ncome Tax Primer (5) Employes
This ti the fifth of eight .rlieles
In the Newspaper Enterprise
Asm. Income Tax Primer, for
readen who want more Informa
tion than Is supplied In the of
ficial Instructions.
By RICHARD A. MULLENS
and
CHARLES W. SCHOENEMAN
Written for
- Newspaper Enterprise Assn.
I Tax law and the Internal Reve
nue Service recognize that the
'performance of services as an
jtmploye constitutes , the carrying
Jon of a trade or business.
; Deductions for expenditures for
gravel, transportation, meals and
lodging while away from home
'on business and for all rcim
bursed expenses are available
without affecting your right to
claim standard deductions. Other
business expenses (such as unre
imbursed business entertainment)
of employes (except certain "out
side salesmen") are deductible,
but only if the standard 10 per
cent deduction is not claimed.
One of such deductions, IRS
recently has laid, is for a por
tion of the expenses of maintc-
nance and depreciation of a rest
dence used under specific circum
stances in the employe's business.
First, it must be as a condi-
lion of employment that the cm
ploye is required to provide his
own space and facilities tor the
performance of his duties.
Second, he must regularly use
a portion of his residence for
that purpose. It may be part-time
use, but It must be regular.
If you could remain at your em
ployer office (or return to it
after hours, but for your own
Fees paid to a job agency for em
ployment art deductible, if itenv
Business Boom Awaited
Under Proposed Tax Cut
NEW YORK (UPD-The busi
ness community looked forward
today to higher stock prices and
Increased business activity under
the stimulus of President Kenne
dy's tax cut proposals
Wall Street analysts generally
agreed that the proposed $10 bil
lion tax reduction would lure trad
ers into the market.
Some, however, said the Presi
dent's statement on taxes had
been anticipated, thus blunting!
any bullish tendencies. They said
the market already has been ris-l
ing in expectations of Kennedy's
call for lower taxes.
The National Association ol
Manufacturers (NAM), while en
dorsing the call for a tax cut
was less enthusiastic about what'
it described as Kennedy's over-
orientation toward a quick pick
up in economic activity.
the two million jobs estimated by
Kennedy.
He said the President s message!
contains much good news for the
investment community," and is
'a welcome start on a much
needed thorough revision of the
tax law."
Martin Gilbert of Van Alstyne
Noel lc Co. disagreed with those
who thought that anticipation o
the President's proposals might
have taken the edge off increased
trading prospects.
"I think the President's propos
als will have a definitely bullish
effect on the market, he said
Weather
Roundup
The NAM said that any dis-J Temperatures during the 2-1
agreement in tax law details
"should be resolved on the side
of long-term strength of the
economy, growth and jobs, and
not on the side of quick stimu
lation of economic activity."
Henry Gellerman of Bache &
Co. said the proposed cuts, if.
legislated, probably would create
hours ending at a.m. PST today
Newport had .19 and Astoria .18
inch of rain
convenience take work home, you
are not entitled to a deduction.
You must also have some math
cmatical justification for the
amount deducted based on space
amount of its business use and
"expenses" such as rent, heat,
depreciation.
Interest on a mortgage and real
estate taxes are deductible by all
taxpayers but only if the stand
ard deduction is not used. Unless
an employe is an "outside sales
man" he acquires no tax benefit
from these two items if his home
is partly used for his business.
Treasury ruling on this subject
says that the employer must keep
records to show amounts of the
expenses on the residence which
he attributes to business use. A
part of repair costs to outside of
the house and cost of all repairs
to the office (or workshop) space
are deductible. The employer
must be able to show amount of
the home used for business in
terms of space; use extent in
terms of time.
Tax depreciation of a part of
your residence for its use in your
business is complicated. Take the
cost (including major improve
ments you have made) or the
lair market value of the residence
' whichever is lower), then sub
tract the assumed sale price real
isable when the residence no
longer Is used in your business.
Then take a fraction of that
amount based on residence space
used in the business and divide
it by the number of years you
estimate you'll be required to use
(he residence in trade or busi
ness.
Q Are any expenses of looking
for a job deductible?
A Yes, if you itemize. Fees
paid a job agency for procuring
employment are deductible.
Q Can you deduct any educa
tional expenses to improve your
skills as an employe?
A Yes. Tuition, laboratory fees
and certain travel, meals and
lodging expenses to get this train
ing arc deductible, if you were
maintaining or improving skills
equircd in your (then) present
employment or your employer (or
the law governing your job) re
quired the training to keep Ibut
not to obtain) your salary, job. or
position. Such education deduc-
ions are available as a rule only
( you itemize your deductions
unless your employer reimburses
you (or expense.
Expenses to train for a new or
better job arc not deductible.
(Certain other exemptions in
onneclion with training may be
allowable. Consult your IKS of-
lire.)
Q Arc union dues (icductihle?
A Yes, if you Itemize deduc
tions. Next: Deductions.
PACE I
HERALD AND NEWS. Klamath Falls. Ore.
Tuesday, January IS, tAtt'
AS
r
-
TRAIN TROUBLES Railroad workers fumed out in zero weather early Friday morn
ing to re-rail a cattle car which de-railed at 6 a.m. from a 1 20 car freight just south
of Alturas. Guy Brunn, Southern Pacific roadmaster, said the train de-railed when it
was being slowly backed at a switching station, but the slow speed prevented any
overturning of freight cars. The crew had the two cattle cars back on the track by
10 a.m.
RTamath County Leads State
In Fallout Shelter Program
Klamath County has become
the first county in Oregon in
which all approved pubiic fallout
shelters have been designated
and marked, according to a re
port received by local Civil De
fense Director Joe Searles from
the Stale Civil Defense Agency.
Five shelters accommodating
more than 100 people have been
marked in the Klamath Falls1
area, with the exception of one
sign in front of the Medical-Dental
Building and another at t h e
Williams Building.
These signs are being placed on
special posts in the sidewalk, near
Lighting Award Given
Kingsley Field Chaplain (Capt.)
Jefferson E. Davis has been pre
sented a plaque and a $23 check
in recognition of his recent blue
ribbon entry in the church divi
sion of the Klamath Falls Jay-
cces' Christmas lighting contest.
The plaque was presented bv
Col. Edwin J. Witzenburger. com
manding officer of Kingsley Field.
in a brief ceremony before the
key officer personnel of the base.
The winning display featured a
lighted and animated Nativity
scene. All community churches
were invited to participate in the
Jaycee-sponsored program.
At the time of the I960 U.S.
census, about 28 per cent of the
population of St. Petersburg. Fla.,
was ti5 or older.
Wm Coatf-to-Cmt,A
iMNEWSPAPERSil
Lop Imports
Said Danger
WASHINGTON (ITU - The
National Lumber Manufacturers
Association (NL.MAI today wel
comed a U.S. Commerce Depart
ment report that softwood lumber
imports from Canada were "a
major factor" in the difficulties
of the U.S. lumber industry.
NLMA President Mortimer B
Doyle said in a letter to Com
merce Secretary Lulher H
Hodges that the report was "an
extremely well prepared sum
mary of many of the problems
confronting our industry. " The
Idler, dated Dec. 31, was made
pubiic today.
Tho U.S. industry has asked the
tariff commission to authorize
nharp controls on imports of soft
wood lumber from Canada'which
totaled CSO million in 1961. No
commission decision was jet in
Sight.
The Commerce Department re
port said the 1' S. lumber industry
was suffering from "a complex of
factois" including U.S. laws, in
dustry operations, technological
changes and international econom
ic developments.
Astoria
Baker
Brookings
Medford
Newport
North Bend
Pendleton
Portland
Salem
The Dalles
Chicago
Los Angeles
New York
San Francisco
Washington
High
40
24
62
44
4!)
52
44
35
4.1
51
10
fit
29
54
33
Low
37
9
35
18
.12
31
40
34
36
33
7
46
24
41
22
Teachers Plan
January Meet
Klamath County Retired Teach
ers w ill meet in the YMCA build
ing at 1:30 p.m. Saturday, Jan.
19. The program will include a
girls' musical ensemble of 13
members from Mills Elementary
School directed by Mrs. Robert
Craig.
Refreshment hostesses will be
Mrs. Ella Dickinson and Sarah
llaraldson. Members are invited
and Iriends are welcome.
Building Up
In Dunsmuir
DUNS.MU1R Building con
struction in 1962 doubled that of
1961. according to a building in
spector report submitted to the
Dunsmuir lily Council.
The 370 building permits for
construction estimated at $265,
894 35 in 1962 reflected construc
tion ol eight new homes, one re
modeled restaurant, acd a motel
addition as well as minor build
ing. In 1961, 151 permits were is
sued for $1(0. S35 71 in estimated
construction costs.
Sales I. ix collections also!
snowed a gain over a similar pe
riod last year, according to Eliz-
aholh Cavin. cily clerk. Duns
muir's gross collection of sales
lax from July 1. 1962. to Sept
30. 1962, was M.510 08. This
netted the city $7.5.!8.(B alter state
and county apportionments were
deducted, and compares favor
ably with the city's third quar
ter sales tax income in 1961 ol
S7.20t 41. 1
Serais an&
Choose tour Pharmacist
mil naniitfl P3W.FS&-JL
a 3 juu nuuiti
choose a doctor .
a.
the curb, because there is no;
room on the face of the build
ings to attach them. There are
other buildings in Klamath Falls
which have a protection factor
not as high as in the five build
ings mentioned.
Those buildings will not bei
stocked with supplies and equip
ment at the expense ol the fed
eral government unless the pro
tection factor is raised to 100 and
there is space lor at least 50
people, Searles said.
An Army Engineer survey des
ignated the live buildings as sale
shelter sites; licenses were signed
with the owners before the build
ings were marked.
Stocks of supplies have arrived
at a government warehouse ill
Trouldale and shelter survival kits
including food, water conlainers.
medical and radiological supplies
will soon be delivered here.
For Professional
TREE SERVICE
Baker's Nursery
C.ll TU 2-5553
Check
His
Reputation
Count on us, as your neigh
bors do, for fine pharma
ceutical service. Here your
prescriptions are precisely
filled as your doctor pre
scribes. BRODERICK'S
PHARMACY
2212 So. 6th Ph. 2-4683
r
j
r WHERE CAN I BUY
I HOMEOWNERS INSURANCE
I AT A SAVING?
See friendly
Bill McKibbin
For full informotion obout thi low coir
Homeownei-i Policy, ovoiloblo on o poy
oi-you-go bolii, get in touch with Bill.
MIDLAND EMPIRE
INSURANCE AGENCY
1006 Main. St. Phono TU 4-6417
till McKibbin end Clm Loiuour
i iiuv
Ai"
BIG
JANUARY
Prices subject
to stock on
hand or
Prior Sale.
'
' IrMM ram n
xJHxyi mi L tb It U
JWyHfjHATNOWIN
PROGRESS! SAVE NOW!
Qualify Floor Coverings at Big Reductions!
' '
TILE
CLOSEOUTS
INLAID LINOLEUM G
Quolify gouge each Jf
i
12
16'
v ny AKriii ne
One lot, stondord gouge each .
VINYL ASBESTOS
OneJostondard gouge each
VINYL ASBESTOS
OneJoJieavy gouge each
Best Value!
Luxurious loop pile Wilton fabric woven of
heavy wool homespun yarns. Rich handcraft
ed texture and rodiant 4flKk. f mW
clear colors. You save ml 11 pf t
over $5 a yard! TMT '
sq. yd.
FREE FOAM PAD AND
INSTALLATION INCLD.
Quality Leader
100 wool pile, luxuriously deep loop pile
cut pile beauty . . . very rich in appearance.
Moth-proofed for life;
maximum resiliency.
Choice of worm beige
or turquoise.
While it lasts
FREE FOAM PAD AND
INSTALLATION INCLD.
111
97
sq. yd.
ALL WOOL WILTON
Close pile Wilton construction; three di
mentional pattern with sparkling highlights
ot accent colors on
pleasing neutral back
ground of light beige.
FREE FOAM PAD AND
INSTALLATION INCLD.
97
sq. yd.
PLUSH
All wool pile plain color but with random
shearing for highlighted beauty. Only one
roll left in a beau
tiful, soft green.
FREE FOAM PAD AND
INSTALLATION INCLD.
1
97
sq. yd.
POLYMERITE TILE
All colors
each
11
DISCONTINUED SAMPLES
NOW
One performance nightly
at 7:30
Doors Open 7:00
"Boccaclo
70"
in 3 parts
starring
Sophia Loren
and
Anita Eckberg
Adm. $1.25 (incl. tax)
Tailor Class
Has Openings
There Is still room for addi
tional student in the adult edit
cation tailoring course which will
meet Tbursday. .Ian. 17. Irom
9 nm in Iloom 117 of Kl.im.illi
I'nion llijli VIk-oI. Mrs. Rich
ard limb ill be the instructor.
The course i desicned for wom
en ho wish to tailor a 5iut or
coat using wool or weol blend
Tuition for the rourso is SI0 pay
able on recistration
Klamtth Pit. Opmm
tvtlilhi fleily ((( Sit ) 14 lw4tf
lirvlnf iMitnifH OrM
n4 Northern Cilifvrma
Klimath Pvfeliiftlnf Cvmimv
Pia TUtMt M1
W twtlflinal. pyftMHir
IntaiM it cftcliit matltr if !
ptf t ft I met FHf, OnttA,
M Avtwit II, Iff. nlr Hi 1 C
March X il t-cli fxitt
t M' at Kiamith fiiu. OratM,
t4 It iMttiai maii(t !(.
tUMCRlPTION ftATIS
Cirr-tr
I Mftth I 1 T
I Mont i t
ar 111 M
Mail it
I Mth f 1 fl
A Mfifht Ill N
1 Viip ... i M)
Carrtir antf Daaftr
WMtdar twMtv. tfr itr
UNlTIO Pftllt INT t NATION AL
AUDIT IURIAU Of ClftCUlATlON
lwtcrtrt Mt WttvlM ttivtrr ft
tKtif NtraNI m4 Htwt, ! pim
Veterinarian
Opens Office
UKEVIKW-Killiam D. Bar
y. Doctor of Veterinary Medicine.
lis announced the opening of a
clinic in 1-akeview lor the prac
tice of veterinary medicine It il
be located at K9 North K. Street
Barry u a native of likeview
and son of the late M. P. J and
Kileen Barrv. He is a graduate
ol Oregon Mate and Washington
Mate universities. He has been
practicing in Klamath Kails dur-
ng Hie past year, and was pro
iiously hunted al Ml. Vernon.
Wash. He and his wife and
tnionth-old son, John, are mak
ing their home at :U7 North K
Street, near the clinic location
Wide Choice of
Colors
No 2 Alike!
27"x18" 2 for $1.50
27"x36" 2 for $5.00
27"x54" 2 for $8.00
Uw in doorways, hallwoyi, undtr chain to pronct your
floors.
NYLON
This long wearing, luxurious carpeting of
DuPont 501 Nylon normally retoils for much
more than we are of
fering it during this
".-. mm
1797
FREE FOAM PAD AND
INSTALLATION INCLD.
sq. yd.
Reversible Rugs
Early American, heavy rag rugs. Rich col
ors, predominately brown, with other ac
cents. Revers
ible for longer
wear. No pad
required.
12x15'
Reg. $199.95
TO97
LINOLEUM RUGS
',V' ' S'r'r1
;.lv':
C-.'TV '
'.M;sv,
Modern colors and pat
terns. Vinyl fortified
for long wear. Smooth,
easy-clean surfaces.
Reg. $6.95. 9 x12.
"Futurcsque" and "Cosmo
politan" by Armstrong ond
Conqoleum Nairn. Reg.
Vinyl Inlaid Linoleum
i188
"1; -i
j fit
-m ; -tf' wl
iSSSis
m0 M
IIISri if TBp
wig tu( mm bunds "one
YINYL VlN OLEUM
rmsrrung nccaion vm m f
$1.69.
Now 9 sq. yd.
Grange To Meet
Midland lirante Mil meet Wed-
nesd.iy. .lun I ft. in the glance hall
.it fill sharp l.r a business
session r i, Mowing Ihe movling.
.lames flowers, lectin er. will lea-
lure a siwial pingram of pic
lures of wildlife, shown and nar-
ted by J in O Donahue. wild-
lite rH-it. A ivtluck supper will
lie served.
INCOME TAXES
Comt in ond u
CHAS. HATHAWAY