Masonry Magazine August 1969 Page. 23
Taxes
(Continued from page 19)
in the United States, (3) a 5% tax on air freight waybills, and (4) a tax of 9 cents (presently at an effective rate of 2 cents) on all fuels used in general aviation.
INTERNAL REVENUE SERVICE
In speaking before the House Committee on Appropriations, the new Commissioner of Internal Revenue Service, Randolph W. Thrower, explained some of the inner workings of the IRS. He stated that nearly all individual income tax returns are filed in the first 3½ months of the year. As the IRS cannot process them all during the filing period they have established certain priorities. They first work on the returns from the 50 million taxpayers who have refunds coming to them. Next are the underpaid returns. The remaining returns, some 17 million, are what the IRS call fullpaid returns. On these returns the taxpayer has indicated that no money is owed to him or by him.
CHANGING JOBS
In another one of those grey areas of deductibility is the question of whether a taxpayer can deduct business expenses incurred while he is unemployed. The main point of inquiry is does the taxpayer's trade or business continue while he is looking for new employment. For example, union fees paid by an unemployed member while looking for work are deductible. Also, a salesman, who has a customer list and contacts but is temporarily out of a product to sell, may deduct business expenses even though he is unemployed. This is so because he continues to be actively engaged in a trade or business. CCH advises that the key questions to be answered for determining the deductibility of expenses incurred between jobs are: Is the time off the job really a transition period? Is the length of this period reasonable? Does the taxpayer's trade or business continue during this period? And, are the expenses attributable to the trade or business.
"POINTS" DEDUCTION
As this column recently reported a growing change in the IRS toward the deductibility of 'points" in a mortgage loan, we will belabor the subject once again. The IRS has now ruled that another type of charge similar to "points" is deductible as interest. The expense involved was a premium charge in addition to stated interest for the privilege of being granted the loan. The IRS explained that "the facts show that the borrower separately compensated the association for all services performed by the association in connection with the origination of the loan. These facts demonstrate that the premium charge was paid as compensation for the use of borrowed money, although denominated a premium charge." Rev. Rul. 69-290.
Open New Rock and Sand Plant
Hooker Materials, Inc., and Curtis Construction Co. have announced that production has commenced at their jointly operated rock and sand plant in the Saugus area, California. The facility has a rated capacity of 750 tons per hour, producing a full range of aggregate items including materials for asphalt concrete, concrete ready-mix, roofing gravel, base materials, concrete for dam jobs and specialty sands. The rock and sand deposit is believed to be one of the largest in Southern California with reserves estimated to be in excess of 250 million tons.
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