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Show A-20 The Park Record Wednesday, March 26, 1997 (HEffl Ronald Field O How to avoid r IRS penalties on your 1996 return l - " ' .-.ch ii .lpplmj: uh ill. N ' - - i!h 1.in jn 1 1 1 i . - .-'-' ;.U:::i You . ' - ;, .! the IRS h, . I .iiliii i lik .i timi'l rt'Iurn. V.- ot . . v,.:;:h : ' ,i ni.!- . : : . ; i in. 'M ccu--cv i i Jc.illi in our i i!k- IKS lli.iv IK'S : lint ' imii1 I iiIiim in (iur l;it" (in tinu . i' ". I;ic ,iikI ou i. ii: i ; a ' pi il 1 i ill will net si., . . J i- h iKS hi p is jew severe than I-ii i i i nitir. , I ,-i in n in I, lie House hold Employees Ii ..ii . :hii $I.(MMI or more v i i k i in' .'l someone's house and 'hi iiiL-ss for vourself. . i t employee of ihe ;ile il. on n home. ! . i m I . , o household i-mpl'-vee- ii.-luile babysitters, luitli is , ii, i.ikcrs. eooks, dri-eis dri-eis ;i ,i J i; i . housekeepers and in. mis ('.ill I .sou ,SN MtJh and get I'uMi. .if.-. " '( loi tax rules abiv.ii HHr-.' "hnlvl employees. tnssers a penalty of one-half of one percent of the taxes owed for each month that the balance due remains unpaid, up to a maximum 25 percent. For example, if vou don't send in the Sl.iHHIyouowe. the IRS will assess a S5 penalty for April. If you still can't pay in May. you'll owe .mother S5 and so on. until you either send in the taxes or the pcn.ilu reaches $250. To keep the penalty at a minimum, mini-mum, send all you can afford with our return. Failure to hate paid enough taxes in 1996. If ou come up ow ing si hi or mote on your return, you ma he liable for an underpayment penally. You'll escape this if you have sent the IRS at least 90 percent of our 199h tax liability by January 15. Otherwise, you're only out is filling out form 2210 to see if you meet one of two exemptions to the penalty. The first excuses you if you already paid in an amount equal to 100 percent of your 1995 tax liability. liabil-ity. ( The exception to this exception: excep-tion: If your adjusted gross income topped '$150,000. your 1996 payments pay-ments must equal 110 percent of vour 1995. or 90 percent of vour 'l99fitax.) Your second escape route comes through annualizing your income. This means computing your taxable income as of last March 31 and August 31. and comparing com-paring the amount of tax owed on those date, compared with what you had actually paid in. This method is effective only if your income fluctuated widely during the year. Failure to pay substantially what you owe. If the IRS determines deter-mines that you owe a whole lot more in taxes than the total of what you paid last year and the amount you're including with your ?Upmbof I A l i'iVIOI-'.. uc encourage your input and design ideas.. .because we u ,int lo build your townhouse the way you would like it. ii . .in i. Id ,i Ivsemcnt or a patio and change the loft into a computer office i mii); n in It cm he easily done! We've already added an abundance I KT.ige space as well as a large private two car garage. ' in' 'iiitrv living at its best when you visit our model located at 1085 v.. i Alpine Rd. in Midway or call us at (801) 654-3427. I: . n pl in in building your own home, we also have excellent building i '- .. illi ,i view. All utilities are ready for use. Call (801) 654-3427. For information call (801)654-3427 "96 return, you could be socked with a penalty equal to 20 percent of the underpayment. The penalty kicks in when the IRS says you owe at least 10 percent per-cent of the correct tax or $5,000. whichever is greater. The problem often crops up with tax-shelter deductions that the IRS later denies. If you'll be claiming "iffy" shelter shel-ter write-offs, such as real estate with a valuation the IRS might dispute, dis-pute, head off a penalty by attaching attach-ing to your return evidence supporting sup-porting your claim. Failure to sweat the small stuff. Finally, there are three pesky penalties that you can easily skirt if you follow the IRS' instructions with your tax forms: - Be sure the income you report matches your VV-2 and 1099 forms. If you come i:p short, the IRS can wallop you with a negligence penalty 2(1 percent of Ihe extra tax that you owe. For instance, if you're in the 28 percent tax bracket brack-et and overlooked a Form 1099 showing $1,600 in dividend income, you could owe a $90 penalty. "UTAH'S QUALITY LENDER" 1 IHfViJfcfaiual Spit mtti A 525 7 O 38 pt. RESET ' 0 7.13 APR 15 YEAR 7 olaO 38 pt. FIXED I OO O 7.51 ApR 20 YEAR 7 0,.0 12 P'- FIXED 34 O 7.88 APR 30 YEAR 7 7qO 14 pt FIXED 78 O 8.01 APR 3. i dams sn nnn TO$500,000 'Sf" $100,000 minimum loan amount. 3- LOW COST CONSTRUCTION y LOANS, one rr TJIME CLOSETr CAKD S-SS FINANCIAL. LC PARK CITY 649-7898 SALT LAKE 273-3318 - Parents, fill in the Social Security number of every dependent depen-dent you'll claim who was born before November I. 1996. If you don't, you'll be fined $50 for each unidentified dependent. -If you make a nondeductible IRA contribution in 1996. report the amount on Form 8606 or face a $50 penalty. After all. why give the IRS a simile nickel needlessly? Based on the lenders surveyed this week, the interest rate on 30-year 30-year mortgages increased to 8.125 percent. The interest rale for 15-vear 15-vear mortgages was unchanged at 7.625 percent, and the rate for one-year one-year adjustable-rate mortgages was 6.375 percent. All rates are quoted w ith zero points and a one-percent one-percent origination fee. Ronald Field, Park City, is ti licensed mortgage broker, investment invest-ment advisor and former columnist for the Chicago Tribune. Readers with questions can send their letters to Ronald Field. P.O. Box 2060. Park Citv. UT S40M). Local convention properties report the following groups are meeting in Park City the week of March 30-April 5. Information is provided by the Park Citv ChamberBureau. 24 Groups O'Neill Lysagut & Son First Baptist Church Baxter Health Care-Geneva Care-Geneva Rock Hidden Cove Barane Wedding Whitaker Church Group Aspire Training Montana Travel Kings Health Medical Group Institute of Clinical Electro Physiology Westinghouse Electric Corporation DeMarche Group Lomak Petroleum J. P. Morgan Luxar Corporation DeMarche Association Travel Adventure Key Bank Team Works 2000PC Ski Holidays Tour DeSport Olsten Health Service Hill-Rom Home Care Detroit Diesel TOTAL Attendees 10 42 15 15 20 7 30 72 9 12 25 60 85 7 i 25 70 10 7 24 10 30 20 10 617 THIS IS AN EIGHT PERCENT DECREASE FROM THE SAME WEEK LAST YEAR. ESTATE PLANNING ASSET PROTECTION TAX DEFERRED GROWTH STAN SECOR District Sales Manager Salt Lake City Career Agency Phoenix Phoenix Home Life Mutual Insurance Company 215 S. State St., Suite 1160 Salt Lake City, UT 84111 801-328-8300 801-645-1038 Grand Opening, Absolutely Free. till I wsrn gyj? f !W iflff i&mm ti H.,.lil- -ffi IF A GRAND OPENING OF YOUR CLOSET IS IN ORDER, NOW IS THE TIME TO CALL CLOSET SPACE. This month we'll install the highest quality closet available, absolutely free. You pay for the materials, and we'll pay for the labor. Just give us a call, mention this ad, and we'll draw up the perfect closet for vi.m individual needs. HURRY! This Grand Opening offer lasts only through the end of April 1997 Lmiir out- iiiMdlldtion per tnmilv. Not valid with other oners. M CALL FOR YOUR FREE IN-HOME CONSULTATION TODAY. Park City (801) 647-9979 Provo (801)377-6464 Salt Lake City (80 1 ) 355-6767 Ogden (80 1 ) 394-6767 Toll Free (800) 750-9052 Program Rate Points Down Caps Index Bank One 30 yr Fix 15 yr Fix 1 yr ARM 8.125 7.625 6.375 Chase Manhattan Mortgage 30 yr Fix 8.000 15 yr Fix 7.750 1 yr ARM 6.375 Countrywide Funding 30 yr Fix 8.500 15 yr Fix 8.125 1 yrARM 6.625 Crossland Mortgage 30 yr Fix 8.250 15 yr Fix 7.750 6 mo. ARM 5.875 First Colony Mortgage 30 yr Fix 8.375 15 yr Fix 7.875 1 yr ARM 5.875 Key Bank of Utah 30 yr Fix 8.375 30 yr Jumbo 8.500 5 yr Balloon 7.875 North American Mortgage 30yrFix 8.125 15 yr Fix 7.625 1 yr ARM 6.375 Triad Financial 30 yr Fix 8.250 15 yr Fix 7.750 1 yr ARM 6.500 Washington Mutual 30 yr Fix 8.000 15 yr Fix 7.625 1 yr FHA 6.500 Zions Mortgage 30 yr Fix 8.125 15 yr Fix 7.625 1 yrARM 6.125 5 5 10 5 5 5 10 5 10 5 10 10 5 10 10 5 5 10 5 5 10 5 5 5 5 5 10 5 5 10 26 26 26 16 26 T-Bill T-Bill T-Bill Libor T-Bill 26 26 15 26 T-Bill T-Bill T-Bill T-Bill The Utah Mortgage Pulse includes up-to-date information on home loan rates charged by Salt Lake City area lenders. The information was accurate on Monday, March 24, but is subject to change without notice. Closing points: One point equals 1 percent of the loan amount. Most lenders also require private mortgage insurance with down payments of less than 20 percent. Also, most lenders charge loan processing fees up to $300, credit and appraisal fees up to $400, origination fees of 1 along with other closing costs. Index: T-Bill Yield on 1 yr T-Bill. COFI Cost of Funds Index, 11th D 11th District Cost of Funds, LIBOR London InterBank Offered Rate. Source: Mountain Express Mortgage (801) 647-3700 N we welcome you to EASTER services at the Mountain Vineuarb CHRISTIAN FELLOWSHIP come join us for a morning "VJoriberful music, message nnb a blessing that comes from being together. Sunbay March SO11 8:15 am b 10:15 am (tWo services) 'We are located at HOI 'Kearns bouteVarb Craig Reece, CRS IS OWNER'S TITLE INSURANCE A GOOD IDEA? If you finance your home, the lender will require you to purchase title insurance insur-ance for the amount of your mortgage. You will be given the option of increasing the coverage to include your equity in the property. The owner's coverage fee is a one-time charge that protects your equity in your new home, including the appreciated value. Most experts agree that the additional coverage cover-age is a good idea. Before your sale is finalized, the title company wifl inspect the public records and confirm the sellers ownership of the property. They will look for any liens that may have been filed against the property that must be paid off before it can be sold. Even the most careful search, however, cannot guarantee guaran-tee that there was not an error at some point in the chain of ownership. Title insurance is one of those things you will probably never need, but if you do, you will be very glad you have it! For rock solid advice on buying or selling real estate, call Craig Reece at 801-647-8017 or toll free at 1-800-553-4666. Craig has been a full-time Park City resident since 1973 and a full-time real estate agent since 1978. (801) 647-8017 (801) 649-7171 (800) 553-4666 ThePrudential( Coleman Real Estate Saddleview Office Park 2200 Park Avenue, Bkjg B Park City, UT 84060 (800) 553-4666 (801) 649-7171 The Prudential and are registered service marks of Trie Prudential Insurance Company of America. Equal housing opportunity. Each company independently owned and operated. |