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About The news-review. (Roseburg, Or.) 1948-1994 | View Entire Issue (Nov. 21, 1957)
Itemizing Tax Deductions Before January 1 Way Offer Tax-Saving Opportunity lt!Z!fuam$ (This it thi second in teritt of four articles en federal in. come taxes. Thi irticltt ri based en information provided by the American Institute of Certified Public Accounting end the Oregon Society of Ctr. tified Public Accounting.) By waiting until after the first of the year to decide whether to item ize your deductions or take tiie standard 10 per cent deduction, you run the risk of losing your greatest tax-saving opportunity. When you are forced to take the standard deduction because your deductible expenses are less than 10 per cent of your adjusted gross income, you litcrallv "waste" your expenses for tax purposes. Don't let this happen to vou every year. Plan your expense outlays so that you go over the optional 10 per cent deduction occasional ly. This can be done bv pyramid ing two years of actual expenses into one. For example, 'assume that you expect to have an adjusted gross income of S7.000 for this year and actual deductible expenses o f about $600 or $100 less than what you would be entitled to de duct if you took the standard 10 per cent deduction. Not included in your actual expense estimate, however, is $250 in state taxes and $100 in home-loan interest charges that will have to be paid early in 1958 but which, can be paid In advance. If you act quickly and pay these expenses before Dec. 31, you can bring your total allowable deduc tions for 1957 up to $950. By it emizing deductions this year and taking the standard deduction next year. when your actual ex penses should be somewhat less because of what you have pre paid your total deductions for both years will be approximatley $1,650. Had you taken the stand ard 10 per cent deduction in both years, the total would be only about $1,400. A salaried worker who has dif ficulty finding enough deductions to i make ' itemization worthwhile might consider carrying the py ramid plan one step" further, lie could set up a system of "lending" and "borrowing" year-end items that would make it possible for him to throw three years of de ductible expenses into one. A Three-Year Pyramid You can begin your own three year pyramid by postponing pay ment on as much 1957 deductible expense as possible and planning to take the standard deduction on this year's tax return. The ex penses you have postponed or "loaned" will increase your 1958 deductions, and in the final months of 195ft you can "borrow" from 1959 by speeding - up the pay ment of deductible items. As a result of your pyramiding. you maximize your. expenses for 1958 (when you should be able to I beat the standard deduction by itemizing), and minimize your de ductible items for 1957 and 1959. ! (when you will take the standard i deduction and waste your actual expenses). The general rule to follow when you are trying to make the most of your actual ex penses is: Keep outlays as low as possible in the years in which you take the standard deduction and pyramid them as much as BIRTHS VI IN A 1958 VOLKSWAGEN BOYD'S jpt flame tne' (SBm Boydie" SM WSS5?S Contest Rules on Special : VKlJSsJi' Bind on Every Boyd's , 50 OTHER BIG PRIZES! Coffee Can IT'S EASY TO WIN THESE BIG PRIZES 1958 VOLKSWAGEN . 25 1951 PMice PORTABLE TV SETS! 25 5S FMico TRANSISTOR RADIOS! BOYD'S NOW PAYS NOttPIOFIT ORGANIZATIONS 10c FOR CACH i 1 IB. UOi Se FOR EACH 1 IB. LID. FOR Df TAILS ON THIS PROFIT ABLE LID REDEMPTION OFFER WRITE BOYD COFFEE CO., P. Oi BOX Deugles Community Hospitil PROUDFIT To Mr. and Mrs. C. E. Proudfit, 633 NE Winchester, Roseburg, Nov. 10, a daughter, Nancy Kay; weight 5 pounds 10a ounces. PETERSON To Mr. and Mrs. G. W. Peterson, 1307 Walnut, Rose burg, Nov. 10, a son, David Rich ard; weight 2 pounds 9'j ounces. ADAMS To Mr and Mrs.'R. E. Adams, 475 NE Houselcy St., Koseburg, Nov. 10, a daughter, Ruth Ann; weight 6 pounds 12 ounces. GILKISO.M To Mr. and Mrs. J. R. Gilkison. Rt. 1 Box 465, Suth- erlin, Nov. 12, a son, Jack Allen; wcignt 8 pounds 1 ounce. POOLE To Mr. and Mrs. D. E. I'oole, 3010 NE Johnson St., Roseburg, Nov. 12, a daughter, Teresa Gay; weight 3 pounds 3 ounces. STOVALL To Mr. and Mrs. N. L. Stovall, PO Box 621, Sulher lin, Nov. 12, a son, David Nor man; weight 6 pounds 13 ounces. McBRIDE To Mr. and Mrs. J. N. McBride, 948 W. Elaine Dr., Roseburg, Nov. 13, a son, James Christofer; weight 7 pounds l3i ounces. DAVIS To Sir. and Mrs. R. E. Davis, 1 183 Fairmont, Rose burg, Nov. 15, a son, Marvin El ton; weight 6 pounds 3 ounces. REIN To Mr. and Mrs. B. E. Rein, 1213 NE Klamath St., Rose burg, Nov. 15, a son, Jeffrey Bruce; weight 5 pounds 9Hi ounces. HALL To Mr. and Mrs. C. F. Hall, Rt. 4 Box 338A, Roseburg, Nov. 15, a son, Michael James; weight 7 pounds l'a ounces. ROBINSON To Mr. and Mrs. H. W. Robinson, Tenmile, Nov. 17, a daughter. Linda Marie; weight 6 pounds 8' ounces. JOHNSON To Mr. and .Mrs. I. E. Johnson, 833 SE Mosher, Nov. 17, a son, Jack Lee Jr.; weight 7 pounds 6 ounces. 1IYRE To Mr. and Mrs. P. E. llyre, 244 NE Rifle Range Rd., Roseburg, Nov. 17, a son, Stephen Leroy; weight 7 pounds 8 ounces. SPRAGUE To Mr. and Mrs. O. N. Sprague. 244$ SW Lander Ave., Roseburg, Nov. 17, a daugh ter, Cheryl Ann; weight 7 pounds o'.a ounces. PRESTON To Mr. and Mrs. W. W. Preston, Box 77, Dillard, Nov. 17, a daughter, Betty Louise; weight. 7 pounds 4' a ounces. ANDERSON To Mr. and Mrs. J. A. Anderson, PO Box 814, Oak land, Nov. 18, a daughter, Jill Marie; weight 7 pounds 1 ounce. 1 . 1 Three -Jf Q Three Tillamook ages . . . three Tillamook tastes! Now mildly agrd . . . medium aged. ..or well aged. ..but always full, Ml flavored natural Cheddar at every age to satisfy every taste. Available separately... or treat your family to all three in the handy new Tillamook Family Pak. Dependably the same every time you buy it. lamook means reacfieese dged n3fut3lly possible in the years in , which you itemize expenses. Pyramid Medical Expenses Most taxpayers need look no further than their family medical bills lo find a deductible expense that can be pyramided to gain a welcomed tax advantage. The sec tion of the tax law governing the deductibility of medical expenses states that unless you or your wife will be 65 years old by Jan. 1, 1958, you may deduct only those medical expenses for 1957 in ex cess of 3 per cent of your gross income. This means that medical ex penses paid during the year can be completely wasted taxwise if they don't exceed the 3 per cent min imum requirement. A taxpayer with a $6,000 income whose med ical expenses average just below $180 each year can never claim a tax deduction for this expense. However, every dollar of this med ical expense which he can move from 1958 to 1937 or defer from 1957 to 1958 can be itemized and deducted on his tax return to the extent they total more than $180. i Speeding -up Medical Care If you find that you are near or over the 3 per cent minimum and you are going to itemize de ductions this year, you should pay as many of your medical bills as possible before Dec. 31. And since medical expenses can he de ducted only in the year paid (but cannot be prepaid), you might even consider speeding-up and paying for dental work, eye examinations and general physical check-ups your family will otherwise be hav ing in the early, part of 1958. Taxpayers who had low medical expenses for 1957 should reverse this procedure, postponing the pay ment of their year-end medical bills until after the first of the year. In this way, they may be able to exceed the minimum re quirement in 1958 and to gain a benefit from a payment that would otherwise be lost on their 1957 return. Plan Premium Payments The premiums you pay on your health, accident and hospital in surance policies can be deducted as a medical, expense so plan give you greater flexibility in the shifting of medical deductions from one year to the next, you might arrange to haw these pre miums fall due in January. Here is a good point to remem ber when you are trying to de cide how to handle your ear-end medical expenses: once you are over the 3 per cent minimum re quirement, the government, in I eLfeet, will pay from 20 lo 91 per cent of your excess medical bills, 1 depending upon which tax brack et you are in for the year. (Ntxt article: More tix-saving I deductions and how to time them.) Highway Traffic Delays Reported SALEM The Oregon High way Commission's weekly road report listed the following restric tions because of construction: John Day Highway Heavy con struction between 8 and 14 miles south of Fossil; possible 5-minute delay. Columbia River Highway Con struction Tide Creek to Goble; some minor delays. L'mpqua Highway Heavy con struction 8 miles east of Roeds Dort: some minor delays along 4 1 miles of widening. Sherman Highway Construction for 6 miles south of Grass Valley; possible minor delay. Pacific Highway Slide removal 13 miles south of Cottage Grove; 4 lane traffic channeled lo 2 lanes but no delay. Silelz Secondary Highway Short detour around slido t mile south of Silelz. (D-Pa) Wednesday urged lower taxes on small business as a means of reducing small business failures. Clark said he is confident that some action will be taken in the coming session of Congress to pro vide small business relief. The senator's remarks were made in a statement submitted In a hearing before the Houso Select Committee on Small Business. Clark now is vacationing in Italy. Upon his return to the United States Dec. 4, Clark will begin Senate subcommittee hear ings on housing in Portland, Maine, Philadelphia and Pitts burgh. Clark's statement Wednesday noted that the federal tax rate in business now is 30 per cent of all taxable income and anothct 22 per cent of income in excess of $25,000. "This seems to me to be back ward." he said. "1 would like to see the lower portions of income taxed at the lower rate, with ad justments in the .upper bracket or brackets of the graduated scale as may be necessary to avoid loss of federal revenue." Congress took no action on similar proposals at the last ses sion. Clark said that in addition, small business must have access to new channels of credit and But he emphasized that althouch credit of all kinds is necessary, "loans can never take the place of earnings as a source fur busi ness expansion." GOOD.' wA PmH msmi IBf NOW WILLIAMS' BREAD IS MADE BY A SPECIAL "TWISTING" PROCESS, AND SELECT HIGHER PROTEIN FLOUR, TO GIVE YOU Here's the story of the Special Twisting Process Two pieces ol enriched dough are shaped into long soft rolls. fii.iu s..iuujij .1 ne. 0 The soft rolls are then gently twisted together... tightening the air cells... squeeiing the air pockets. The twisted dough is placed in the pan for rising... this tightens the twist... seals in the freshness and flavor. SI ; t',T Q Slice at left is made of twisted dough... texture cells are completely sealed off. Ordinary slice on right per mits drying air to pass through the unsealed tex ture cells. l in mm The Williams' bakers have done it again! That's right! Williams' Bread is now made by a special twilling prorewi Ihnf gently and carefully folds in all the flavor and fresh less. and makes the texture softer and smoother than ver Wfore. NEW Williams' Bread is really the greatest! H's so fresh. ..so fragrant ...so smooth! NKW William 3rend is also made wilh select HIGHER PROTEIN FLOUR, to give you MORE RICH. WHEATY FLA VOR... MORE NOURISHMENT... MORE FOOD VALUE! Look for the bread in the bright gingham wrapiier, and Iry NEW Williams' Bread!
