OCR Text |
Show Salt Lake Truck Co. Appoints New Manager Linder Caster and Truck Co., Inc., a materials handling supply company of Los Angeles, Calif., has announced the appointment of Gordon Luker as manager of their new Salt Lake branch office at 1254 West 500 North. A native of Salt Lake, Luker has been living in southern California where he was associated with the head office of the company. Linco, as the firm is known, is the largest distributor of Colson and Deamell casters and wheels in the U.S. Death and Taxes How to Avoid the Subchapter S Tax Trap by Rex Keeler, Manager Executive Tax Service Congress enacted a law in 1958 to provide small businesses a choice between taxation on the corporate level or on the shareholder level. If the corporation elects to be taxed under subchapter S, the income or loss is reported by the shareholders in proportion to his ownership of the corporation. In order to qualify for a subchapter S election, the corporation must meet these requirements: 1. It must have 10 or less shareholders. 2. Only one class of stock. 3. It must be a domestic corporation. 4. All shareholders must be individuals or estates. 5. Trusts or aliens cannot be shareholders. 6. It must not be a member of an affiliated group eligible to file a consolidated return. (The 1976 tax reform bill, pending before Congress, proposes to increase the number of shareholders to 15). Most subchapter S corporations have originiated from Yearly income from these family owned businesses. businesses is taxed directly to the shareholders but usually a substantial amount of the income is retained by the company for expansion needs (inventory, working capital). These retained earnings of the company may be distributed at a later time to the shareholders tax free providing the corporation remains under subchapter S. But remaining under subchapter S has been a problem for many corporations. If for any reason the cofporation loses its subchapter S election, these previously taxed earnings of the corporation cannot be distributed without being taxed a second time. This is the trap because the distribution will be considered a dividend and taxable again to the shareholder. non-reside- nt Meter Rates Go Up Soon parking Higher-price- d meters are being installed downtown this month, according to P.D. Kaiser, Salt Lake City Traffic Engineer. And the profits from the higher-price- d meters could be used to help finance construction of parking lots, according to Roger F. Cutler, city attorney. Two-homechanisms between 2nd and 5th East and South Temple and 5th South have been replaced with meters that have no slot for a penny. One-hoand meters will be replaced during the next few weeks. According to Ev Gray, manager of the Retail Merchants Association, at this point the Utah Machine Tools 3240 South 1 1th East Salt Lake City, Utah 84106 Phone (801) 486-355- 1 ur ur 30-minu- te have replaced We 1,000 two-hometers, and we will be replacing 1200 more, Kaiser said. None of the new meters will have slots for a penny. ur The higher-price- d meters were installed partly to encourage drivers to park in parking facilities, rather than drive through downtown streets looking for an available meter. As the city has initiated the new plan to encourage parking, city merchants have been discussing the possibility of establishing off-stre- et program depends on the approval of only one major operator. SPECIALS Lathes : J&L Ram Turret 5 1953, was $6900. . .now. $4900.00 Reed Prentice 20 x 108" with taper, was $3950 . .now. . $2995.00 Lodge & Shipley 36" x 78, needs work, was $9000. .now. . $5500.00 Mills: Summit vertical 10" x 24, 2hp, was $1525, now. XLO 602 Vertical 10" x 48" table, was $5980, now Sunstrand Duplex 10" x 50", 2 heads, was $4950, now. . . D rills : 1974 14 spindle 26" drill press, geared lead. . . Baker Bros. 26", 5 mst, geared head, production Table OOYA Radial, 4 arm x 13 column, all power, new S aw S : . $1295.00 $4980.00 $3500.00 $3200.00 $1995.00 $12,950.00 Everett 18 abrasive cut-of7.5hp, 1975 $600.00 Wells 9" x 16 horz. saw, model 8M, new price $1394--sav. . $695.00 Peerless 11 x 11 fully automatic, 27 feed table, new price $17,000 save $6000.00 f, e. S hears I Pexto Hyd. shear 52 xl6ga fully tooled new. $2450.00 Hercules all american. Big 12" x 12 cap., new $31,900.00 Brakes. Chicago Leaf Brake, 8' x 14ga. new price $2400.00 ..save $1295 00 Wisconsin Press Brake 12' x 100 ton, 5 yr. warranty, new. .$14,950.00 GrinderSiBrown & Sharp automatic 6" x 18", electro mag. chuck. . 3400.00 off-stre- et Complete warehouse full of machine tools - phone for a stock list All sizes and types. a uniform "park and shop system, consolidating validation techniques for all major parking lot operators. Sell Buy Liquidate Hie Major Problem Is: The subchapter S election can be terminated for a variety of reasons. If any of the original requirements are violated, the election is revoked. Also if more than 20 of the gross receipts comes from passive income (rent, royalties, interest) or more than 80 of the gross receipts come from sources outside the United States the election is terminated. In addition each new shareholder must file their consent to the subchapter S election within 30 days after becoming shareholder. The estate of a deceased shareholder is also considered a new shareholder and must file its consent. In conclusion, the owners of a small business must be aware of how to prevent losing their subchapter S election. If there is a change in the ownership, capital or type of income, the shareholders are responsible, to have these changes examined. CAPITOL THRIFT AND LOAN: The Small Company That Makes Big Loans 45 years ago Capitol Thrift and Loan began helping small, independent businessmen and entrepreneurs who often needed more financial assistance than banks would give. During that time we've watched thousands of good friends carve a successful niche in our growing community. Being smaller than a lot of financial institutions, it is easier for us to give you an immediate answer and the kind of helpful service you wont find anywhere else. Come in today and meet one of our knowledgeable financial advisors. Get a good start (or second start) from the company that stays small, loans big, and helps people make money. Payrolls Swelling Continued From Page 3b Only five out of 17 industries showed an increase in hours during June, and those gains were slight. Employees producing non-durab- le goods worked an average of .1 hour more in June than in May. Employees in wholesale trade worked .3 hour more. Those in retail trade worked .2 hour more. Food store workers gained .3 hour on their payrolls. Job Service reported placing 6500 people in nonfarm jobs in July (compared to 6905 in June and 6069 in It also reported May). receiving 1444 initial claims for unemployment insurance during the key week. This figure is a 27.2 percent increase over May, although it was almost the same as the figure for June (1439). Capitol is our name . . . Capital is our business. CAPITOL THRIFT AND LOAN Bfinnil K 308 Continental Bank Building Salt Lake City, Utah 84101 (801) 532-654- 5 i |