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Show DESERET NEWS, WEDNESDAY Own a second home? The deductions are limited Conclusion Sylvia Porter ire you among the millions uho now own a summer or winter second home which you don't hold for profit but which you do rent out for the part of the year you don't occupy it yourself? If so, you face the question of how much you can legitimately deduct as a result of the limited rental of your property. swers. Here are the an- You can deduct all the interest or taxes you pay on the property for the entire year Put the IRs lets you deduct for maintenance and depreciation during the rental penod only up to the amount of rent that exceeds the amount r, your interest and taxes on that property This is a severe limitation because most rentals dont do much more than cover interest and taxes. Some individuals tried to circumvent this limitation by avoiding ar.y mortgage on the second home and thereby eliminating any interest attnb-utaulto that loan. Instead, they borrowed on life insurance, took out loans, etc., and used those proceeds to pay for the second home The inten part-tim- which voj use in August and lease for a total rental of $2,000 in June and July Your real estate faxes are $600, is $600, your maintenance utilities come to $300 and depreciation to $1,200. Your on the interest payments mortgage or on a loan raised to buy the house, etc., is e e $1,200." tion was to make room for deducting a larger amount for depreciation and maintenance of the house while still getting the same amount of interest deduction for the uisuranceloan, bank loan, etc. But in 1973, the Treasury Tribute to a dream By Jeaanye Thornton Christian Science rising above his hum'ule station to be acclaimed by the world. the heroes nation's monu- pert countless commemorations to the mei.i ory of 'once great and famous men. f e- '2 .....jslif - But only one monument is a tribute to an who historians say is the voice behind black Americans' and others' dreams for one nation, under God, indivisible, with liberty and justice for all e Each of the council members w ill be elected from one of 15 geographical communities He will be chairman ot a community council, besides his duties on the county council. some historians say he still lives. He is the father of the s movement, they say, and since his time no one else has been able to wear his civil-right- hat Two noted black historians Dr. John W. Blassingame of Yale Umersity and Dr. Benjamin Quarrels of Morgan State College in Baltimore One of the achievements of Dr. Frederick Douglass, Quarrels contends, was the sense of direction man's exemplified in his ability to nse from humble beginnings to a status where he won the respect of kings and presi- - adoption ot long-rang- y is a timeless Douglass figure, unlike so many other leaders who have followed him, Professor Quarrels says. There is no movement of the 60s and 70s student, rain cial, women's, peace which he would not have been involved. the charter wont change anybodys fixes, explains Pete Grundfossen, director of the study commission which drafted the proposed new charter. The 24 special improvement districts would be converted into taxing districts and the new consolidated government would take over the revenues and services David Brmton, general manager of Salt Lake Suburban Sanitary District, has noted injustice will result if sewer district taxing boundaries are not maintained. Some districts have their sewer bonds paid off. Others have substantial debt remaining. It would not be fair for a taxpayer who has paid his sewer bonds to have to start paying off somebody elses, Bnnton argues. The charter avoids this problem. As the valley becomes urbanized and the various areas catch up with each other m facilities, taxes will tend to equalize, Grundfossen predicts. e trend towards equal Besides a taxes, some quicker changes are also likely to result. Under the charter taxes are set by the county and community councils. Exactly what changes are made depends on who is elected and how they vote. So changes cant be accurately predicted, Grundfossen said. But the charter gives some guidelines of the way taxes may move For example, the charter directs the new county council to end double taxation. Presently, residents of Salt Lake City and the valleys other eight municipalities pay taxes to both the county and their city or town. Their county taxes go to pay for garbage collection, police and fire protection and other services in the countys unincorporated areas. Their city taxes go to pay for these same municipal services for themselves. If the council obeys the charter on this point, the residents of municipalities will pay more and the residents of towns will pay less than they do now. But the charter contains some factors working the other way too. Although Salt Lake City residents pay the highest rate of property taxes m the valley, of city revenue comes only about from property taxes. The rest comes from sources such as sales taxes, franchise taxes and parking meter fees. But the proposed new charter dissolves Salt Lake City, so these special taxes would accrue to the county government. For three years, the special fees will have to be spent in the area of the old Salt Lake By itself, Though the man who wore that hat passed on in 1895, Dougiass. hat in his study. dents, remaining ever mindful of from whence he came and how much further all mankind had to go to achieve freedom. son, Benjamin Franklin, Patrick Henry, and the other In black life there are so many different ways to be black and to be a reformer, Douglass will recede in importance when our other great American heroes recede, he says. Even though Douglass addressed himself, as many of the others, to a world, the principles for which he stood are eternal. Its human spirit at its best, not at its mediocre. the professor explains. Douglass, he says, "took on a wide range of interests, moving often among whites. He was more spacious. His early training was with (William Lloyd) Gamson, and other reformers. Founding Fathers, and Abraham Lincoln. y Copyright 1974, The Christian Science Publishing Society The principles for which Douglass stood are the same spelled out m the Declaration of Independence. If they are wrong, says Dr Quarrels, then a reevaluation of Mr. Douglass is necessary. But such reevaluation would have to extend to Thomas Jeffer- - W74. Field Enterprise, service levels would go down. About $6 million in federal revenue sharing money now coming to the city would go to the new county government immediately to be appropriated by the county council. Another unknown facing taxpayers with respect to the proposed new charter arises from the unequal distribution of commercial and industrial property across the valley. Under thp charter, the county government is empowered to levy up to 16 mills on all property in the county to provide basic services. Each of the 15 community councils could vote to have the county provide additional services for itself, providing it levies the additional taxes to pay for them. n Frederick Douglass' bust is displayed ct his home in the nation's capital. Books, desk, CodvNqM fnc posed new government would have a county mayor and a separately elected council. Douglass. In the house located in southeast Washington a hat seemingly carelessly thrown on a table suggests the owner might come in at any minute and pick up the hat, that the man who put it there might still be alive. 19th-centur- home at a profit in 1973 and put more than the selling price into buying a new summer home, you must report that profit The special tax break for replacing a home and the exemption for houses sold by persons 6. years old or over apply only tu the sale of a principal residence. City. But after that, the council can spend the special fees anywhere it wants t, . And the city is outvoted on the council nine to six. man named Frederick Douglass as the philosophical and theoretical source for not only the black revolution but the broader human fight for equality and dignity. So intense was Douglass devotion to the fight for human equality that both historians consider him perhaps the most versatile of all black leaders, past and present. Mr Says Dr. Quarrels: Douglass technique of protest is as relevant today as it was when he lived. He subscribed with Lincoln to the Declaration of Independence. He was a freedom fighter in the complete sense. Any movement that claims to fight for freedom and equality for everyone of ideals the embraces sid a summer By Rod Dc cker Deseret News staff writer Whose taxes will go up and whose taxes will go down if the promised new charter for Salt Lake County gov eminent is adopted by the voters Submitted 10 the County Commission March 1. the charter will be voted up or down m a referendum March 4, 1975. If accepted, the charter will combine Salt Lake City, Salt Lake County and 24 special improvement districts into one government called Salt Lake City and County. Instead of the present three-macommission, the pro- This particular house says that there really was a black credit the a This is how tins rule works to limit your deductions. Say you own a summer house 'if h" High on a hill overlooking the Anacostia River stands the Frederick Douglass home, restored by the National Park Service one of three such shrines to the memory of black men who made great contributions to Amenca. on Also if you Whose taxes go up and whose go down? Monitor WASHINGTON, D. C. -Hisory records that Frederick Douglass, great orator and abolitionist, was once a Negro slave who achieved greatness, Throughout borrowings as if were interest mortgage on the house it of maintenance or depreciation wpe out any income from rent, but you lose the benefit of another $1,600 that you can't deduct from your other income one-fourt- h Civic Dialogue Thursday at 7 p.m. on KUED, Ch. 7 Corresponding to their higher level of taxes, residents oi Salt Lake City receive more services. For example, on a scale of 79, Salt Lake City fire protection is rated three by fire insurers. Areas m the county are rau.4 between seven and 10 on the same scale. Some city residents fear the county majority on the council will spend their special fees to raise service levels in the county. Then either property taxes would go up in the city or The community council proposals for additional services and taxes automatically take effect unless the county council overrules s vote. them by a Some communities, such as central city and Magna, will be rich in industry and commercial property. They could support a high level of services with low taxation. Other areas would have to tax residential property more to J, 1974 A 4 0O-I- T fflRfl 2 C OUR READERS' ACTION LINE Jl 3o4 8o76orvMi!t't.CVit Mao. P O 8otl2f.7 Sait Lake City LI O Hospital concerned, acts on bill dilemma 1 owe $271.85 to the Cottonwood Hospital. I went to arrange (or payment and signed some papers tor bank financing. Next thing we got a summons to court for nonpayment. My husband and 1 went to the hospital to (ind out why. We signed more papers because the first set was lost. We watted to hear from the bank. ( called them but was only told it took time to process things. Now we got a summons to appear In court. I called the hospitals attorney to settle it. Now I not only owe the hospital bill but $129 more to the attorney. I don't think I should pay it as 1 did all I could do to arrange to pay the hospital, it wasn't C.T., my fault things got out of hand. Can you help? Sandy Hospital is sympathetic with your dilemma. We have arranged for you to revisit them and iron out ttie discrepancies Appears you may get off bv only pay ing attorney costs for the tirst summons and they'd negotiate the balance, may even pay the lawyer themselves if he's adamant. Anyway you look at it youll be better off Offer a tempting meal There Is a large dog in the area behind us. It is a stray and we've called animal control several times about getting rid of it because be barks and barks and gets into our garbage. Animal control says the only way they can catch him Is with a dog trap and iiicy liuui hate oaf available. We are wondering if there is anything you ean do to help us. Mrs. D.S., Salt Lake City. It you mean come out and catch the dog, the answer is no. But. we did prevail on them to bring out a trap the only one they have left of 10, we were told. Seems people are inclined to confiscate them without asking anyone. Your job now is to bait the trap and hopefully rover will succumb to a m e meal. Let us know if your efforts arc successful Regret constant charging Book Club of We have asked Popular Science Manhasset, N.Y., to take our name off their mailing list but they say wc owe them for a book. We f,o not have the book; I have not seen it. I just want off their list. Please help. -- Mrs. C.B., Salt Lake City. We hope you are off, but were not sure. However, ttiey do regret you being constantly charged and have credited your account They say they do not question the veracity of your statement. If any more dunners, ignore them as they are jurt the result of automatic IBM processes better know n as the computer three-fourth- support snmliar services. Grundfossen said a possible solution to this problem would be for the county council to rule that the community councils could tax inonly residential property. Commercial and the be taxed would dustrial property solely by county government. Questions of special fees, revenue sharing, tax equalization and distribution of resources will affect the share of taxes a citizen pays. But the total amount of taxes paid by all the citizens will depend on the efficiency of government. Over the past 20 years, combined Salt Lake City and Salt Lake Coui.ty spending has increased by more than 20 percent per year. One hard question left unanswered is the binding capacity of the new county government. Each of the 26 governments combined to make Salt Lake City and County has power to raise money by selling bonds. The amount of money it can raise this way is limited by the Utah Constitution. Altogether, the 26 governments are legally able to sell bonds totaling about $340 million, according to Grundfossen. Salt Lake County is authorized $70 million of that amount But after consolidation only Salt Lake County and jts bonding capacity will remain. But the new consolidated government would be responsible for providing ah the services of the 26 old governments. Jack Olson, of the Utah Taxpayers Association, said the proposed new government could begin life crippled by its lack of ability to raise capital by selling bonds. (An amendment to tne state constitution is necessary to correct the situation, he said. Olson and two other experts will appear on KUED Channel 7 Thursday night to discuss the finances of the proposed new government. Fred Oliver, fiscal consultant to Salt Lake City, and Ellsworth Brunson, a certified public accountant and advocate of local government change, will participate. The discussion is the second of four on the new charter on the proposed ed Civic Dialogue scries Deseret-News-spor.s- Jack Anderson Jane pulls I $200 Under proposed charter Newsservice capital are countless ments to Americas barred this device. It said that it w ill treat the interest on the Your $2,000 of rent exceeds by $200 the total of your interest payments of $1,200 and real estate taxes of $600. Therefore, you cannot deduct more than $200 for your maintenance and depreciation even though they add up to $1,800. Thus, your allowable deductions for interest, real estate taxes and MARCH OUR MAN jonss By IlaiTy Jones Deseret News staff writer Scare Canyon is high in a beautiful remote section above Beaver Creek into Cache from the Weber side. Its really remote in winter when j snows reach depths that would lose a I horse and rider. There are summer cabins, but snowmobiles make it possible for owners to reach them in the dead of winter. Thats how Roy and Clara Wills, of Wilson lane, Ogden, happened to tie up there a couple of Sundays ago. It might have been the strenuous ride, the cold or the but Clara suffered a heart attack. Clara needed medical taken off the mountain. attention. She needed to be Someone suggested a helicopter from Hill Air Force Base. There were several snowmobilers to take the word off the hill that help was needed. Help from the Air Force was not forthcoming. It seemed to those seeking the help that they were getting the runaround The man who could give the permission was sunning himself somewhere in California. It might have been official business, but you know how rumor gets started When Hill wouldn't respond, the snowmobilers turned to other help. Snowcats from Weber and Cache started up the hill. The closest doctor was J. Paul Burgess of Hyrum. The good doctor was at church when his answering service got hold of him through the buzzing system most doctors wear. It was close to the end of the meeting anyway. Doctor , loaded a snowmobile onto a pickup truck and started up the dirt road that led to Scare Canyon. Burges-- When the truck would go no further, Dr. Burgess took to the snowmobile. It was a long hard one piece. First he attended Wills. Her heart attack had to get down off the ride, but he arrived tired, but aU in to the immediate needs of Mrs. was serious, but not fatal. But, she mountain. Dr. Burgess oversaw the placing of the stricken woman on the big snowcat. He gave special instructions to the driver and to Claras husband, Roy. He accompanied them in Petite but pugnacious her share of scratching Jane matches with the armed forces, the FBI ami WASHINGTON Fonda has won other bastions of government. The latest to feel her claws is the Internal Revenue Service, which at first revoked and then hastily reinstated a tax exemption for her favorite antiwar chanty The sheepish tax authorities secretly reversed themseives, we have learned, to avoid having to tell Jane how she and her friends were tailed, tapped Oil d spied upon. The government has developed a strange whose politi paranoia about little Miss Fonda, her claws, IRS cal ideas are unpopular in the ruling circles Given the plumber mentality of government, the appropriate agencies began keeping her under surveillance. Nut that she tried to hide ner activities. On the contrary, the angry actress did her utmost to keep in the spotlight But intrepid FBI agents carefully taped her remarks on television she as and then stamped the transcripts Top Secret. No Foreign Dissemination No Dissemination Abroad ConFor Background Use trolled Dissemination coast-to-coa- st Only. FBI agents also st m the audience while gives back exemption she staged her antiwar performances. Her FBI file is stuffed with critiques of the same performance by several different sets of FBI agents. They also grabbed her private bank accounts, without tne legal formality of obtaining a subpoena Upon her arrival home from abroad once, she was detained on phony charges long enough for Customs agents to confiscate and photocopy her private papers. To promote her militant views, she joined other antiwar actings in sponsoring the United States Servicemens Fund, which depended heavily on donors who give organizations. The fund put only to up money to defend dissident GIs, to open pacifist coffee houses and to finance underground military newspapers. This outraged the IRS, which served written nonce upon the fund that its tax exemption was in jeopardy because it supported GIs "who oppose the Vietnam war and the use of not to mention GI newspapers conscription, (which) cultivate dissent in the military." The IRS forthwith began an investigation not only cf Jane Fonda but of other show people who had entertained GIs at coffee houses and had staged benefits for tne fund. As he left to head doctor to one side. part way down the moutain. back toward Hyrum, Roy took the I cant tell you how much we appreciate your dedication and your help today, Said Roy. The doctor blushed at the kind words. He didnt need the praise. How much do I owe you for all this medical attention? Dr. Burgess didnt say a word for a few seconds. Then he "Tell you what. Im not used to making house calls ip this day and age. When you get her down of the hill and have the time, give a donation to the Childrens Hospital." Roy gave generously. WITS END: One of the problems the Republican candidates will have this November is convincing voters to them records and not the tapes. |
