Oakland Tribune from Oakland, California on January 22, 1959 · 11
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Oakland Tribune from Oakland, California · 11

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Oakland, California
Issue Date:
Thursday, January 22, 1959
Page:
11
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SAVING ON INCOME TAX I; How Investors, People Prepare i Thit article desls with in-veitort in general and retired people In particular. Many people can itop fillna federal income tax returns when they have retired, be-esuse no return la required from person who ii 65 or over and had less than $1,200 income, not including Social Security or Railroad Retirement Act benefit, which don't count But when retired penom re required to file, their returns can be quite complicated. First, let's look at some provisions that affect people with Investments, whether they are retired or not. DIVIDEND CREDIT Anyone who owns stocks needs to know about the dividend exclusion and credit. This applies .only to dividends from corporations which art aubject to United States corporate income tax; It does not include dividends from savings and loan ' associations, credit unions for foreign corporations. It does not apply to the California return. Your first $30 of qualified dividends is tax free, and should be subtracted from your total dividends in a special schedule on the tax form. Husband and wife are each en titled to exclude the first $50 of dividends from stocks each own. If dividends are received from stocks which are com munity property, then each spouse may exclude $50. On joint return a maximum of $100 may be excluded. If you received dividends beyond this amount, you are entitled to a "dividends re ceived credit" This credit is ' per cent of the remaining divi dends, but it cannot be more than 4 per cent of your taxable Income, or more than the mount of tax otherwise due. This credit is not just a deduc tion from your taxable income it is actually subtracted from your tax. For example, if you received . .$550 in dividends, you can ex elude $50 from your taxable income, and subtract 4 per cent of $500 or $20 from the tax you would otherwise have- to pay. If you filed a joint return with your wife and you re ceived $550 in dividends which Was community income, you could exclude $50 or a total of $100 K excluded which, means you would report only $450 as taxable dividends. In addition you tan subtract 4 per cent of , this $450, or $18 from the tax you would otherwise have to CAPITAL GAINS, LOSSES ; If you made a profit on the ale Of stocks, bonds or other property you must report it as a capital gain on a special fdrm. The same form is used for capital' losses Detailed instructions are printed on the back of this form. Generally speaking, your profit on the sale of an asset which you held more than six months is taxed at halt the. rate of ordinary in come and never more than 25 per cent regardless of the tax bracket you are in. In California state returns your capital gains are subject to tax on a somewhat differ ent basis. Instead of using six months holding , period as basis for reducing the amount of capital gains taxable, for California returns you 'report as gain or loss the' following portions One hundred per cent of the gains or losses if property sold Was held less than one year, i. 'Eighty per cent of the gains loses if property sold was held over one yesi, but. less wan two years, r . Sixty per .cent of the gains Retired Returns This is the seventh of a series of articles on federal and California income tax filing. This information ha$ been provided by the Committee on Taxation of the California Society of Certified Public Accountanti in cooperation ttnth the American Institute of Certified Public Accountants. or losses if property sold was held over two years, but less than five years. Forty per cent of the gains or losses if property sold was held over five years, but -leas than 10 years. Thirty per cent of the sains or losses- if property, sold was held over 10 years. BOND INTEREST Interest from state' and mu nicipal bonds is tax exempt on your federal return, but any gain or loss from selling these bonds or United States bonds must be included in your federal and California tax returns, as a capital gain or loss. However, losses from redemption of United Ststes series G bonds are reported as ordinary (fully deductible) losses on the federal return, but are not de- ductable in the California re turn. Interest on United States and California bonds is ' exempt from California personal in come tax. There is a provision for "re tirement income credit," which may reduce your federal tax on pensions and investment income in some circumstances. There is no similar credit al lowed on California state tax returns. You may be entitled to this credit if you are able to answer "yes" to all four of these questions: 1 Did you (or your de ceased husband or wife) earn more than $600 in each of any 10 calendar years before 1958? 2 Did you receive less than $1,200 in tax exempt pensions or annuities in 1958? 3 If you are under 85, did you earn less than $2,100 in 1958? or 4 If you are at least 85 and under 72, did you earn less than $2,400 in 1958? (When you are 72 or over, you can have any amount of earned income without affect ing your retirement income credit.) COMMUNITY PROPERTY fh. ' answering :, the above questions, the taxpayer is CI Ifornia should remember that California is a community property state. Therefore, one half of the income earned by one a. spouse, as well as one half of : the spouse's Social Se curity benefits and pensions at tributable to his earnings, are treated as the taxpayers in come. The space for computing your retirement income credit takes up most of the last page of the tax form. It is not too difficult to work out if you read the in structions carefully." The most any individual tax payer can save from this pro vision is $240, but husband and wife can each save this amount if they are both eligible. In California the wife is often eligible even though she did not work, because she reports one-half of her husband's earn ings, as her share of commun 4ty income. If you have an annuity from life, insurance, pension, plan, or other source, the portion which you may receive tax-free, for federal income tax purposes, depends on your life expectancy. The Internal Revenue Service will furnish actuarial tables upon request to help you figure this out . In California state income tax returns you must report 3 per cent of the original cost of the annuity as income, and treat the remainder of annuity Income received as a reduction of the cost of the annuity un til the entire cost has been re covered. Thereafter all amounts received are taxable income. This is different from the federal income tax method of reporting explained above The instructions that come with your tax forms give further information. Help is also available from the Internal Revenue Service, which urges you to consult a properly qual ified advisor if you need outside assistance. Next article; Savings en Cat lforola Income Taxes. JAPAN STUDY CENTER SET UPATU.C. i BERKELEY, Jan. 22 - The University of California has established a research unit to study Japanese history, economics, politics and sociology. The unit, known as tha Center for Japanese Studies, is administered by the U.C. Institute of International Studies. The Japanese research program, under the chairmanship of Donald H. Shlvely, an associate professor of oriental languages, is supported by Ford Foundation funds. Susumu Nakamura, lecturer in oriental languages, went to Jspan for the fall semester to study Buddhism in the medieval period under sponsorship of the center. , Other areas under study include attitudes toward ar ranged marriage, by Gorge A. De Vos, lecturer Jn social welfare; national Income, by Henry Rosovsky, aaaistant pro feasor of economics, and the labor movement by Robert A. Scalapino, professor of politi cal science. Two Fire Exits Urged to Avert Portable Classroom Tragedies A second door to provide an emergency exit for Oakland s portable classrooms has been recommended by the Buildings and Grounds Committee of the Board of Education and the Citixens School Construc tion Committee. At yesterday's joint committee meeting, members voted to have a second exit built in 32 portables soon to be constructed at Lockwood-IIigh-lands and Casllemont High School. Business Manager Spencer D. Benbow said placing two doors in the remaining 600 portables used by the school system could be considered along with other budget requests from year to year. Dr. Benbow said the extra exit was recommended by the City Fire Marshal even though the present single door meets all state and city requirements But in view of recent fire tragedies, committee members approved the changes which would cost about $100 for each portable. In other matters: 1 Bids were approved on King Junior High School and Horace Mann Elementary School. Low bidder on the junior high project was Mar vin E. Collins with a bid of $1,394,000 -$190,410 below the budget estimate. The figure includes a snack bar, landscaping and sprinkling systems in addition to the base bid. The Horace Mann bid was awarded E. H. Moore and Sons for $479,000 $21,210 above the budget estimate. A lower bid of $438,000 was rejected be cause it arrived too late. t Architect E. D. Cerruti's estimate on the Melrose Elementary School was accepted for $357,314. This is 4.9 per cent above the budget estimate. The project calls for a multi purpose room, library, offices and eight classrooms. X The Dec. 31 budgetary control report shows that $1, 018,143.43 has been saved in the projects underway in the $40,000,000 school building pro gram. Oakland Tribune, Thursday, Jan. 22, 1959 11 Dunked Water Skier Seeks $25,000 In Injury Suit Against Boat Firm A Walnut Creek woman who assertedly was ducked while water skiing has filed suit charging the motor of the tow ing boat was defective and asking for $25,000 damages for sllrged personal injuries. The auit was filed in Alameda County Superior Court on behalf of Mrs. Angela Maniac, 1049 West Holly St, Walnut Creek, and is directed against Andy McNair and Andy's Boat Center, Berkeley, from whom the motor allegedly was purchased. The suit charges defective sparkplugs in the motor caused it to stop functioning suddenly DIAMONDS 20 ti 60 Oltcinnt TO QUALITY CASH OR IAST PAYMINT1 Mlllir'iDliraindCinUr 1703 TetefaaJi Av.,0k. throwing Mrs. Manise violently into the water, causing her severe nervous shock, severe muscle damage and rope burns of the left arm resulting In a permanent scar. mm, I! 1724 Broadway GL 2-2731 Aw Urn fitmtUm U.S. Offers Income Tax Help At Offices in 4 Eastbay Cities federal taxpayer assistance furnished by qualified Interna "Revenue agents will be sivailablis in : 'four Eastbay cities to aid citizens in the filing of their .1958, income tax returns; it was announced to-' day- : A spokesman for the Internal Revenue Service said1 self-help wjll , again be stressed during the 1959 filing period, whereby the taxpayer completes as much. of. the return as possible before asking for aid. ; : V' . ', The four Eastbay offices of assistance will supplement the service With telephone aid to -enable taxpayers with problems to call for a quick an- "gwttt. Taxpayers were urged to have all of their 1958 financial records in hand and to have when seeking assistance. 'I'hnco nsmiirintf neeiaronoA it was pointed out, will get faster service by filing early rilher "than- waiting until the late stages of the filing period Oakland The Main Post Of fice, , 13th Ttnd Alice ' Streets, Room 207, from 8:15 a.m. to S p.m Mondays through.. Fri days. v- , Richmond The Post Office Building, 11th and Nevin Streets, Mondays only, 8:15 a.m. through 6 p.m. Berkeley The Internal Revenue Office in . the Tioga Building, 2020 Milvia St., Room 150. , This service, is available on Mondays only from 8:15 a.m. to 11:30 a.m., and from 12:30 p.m. to 8 p.m. San Leandro The Internal Revenue Office in the American Trust Building, 1280 E. 14th St., Room 202. Here, too, assistance will be on Mondays only from 8:19 am. Jo 11:30 a.m., and from 12:30 p.m.' to 6 p.m. ' If YOU HAD A NECK At IONO AS THIS HUOW ANO HAO SORE THROAT DUE TO COLDS vtisi IS shop Male's MONDAY and Fill AY nights 'til 9 PARK FREE 10th md Clay Uth and Clay 12th and Jefferson (1 hour with validation) 1 La1v; - ' Jo & 'T f j h-.'-": ' i 'J I M t-V "rising ' if";' lr,F: : pays to buy. at Male's IsJdDW! special purchase! proof you save fashion dollars at Hale's spring -fresh sMirtts all regularly 12.95 to 19.95! fine flannels, mohair loop tweeds! exciting muted plaids, fresh solids! knife pleats, unpressed pleats! full-cut flares, seat-lined slims, easy-to-wear wraps! prettiest pastels, beautiful brights and dark basic colors! many, many styles ... , sizes 10-18! hurry . . , , don't miss this skirt bonanza! . Htlt't Sportiwttt, t$fi flttr . m, 1 1, ninar"'"" ..2j&.J ; all year 'round youll love the drip-dry eae of Gail ByrorCs screen printed proof of savings! escciting reg. 6.98 spring white orlon -41- .' (" ' I'.' 98 sale! Versatile season spanner! Flattering shirtwaist style, roll-up sleeves, jewel buttons. No cleaning bills . V, just suds it, let it drip 7 dry ; ., . and forget the iron! Retains size and shape always. For now ... for any season ahead, choose yours at Hale's in turquoise, red or lilac with white. Sizes 12-20, 14Vt-24Vi. Mail orders, please state second color choice! Halt's Daylimt Drtttts, second flour jr,f Mail your order or phone TE 2-7200 Fill and send all mail orders to Hale's, 1015 Washington, Oakland 7. Add 4 sales tax, plus 31 shipping charges, if beyond United Parcel delivery area. . 1-16-TR-22-36-37 Quantify- Item I Size Color Price I namt Breath-taking new styles never before at this low, low price! Plunge, bateau, and collar necklines. All with three-quarter sleeves. Many styles, some one-of-a-kinds, in sizes medium and large. Rush to Hale's . . . choose your new bulky now at terrific savings! Halt's Stnel Floor Sweattn WW i when facilities are jammed. address. City t Assistance may be obtained stat i we iouowing sastDay iocs tions: xowb ewent wutvs w " charoe cash eharga-matlc

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