Charles W. Peale, noted American artist named all of his children after famous artists. His son, Rembrandt, is especially famous for his portrait of George Washington. Negro HOC Group Elects Rosie Hill has been elected president of the Negro Home Demonstration County Council. Other officers incluldc Vernlda Hill, vice president; Mary Liza Salberry, secretary; Gertrude Beachen, recording secretary; Settle Winsdom, treasurer; Alice Mil, chaplain, and Beatrice Overton, reporter. Mary M. WingfieW is assistant agent. First regular shipment of mift by rail was in 1841, from Orannge county, New York, to New Yorfc City. Pul your savings to Work in a co venieiit, dividend- com pounding savings account now. Our more liberal earnings added to your account twice yearly will roll up the financial reserve von should have in record time. Current Dividend Rote 3% Blytheville Federal Savings & Loan Association 200 N. 2nd St. Phone 3-4553 Own Your Own Home Yes, now it is possible for you to own your own home for a reasonable price. Delta Home Investment Company is making that dream come true for the people of this area. These homes are complete with all fixtures including bathroom, kitchen sinks and hot water heater. They have been completely remodeled inside and out. The size? Two, three, or four bedrooms depending upon your family's needs. Another feature is the fact that you need NO DOWN PAYMENT, if you own your own lot. All you pay are the moving and closing costs which ordinarily will not exceed $300. And your monthly payments are less than what you are probably now paying for rent. We urge you to come out and look over the opportunity of a lifetime. No obligation. Our office is open from 7:00 a.m. to 6:00 p.m. Delta Home Investment Co. VIEW THE OUTSTANDING PERFORMANCE OF THE MOSTPOWERfUL TRACTOR— IN ITS FIELD . . . the new international Utility. 300 WITH UNEXCELLED DURABILITY, VERSATILITY AND ECONOMY. The OPERATION of a COMPLETE LINE of LIGHT INDUSTRIAL EQUIPMENT INCLUDING Baclilioe6, oLoacLrt, (DIatLt, H'/oweM, and the Clectralt Ifloiitited ll 4-00 on a WILL BE DEMONSTRATED WITH THE 1-300 ON THURSDAY AND FRIDAY, January 26th and 27th From 9 a.m. to 5 p.m. JUST SOUTH OF BLYTHEVILLE ON HIGHWAY 61 IN THE FIELD LOCATED NEXT TO THE JOHNSON BLOCK COMPANY BE SURE TO SEE THE TRACTOR THAT WILL DO MORE WORK FOR LESS COST s c ,,j Use the Internal iona!' 3^0 lit iSity tractor on dozens of industrki 'gobs for bigger savings! OPEN WEEKDAYS AND SUNDAY 7 A.M. to 6 P.M. Blythevillt, Arkansas Air BOM Road Phone 3-3369 • LIFTING • LOADING • HAULINO • ORADINO • LEVEUNO • MOWINO • DIOCINO POST HOLES • SPRAYING • PLOWING • DISKING • MATIRIM HANDLINa • SWIIPINa • 1AWWO • DUSTtHO • PUMPINO WATERS 100-1 •< Job! Kg Coit-Curllni P«crtur«n • Over 1,000 extra, built-in pounds over similar type tractor* assures both sure-footed traction and stamina for th« LONd PULL I • Torque Amplifier drive matches speed and power to the job ... boosts pull-poww- 45% on tho go without Jobs get eheopor by the dozen. With the 300 Utility do more work on more jobs at lower cost per job -lower equipment investment. One 300 Utility with proper equipment will dig ... load ... fill... level.. . mow . . . complete job after job in your strictest requirements . . . and do them faster! This powerful 300 Utility is one tractor that really produces when the going gets toughest... setting new standards in the utility tractor field. Over 39 drawbar h.p Torque Amplifier drivo ... New Hydra-Touch hydraulic system ... Faafc- Hitch ... all big cost-cutting features that mean bigger dividend*. We'd like to show you with a demonstration on. your job why your best investment is the 300 Utility. Stop in or call, today! shitting geare ... and there's ten speeds forward, two reverse. • Switch equipment in seconds with FaoMCttoh ... .hurt Back-Hitch-And Go to Workl • New Hydra-Touch hydraulic system for fast, c«flc* control of th««, two-way hydraulic oylind«M. Delta Implements, Inc. 312 S. Second St. "Service Holds Our Trade" Phone 3-6863

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