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Show BUSINESS EDITOR: NANCY BLISS 2 THE DAILY HERALD The Associated Press SALT LAKE CITY Home buyers in the Salt Lake metropolitan area tied with those in Indianapolis for sixth lowest monthly payments, according to a new Pete Kranenburg Use accountant to take advantage of yearly tax benefits Tax law is complex. It changes every year. So don't be surprised to hear that three out of every four taxpayers get professional help in preparing their returns. But your accountant can do the best job for you only if you get involved in the process. Here are ways to get the most value from your accountant. Call your accountant before Talk over year-enmoves to cut your upcoming tax bill, such as prepaying property taxes or selling stocks and bonds to generate deductible losses. Organize your records. Scan last year's tax return to remind you of your usual deductions and sources of taxable income. Then search through your checkbook, credit card statements, and receipts. Add up totals for medical expenses, union dues, mortgage interest, donations to charities, and expenses. last-minut- work-relate- e d Schedule your tax appointment well before the filing deadline. Afterward, you may need time to chase down missing records or resolve other problems before the April 15 filing deadline. Be prepared. Come to your tax 1099s, appointment with and any other documents or forms that state, "Save this for preparation of your tax return." Take with you the social security numbers of any dependents you claim. W-2- K-l- s, Tax credits, deductions Not all tax breaks are alike, so be sure you know the difference between tax credits and tax deductions. Tax deductions are subtracted from your gross income to determine the amount of income subject to taxation. Tax credits are subtracted directly from your tax bill. Because r tax credits represent a reduction of your tax liability, they merit special attention. A tax credit available in 1997 is an adoption expense credit of up to $5,000 per child (or $6,000 for a child with special needs). The credit is for qualified adoption expenses, such as adoption fees and legal fees. Other tax credits for individuals include a credit for dependent care expenses and a credit for taxpayers who are 65 or disabled. Businesses can claim the work opportunity tax credit for hiring economically disadvantaged workers. Businesses can also get tax credits for such things as using alcohol housing, fuels, building and improving research, increasing accessibility for the disabled. On the deduction side, there are hundreds of possibilities. For example, don't overlook mileage and expenses when calculating your charitable contributions. If you are an employee, don't forget to deduct union dues, tools and work supplies, protective clothing, subscriptions to professional publications, medical exams required by an employer, and job search expenses. Investors should remember to deduct IRA fees paid separately, fees, tax advice and return preparation fees, and computer depreciation for monitoring investments. An accountant can help identify potential tax credits and deductions and keep your tax bill as low as possible. Contact your CPA if you'd like assistance in finding all the credits and deductions to which you're entitled. dollar-for-dolla- e safe-depos- it Peter Kranenburg is the owner of Kranenburg Accounting & Tax Service. He be reached at Orem CPA 224-456- 8. WEDNESDAY. (XTOBI R 14. IN Salt Lake area had nation's sixth lowest house payments ADOUT TAXES d. B5 study. At an average of $970 a month, Salt Lake City was one only eight areas with payments under $1,000. The ranking in the publication U.S. Housing Markets is based on 1997 data from buyers who took out conven- tional mortgages and made down payments of 20 percent or more on new and used homes. The $970 30-yea- r figure includes taxes and insurance. Salt Lake ranked No. 7 among all metropolitan markets in terms of affordability, with 26.1 percent of the buyers' income going toward the house payment. That compared with 34.7 percent in Denver, 36.9 percent in Portland and 42 percent in San Francisco, the market. The study does not, however, measure affordability from the perspective of how many households can afford to buy a home. That, say mer-rights advocates, is one of Utah's most pressing least-affordab- consu- problems. Chamber names The Daily Herald The ProvoOrem Chamber of Commerce is honoring 1 1 Orem citizens for their outstanding contributions to improving the quality of life in Orem. The 20th Annual Arthur V. Watkins Awards will be presented this evening in the Utah Valley State College Ballroom. The event begins at 6:30 p.m. with a reception. At 7 p.m., dinner will be served and the awards ceremony will begin. The cost for the gala banquet is $20 per person. To OREM call Jennifer Ferre at the Chamber at RSVP, 71 tJ Citizen of the Year Business The Business of the Year Award will be given to Jeff Alexander of Alexander's Digital Printing. In July 1979, Alexander opened his first store with one pallet of paper, one copy machine and two part-timemployees. Today Alexander has three stores, one production center and over 100 employees. e Community Service - s V. A i k I j Jeff Alexander - I Karen Ashton is being recognized for her Contribution to the Cultural Arts. Ashton helped the Orem City Council raise the money to build a new children's library, established the Timpanogos Storytelling Festival and is currently working on the development of the Gardens for Thanksgiving Point in Lehi. Businessman Jesse McGee of McGee's Stamp and Trophy Company will receive the Businessman of the Year Award. In 1966, McGee bought a small rubber stamp business and made rubber stamps in his basement. Now, he has his own building and does signs, trophies, plaques and engravings. Businesswoman Pamela Harrison will be awarded the Businesswoman By RACHEL BECK AP Business Writer NEW YORK Merrill Lynch & Co. is slashing 3,400 jobs, or about 5 percent of its work force, the first major job cuts by a brokerage stemming from the stock market downturn. "The layoffs will have little or no impact in Utah," said Susan Thompson spokeswoman for Merrill Lynch. The U.S. investment giant also reported today a $164 million loss for the third quarter, down from earnings of $502 million in the same period a year ago. In addition to the 3,400 job cuts, Merrill Lynch said it will trim 900 jobs that are filled primarily by outside consultants who are mainly involved in technology projects. Layoffs, attrition The cuts, which Merrill Lynch said would be made through layoffs and attrition, are the first sign that Wall Street is retrenching after months of volatility on world financial markets. Other big brokerage firms are expected to announce cutbacks as well. After the cuts were announced, Merrill Lynch was up $1.81 14 at $45.68 34 a share in afternoon trading on the New York Stock Exchange. "Because of the uncertainties now apparent in the global economy, we anticipate a much more challenging envi- ronment ahead," Merrill Lynch chairman and chief executive David Komansky and president and chief operating officer Herbert Allison Jr. said in a statement. "That is why we are implementing an energetic program to reduce expenses and selectively resize certain businesses." Also feeling the sting of the volatile market conditions were investment firms & Lufkin Donaldson, Jenrette, which today reported a 79 percent decline in third quarter earnings, and PaineWebber Group, with quarterly earnings down by nearly 36 percent. "This is only the beginning for Merrill Lynch and others in the industry," said Michael Academic Excellence Award from PTSA for her 4.0 and for scoring a 32 on the ACT. is Ron King. King served as chairman of the hoard of the directors for the Chamber in 1991. He helped establish the Environmental Support Council. r long-tim- e Pamela Harrison Chris Hale Steve Downey llene Dixon 1973. of the Year Award. She along with her husband, Rex, established Gunnies in 1987. "Arthur Watkins' service to his country and church, his outstanding reputation, and contributions to family are an important part of the heritage of Orem," said Steve Densley, president of the Educator Outstanding Educator of the Year will be awarded to Steve Downey of Orem High School. For 22 years, Downey has been the head football coach, assistant basketball coach and was the girls' head track coach when they won the state title in 1980. He has served as the school's Athletic Director for the past 14 years. Male athlete Chris Hale, a senior at Orem High School and for the football team, will be awarded Outstanding Male Athlete of the Year. Hale is a wide receiver and defensive back for the Tigers. In addition to football, Hale is an outstanding performer in track. Flanagan, an analyst at Financial Service Analytics in Port Washington, Pa. "We can expect others to join in with modest layoffs in coming months." however Thompson believes that there will not be further cuts. "We believe that these cost saving measures are what is required ... over the next several quarters," she said. Merrill Lynch losses Merrill Lynch, the leading U.S. brokerage firm, reported a loss of $164 million, or 49 cents per share on a diluted basis, for the third quarter, compared with earnings of $502 million in the third quarter 1997 and $551 million in the second quarter of 1998. Brokerages impacted citizens Namesake Arthur V. Watkins served 12 years in the U.S. Senate and was a resident of Orem, where he died in September , r Tl Chamber. 1 Racnelle Jones Ron King Watkins was instrumental in organizing water in Utah, Female athlete View Mountain High School's llene Dixon will be recognized as the Female Athlete of the Year. Dixon is varsity captain and leading scorer in soccer and 5A state champion in track and basketball. She recently placed third at the national Oregon Trail Invitational. Merrill Lynch's results fell well below Wall Street expectations of 56 cents a share, according to a survey of analysts by Zacks Investment Research Inc. Merrill Lynch will take an charge of $288 million to cover the costs related after-ta- x to the staff reductions. It expects the restructuring to result in annual savings of $500 million. Revenues for the third Salt Lake and Wasatch Counties and contracting for construction of the Deer Creek Reclamation Project. He also helped organize Sharon's Cultural Educational Recreational Association (SCERA) and served on its council. He took a leading role in establishing the "Voice of Sharon," which Student Rachelle Jones of Mountain View will receive the Student of the Year Award. Jones has received the President's Award for educational excellence, the quarter were also down, falling 7 percent to $3.8 bil- later became Times. the Watkins also chaired the Defense Utah County Industry Committee that helped bring the steel industry to Utah County. Orem-Genev- Merrill Lynch cuts 3,400 jobs amid economic turmoil No layoffs expected in Utah worse." Service Jesie McGee Karen Ashton Vera Nielsen Cultural Arts p Chamber service l"-- -f of America organization and to all in the community. conclusions drawn by U.S. Housing Markets: that for those who can afford a home, the prices and payments are a lot worse elsewhere. The accounting firm of Ernst & Young recently ranked Salt Lake City the 17th most affordable housing market among 75 major U.S. metropolitan areas, down from No. 16 in 1997 and No. 9 the year before. in "Despite the run-uprices. Salt Lake is still pretty affordable when you look at other markets," said Steve Friedman of Ernst & Young's Kenneth Leventhal Real Estate Group. "There is a lot for The recipient Chamber Outstanding i Raymond Owens will be awarded the Outstanding Community Service Award for his service in the Boy Scouts housing payments made by middle- and upper-clasfamilies with enough cash to make a sizable down payment. Tampa Bay was the most affordable at $850 a month. The highest was San Francisco, where the average payment was $1,950; followed by New York at $1,690 and Boston at $!,650. The average purchase price in the Salt Lake City area was $156,700, according to data from the Federal Housing Finance Board. The average monthly income of borrowers was $3,700. A similar studv backs the outtsftanndiiiiig Orem san iy 1 x r 379-256- Vera B. Nielsen, retired educator, will be awarded the highest honor of the night when she receives the Citizen of the Year Award. Nielsen is treasurer for the Women's Division of the Chamber. According to a recent report by the University of Utah, more than a third of Utah households that rent have incomes too low to afford a home. "Housing affordability in Utah depends on how you look at (the data)," said Thayne Robson, director of the university's Bureau of Economic and Business Research. In Salt Lake County alone, appreciation of nearly 60 percent over the past five years has made owning a home impossible for a growing number of Utahns, say advocates for the poor. The study does, however, provide a glimpse at the a Strikes contributed to $809 million GM loss in third quarter lion. By BRIAN S.AKRE AP Auto Writer Transactions revenue Principal transactions revenue fell by 71 percent from a year ago, while trading revenues from interest rate and also swaps currency decreased in the quarter. Also lower were revenues from U.S. equities and investment banking, which includes underwritings of stocks and bonds and advising companies on mergers. Some of the weakness was offset by commission revenue, which jumped 9 percent to a record $1.4 billion in the third quarter. In addition, fees asset management leaped 36 percent to $995 million, boosted by the acquisition of Mercury Asset Group, Management Britain's top mutual fund company. For the first nine months of the year, Merrill Lynch earned $915 million, or $2.18 cents a share on a diluted basis, compared with $1.5 billion, or a $3.76 cents a share, in the same period a year ago. Business Editor Nancy Bliss contributed to this DETROIT General Motors Corp. reported losing $809 million in the third quarter, largely because of the strikes at two parts plants that crippled the nation's biggest automaker over the summer. The loss, reported Tuesday, amounted to $1.28 a share, compared with a profit of $1.07 billion, or $1.34 a share, during the period of July-Septemb- 1997. The automaker's performance was somewhat better than Wall Street analysts expected. At midday, GM stock was up 6 14 cents at $52 on the New York Stock Exchange. GM is still recovering from the two strikes in Flint, the longest of which lasted two months. The walkouts caused a parts shortage that forced GM to idle nearly all of its North American assembly plants in July. Chairman Jack Smith said GM is running its plants at full production to regain market share lost during the quarter. , |
