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Show Reflex Journal usmcss Bulletin Leader i JULY 29, 1982 Davis Fair Slated 3 Days In August New Tax Laws Affect Closelv Held Business r Preparation is being made for the annual Davis County Fair which is scheduled for at the three days, August Lagoon Fairgrounds. j s 19-2- 1 SALT LAKE CITY Arthur Young and Co., one of the nations largest accounting and business consulting firms has released the following analysis of new tax laws affecting emerging closey held businesses. IN EVALUATING the future of a business, various options exist as to the form of operation the business should take. Although the non-ta- x considerations relating to these options are of major concern, changes made by the Economic Recovery Act of 1981 may very well influence a decision as to what form a closely held business should take. Corporate rates no longer shelter business earnings to the extent they once did. Beginning in 1981, rate reductions reduced individual tax rates Effective Jan. 1, 1982, the top tax rate of 70 percent has been reduced to 50 percent. As a result, the individual tax rate now approximates the top corporate rate of 46 percent. across-the-boar- d. THESE REDUCTIONS may warrant reconsideration as to whether to incorporate a closely held business as they eliminate most of the rate advantages to be gained by doing so. However, a simple comparison of top tax rates is not enough. Business earnings may be such that the corporate tax rate structure can be taken advantage of. In an attempt to close the widening gap between the corporate pension limits and those relating to plans, Congress liberalized the rules for contributions to Keogh plans. For taxable years beginning after December 3 , 98 1 , the maximum deductible contribution to Keogh plans is increased from $7,500 to $15,000 (or 15 percent of earnings, whichever is less). 1 1 THERE IS a similar increase, from $50,000 to $100,000, in the amount of compensation taken into account in determining permitted annual defined benefit accruals. In addition, individuals who participate in corporate plans or who make contributions to Keogh plans can now also make contributions to Individual Retirement Accounts (IRA) up to a maximum of $2,000. more pronounced in the future as the corporate limit adjustments continue. Keogh and IRA limits can only be increased by legislation. For years Congress has provided the small business operation with the alternative of operating in corporate form, while passing through corporate earnings to shareholders. This special Subchapter S election is especially useful during the early years of a business when losses are expected and can be passed through to shareholders. They are encouraging everyone to participate in the many events, and the more people, the better the fair will be. THE ECONOMIC Recovery Act of 1981 enacted changes in certain limits on these corporations making them a more viable alternative for many more closely held businesses. Under the new act, limits on the maximum number of shareholders allowed for an electing corporation has been increased from 15 to 25. Lifetime gifts to relatives for purposes of income splitting or transferring control should now become available to all but the largest families. A GIFT of Subchapter S stock could effectively shift a portion of the corporate income to a taxpayer who might be in a lower tax bracket. The same result can be In addition, Subchapter S corporations benefit from both the Individual Rate Reductions and the new limits Keogh Plans. applicable to AN ARTHUR Young & Company entitled The Closely Held Business has been prepared addressing those parts of the 1981 Tax Act that will have the greatest impact on forming, operating, and disposing of a closely held business. It is available free of charge through the Arthur Young Salt Lake City Office. ARTHUR YOUNG & Company, the international is a general partnership. Founded in 1894, Arthur Young has 84 offices throughout the U.S. The firm is a member of Arthur Young International, whose member firms have offices in more than 300 cities in 65 countries through- out the free world. er ATTENDS CONFAB By DONETA GATHERUM LAYTON - Energy is a word with many meanings. People who have a great capacity for doing work are said to have a lot of energy. Active children are full of energy. Electrons moving through an atom are in an energy state. The sun generates natural power or energy. wood yard to accomodate people with wood burning stoves. Later, he realized using coal and wood was not the answer to high utility bills and diminishing supplies of natural resources. Larry Judd became in- volved in the practical use and development of solar energy. LAST WEEK he held the official grand opening for Solid Resources at 13 S. Main, Layton. is the word Affordable that summarizes Larry Judds approach to solar energy. Af- ter extensive study and re- search plus the experience of working for a solar energy company in Salt Lake City, Mr. Judd is convinced that 90 percent of the existing homes along the Wasatch Front can improve their heating costs by installing some type of passive solar device. ACCORDLNG TO Mr. Judd, there are two types of solar products on the market-activ- e systems and passive systems. An active system uses mechanical devices to move heat from collectors into the home. This program is geared to our traditional forced-ai- r heating concepts. Opens North Davis Office Congressional candidate Ted Wilson was present recently to greet guests at an open house at the opening of his north Davis headquarters in Clearfield. A LARGE attendance gave many local residents the opportunity to meet and talk with the candidate. Mr. Wilson is a very informal friendly man with a great sense of humor. He answered all questions off the cuff displaying a know- ledge and understanding of the issues Davis County people are concerned with. He talked about tax breaks for parents who send their children to private schools and how this could one day result in the public schools becoming a place to educate the poor and deprived when they intended to educate all races and all lifestyles equally. HE FEELS public education has made a great contribution towards keeping this county what it is and that a shift encouraging private schools would upset the integrated American way of life. He said he felt that amendments to our constitution should not be used lightly or at the wimsey of law makers. He feels the founding fathers have stood the test of time in what they put into the constitution and any changes should be considered very seriously. THE WILSON headquarters in Clearfield are located at 1 1 North Main in the H&R Block building. Volunteers who wish to donate time to Mayor Wilsons campaign are invited to come in and get involved. True Democracy results when people, not money, make the real difference in an election process. . - mmmrm M.im ACTIVE SYSTEMS are expensive to purchase and to install. They require a power source such as electricity to keep them in operation. Cus- MOST HOMES can be fitted with some passive solar system. It might be a greenhouse, a sunduster air collector, a hot tub or a solar attic unit. All are practical and reasonably priced. NEITHER ACTIVE nor passive solar systems can totally replace a conventional home heating system. They can be used to supplement and improve upon the furnace you now have but it would be foolish to completely rely on a solar heating system at the northern latitude we are on. Mr. Judd believes it is equally unwise to replace the furnace with wood or coal burning stoves. Fuel, whether it be natural gas or wood, is expensive. There is no real savings in heating with wood or coal over heating with natural gas or electricity. 9 451-327- 4-- your needs. Gleatfiald Ext 217 Municipal Pool 934 So. 1 000 ., Cleorlitld Cwhitr lit 211 fit. 220 atmosphere cant take the heavy pollution created by homes burning wood and ADMISSIONS: he says. wood burning stove should be part of everyones A home but it should be a backup system only, Mr. Judd believes. THE SOLAR energy prog- rams offered by Solid Re- sources use the existing home as a basic collector. Every home has some thermal mass that can be used to collect radiant heat for night-tim- e use. Most attics can be converted into efficient solar collectors. Hot air collectors can be attached that will pull existing cooler air in the house through the collector and back into the home. A lean-t- o greenhouse can give additional living space and at the same time reduce the heating costs tremen tomers generally pay much more for an active solar product than it is really worth. A passive solar system collects heat and allows natural convection to move the heat into a house. No blowers, fans, etc. are used in passive solar systems. Excess heat is stored in the concrete, brick walls or water tanks within the home. There is no break down. Prices are affordable. Photo Deadline Thurs. 6:00 CRAIG D. HOLMAN, D.P.M PODIATRIST FOOT SPECIALIST Diagnosis & Treatment: Heel Pain Corns, Calluses, Bunions Ingrown Toenails Warts Arch Problems Running & jogging injuries Diabetic Complications Preventative Foot Care for Infants & Children FREE FOOT EXAM NEW OFFICE HOURS Monday thru Friday Thursday Evening Saturday Morning 776-222- 0 all reg- ulations may be obtained by contacting the Utah State Uni- versity Extension Office in Farmington, on the second floor of the Jail Annex, or by calling the extension at of the Fair Office at LaJr goon, Extension Lloyd Smith, agent will be directing the! junior department competition at the Lagoon Fairgrounds for the 1982 Fair, np affordable and suitable for WOOD AND coal pollute. Mr. Judd believes some burning regulations will have to be implimented very soon. Our coal, THE FAIR books listing the activities and rules and dously. Solar energy is the only way to survive the heating bills and the fuel shortages we are now facing. Mr. Judd advises people to be intelligent about their solar energy purchases. Study the products being offered. Make sure what you buy is PooiHp. Ext 211 types. FARM ANIMALS and farm pets will be judged, everything from pigeons to rabbits and sheep, calves, and pigs are among the entries. Hundreds of exhibitors are expected to participate in the biggest fair ever held in the county. Larry Judd: Energy FOR THE past several years pose of the program is to encourage and financially support the volunteer efforts of employees. Tom Jensen, a Chevron employee of 11 years and a volunteer Syracuse fireman, applied for the $500 grant from Chevron USA, and the money was used to purchase the new helmets. Donning the new helmets are Lt. Larry Overstake, left, Capt. Tom Jensen, Chief Roy Miya, Firemen Leonard Mills and Doug Wells, Asst. Chief Wally Rampton and Secretary Edwin V. Kimber. all Business Profile Larry Judd has become highly energetic over natural energy. At first, he opened a coal and Syracuse City Fire Department recently was able to purchase II new Phoenix 600 fire helmets for their volunteer firemen. The firemen previously had been using helmets over 20 years old, that did not meet OSHA requirements. This purchase was present-da- y made possible by a new fund, the Chevron Employee Involvement Fund, sponsored by Chevron USA. This fund was developed to support selected community service activities of employees of Chevron companies in the Salt Lake area. The main pur CITIZENS ARE asked to participate in such events as food preparations and preservation, dress making, quilt making, handicrafts of all types, garden produce, vegetable growing, all types of hobbies. arts and crafts, photography. and livestock raising. Cash awards as well as winning ribbons will be awarded to the winners in all categories of competition some of which will be horse racing, speech making, tractor driving for the youth and demonstrations of Dr. Clyde F. Marx (center), of Layton, congratulates Dr. Wendell D. Waldie, Wichita, KS, upon Dr. Wal-die- s inauguration as president of the 23,000-membAmerican Optometric Association, as Mrs. Waldie looks on. Dr. Marx, president of the Utah Optometric Association, was in Boston to attend the business and education sessions of the national organizations 85th annual Congress. The association represents three-fourtof the nations doctors of achieved by gifting the stock to a newly qualified Subchapter S trust with the beneficiaries deemed to be owners. In this way, direct ownership by relatives is avoided. tax, accounting, auditing, and consulting firm, ALTHOUGH THE new law increases the deductible retirement contribution, contributions under corporate plans will still yield a larger deduction in most situtations and despite modifications the existing difference in allowable deductions will be even FAIR BOOKS will be available to all citizens in Davis County and a list of all the events are in the books. There are more than 80 special events planned for all ages from toddlers to senior citizens. 8:30-- 5 6:00-- 9 00 00 8:00-110- 0 2179 North 1700 West 7 Layton, Utah 84041 |