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
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1958 VOLKSWAGEN
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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
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BY A SPECIAL "TWISTING" PROCESS,
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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!
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