Masonry Magazine March 1974 Page. 22
The Perlite Way
Heat transmission can be reduced by 50% or more when silicone treated perlite loose fill insulation is poured into the hollow cores of concrete block or cavity type masonry walls. In fact, cavity walls of face brick and tile show a 63% reduction! But that's not all. Silicone treated perlite loose fill insulation is water repellent-indefinitely.
Specs call for a concrete block wall? Perlite loose fill insulation can help too! By filling the core holes with perlite loose fill insulation your fire rating will be doubled to 4 hours and your "U" factor improved by 54%. And you don't have to worry about permanence. Silicone treated perlite is inorganic and rot, vermin and termite proof. And it's non-combustible with its fusion point of 2300°F.
Even a veneer wall of brick and concrete block can show a 52% improvement in insulating value when filled with loose fill perlite. Don't worry about settling - silicone treated perlite supports its own weight in the wall without settling and it's easy to handle too! Thanks to its countless glass-like cells it's light-weight and easily poured. It's quick-it's inexpensive and it's permanent-the perfect material for insulating masonry walls.
Perlite Institute, Inc.
45 West 45th Street
New York, N.Y. 10036 212-265-2145
Taxes
(Continued from page 21) loan was found to be a prohibited transaction within the meaning of the Code. (Rev.Rul. 73-586.)
BABY-SITTER
A taxpayer, the mother of two young children and who was not gainfully employed, rendered gratuitous services at a hospital on a scheduled basis. Could she deduct the expenses she incurred for the care of her children while she performed these gratuitous services? The IRS said no. The expenses the taxpayer incurred for a babysitter are personal expenses that are directly connected with the taxpayer's rendition of charitable services, and thus would not be deductible. (T.I.R. No. 1267.)
WORKMEN'S COMPENSATION
A corporation formed an association that would handle and provide for the payment of workmen's compensation benefits to its employees. The association would process and pay claims for workmen's compensation benefits. There was a state workmen's compensation statute which was in existence prior to the formation of the association. The amount of the awards paid by the association was based on the state statute which provided for the payment of set amounts for specific injuries. The corporation remained ultimately liable for all employee claims and would pay any claim the association was unable to pay. The association was funded entirely through contributions from the corporation. Employees made no payments to it. The association's disbursements were for the claims and other normal operating expenses. The IRS was asked whether such an association would be exempt from federal income tax as would be a qualifying employee health plan. The IRS explained that since the employees of the corporation were already entitled under the state statute to the payment of workmen's compensation benefits, the formation of the association did not result in the receipt of any additional employee benefits. The association merely endured the discharge of an obligation already imposed by statute upon the corporation. Therefore, such an association would not qualify for exemption from federal income tax under Section 501 (c) (9) of the Code. (Rev.Rul.74-18.)
LEASE-BACK
In order to better negotiate in the world of high taxes, many taxpayers will donate their business property to their children and then lease the property back from them and continue to operate the business from the same location. The rents then go into the lower brackets of the children, and the taxpayer can deduct the rent he pays as a business expense.
In a recent case involving this sort of an arrangement the taxpayer was a funeral director. He owned the property in which his funeral home was located. He and his wife created four trusts, one each for the benefit of their four children. The parents then transferred the business property to the trusts. There was a provision in each trust that at the end of ten years, the trust was to terminate and the principal of each would be distributed to the parents or to their estates.
(Continued on page 26)
masonry March, 1974