HERALD AND NEWS, Klamath Falls. Ore.
Moiiflav. January 11. 10(50
PAGE FIVE
Income Tax Facts
Editor's Note: This is one in
a scries of articles on federal in
come tax filing. These articles are
based on information provided by
the American Institute of Certified
Public Accountants and the South
ern Oregon Society of Certified
Public Accountants in cooperation
with the Internal Revenue Service.
THE HOME AS
INCOME PRODUCER
If you rent all or part of your
home, the income you receive is
taxable. However, the government
Is only interested in taxing the
amount you gain over and above
your expense for maintaining
the lodging. You can save valuable
tax dollars be being aware of the1
expenses you can deduct from the
rent you receive.
Assume that you own an eight
Sloganeer
Has No Peer;
He Likes Ike
i NEW YORK (AP) He dubs
himself the "sloganeer without
peer" and he doesn't care who
, the next U.S. president will be
' because his business is buttons
', campaign buttons.
;' Buttoneer Emanuel Ress has
: made millions of campaign stick-
', ers, labels and buttons since going
into business in 1947. Probably his
' most famous slogan was "1 Like
i Ike," which he says he created
; long before President Eisenhower
was a candidate.
Ress' latest button baby was un-
veiled Thursday for Vice President
Richard M. Nixon's campaign.
"Nixon Man of Steel," it reads.
"I really like that and so do
the vice president's campaign peo-
pie," said Ress. He said he offered
, the slogan to the Nixon camp after
he learned of the vice president's
v participation in settling the steel
industry dispute.
A presidential election year is
2, always a busy time for Ress and
his slogan-makers. Here are some
i of his latest offerings:
"We need Adlai Badly" or "Two
strikes are not out I'm for Adlai"
(Stevenson); "I'm for Stu, are
you?" (Sen. Stuart Symington);
JJ "Who But Hubert" (Sen. Hum-
phrey); "Back Jack" (Sen. John
F. Kennedy); "LB J All the Way"
(Sen. Lyndon J3. Johnson);
' Nothing Finer than Meyner"
sir (New Jersey Gov. Robert B. Mey
1 tier).
At least one of Ress' candidates
J already has withdrawn from the
race. And what do you do with
J a room full of 'Who Else But
Nelse?" or "Roll With Rock" but
l tons?
"They will be paid for, I'm not
J, worried," said Ress, referring to
New York Gov. Nelson A. Rocke-
feller's withdrawal.
Ress, a 52-year-old native New
, Yorker, got into the business by
accident. He worked as a volun-
teer on the 1940 Wendell Willkie
campaign. And when his job in
a Wall Street brokerage firm
r- ended he was hired by the button-
Z making company which supplied
Wilkie's backers. When he got out
. of the Army he started his own
business.
Ress believes that wearing a
campaign button is "showing a
badge of courage, showing what
ft camp you re in."
What is sloganeer Ress' person-
al politics?
"I don't care who wins," he
said. "My business is buttons."
After a pause, he added: "But I
like Ike."
room house. Since you only need
six rooms, you decide to rent the
other two rooms as a furnished
apartment. You will now have two
kinds of deductible expenses, those
expenses that apply to the house
as a unit, and those expenses that
apply particularly to the apart
ment. As a home owner, you can de
duct any property taxes you may
have to pay. You can also deduct
the interest on a mortgage. This
is true whether you rent part of
the house or not, but there arc
some additional deductions you
can take from the rent you receive
or the two rooms. You can deduct
such items as insurance, repairs.
collection fees, depreciation, and
brokerage commissions. But re
member, these deductible ex
penses must apply directly to the
two rooms you are renting. In oth
er words, if you make repairs
tu the whole house you can only
deduct from rent income the cost
of repairs applicable to the two
rooms being rented.
If you supply any utilities such
as gas or electricity to your tenant
without making a separate charge
you can deduct a portion of the
amount you pay for these utilities
from the rent you receive.
Income from renting all or' a
part of your home should be re-
ported in Schedule G of Form
1040. However, if you perform
any substantial services for your
tenant, then the rent becomes busi
ness income and should be re
ported on Schedule C. For exam
ple, you may be supplying hotel-
type services such as breakfast.
laundry or cleaning. If such is
the case, then you are actually re
ceiving payment for the use of both
your property and your services.
In effect, you are in the hotel
business and must report your in
come as business income.
If you can show that it is neces
sary for you to work at home
as a part of earning your income
from a business, profession, or job,
you may be able to deduct a por
tion of your household expenses
as business expenses.
It may be that you use a room
as an office. You have equipped
it with a desk, a couple of chairs
or other materials for perform
ing your work. You can deduct a
portion ot the following expenses
as legitimate business expendi
tures; depreciation of your home
heat, light, insurance and so on
You can also deduct any portion
of your telephone bill applicable to
your business affairs.
If you happen to be renting your
home from someone else, you can-
net deduct an amount for the
depreciation of the house, but you
can claim a share ot the rent you
pay as a deduction. .
Some of the expenses for your
home :.office are fully deductible.
These are- expenses that relate
exclusively to your business, such
as supplies, postage, depreciation
of your office furniture, and so
on.
Whether you are renting your
home or using part of it as an of
fice, remember, to keep records of
as many of your expenses as
possible. Although you are entitled
to deduct the expenses discussed
in this article, the Internal Reve
nue Service may ask for an ex
planation of some of the items you
deauct. It pays to have whatever
information you can gather to
support the expenses you claim
You can get additional informa
tion on deductible expenses from
the free instruction booklet issued
each year by the Internal Rove
nue Service. A copy will be sent
to you together with your income
tax forms.
Ike Proposal
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Bad Boy Of British Politics Finds Most People Love Him
LONDON (Al')-Ancurin Bevan.
the Peck's bad boy of British poli
tics, has learned in illness that
most everyone loves him after all.
The 62-year-old fighting Social
ist, with his keen sense of irony,
must find some humor in the situ
ation as he stares at the ceiling
in his room at London's Royal
Free Hospital. He underwent a
major stomach operation Dec. 29.
In the hidebound London clubs
where the mere mention of his
name touched off apoplectic rages
there are references now to "Good
old Nye."
Get-well notes keep pouring in
on him from Conservatives as well
as Laboritcs. Men who have
clashed with Bevan for years in
(he House of Commons openly ex
press relief as the medical bulle
tins indicate he is recovering.
Queen Elizabeth II and Prime
Minister Harold Macmillan sent
messages of encouragement and
asked to be kept informed of his
progress.
The fiery Welshman's absence
from the public arcan even
temporarily brought home to po
litical friends and foes alike how
much color and drama he lent to
the scene all these years. Only
Sir Winston Churchill can be com
pared with Bevan in that respect,
and Churchill at 85 now takes no
part in debates in the House of
Commons.
Bevan is still a full blown So
cialist. His beliefs still stir up con
troversy even within the ranks of
his own Labor party. But he is
not regarded as a party rebel any
more.
The left wingers Bevan once led
have launched a new attack on
moderate Hugh Gaitskell's lead
ership of the party.
Bevan has not committed him
self to this movement. On the con
trary, as deputy leader of the par
ty he protected Gaitskell at the
I Laboritcs' convention last Novem
ber by niuking a crafty speech
which headed off a split on doc
trine. Bevan has been the bogey man
of British Conservatives and many
American officials for so long it
is hard to visualize him as a sort
ul senior statesman.
The U.S. Slate Department pro
fessed complete neutrality in the
British national election last au
tumn. And yet, even 3.000 miles
away, it was almost possible to
hear the sighs of relief in Wash
ington when Macmillan's Conserv
atives won.
A Labor victory would have put
Bevan in as foreign secretary,
brought about a complete reap-
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ship between London and Wash
ington and possibly added new
strains lo the NATO alliance.
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"Of course I admire your taste in music, Fattier, only
waltzes aren't music!"
Manville Rites Hit Snag
HOLLYWOOD (UP1) Anita
Roddy- Eden, ninth ex- wife of
Tommy Manville, today faced le
gal problems that threaten her
current marriage for her failure
to establish Nevada residence in
divorcing the playboy four years
ago.
Miss Eden disclosed Friday she
also was threatened with perjury
charges and has been paying
blackmail to someone in New
York for the past two and a half
years in connection with the resi
dence question.
She said her husband, actor
John Sutton, prompted her to
1
I
Basin Briefs
Merrill VFW Auxiliary will spon
sor the showing of a cancer film
at the Merrill Elementary School
on Wednesday, January 13, be
ginning at 7:30 p.m. Dr. Frank E
Trotman will be present to answer
any questions. The public is invit
ed to attend.
Mrs, Garwood Walp of Merrill
was a surprised guest at a coffee
hour held at her home on Thurs
day morning. A dozen neighbors
took the occasion to extend best
wishes to the Walp family who re
cently moved into their newly-constructed
home.
SU Augustine's Altar Society,
Merrill, will have installation of of
ficers and business meeting on
Wednesday, January 13, at the par
ish hall. A potluck luncheon will
begin at 1 p.m.
NEVER AGAIN
LONDON (UPI) George Gos
telow. 24. caught in his first at
tempt at blasting open a safe,
was asked in court Friday if he
would try again.
"Never no more. It was my
first time. I was blown right
across the office," replied Goste-
low.
disclose the legal entanglements
after he intercepted a blackmail
note last month. She said it was
the first he knew of the situation
'We have got to clarify this
thing," Sutton said. "One can t
go around not knowing if one is
married or unmarried. Something
must be decided."
The actor said he planned to
meet with his attorney, Rexford
Eagan, this weekend to decide a
course of action.
"There is only one issue," Mrs
Sutton said, "my marriage to
John. I don't want anything from
Tommy. I'm paying heavily for
what 1 did. But we were trying
to meet a deadline of Sept. 15
1935 lo which Mr. Manville had
agreed for the decree."
Mrs. Sutton said she received
the decree Sept. 13, 1955, but had
been in Hollywood up to Sept. 11
She revealed she had not been in
Reno for more than a week at a
time on any one occasion during
the residence period.
"I've been warned that I can
be extradited to face charges in
Reno over the matter," she said.
Perjury charges are also a pos
sibility if the decree is challenged
she added.
Mrs. Sutton said she was in
Reno last week in an attempt to
"establish quietly a valid resi
dence period" but left Friday
night after talking to Manville
ever the phone for the third time
She said Manville told her "his
New York attorney is attempting
to have the district attorney in
Reno prosecute me on perjury
charges."
Concerning the blackmail pay
ments, the attractive former sing
er said only she had no plans to
seek action against anyone.
Manville told a Los Angeles
newspaper (Herald-Express) in a
phone conversation from New
York his attorneys advised him
he was legally clear to go ahead
with his 11th marriage to a White
Plains, N.Y. waitress, Christina
Erdlen.
Raikal Lake, in Siberia, with a
maximum depth of more than
5.400 feet, is the deepest fresh
water lake in the world.
NR0LLN0W!
WASHINGTON (AP) - About
S'4 billion dollars a record will
be proposed by President Eisen
hower in the next budget for the
Department of Heath, Education
and Welfare.
This was learned Friday from
an informed source.
The President said in his State
of the Union Message Thursday
that his budget for the 1961 fiscal
year, starting in July, would pro
pose higher expenditures in every
major category of health, educa
tion and welfare except one.
The budget is to be submitted to
Congress Jan. 18. For the current
1960 fiscal year, Congress provided
$3,446,227,081 for the department.
The exception, the informed
source said, is federal aid for
schools in areas where there are
large concentrations of federal
employes. Eisenhower reportedly
will renew his plea to Congress
to limit this aid to responsibility
for children of parents who live
and work on federal property and
pay no local .taxes.
lay
1 1 -au
dwt Dance Sjlidi
IWINEMIA IHI0irCIL
KILAMAIrirtl FAIL IL Si
10
NIXON TO SPEAK
I SOUTH BEND, Ind. (UPD-
Vice President Richard M. Nixon
: will receive ,the seventh annual
i Patriotism award from Notre
Dame University's senior class
next month. Nixon also will de
I liver an address at the school's
traditional Washington's birthday
' exercises Feb. 23.
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Impala Sport Coupe -one of Chevy's 18 fresh-minted models for '60.
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Coil springs at all 4 wheels for the
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The pickings couldn't be better. All
18 of Chevrolet's sizzling new models
for '60 are now rolling off the assem
bly lines again in greater numbers
than ever before. Your dealer's
waiting with all the details, including
a long list of pluses that will prove to
you the only way to buy a car for less
than this low-priced Chevy is to buy
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Widest choice of engines and trans
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LOOKING BACK? ... OR LOOKING FORWARD?
' '
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