Image provided by: University of Oregon Libraries; Eugene, OR
About Eugene register-guard. (Eugene, Or.) 1930-1983 | View Entire Issue (March 21, 1962)
u Income Tax Primpr-6 Compare Itemized, Standard Deductions EUGENE REGISTER-GUARD, Wed., March 21, 1962 ; Page 7B Thu it the sixth of eight Brttolej in the Newspaper Enterprise Assn. Income Tax Primer, for readers who want more information than is supplied in the of teal instructions. By RICHARD A. MULLENS Written for NEA Servio tvery taxpayer has a choice of subtracting from his income tuner: 1. His deductible items uch as charitable contri butions, state and local property, income, and sales taxes, interest paid on in debtedness, medical ex penses over a certain mini mum, and casualty losses nd thefts. OR 2. The so-called standard deduction, 10 per cent of income under $10,000. Qs & As Q I am required to entertain customers of my employer as a part of my official duties, but no reimbursement is made for such entertainment expenses in curred at the home city of the company. My supervisor says the entertainment is required but recognition for the expendi tures is taken into account in fixing my salary. Are these ex penses out of my own pocket deductable? Yes. Expenses required to be incurred by an employe in the performance of his official duties are deductible by him. Q As sales manager, I often entertain and present small gifts to sales employes under my supervision. May I deduct them even though the company does not require that I make these expenditures? My job and my commissions and bonuses depend on the employes doing good selling job. A Yes. If there is a direct relationship between the em ployes' efficiency and efforts and your job and particularly your earnings, courts have per mitted such deductions, even though the expenses were not required by the employer. Q I am a traveling salesman, on commission, and although I try to keep all stubs, canceled checks, credit card vouchers, and receipts, I make cash payments on trips for things like tolls, in dependent motels and restau rants and tips which I cannot sub stantiate. Do I lose the deduc tion for the lack of these rec cords? A No. Substantiation should be kept where possible, but a daily diary or trip book of ex penses has been accepted as sufficient records as long as en tries were made about at the time the business expenses were paid. The smart taxpayer always compares the total of his item ized deductions with the stand ard deduction and uses which ever is the larger amount. This and the next two articles of the primer will help you make the right choice. Contributions to recognized charities, churches, schools, and hospitals are deductible if you itemize deductions. A pledge in 1961 to make a contribution in 1962 is not deductible in 1961. Only the amount actually paid during the year is counted. A contribution may be in money or property but not in the form of services. A blood donation is not deductible be cause it is considered a service. Most taxes except federal in come and excise taxes are de ductible. Do not overlook state and local sales taxes and gaso line taxes. Since it is almost impossible to keep a record of your pur chases subject to sales or gaso line taxes, the Internal Reve nue Service will not question a reasonable estimate of such taxes. In fact, it has issued tables showing reasonable de ductions for sales taxes. Ask your IRS office for the table for your state. Property taxes are also de ductible. For many homeown ers, the property taxes and in terest on the mortgage will ex ceed the standard deduction. Most interest you pay on your indebtedness is deductible. (If you borrow money to buy tax- IBamiilkirmiiptt IFniiipininttMir to be sold at PUBLIC ATCTrnciDM the balance of the Paramount Stock of Springfield, Oregon All fine new furniture consisting of Bedroom Sets, Living Room Sets, Occasional Furniture, Mattresses and Box Springs, Lamps, Rockers, Rollaway beds and thousands of items not mentioned. Sole starts Thursday, March 22nd at 1:30 and 7:30 and continues Twice Daily through Saturday the 24th. at 15 Coburg Road . . . By the Bridge exempt securities or a single premium life insurance policy, interest on that indebtedness is not deductible.) If you have not kept a record of the inter est on your home mortgage, ask the bank or wherever you pay the loan to give you the total interest paid in 1961. One disadvantage of itemiz ing deductions should be kept in mind. The Internal Revenue Service has the right to ask you to prove any deductions you claim. Canceled checks or re ceipts for large items should be retained for at least 3 years to show if requested. Q I pay the mortgage and taxes on a house owned by my mother. May I deduct the in terest and taxes? - A No. Such payments are on another person's property and are not deductible by you. Q I paid $100 In 1961 as lo cal assessment by the city for sidewalks in front of my house. Is that deductible as taxes? A No. Such payments are not considered taxes. They are an improvement to your prop erty which should increase its value. Q May I estimate the state gasoline tax by starting with the total mileage driven in 1961 divided by the number of miles per gallon my car gets and mul tiplying the result by the state tax per gallon? A Yes. Remember NOT to include the federal tax on gas oline, however. IF YOU ITEMIZE DEDUCTIONS, YOU CAN TAKE: Contributions to recog nized charities. Shite and locat gasoline tOMS. Interest on your morN jj C ' WHT MOT Largest Selection of NURSERY STOCK CAMELLIAS 25 varieties to choose from . . . '1 7Cc 10 ,u A Each RHODODENDRONS and up THESE PLANTS AHE NOT FROM A FROST DAMAGE AREA I j Hundreds of plants ready to move now . priced from 300 to 500 Mast of them with bloom buds! Buy Now While Selection is Complete! & 3? FRUIT -SHADE and FLOWERING TREES 2.50 See our large selection of choice material specially priced to move now! FRUIT TREES Each 1.25 t0 OLDER BEARING SIZE TREES - 3.50 to 7.50 DWARF TREES 2.00 to 3.00 BEARING SIZE.-3.50 to 5.00 FLOWERING TREES 1.50 i0 5.00 SHADE TREES 2.50 .ndup Rose Rushes 1.50 t0 3.50 e.ch Tree Roses 4.50 , 6.00 Mc, You can always buy better and have a larger selection at . . . WOODRUFF NURSERY WM. H. RAPER OPEN SUNDAYS 1270 RIVER ROAD LANDSCAPE ESTIMATES Phone DI 5-1481 0) V v KMWiviYK ML. rm III fi v Hi in i 1 w ii ii m we have the tires for you . . . MID at WM UY WOW AVI and Li MASTIC n On.. JVl 1 YirfD for k i with at I o,-"eS re- that year'i ALL TIRES MOUNTED FREE '9ns sold if 13. 14. IS. Ifi.lMrH INCH II Just Say, Charge TAKE MOUTHS TO LESS TUTYPE RETREADS TIRES TIRE p'??' be mLj BIG I TRADE-IN jj Allowance Tor your old tires m SUB i XYrWU AND GOOD PAY Every new tire has a ROAD HAZARD GUARANTEE of from 12 to 36 MONTHS S Honored in all STATES and CANADA 11 2-M y5 1 1 ''?'(- Vn?r tyi5f'ffi I Every new Ftre$tone tire u iRANTIID defects in workman ship ana materials for in lifs of the original tread. 1. Against normal road hazards (except repairable punctures) encoun tered in everyday pasaenger ear use for the number of months specified. He pin made without charge, rplaeementA prorated on tread naaea on lint pncea time of. adjustment. Reader's Digest SUBSCRIBERS we have list of winners In Firestone's 500,000 PRIZE CONTEST come In. ..bring your coupon BURPEEAN A GIANT ZINNIA SEEDS BEE Comt and 6ET 'EM I L Brake Service I19 We return brakes U "Wean! new" adjustment. NYLON f TRUCK j TIRES I FARM and COMMERCIAL 6:50-16 6-ply rafing 19 slut UX aa recapsMWp tka ii.ee witkoit lra.bi polyethylene LAUNDRY BASKET 11th & Pearl Eugene OPEN THURSDAY and FRIDAY 9 P.M.
