Masonry Magazine January 1969 Page.42
Taxes
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Anchor Manufacturing Company A 3rd Cover
Clipper Manufacturing Company, Inc. C Back Cover
Douglas Dynamics D
Robert G. Evans Company (Target) E 42
Felker Manufacturing Company F 30
General Portland Cement Company G
Gilson Brothers Company K
Keystone Steel & Wire Company 12 & 13
Lad-E-Vator Division, Wyco Tool Company L 26
ull Engineering Company M 32
MCAA 25
Morgen Manufacturing Company 26
National Concrete Masonry Association N 20
Ohio Lime Company O 18
Oury Engineering Company 14
Pfizer Minerals, Pigments & Metals Division P 2nd Cover
Pittsburgh Corning 11
Prime-Mover Division, Hon Industries T 35
Thomsen Division of Royal Industries
Trans-World Airlines Z 4
Zonolite Div., W. R. Grace & Company 17
This index is published as a convenience to the reader. Every care is faken to make it accurate but masonry assumes no responsibilities for errors or omissions.
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(Continued from page 27)
taxpayer that were constructed of very light wood. These structures were located in close proximity to other buildings of like flimsy construction. It seems that fire is one of the greatest hazards in the taxpayer's business and constantly endangers, impairs, and threatens its business.
Finding that he was unable to obtain fire insurance on the properties, the taxpayer set aside in a reserve account a percentage of its income to cover losses by fire.
The matter of the deductibility as a business expense of the amounts put into the reserve account was presented to the IRS. It ruled that no deduction was allowable. "The amounts set aside as a reserve to cover self-insurance are not ordinary and necessary expenses paid or incurred during the taxable year in carrying on its business." Rev. Rul. 69-512.
COMMUTING
Perhaps some day the tax laws will be changed to permit taxpayers to deduct the cost of commuting. But, so far, the IRS's position is hard and firm: Commuting is a personal expense and nondeductible. In a recent case, certain taxpayers were civilian employees of an Air Force Base. As only military personnel were permitted to live on the base, the taxpayers had to live in surrounding communities. Furthermore, there was no public transportation between the base and the neighboring communities and the taxpayers had to drive to work every day. On their income tax returns these taxpayers deducted the automobile expenses incurred between their worksites and the community closest to their worksites (even though this was not the community in which any of them lived.)
The Tax Court sustained the Commissioner's position that these expenses were nondeductible. They were merely commuting expenses. "The hardship facing the taxpayers were no different from hardships facing many suburban commuters, whose travel expenses have consistently been held nondeductible." Sanders v. Commissioner, 52 TC-No. 104.
CHARITABLE CONTRIBUTIONS
Here is a comparison of CCH's Tables for 1968 and now for 1969 of the cost of making charitable contributions. The effect from the 10% surcharge in 1969 seems slight. The net cost of charitable contributions varies from individual to individual because the contributions represent an amount which would otherwise be taxed at the highest rate applicable to the taxpayer. Therefore, the higher the tax bracket, the less the charitable contribution costs.
Based on $100 of contributions for individuals filing a joint return, the following shows the net cost of charitable contributions:
TAXABLE INCOME 1968 1969
$4,000 $ 6,000 $80 $79
6,000 8,000 80 79
8,000- 10,000 76 76
10,000 12,000 76 76
12,000 14,000 73 72
14,000- 16,000 73 72
16,000 18,000 70 69
18,000 20,000 70 69
20,000 22,000 66 65
50,000 52,000 46 45
The cost to corporations of contributions to charities remains the same as in 1968. If taxable income of a corporation does not exceed $25,000, the net cost per $100 of contributions made by a corporation would be roughly $76. If the taxable income exceeds $25,000, then the net cost would be $47 per $100 contributions.
masonry Nov./Dec., 1969