Income Tax Primer (1 ) - Exemptions
By CHARLES A. MULLENS
and
CHARLES W. SCHOENEMAN
Written for
Newspaper Enterprisr Assn.
As of Jan. 1, 13. even' busi
ncssman, professional man and1
salesman who wants to continue!
deducting the cost of entertaining
an associate, client, or customer
or the cost of travel, meals and
lodging on the road with have a
lot of adjusting to do.
Because of the 12 tax law.
not only are the rules regarding
the types of such travel and en
tertainment tightened, but for the
first time, record - keeping
other substantiation will be a legal
necessity.
For example, if the business
man does not keep proper rec
ords or have someone else willinf
and able to testify to the amount
time and place of the entertain
ment expense, then the Internal
Hevenue Service can disallow
deduction.
A laler income tax primer ar
ticle will discuss these record
keeping rules in detail. But re
member that unless you have the
proper records starting Jan. 1. no
matter how directly an entertain
ALWAYS RECORD ENTERTAINMENT, TRAVEL EXPENSES.
Note Expenditures as You Go.
Business Gifts Over $25 Won't Be
Deductible, With Few Exceptions.
4Do-Gooc!er' Daughter
Hands Mania Problem
By ANN LANDERS
Dear Ann Landers: This is
delicate problem and I need to
know how to handle it or should
it be handled at
all?
Our 12-ycar-old
daughter is a
born do-gooder
always look
ing for someone
fto help. Yester
day Mary came
home from
school and told me about a new
girl in her room w ho is very nice.
The new girl's father brings her to
school every morning in a beat-up
truck. Mary said. "Her Daddy
wears overalls so T know he
doesn't work in an office or any
thing like that."
The new girl has very bad
teeth. Even the ones in front arc
decayed. When she smiles she
always puts her hand up to her
mouth which indicates she is self
conscious about it.
My husband is a dentist. Mary
has asked her dad if he will fix
the gill's teeth without pay. My
husband said he would. Now. how
do we go about it? Should I
call the girl's mother? Should
my daughter ask the girl
directly? Of should we nnl gel
involved? - MARY'S MOTHER
Bear Mnthrr: Speak to the
teacher. Ask her to contact the
new girl's mother and give her
the information. The child nrrd
not know It's "a gift." And. in
ridentally, you are raising an ad
mirable daughter.
Dear Ann Landers: My husband
is a photo-nut. He spends hun
dreds of dollars on equipment,
chemicals, paper, film and so on.
His photos are terrific, too.
My beef is this: At every family
gathering land-we are a mighty
gathering family' he shoots dozens
of pictures. Then he slaves for
hours making prints. The rela
tives can well afford to pay 50
cents apiece for these wonderful
5x7 and 8x10 pictures. But my
hard-headed husband says. "No.
I wouldn't think of charging them.
I do this for fun."
Kun, my eye. He does it with
money that could be better spent
buying nicer clothing for his fam
ily or fixing up our house. Why
should he be so balky about ask-
ing the relatives to pay for
prints? I think he is a sucker.
What do vou think? HYPO HAR
RIET. THE LENSHOUND'S
WIFE
Dear Wife: The lenshound
sounds like a sweet guy who en
joys his hobby, so whv don't vou
keep .vour nose nut of his hydro.
quinone? If he tried to sell his
pictures it would no longer be a
hobby it would be a business.
The relatives ought to buy him
a little gift for his time and
trouble. ... or belter still, they
should get together and buy him
a nig gift for his years of gener
oslty.
Dear Ann Landers: Please tell
me if it is socially correct for a
woman to help a man put on his
coat someone who is not her
husband, that is. I did this re
cently for a guest in our home. His
wife gave me a withering look
My husband laler told me I had
done something equivalent to eat
ing peas off a knife.
The next day I a.skcd a close
friend whether or not this was
wrong and she said it was a bad
social boner because I had put
myself in a class with a servant.
I am still not 100 per cent
convinced. Can vou settle this
please? UNCOMFORTABLE.
Dear I'ncnmfrrtahle: Good man
ners Is common sense and con
sideration for others. If you can
help a man by holding his coat.
I say go ahead and do it.
Confidential to View From the
Audience: Women who appear on
a public platform should sit with
their legs crossed at the ankle
rather than at the knee. Short.
slim skirts adds to the problem.
A sweater, wrap or a slole across
the knees can be helpful.
Arc vour parents too strict?
You can benefit from the expe
rience of thousands of teenagers
if you write (or Ann Landers'
booklet. "How To Live With Your
Parents." enclosing with your re
quest 21) cents in coin and a long.
clf-addrcssed, stamped envelope.
Ann Landers will be glad to
help you w ith your problems. Send
them to her in care of this news
paper enclosing a stamped, self-addre'-ed
envelope.
ment expense relates to your
business, vou mav be denied a de
duction.
The new law makes the follow
ing changes:
An entertainment expense will
not be deductible unless the tax
payer establishes that it is direct
ly related to or associated with
the active business. That is, the,
entertainment must be conducted
either where there is an opportun
ity lor business discussion, or it
must precede or follow what the
law calls a "substantial and bona
tide business discussion."
Many club dues w ill not be de
ductible at all unless over one-
half of the use of the club during
the year is in the furtherance ol
the taxpayer's business. And then,
dues are deductible only to the ex
tent directly related to business.
Business gifts will be deductible
only to the extent of $25 per re
cipient except for certain pro
motional advertising materials.
Fourth, no longer will the en
tire amount you sond for meals
and lodging while away from
home be deductible only because
the primary purpose of the trip is
business. No travel expense which
is "lavish or extravagant under
the circumstances" will be deduc
tible. Furthermore, the Internal
Revenue Service will publish rules
inr allocating the expenses of a
trip of more than one week's du
ration to business and pleasure.
The new law will permit a deduc
tion lor only the business portion
of such trips, despite the primary
business purpose.
However, the new law will not
require an allocation to pleasure
where the trip lasts less than one
week or where less than 25 per
cent of the time of any trip is
shown to be devoted to pleasure.
There is technical exception tn;
these rules for employes who are
reimbursed for such expenses but
then, of course, the employer
must abide by the new rules or
lose his (or its' deduction for the
amount reimbursed.
These new rules apply to ex
penses incurred after Jan. 1. 1963
Q If the membership in a coun
try club entitles the member's en
tire family to use the facilities
of the club, does his family's use
count when determining whether
or not the club was used in the
furtherance of -his business?
A Yes, and if over one-half of
the use of the club is by him and
Ins lamily for personal purposes
none of the dues will be deducti
ble for isms.
Q How about dues in civic or
ganizations like Kiwanis? Are
such dues subject to the strict new
tests?
A No. they are only subject tn
the old 'ordinary and necessary
business expense test. The same
is true of professional associations
and of union dues.
Next: How to keep records.
Portland Zoo
Penguins Die
PORTLAND (UPIi- Two more
penguins died at the Portland Zoo
Tuesday, bringing the toll to 24
since zoo director Jack Marks re
turned from Antarctica with the
birds last month.
Marks said autopsies and labor
atory tests performed on 13 of the
dead birds by Dr. .1. G. Kilian of
Oregon State linivrrsity showed
staphylococcus infections to be the
principal cause of death.
Qommunihj. QalmdcUi
(HERALD AND NEWS, Klamath Falls, Ore,
by Quincy
FRIDAY
EAGLES AUXILIARY.
Meeting, Eagles Hall.
p m.
LADIES ENCAMPMENT Al X
ILIARY. 8 p.m., officers installa
tion, IOOF Hall.
SATURDAY'
KLAMATH COUNTY H 0 M E
EXT. ALUMNI. 12 noon, potluck
Mrs. Claude Williams. 1916 Logan
RAMBLING SQUARES, 8 p.m.
quare dance. Bob's Barn. Bring
refreshipents.
MIDLAND GRAN G E HOME
EC CLUB. 8 p.m., card party,
grange hall.
MERRY' MIXERS. 8 p.m..
square dance. Pelican City Hall.
Bring sandwiches.
PROSPERITY REBEKAH
LODGE NO. 104, 8:30 p.m., instal
lation, IOOF Hall.
ANNUAL PUBLIC GUINEA
FOWL FEED, Malin Masonic
Lodge, 6 to 8 p.m., Malin Mason
ic Temple. Tickets from members
or at door.
LAKESHOBK- DUPLI
CATE BRIDGE. CLUB, 8 p.m.,
Duplicate Bridge, City Library.
LOOM AND WOTM. Chapter 467.
6:30 p.m., December birthday din
ner, Moose Home.
CIIILOQU1N DO SI DO, 8 p.m..
Square dance. Bring potluck.
ALPHA DELTA KAPPA. 1:30
p.m.. Meeting. Lynn l'ropst, lota
Portland.
SUNDAY
INSTALLATION, Lost River De-
Molay and Bethel 51, Job's
Daughters. 2 p.m. Henley High
School cafeteria.
MONDAY
CAR, 7 p.m., Meeting. Home
fo Charles Waters. 4436 Winter.!
Freedom First Dates rehearsal.
PAINTING SESSIONS. 11 a m
to 5 p.m., Klamath Art Gallerv,
140 Riverside. Public invited. No
charge.
GREAT BOOKS DISCUSSION
CLUB. 7;30 p.m.. "King Lear."
City Library. Marilyn Sclienk,
ader.
DEGREE OF HONOR, 7:30
p.m.. Meeting and Installation
practice. New K. C. Hall, loth
and Main.
CATHOLIC DAUGHTERS OF
AMERICA, Court Klamath No.
1295, 8 p.m., Meeting, Sacred
Heart Parish Hall. District Depu
ty to visit.
More vessles pass through the
Kiel Canal between the North and
Baltic Seas than travel through
either the Panama or Suez Canals.'
OUR ANCESTORS
Thursday, January 10, 1963
PAGE 9-A
stories of
Pacific
rowcrland
WINEMA hear the
story of Klamath's
"Woman Of The Brave
Heart" . . .
told by master storyteller
NELSON OLMSTED
A radio presentation of
PACIFIC POWER
& LIGHT COMPANY
KLAD KFLW
12:25 p.m. 5:25 p.m.
Friday, January 11
"You've got the neatest slicker on'the campus you
must have a swell writer!"
entice! Bidders Get
Warning From Attorney
SALEM (L'PD - Identical bid
ding on government contracts "is
fairly prevalent throughout the
state," Ally. Gen. Robert Y,
Thornton said today.
lhe warning was contained in
a memorandum calling for a co
ordinated crackdown on noncom
petitive bidding and price-fixing
The memorandum was addressed
to Oregon's district attorneys.
state, county and local govern
mental units, and purchasing offi
cers. Thornton cited a survey of slate.
county, city and school districts
conducted by his office. He ssiid
of 47 replies, 22 furnished infor
mation on one or more cases of
identical bidding.
They included the state of Ore
gon, seven cities, three counties,
most commonly involved were as
phalt, liquid chlorine, fuel oil, i
bakery products and traffic con
trol equipment.
Thornton said federal and state
laws should be brought to bear
on lhe problem, including stale
statutes that "have apparently
never been used but remain in
full force."
He also recommended two spe
cific procedures in bidding on
public contracts.
One would require the bidder to
submit an affidavit of noncollu-
The other would require
bidders to submit background in
formation helpful in checking out
possible collusion.
Thornton called for actiori not
only against identical bidding, but
also against more sophisticated
and nine school districts. Products' forms of collusion.
5th ond Main
Another Group Goes
On Sale Tomorrow!
portswear
Famous Oregon-Made
SKIRTS AND
SWEATERS
13 Off
Use Your Charge Account
Free Parking 5th ond Klomath
Report of Condition
ef
The Bank of Klamath Falls
of Klamath Falls In the State of Oregon at
the close of business on Dec. 28, 1962.
ASSETS
1 Ch, balances with other banks, and cash Items tn proem
nf collection t.t'S.iM 17
7. Unitftd States Government oblirjations, direct nod guaranteed W.WVM
3 Obliqatiors of States and political subdivisions t?t.77 71
4. Other bond, notes, and debentures 30.000 00
rt Loans and discount (Inclurfinq $7,446 10 overdrafts M37.I60.17
7. Brink premises owned 11,569 30. turnitur and futures
SI7.812.OS ',31 3S
11 Other asvfs 19.07 it
17. TOTAL ASSETS 1457,319.51
LIABILITIES
13 Demand deposits 'of Individuals. partnerships, and
corporations 1,01.1.531 ?
14 Time and savings deposits of Ind'viduall. partnerships, and
corporation MM, 114 '5
IS. Deposits of United States Government (including postal
MvinQSl . '
i Dewt ot S'fttet and political subdivisions
17 Depov's of ban
in OM..d a"4 o'f.cers' checks, etc.
16 TOTAL OFPOSITS M.JM.W 11
(al Total demand deposits Il.il. 'S7 i
(b) Tot I tirna and savings dOOS't 11,716,114 IS
)3 Oft-r liabilities
U. TOTAL LIABILITIES
3V1.000 or)
44,21 sr
77 71 0
j.in.m oo
CAPITAL ACCOUNTS
75 Capital, (a) Common stock, total par value S350.0flOO Jtfl .000 of)
76 Surplus , . . SA.fOOOO
77 Ijnd.viOed prints 47.9J7 SI
? TOTAL CAPITAL ACCOUNTS VM77 W
X TOTAL LIABILITIES ANO CAPITAL ACCOUNTS l.tST.M SI
MEMORANDA
3i asm pieod or ass-qned to secure .4b-M and 'or tnr
purposes ("xiudioq rvites and b-iis rM'icoonied a) setun-
tn trjlrj with Qremnt In repwrfhm) 7M.9i ft4
I, Fran Tomic. Cashier, of the above namd bank, do solemnly e''irm
! thu report o condition Is true and corrarf, to m best f my
knowledge and nl'.
Correct Attest
Fran Tom't
O. O Pwier
, F Vest
C. A. Henderson
rUAD
Sae o O'gon, County of Klamath, u
Sworn to and sutrttrr&ed boe me Ms 7th day of Jav
wary, i Ml. and I hereoy certify that I m not an officer
if director a thu bank
Mary I Schilling. Notary Putol
Vy commission aiplrtl April 1), IM
tt&auIU
tli
J -1 .
On
MW
n
f ?, m
taj l ."Tin JJf,
r i d 1
rw ty
""""lllll - 'II' II nmr l r- . -
JACK HOLT
Eiocutivt Vica President
Am
Come to our
FRANK TOMIC
Cashier
"mi.
mm
Tomorrow, Friday, Janll
CARL A. TAYLOR
Ant. Coihtar
from ?):00 n.iti. to 0:00 p.m.
Wrre Celoliralin 5 Years of Steady Growth
Thai Prove Our Service To The
People of Tiie Entire Klainatli Basin
Door Prizes
Refreshments
Gifts for All
Free Samples
See the Latest In Banking
Automation Equipment
in Action
by Burroughs!
WK I .WIT I' YOU TO THY
KAMilX; IIOMKTOWX STYLE
BOARD OF DIRECTORS
HARRY BOIVIN J. O. FISHER C. A. HENDERSON BOB MEST DICK REEDER
Hie Itank of Klama
ti Falls
So. 6th at Klamath Avenue
Member F.D.I.C.
bldlMliiMMMIfejifc
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