Masonry Magazine June 1969 Page. 20
NOW! VAUGHAN
BRICKLAYER
HAMMERS
with
TUNGSTEN
CARBIDE
COATED EDGE
A special protective coating-applied by a patented electronic process strengthens the blade "edge" making it substantially more durable... more resistant to constant heavy duty wear than ever before! Forged from high carbon steel, this new improved hammer by Vaughan has been designed to provide a more accurate brick breaking blow. Hickory handle is compression fitted for secure, durable sure-tight fit. Ask your tool supplier!
No. BL-TC 10 oz., 16 oz. and 24 oz. sizes
3 VAUGHAN & BUSHNELL MFG. CO.
11414 MAPLE AVE., HEBRON, ILL. 60034
Designing, Engineering, and
Constructing with Masonry Products.
Editor: Dr. Franklin B. Johnson
Illustrated and indexed
Price $35.00
The most knowledgeable architects and engineers from government, education, research, and industry met recently to discuss the state of research, education and practice relating to masonry structural systems. The proceedings of this conference are contained in Designing, Engineering, and Constructing with Masonry Products. The authors are from Australia, Austria, Belgium, Bulgaria, Canada, Czechoslovakia, Denmark, England, India, New Zealand, Scotland, Switzerland, the United States, and Yugoslavia.
This exchange of information represents the best available technology. There is a scarcity of masonry literature in English and exciting uses of structural masonry are relatively new. It was the success of thin-walled, multi-story, load-bearing buildings in Europe that initiated the examination of the potential of masonry construction.
This book includes discussions of the creative challenges of masonry, materials science relevant to structure, structural performance, design methodology, construction, and seven case studies.
Send for your copies at $35.00 each.
gg Gulf Publishing Company
P. O. Box 2608 Houston. Texas 77001
Taxes
(Continued from page 17)
a building, repayable in monthly installments at 7.2% interest per annum. In addition, the taxpayer paid the lender a "loan processing fee."
The taxpayer was able to show that when he paid the lender the "loan processing fee" (or points), he was paying a charge for the use of money. The fee was not paid for any specific services that the lender had performed-such as charges for a title report, an escrow fee, the drawing of the deed, etc. Rather, the fee for these services was separately stated.
For tax purposes, the U.S. Supreme Court has defined interest as the amount one has contracted to pay for the use of borrowed money and as compensation paid for the use or forebearance of money. It would be sufficient that the payment be a prerequisite to borrowing.
In the Ruling, the IRS explained that to qualify as interest for tax purposes, the payment, by whatever name called, must be compensation for the use or forbearance of money per se and not a payment for specific services which the lender performs for the borrower.
Therefore, points should not be automatically regarded as a non-interest payment. It may be worthwhile to have a lender specify just what is being paid for by the borrower's loan processing fee or points. Rev. Rul. 69-188.
UNION FINE DEDUCTIBLE
With the agreement of the taxpayer, his employer changed the basis on which the taxpayer was being compensated from an hourly rate of pay to a yearly salary. However, such action was in contravention of the agreement that had been negotiated between the labor union and the employer.
The union, of which the taxpayer was a member, required the employer to return to an hourly rate of pay as specified in the labor agreement and also levied a fine upon the taxpayer which had to be paid if the taxpayer were to remain in the union.
Advice was then requested from the IRS whether the taxpayer could deduct the amount of this fine from his federal income taxes.
The IRS pointed out that an individual, while performing his services as an employee, is carrying on a trade or business and the ordinary and necessary expenses incurred in connection therewith are deductible. Therefore, the IRS ruled that the fine imposed on the taxpayer by the labor union was an ordinary and necessary business expense and deductible from federal income taxes-provided he itemized his deductions. Rev. Rul. 69-214.
MEDICAL INSURANCE
In this age of medical insurance coverage, it is not unusual for many individuals to be covered by two or more medical insurance policies. It may be of interest to review some of the tax aspects of medical insurance.
As you know, one-half (up to $150) of the premiums an individual pays for medical insurance is deductible as a separate medical expense. The other half, of course, has to be grouped with a taxpayer's other medical expenses subject to the 3% limitation.
However, in order to qualify as a medical expense, the premium must be for MEDICAL CARE insurance. This means only premiums paid for a policy that provides for the reimbursement for hospitalization, doctor bills, drugs (including supplementary medical insurance for the aged -Medicare).
It does not mean premiums paid for a policy that guar-
(Continued on page 22)
masonry
• June, 1969