New Braunfels Herald Zeitung, September 23, 1987, Page 6

New Braunfels Herald Zeitung

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Publication name: New Braunfels Herald Zeitung

Location: New Braunfels, Texas

Pages available: 318,726

Years available: 1952 - 2013

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New Braunfels Herald Zeitung (Newspaper) - September 23, 1987, New Braunfels, Texas Commerce & Industry Herald-Ze/fung. New Braunfels, Texas Wednesday, September 23, 19{ That was then... Jacob Schmidt, center with beard in top photograph, stands in his department store on San Antonio in about 1925. Note the rugs hanging from the walls and the wood and glass display cases that would warm the heart of any antique collector. Jack Melott Is the manager In 1987 and the store's offices afford a clear view of the floor from the loft pictured in the background. Jacob Schmidt is now owned by Dunlap, which leases the space from the Schmidt family. The store celebrated more than 80 years in business with a sale last week. This is now Trustees faced with additional burdensBy JEFF ALBRECHT Sol Schwartz A Associates The Tax Reform Act of 1986 made several major changes In trust taxa Hon that will require the close attention of trustees in 1987 Among them are the requirements that all trusts adopt a calendar year for income tax reporting purposes and that they make estimated tax payments These relatively simply changes have serious consequences and should be reviewed carefully by attorneys, bankers, and beneficiaries alike Perhaps most significant Is the change requiring all trusts, even those in existence prior to the enactment of the law, use a calendar year to report income In the past trusts were allowed to use a fiscal year which provided the opportunity to defer the payment of tax on income distributed to a beneficiary by as many as eleven months The conversion to a calendar year will require fiscal-year trusts to file two returns this year, one for the fiscal year ended in 1987 and the second for the short period ended Dec. 31, 1987 Since this may result in more than 12 months of trust income being reported on the beneficiary's 1987 individual income tax return, Congress has provided relief by requiring income distributed in the short year to be reported by beneficiaries ratably over a four year period (This is not an elective provision as it is for partnerships and "S” corporations > It is important to note this four-year spread is required only on income distributed by the trust All short period income retained by the trust is taxed in 1987 The election which allows a trust to treat distributions made within 65 days after year^nd as made in the prior year has been retained Therefore, all trustees should review the tax position of their trusts and beneficiaries before March 5,1988 to determine if distributions should be made to take advantage of the four year spread The requirement that trusts make estimated tax payments is effective for years beginning after Dec 31, 1986 The rules and exception to those rules is structured similar to individual requirements that have been in place for some time Revenue Notice 87-32 has been issued by the Internal Revenue Service to provide guidance in this area, especially for the unique situation resulting from the required year-end change for fiscal year trusts Estimated tax payments must have been paid in up to four equal in stallments (Short-year returns have accelerated installment dates) totall mg at least 9U percent of the tax due on the return to avoid underpayment penalties A penalty calculated cur rently at a 9 percent rate compounded daily would be due on am under payment This provision requires trustees to closely monitor current year income so that appropriate estimated payments are made Alternative methods have been provided to this rule Alternative one allows a trust to pay tax show n on the prior year’s return ratably over the requirement installments, and is the simplest and surest method of avoiding underpayment penalties However, it may not be appropriate if current year income is significantly lower than the previous year This alternative would produce an over payment of taxes which is a loss of earnings since the IRS does not pay interest on this overpayment Alternative Two allows a trust to determine tax on income earned each quarter, thus allowing unequal estimated payment This would be appropriate for trusts that earn a majority of their income toward year-end Complex trusts, those that traditionally retain some or all of their income, may currently need to make estimated payments to avoid penalties Simple trusts, those that distribute all income, may also need to make them lf the> realize capital gain type income which is trade tarnally taxed at the trust level Income tax rates for trusts and estates have t>een reduced effective in 1987 and the rates have been narrowed The touch of grev in this silver lining is that the use of trusts to shift income from high bracket tax payers to low bracket trust can pro duct no more than a $65o suv mgs DO YOU HAVE FALL HAY FEVER SYMPTOMS ? If so, we need volunteers to pallid pate in an approved clinical study for a new, once a day. antihistamine Participants must ‘be between tho ages of 18 and 60, and will be paid. For more information call: Frank C. Hampel. Jr.,M.D. Allergy & Immunology 70S Landa 625-7612 Texas Business Today Whatever happened to old-time standards? By MARY SCOTT NABERS Texas Employment Commission Dear Commissioner Nabers: I am writing to let you know just what I think of the whole lousy system I recently discharged an employee for poor performance He promptly filed a claim for unemployment and the TEC decided to pay him because he "could not meet my standards " I believe they called it inability' I am not appealing this case because I refuse to w aste any more of my time It Is clear that the TEC In tends to reward mediocrity and penalize employers who required a standard of excellence I shudder to think what standards of performance the TEC expects from Its employ ees ' J B Wichita Falls Dear J B I understand sour frustration, but by deciding not to ap peal this case you are making an unreasonable business decision Most claims for benefits are disputed There Is at least one dissatisfied party tn every contested claim That is why the law provides for an appeal process lf you choose mg to avail yourself of the rights guaranteed you under the law I can not help you I urge you to reconsider Remember that the law pro\ide> for non payment of benefits when misconduct connected with the work is proven Inability however is not misconduct bec ause it is t»eyond the employee s control lf you testified only that your ex employee never satisfied your expec tations we would probably rule that the inability wa* beyond his control Un the other hand negligence mg following instruc tions not acting in the* employer * best interest etc are all examples of misconduct which if proven would disqualify a perron applying for benefits Dear Commtaatooer Sabers !% n prospec five employer required to UM an albicant why he is not hired * I was hired as a school bus drive by one man, took three driver train log sessions, and paid for rn; physical with my own money The* another man I don't know if he is o is not a higher level of authority toll me I was not hired bec ause* he bae decided it was in the best interest o the school system I asked him wha was the problem and he told me tha he did not have to tell me What recourse can I take to tx reimbursed for the ex^ns** of rn; physical which I took in gm*d fait] since I had (Teen told that I had tin job!, and to find out what the ma thinks is wrong with me that wouU be bad to hire me"* J C Kl Fa# Dear JC \n employer is no always obligated to tell an appl lean for employment why he was no hired However if you believe fix school system s refusal to hire yin was because of your age race set national origin or religion you shouk contact your nearest Equal Employ ment Opportunity Commission anil off iii* to si t* what recourse mav tx available to you It ts not clear from your letta whether you were never hired m were fired after a few days If vg received any compensation for Un days you were in training this you were indeed employed as f.ii as unemployment compensation law Is concerned and you mav quaitfv f<M unemployment benefit* N nu shouk go by your local TEE office if vou an still unemployed I cannot advise you coooem;n§ reimbursement for xour physu ai« x amination ("heck your phone book ti s«*e if you have any low cost legal s«*r \ ii e agencies in your area Saber* represents • • *    ( employ er> thn »ugb< Hit TV u s It w *t hale any (Questions write i'ammi I stoner Sabers at Texas Business 7a day fit4 fetas Employment Cont mission Huildmg lath anti < ori^rrs* Austin fetas 7 fi 7 7 It An important technical correction to originally passed in 1984 was ji*> included with the Tax Reform Ut of 1986 The election available to trusts to recognize gain on the distribution of appreciated property has t**en it tamed but It must now be applied to all property distributed in that veal There had tieen some question as to whether the election could Im* applied on a property by property basis ★ NOTICE a nj r * NOTICE * TEXAS NOTARY PUBLIC ASSOCIATION FN PA announce** a tours*- for Texas V dunes tluw vs I notaries, and those w ishu.g to tw uv r '.c Ct . records, fees and now law s Date & Time Oft 1st 19H7 I m»4oaPM Place New Braunfels Civie * enter Hoorn A Pre registration only Call bl!.* 4 J ti* Mail check or monev order I. * IN PA ' P !    %.'•**    > Austin I \    U*oN Nor-Member tuition V4 - •.» I MPA Member tuition V*' * a- h Mi resrrv .I wit to t» fr« en rd tis '»©pt • NEW LAW IN EFFECTComFund ’87 is underway and you can make the difference by giving your fair share when 'he campaign reac ties your home or office Thanks to vou things lust got bottu In Recognition of THE COMAL COUNTY FAIR These Financial Institutions will observe the following hours on FRI. SEPT. 25 •Citizen’s National Bank Close 12 Noon    I •First Federal Savings & Loan Main Lobby Closed Drive thru, Reg. hours •San Antonio Savings & Loan Close 12 Noon Please arrange your banking needs accordingly. Card of Thanks I would like to thank all the people w ho made my retirement so special and also [tor their concern during my recuperation from my recent coroner)! angioplasty To the members of the New Braunfels Men s Garden Club for their super ;* BASH to the Comal County Program Building Committee loi tin 'Open House « Jo the 4 H club members who brought refreshments to the “Retirement < teen House , ” to the Extension Homemakers Clubs for then thoughfu! gifts and (anis to] [the South Texas Christmas Tree Growers Assn to the staffs Of the ABOS and St S ,to the New Braunfels Council of Garden Clubs to all the people who took then time ■to visit me, to write letters and kind notes, and for their gifl.s to the CoinmisMonei > (Court for the Resolution and for naming Monday, August 31 as “Bill Schumann Day;” testate Representative Edmund Keumpel for his Certificate and a \er\ big] [thank you to the entire Extension Service Office staff and most especially to my ►co-worker, Ms Julia Johnson. To all the people who took time to visit me in the hospitals and home, those who [called and for all the beautiful flowers and cards that were sent tome to Mrs ►Bobby Cowiest, Mrs. Jordan Tucker and Mr Bonny Johnson tor then concern and [help when I was taken ill To Mr. & Mrs. Jordan Tucker and Kenneth Gullett for keeping the “Homestead” [going To Mr. John O’Keefe, Eucharistic Minister, who brought Holy Communion to me [in the hospitals, I express my deepest appreciation To all my devoted friends, I can only say, your kind generosity has totally overwhelmed me My family and I are most indebted to you and w ill alw ays remember your generosity and kindness. a    W    L.    (Bill) Schumann < ;