Cedar Rapids Gazette, February 25, 1974, Page 2

Cedar Rapids Gazette

February 25, 1974

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Issue date: Monday, February 25, 1974

Pages available: 22

Previous edition: Sunday, February 24, 1974

Next edition: Tuesday, February 26, 1974

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Publication name: Cedar Rapids Gazette

Location: Cedar Rapids, Iowa

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Cedar Rapids Gazette (Newspaper) - February 25, 1974, Cedar Rapids, Iowa Tho Cedar Rapids Gazette: Mon., Feb., 25, 1974 LAFF - A - DAY New Tax Returns Are in Good Form By Sylvia Porter NEW YORK - Before you read even one of the many new money-saving tax strategy hints you’ll find in this series get this blunt message straight in your own mind: An IRS agent who questions a deduction you claim as a result of what you read here may not be aware himself of the new (First of a series) regulations reported — some a mere few months old. (tilters circulated only to a limited degree. Or the treasury itself may not have publicized a court decision it considers unfavorable and is resisting. Or the rulings may simply be obscure. Will Save Sylvia Porter ed have dropped steadily over or more adjusted gross income the past IO years. In 1963, for in- — 12.1 percent; stance, 5.8 percent of all returns (;j) individual and fiduciary were audited; bv 1972, this per- business returns with IO,(HK) to centage had declined to a pica- $30,000 adjusted gross income — yune 1.0 percent; in 1973, it was 2.4 percent; “pmont-    (4)    Individual and fiduciary \our own chance of being business returns with $30,000 or audited may be much greater, more adjusted gross income — however — depending on the 12.7 percent; The Investor's Guide est — no matter how large the totals may be. You’ll find Form 1040 for 1973 also much easier to use. You no longer must itemize your interest and dividend income on Schedule B ii either exceeds $200. You simply enter the totals at the appropriate lines IO or ll on the front page of Form 1040. One Total size of your income and the na*I tine of your business or employment. The following breakdown will reveal the variations in the percentages of returns examined in different groups. (I) Individual and fiduciary “He’s a compulsive gambler. Been married six times.” IHS service center screens indi-i I guarantee, though, that with this series, prepared in collaboration with the Research Institute of America, you will save money, time and trouble. I also guarantee that many of these hints are available nowhere else — not even from the treasurv itself. Now to begin with good news about the forms themselves: both the short Form 1040A and Form 1040 arc easier to fill out. Millions of you who wanted to use Form 1040A with its simple standard deduction for your 1972 return were barred from doing so because you had more than $200 of interest or more than $200 of dividends in 1972. But the IRS has changed the rules so you can use Form I (MOA for your 1973 return if your income consisted entirely of wages, tips, any other employe compensation, dividends and inter- BIG GEORGE! by Virgil Po rf ch (5) Corporations    with    total assets of $500,000 to $1,000,000-4.2 percent; (fi) Corporations    with    total    vidual    returns for ‘‘unallowable assets of $500,(H) to $1,00,000 — items” — consisting of obvious 19.4 percent.    errors,    such    as not reducing a Do not forget the    fact that a1-    nonbusiness    casualty loss by nonbusiness returns with adjust- m0S( au individual returns are $100, or not reducing the medi-ed gross income under $10,000 checked by computer for math- cal expense deduction by 3 per-and using itemized deductions ematical accuracy — and don’t cent of adjusted gross income, —•“ 4 percent;    “invite” an audit by silly arith-etc. You'll flag an IRS agent (2) Individual and fiduciary metical errors which easily with this tvpe of mistake, nonbusiness returns with $50,000 could be avoided. Also, each Next: Sales taxes, interest. By Sam Shuisky Q — I’m* owned some manufacturing stock for a few years. it hasn’t moved up much despite improved earnings and favorable reports in the press and financial publications. I think the market is wrong on this one. A — Mebbe so, mebbe not. I don’t know the company well and have no “inside” data. But for your guidance I can’t do much better than repeat the advice of my friend, John Magee. a technical analyst who has been watching the market a long, long time. And that is: Be guided by the stock market tape. It is telling a story written by thousands of investors, traders, institutional buyers — people, as Mr. Magee puts it, “who are putting their money where Sam Shulslcy their mouth is.” Until you have absolute proof that “they” are wrong, be respectful of the tape It is the stock market telling its own story. Furthermore, you must feed into your “computer” these facts: The last few years have seen a drastic decline in price-earn-ings ratios. Higher earnings don't necessarily result in higher stin k market prices. Two: Money rates have risen sharply in the last few years. Higher yields (which mean low-er stock prices) are now de-manded from much of the equity market. * * * <1—1 am 59 and for the last nine years have made a living 1 from less thun $100,000 in the I market—all in N. Y. Stock ex-j change commons . . . utilities, motors and oils. I try not to get boxed in with losses, trading off these to offset gains. A—$100,000, today, can bring in about $8,200 interest annually from high-grade bonds lf you’ve done materially better, recently, I d like to publish a list of your trades. Itemized deductions on Schedule A are easier to handle, too.! In listing your medical expenses, you’ll enter one total for all your payments to various physicians, dentists, etc., and one total for any hospital payments — instead of itemizing the payments a? required in past years. And instead of listing all your charitable contribu-; tions separately, you can enter one total covering all your cash contributions for which you have receipts or cancelled I checks — and then you’ll list separately only any other contributions you may have made in 1973. Now to answer your basic question about the odds that the return you’re about to file will be selected for examination by an IRS agent. In general, latest treasury statistics confirm that the chances that you’ll be audit- ‘Ts the handsome young prince just about to cream the wicked old witch?” HERE S HOW YOU CAN GET YOUR CALCUIATOR: A savings deposit of Your cost for the calculator $1,000 $19.75 $ 500 $23.75 $ IOO $27.75 FACTORY TRAINED SERVICE Open Mon. and Thor*. ’Til 9:00 P M. 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