Monday, February 25, 1974

Cedar Rapids Gazette

Location: Cedar Rapids, Iowa

Page: 3

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Text Content of Page 3 of Cedar Rapids Gazette on Monday, February 25, 1974

Cedar Rapids Gazette (Newspaper) - February 25, 1974, Cedar Rapids, Iowa The Cedar Rapids Gazette: Mon., Feb., 25, 1974 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, ed have dropped steadily over or more adjusted gross income Sylvia Porter the past 10 years. In 1963, for in- stance, 5.8 percent of all returns were audited; by 1972, this per- centage had declined to a pica- 12.1 percent; (3) Individual and fiduciary business returns with to adjusted gross income yune 1.0 percent; in 1973, it was 2.4 percent; 2perccnt- I (4) Individual and fiduciary Your own chance of being business returns with or est no matter how large the totals may be. regulations reported some a! You'll find Form 1040 for 1973 (First of a series) audited may be much greater, however depending on the size of your income and the na- ture of your business or employ- ment. The following breakdown will reveal the variations in the percentages of returns exam- mere few months old, cihersjalso much easier to use. You indifferent groups. circulated only to a limited de-j longer must itemize your intcr-j (1) Individual and fiduciary gree. Or the treasury itself mayicst and dividend income onjnonbiisincss returns with adjust- not have publicized a court deci-! Schedule B if cither exceeds! ed gross income under sion it considers unfavorable! You simply enter the using itemized deductions and is resisting. Or the rulings j at the appropriate lines 10 or 11 percent; (2) Individual and fiduciary; nonbusiness returns with may simply be obscure. Will Save on the front page of Form 10-10. One Total more adjusted gross income 12.7 percent; Corporations, with, total assets of to 4.2 percent; Corporations, with, total assets of to 19.4 percent. Do not forget the fact that al- most all individual returns are checked by computer for math- ematical accuracy and don't "invite" an audit by silly arith- metical errors which easily could be avoided. Also, each LAFF-A.DAY "He's a compulsive gambler. Been married six times." IRS service center screens indi- vidual returns for "unallowable items" consisting of obvious errors, such as not reducing a nonbusiness casually loss by or not reducing the medi- cal expense deduction by 3 per- cent of adjusted gross income, etc. You'll flag an IRS agent with this type of mistake. Next: Sales taxes, interest. The Investor's Guide liy Sam Shulsky Q I've owned same manu- facturing stock for a few years. It hasn't moved up much de- spile improved earnings and fa- vorable reports in the press and financial publications. I think the market is wrong on this one. A Mebbc so, mebbc not. 1 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 'Ala- gee, a technical analyst who lias 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, trad- ers, institutional buyers peo- ple, as Mr. Magee puts it, "who are putting their money where Sam Shulsky their mouth is." Until you have absolute proof that "they" are wrong, he respectful of the tape. It is the slock 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 nign- er slock market prices. Two: Money rales have risen .sharply in the last few years. Hittliei1 yields (which mean low- er stock prices) arc now de- manded from much of the equity market. am 59 and for the last nine years have made a living from "less than in the in N. Y. Stock ex- change commons utilities, motors and oils. 1 try not to get boxed in with losses, trad- ing off these to offset gains. today, can bring in about interest annual- ly from high-grade bonds. If you've done materially better, recently, I'd like to publish a list of your trades. I guarantee, though, that with! Itemized deductions on Schei this series, prepared in collabo- ule A are easier to handle, too ration with the Research Insti- In listing your medical es tute of America, you will save money, time and trouble. I also guarantee that many of these In penses, you'll enter one total fo all your payments to variou physicians, dentists, etc., an hints are available nowhere else one total for any hospital paj not even from the treasury it- self. Now to begin with good news about the forms themselves: both the short Form 1040A and Form 1040 are 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 separately only any other con so because you had more than of interest or more than of dividends in 1972. But the IRS has changed the rules so question about the odds that (hi you can use Form 1040A for return you're about to file wil your 1973 return if your income consisted entirely of wages, tips, any other employe com- pensation, dividends and inter- ments instead of itemizin; the payments as required i; past years. And instead of list ing all your charitable contribu tions separately, you can ente one total covering all your casl contributions for which yoi have receipts or cancelled checks and then you'll lis tributions you may have madi in 1973. Now to answer your basic be selected for examination by an IRS agent. In general, lates treasury statistics confirm tha the chances that you'll be audit BIG GEORGE! by Virgil Partch "Is the handsome youjig prince just about to cream the wicked old FACTORY TRAINED SERVICE iiuiiiu 215 IstAve. SE Phone 366-2436 or 362-3919 Just add to your present Savings Account or open a new one at Merchants National Bank. The 6-Digit, battery operated Mini- subtracts, multiplies and divides. Use it for balancing your checkbook, figuring taxes, helping the kids with math problems. And because it's small enough to fit into a purse or a coat pocket, you can use it for comparison shopping. Stop by your nearest Merchants National office soon and open a new Savings Account or add to your present account. You'll earn the highest legal interest on your savings, and save money on the calculator as well. Optional AC adapter available. Start saving today at Merchants National Bank. HERE'S HOW YOU CAN GET YOUR CALCULATOR: A savings deposit of 500 100 Your cost for the calculator Merchants National Bank iu A'BANKS OF IOWA'BANK Main Bank Motor Bank Vernon Village Office Kingston Office Amana Office