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Cedar Rapids Gazette (Newspaper) - March 4, 1974, Cedar Rapids, Iowa The Cedar Rapids Gazette: Mon., Mar., 4, 1974 Recent Rulings on Business Expenses By Sylvia Porter NEW YORK - If you paid a fee to a job-counseling organization for helping you to find a job. a 1973 tax court decision will permit you to deduct the expenses — even though you failed to get the job. Sixth of a Series While the treasury still insists on disallowing the cost of seeking employment that doesn’t actually result in producing a job. with this strong tax court support, you may want to claim the deduction anyway and fight if the treasury checks your return. Carrying Tools If you are an employe and you drive your car to work with bulky or heavy tools or equip- Sylvia Porter travels between your first and last customers are deductible. Also, if you must report in to your employer’s office at the start and end of your day’s work, your first trip from home to the office and last trip from the office to your home are nondeductible commuting expenses. Office at Home . .    . Last year, the tax court had merit, the supreme court gave case 0f a salesman who you bad news in 1973. Although mainlained an Of(iee-at-homo in the cost of driving to arul from a su|jurb nenr employer’s effort ta a nondeductible com- fjcc jn |ho cil    He drovc direct. muting expense, some of the ,y from home    |o hjs firs( cus_ loner appellate courts had al- |0mcr -UK| directly home from owed the employe to deduct his Iast customer. that per ron of his driving ex- The stion was (he dcd penses allocable to carrying the ,ion of hLs {jrst and |ast |rips on equipment or tools.    the basis that they were trips to Tile supreme court put an end and from his place of work (of-1 to this by ruling that non-deduc- fice-at-home).    The tax court said that having an office at home didn’t make that first and last trip deductible unless the of 1 ice-at-home    was really his principal office. For instance, if you had your office at home because your employer has no tible auto expenses of commut ing to work don’t become deductible even in part just because you, the employe, carry along the tools or equipment for your job. lf you incur additional expenses because of transporting your job-required tools and    regular office in the    area,    the equipment, though, some alloca-    cost 0f your first and    last    trips hie portion of your driving ex-    might be deductible.    But    this penses may be deductible.    wasn’t so in this case. First, Last Trips If you are an employe performing your job at various locations during the day — a salesman, solicitor, etc. — you can deduct your transportation expenses in going between your various locations. But you can’t deduct your commuting expenses. According to IRS rules, this; means that when a salesman or similar employe travels directly from home to his first customer and travels directly home from his last customer at the end of the day, these first and last trips are non-deductible commuting expenses. Only your Mileage lf you are a traveling employe and you are paid a per-diem allowance of up to $36 a day for board and lodging, and a fixed mileage allowance of up to 15 cents per travel mile, you don't generally have to report either the reimbursement or the expenses on your tax return. Thus, when you file your return, you don’t show on it the various travel expense deductions that often lead to an audit which may require you to furnish IRS with proof, evidence, etc. In 1973, the IRS ruled that an employe couldn't use the $36 per-diem for board and lodging Quide Sam Snuklty VVWVVWViV»WkVWAV»ViWiViftWWAWiA The | nvestor’s By Sam Shulsky Q — Please send me a list of stocks that are now undervalued and selling for less than IO times earnings. A — The ratio of market price to earnings per share is now carried in many large publications’ stock market listings. On the day your letter arrived, running your finger down the list would reveal that ACF In- — dustries was selling for 13 times' Q — You’ve mentioned con-earnings, Allegheny Power, 8 vertible debentures as having times; American Telephone and special risks. All I can think of Telegraph. IO times — and so on is the possibility of the corpora* and on all the way to Zurn ln-tion going broke, dustries, selling at ll times T- The market price of a earnings.    high-quality straight (non-con-; All these ratios, of course, can vertible) bond will be affected and often do change daily. And by the going rate for money if the publication you read does which affects both its current not include a p-e column in its yield and its yield to maturity. I stock market listings all youjThe convertible debenture has! need do is divide the latest‘an added factor (which may, market price by the latest 12- represent risks or pluses — ac-1 month (or 1973) earnings per cording to the particular situa-; share —- available in any stock|tion> in the form of the price of, manual — and thus arrive at the common stock into which the p-c ratio yourself.    the debenture is convertible. In any case, it is clearly im 1° a falling stock market, this possible for me to print any p-c factor leaves the convertible de- j list that would be good for more denture especially vulnerable than one day’s market.    since, normally, a convertible So much for arriving at p-e docs    carry as high a coupon t ratios. Where does that leave as a slight bond. In other you? I haven’t the soggiest words its price depends, to j(jea    some extent, on the price of the There is absolutely no basis j common stock. for anyone saying that just any    *    * * stock selling at below ten times Q — "e have iust retired, j earnings is “undervalued” or Should we hold some utility ( will enjoy a recovery when the stock we ^bought at 21, now', market improves. Many stocks selling at IS'’ which sold at nine times earn- A — I dont see why you ings a few months ago are now shouldn’t continue to hold it. selling at seven and even six bought an old-line utility, times earnings — and, who company which has paid divi- J knows, may recede to five times dends for decades without inter-1 earnings    ruption. Rising interest rates; Price-earnings ratios are use- have brought down its market; ful. In essence, they indicate the Pr*ce ~ as *bcy have the prices amount of hope the stock mar- °f many other high-yield utili-J k e t community places on bechances of making a profit in a    nothing    has happened stock. If it sells at 22 times which would imPalr }ts abi,ity to earnings, for example, you can do tbe job you originally asked assume that those paying that    Provl(^e 3 generous in-, price feel earnings progress will come ^rom a well-protected div-j be such as to make this stock an *dcnd. excellent growth vehicle. ,,    ...    ,■    ..    Mr Shulsky welcome*, written question*. If it    sells at five or    four times bu* *>* WH be Able to provide    ans*»rs ,,    4    ; only throws!1 the column. For    Hut of earnings, you can assume that orowth and dividend stocks, please include I the market doesn’t    have    too Addrt ss ayour bequests *to* Tam *Shulsky much    hope that the    stock    will j °* double in price over the next three months, or so. I repeat — the p-e ratio is a useful tool for analysts and technicians. It is not a sure-thing indication that a stock will rise or fall. Nothing is. DR.CRAVEN . DfNTIST practice limited TO DENTURE WORK 113 1*1 Ave SE, Cedor Des Mom** • Mason City Sioux Cly Rapids, lo. I Cih as a reason for not reporting reimbursements and expenses if he also used the IRS approved optional mileage deduction of 12 cents and 9 cents a travel mile to claim a deduction for his own auto expenses. Most likely to use the IRS optional mileage deduction are employes who get the per-diem allowance but no travel or a I small travel mileage allowance j from their employers. Statement Needed That 1973 ruling says you can’t use the optional 12-9c mileage allowance unless you attach a statement to your return which shows the various expenses for board and lodging that were covered by your per-diem allowance. If you want to use the 12-9c mileage deduction, you must give up the non-reporting benefit of your $36 per-diem allowance. So In filing your return, if your employer’s fixed mileage allowance is less Mum the IRS 12-9c optional mileage deduction (or he paid you no mileage allowance at all), consider not taking the 12-9c mileage deduction and thereby avoid having to report the details of the expenses covered by your per diem allowances. A final note: lf you have to drive to a union hall to get your day’s assignment and then drive to your job, the tax court agreed with the IRS that none of the car expenses may be deductible as business expenses. Next: Sick pay. For Better Health Proper Hair Treatment Requires Shampooing, Trimming, Brushing By Dr. S.L Andelman T o d a y let’s discuss our “crowning glory” — that hair on the top of our heads. Call it vanity, but we are all concerned about how our hair looks. Some prefer it waved; others want it straight. Some like it blond; others prefer it dark. Every year Americans spend several billion dollars on preparations and treatments for the hair. In spite of what the ads tell us, hair care is quite simple. Proper hair treatment requires no more than regular shampoo- ple with oily hair, those exposed to city dirt or those who are active physically may shampoo their hair several times a week, even every day. Natural Oil Excessive shampooing won’t cause baldness but it may remove too much natural oil, causing hair to become dry and break off. Nothing will happen if you don’t wash your hair at all, except that it will get dirty, your head may itch and the accumulated oils may give off an unpleasant odor once a week or more often. Peo- This also removes sui Inn dill. Next, wet the hair thoroughly and use enough shampoo tor plenty of lather. Massage the scalp with fingertips rather than the nails. lf your hair is very oily 01 di-ty, rinse it and shampoo again. Then rinse it carefully, removing all traces of suds. Blot it dry to prevent tangles, lf you dry your hair undei a dryer, regulate it carefully. Overheating will make your hair dry, brittle and easy to damage with a comb or brush. Lemon Juice Fortunately, most of today’s ing, trimming, brushing and    ,    _    _____ combing. Hair should be sham- Before shampooing, brush shampoos are wholly or partly pooed as often as needed — 'your hair free of all tangles.(composed of synthetic deter gents Instead of soap. However, ,1 you use a soap shampoo in fairly hard water, use a weak acid rinse such as vinegar or lemon juice to remove any soap scum. You may want to try one 0f the post-shampoo hair rinses and conditioners to improve the appearance, manageability and texture of your hair. Don’t ex poet miracles. They won't re duce the drastic changes that advertising may suggest, such as sticking split ends back together. And one last bit of advice: Forget about the time-honored IOU strokes a day. As a rule 20 to 30 strokes are enough to dis tribute the oil along the hair shafts, remove tangles and whisk away loose dirt and debris. Brush your hair no more than you need to in order to keep it neat and attractive. 20 YEARS AGD — Yager’s clothing store was sold to Albert F. Kieck. On this Bectronic Mini-Calculator HERE S HOW YOU CAN GET YOUR CAI CUI ATOR: A savings deposit of Your cost for the calculator $1,000 $19.75 $ 500 $23.75 $ IOO $27.75 Merchants National Bank rn Main Bank Motor Bank • Vernon Village Office A BANKS OF IOWA’BANK Kingston Office . Amana Office Just add to your present Savings Account or open a new one at Merchants National Bank. The 6-Digit, battery operated Mini-Calculator adds, 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. ;

Clippings and Obituaries for the Cedar Rapids Gazette