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Show Still available until Dec. 31st Tax-Free Straight Talk from the Professionals at First Interstate jBawi about the Tax Savings Certificate The Tax Savings Certificate is a breakthrough for savers. It not A To earn the maximum tax-free interest of $2,000 (for a only earns you a good return on your money, but allows you to )oint return) you will need to deposit about $20,000 in a ; - keep what you earn. All the interest you earn is tax-free. Here are Tax Savings Certificate. - . some facts you should know: . : ' ' ' ! The maturity of the certificate is one year. There is a sub-r sub-r stantial interest penalty and the loss of tax exemption for . " ' early withdrawal. ..'': " 1 You may buy a Tax Savings Certificate with as little as $500 and have the same tax-free advantage as you would I Your investment is insured by the FDIC for up to $!)6,jo6; . have with a larger deposit. Q and backed by the 1 1-state First Interstate Bank organiza- tion...now over $37 billion strong. ". 'fy-, ,'.'' " 2fSi?SifeS "Tf T SPeSf"y 7 Act now.timellipping by. The law authorizing '3 STh?. k 'e income of more than Savings Certifkates will expire December 31, 1982:7 ;. v $25,000 (those in a tax bracket of 30 or more). 3T, . , . L ., , Is this tax-free interest breakthrough right for vou? The-Drofes- - The interest rate pajd on the Tax Savings Certificate is sionals at First Interstate Bank will behappW yolnquS ; ' ' ' u to Tyear CaSUry Bl" rate-The CUrrent ratC 18 tions and helP yu decide- Contact your nearest First Interne ' " 10. 16... tax-free. Bank office. -, . . ; :v .. 'jkX;. : ttJll IFSrsB Meirsme Bank : .W ilSftll; : Member FDIC . . ;.' .::tir WU-ri r-. H'v ' "' ' ' ron 9Vnty Record ;k --4 ' 'ij W JOSEPH H. CUBLER JAMES M. WILSON J H GUBLER & "HTIFIEO PUBLIC ACCOUNTANTS BOX)lM 3eOWEST200NORTH ASSOCIATES M"rr;UTAHe4'M Regular or "Sub-S"? (A Choice for Small Corporations) Small corporations should take the time now to review the advantages of electing "Sub Chapter S" status under the new tax law. A "Sub-Chapter S" corporation is a regular corporation which elects not to pay federal income tax but instead to have the corporate income taxed directly to the shareholders on their personal tax returns. The law increases the number of shareholders that a "Sub Chapter S" corporation can have from 15 to 25 and allows certain previously prohibited trusts to be shareholders. Therefore, more corporations will now qualify for "Sub-Chapter S" status. Since the new law reduces the top individual tax rate to 50 percent only 4 percent higher than the top corporate rate of 46 percent "Sub-Chapter S" status has income more attractive because it eliminates double taxation on corporate income. For example, if a regular corporation has taxable income in 1982 of $50,000, it will pay federal income tax of $8,750. When this income is paid out to shareholders as dividends, it will be taxed again at the shareholders' individual tax brackets. If the corporation elects "Sub Chapter S" status for 1982, the $50,000 of income will be taxed only once on the individual shareholders' tax returns, saving the $8,750 that would otherwise be paid at the corporate level. "Sub-Chapter S" status may also serve to avoid IRS challenges concerning reasonableness of compensation com-pensation paid to shareholder-employees and reasonableness of earnings retained in the business. One drawback to a change from regular corporate status to "Sub-S" status is that a "SubS" corporation is restricted to Keogh limitations on contributions to pension plans and cannot make the far higher contributions con-tributions allowed in a "real" corporation. The time for electing .'Sub-Chapter S" status is restricted, so check with your accountant now if you think being a "Sub-S" might suit your business. |