Masonry Magazine April 1970 Page. 26
Taxes
(Continued from page 12)
The IRS ruled that the payments were "wages." In spite of the fact that the cash payments were derived from the health and welfare fund, they were not made "on account of sickness or accident disability" which would make them excludable from "wages." Rather, the IRS pointed out, the cash payments distributed annually by the union to employees are attributable to services performed by the employees for the contributing employers during the preceding year. The IRS stated that it was the union that had the responsibility of withholding from the payments and paying over income taxes. Rev. Rul. 70-51.
LOW-INCOME HOUSING
A low-income housing project can be financed in full by an FHA-insured mortgage provided it is sponsored by a public agency, a cooperative or a private nonprofit corporation. Under the Housing & Urban Development Act of 1968, the principal and interest payments made by an investor in such projects are no more than if he were paying off a 1% mortagage. The government pays the rest of the charges to the mortgagee. As you are probably aware, the rentals that can be charged in these housing projects are limited by the National Housing Act. In an attempt to encourage the building of more low-income housing by private enterprise, Congress offered certain tax incentives in the Tax Reform Act of 1969.
The Tax Reform Act of 1969 reduced the benefits of fast depreciation for real estate constructed after July 24, 1969. However, an exception to this was made for these low-income housing projects. Also, should an owner of one of these projects decide to sell out in the future he will be subject to less stringent depreciation recapture rules then will other realty sellers. The new law now permits the investor-seller to postpone recognition of gain on a sale, approved by the Secretary of HUD, to the tenants of the project (or to a non-profit management organization operating the project on their behalf) for the amount of the gain that he reinvests in another project within one year before or after the sale. These postponed gains could even escape taxation completely if the taxpayer does not dispose of the replacement housing during his lifetime. The basis of the property to the beneficiary would be its fair market value at date of death (or optionally at one year later.)
CASUALTY LOSS
A taxpayer's water heater burst causing rust and water damage to rugs, carpets, and drapes. Normal deterioration (rust and corrosion) had caused the heater to burst. The taxpayer had no insurance to reimburse him for these losses.
The IRS ruled that the rust and water damage to the rugs, carpets and drapes caused by the bursting of the water heater was a casualty of the type contemplated by the law. It was the result of an identifiable event, sudden in nature, fixing a point at which the loss to the damaged property could be measured, and was also unexpected or unusual. While the IRS ruled that the damage caused by the bursting heater was deductible, it also ruled that the loss of the heater itself was not a deductible casualty loss since the rust and corrosion of the water heater was gradual and progressive. Rev. Rul. 70-91.
H.R. 10 PLANS
mcoo
The IRS just released its statistics on the qualification of H.R. 10 Plans (retirement plans for self-employed individuals) in 1969. In general, the number of H.R. 10 plans qualifying continues to rise. There were 113 more H.R. 10 plans that qualified in 1969 than in 1968.
POWER MATCHED MIXERS
350 L
THE 1-BAG CARRYABLE MIXER
31% cu.ft capacity
Exclusive 2-man carrying handles allow you to take the mixer to your work. Gasoline Engine or Electric Motor.
550 L
THE MASON'S FIRST CHOICE
51% cu. capacity
Low speed 4 x 8 Pneumatic Tires allow passage through 30" doorways for on-job mixing. Low charging height and good discharge clearance gives you high volume production.
POWER-MATCHED means MATCHED in design and POWERED by popular long service engines.
Using automotive-type production methods, WESTERN manufactures Job-tested mixers the right mixer and engine combination for reliable power and high production mixing.
POWER-MATCHED means PROFITABLE-MIXING. The low cost and availability from stock of mass produced machines make WESTERN the industry leader.
ALL WESTERN MIXERS include 2 sets of Blades (1 rubber set and 1 steel set) unless spiral blades are supplied.
WESTERN
WESTERN PRODUCTS
1234 North 2nd S
Milwaukee, Wisco53213
Twin eyes
for
safety chains.
A DIVISION OF
NEW! 400 x 12 High Speed, 56 mah, high way speed rated wheels, tires, axles and bearings.
DOUGLAS DYNAMICS CORPORATION
THE SAFE MIXER
MODELS 550, 750, 900 & 1100
Heavy-duty leat springs on Models 900 and 1100.
Full protection from a full grill guard.
EXCLUSIVE! Power Control Lever. Start and stop the paddle rotation from this safe, convenient, outside location (V-belt Models).
26
masonry
• April, 1970