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PAGE 1 c-PLAINDEALER-FRIDAY, QCTOBER 6, 1972 This column of questions and answers on federal tax matters is provided by the local office of the U.S. Internal Revenue Service and is published as a public service to taxpayers. The column answers questions most frequently asked by taxpayers. Q) I borrowed $750 last sum­ mer to pay, my son's college tui­ tion. When I figure out whether or not I can claim him as a dependent, may I include the tuition loan in total support I furnished him? v A) Yes. Amounts you spend on your son's education are in­ cluded in total support fur­ nished by you, even though you borrowed the funds. If your son had borrowed the $750 and spent it for tuition, that amount is included in total support furnished by him. A handy worksheet to help you compute total support for your child is IRS Form 4679, "Child and Disabled Dependent Care Computation." This form is not required with your re­ turn, but may be kept for your •ecords. It's available from "our local Internal Revenue office. Q) I spent $3 at a church- sponsored bingo game. Is this a deductible charitable con­ tribution? A) No. Amounts you pay to play bingo or engage in other games of chance are not de­ ductible contributions. They are wagering losses. Q) I just sold my house. I un­ derstand that I can reduce the taxable profit from the sale by taking into account additions made to the basis of my prop­ erty. To what "additions" does this rule apply? A) The basis or cost of property should be increased by adding to it: the cost of im­ provements and betterments having a life of more than one year, purchase commissions, le­ gal fees such as the cost of defending and perfecting title (including title insurance), le­ gal fees for obtaining a reduc­ tion of an assessment levied local benefits, certain finance charges, interest and taxes you have elected to capitalize and all other capital expendi­ tures. The adjusted basis is subtracted from your sales price to determine the gain on the sale. For more information, see IRS Publication 551, "Tax In­ formation on Cost or Other Basis of Assets," and IRS Publication 523, "Tax Informa­ tion on Selling Your Hotfle^, They're available free by writ­ ing your Internal Revenue dis­ trict office. Q) Who has to file Federal estate and gift tax returns? A) A quarterly Federal gift tax return, Form 709, is re­ quired for the quarter during which a taxpayer's gifts for the calendar .year to date to any one person total more than $3,000. In the case of the estate of a citizen or resident of the United States, a Form 706, "United States Estate Tax Re­ turn," must be filed by the executor or administrator if the value of the gross estate was in -excess of $60,000 on the date of death. Q) Should a taxpayer con­ tact the Internal Revenue Serv­ ice to get his auto excise tax refund? A) Generally, refunds are made to the purchaser by the auto manufacturers and im­ porters. If you purchased an automobile between Aug. 15 and Dec. 11, 1971 and have not received your excise tax re­ fund, contact the firm that sold you the car. However, if you were the importer of the auto, you would contact IRS directly. Q) I purchased a $20 ticket to attend a political fund-rais­ ing party for a candidate for state office. There was dancin^- and refreshments at the party, but also some brief remarks by the candidate. Is the entire cost of my ticket eligible for 1 the deduction or credit for po­ litical campaign contributions? A) No, because the event was designed primarily to of­ fer benefits of value to those attending. Consequently, your political contribution eligible for a credit or deduction is only the excess of the amount you paid for the ticket over the fair market value of all the benefits available to you. If the dinner or other function had been merely incidental to the essentially political nature of the event, the function the new suit with a natural swing Naturally, it's from Curlee. Clean, sharp lines with just a hint of shape--and subtle touches like the double piped new slant pockets and single edge stitching. Even the colors and patterns are a natural for you in downright hand­ some plaids, tweeds stripes in soft new tones. Down­ right in the right price bracket too. U very current & J100°° And Up 5TORE for MEN would not be considered pri­ marily a device to confer pri­ vate benefits. To qualify as essentially political, the pro­ gram must be primarily de­ voted to political speeches or discussions. In such a case, the entire cost of the ticket is eli­ gible for the credit or deduc­ tion. Q) I'm thinking of buying some shares of stock. Is there any tax advantage in putting the stock in my wife's name as well as my own? A) Yes, if the dividends exceed $100. This is because the owner of stock is entitled to exclude no more than $100 in ordinary dividends from his income. But if the stock is jointly owned, the owners may receive as much as $100 each in dividends tax free, depend­ ing on the amount of each owner's share of the dividends as determined under local law. Q) I'll be turning 65 this year. Are there any special tax benefits for Persons my age? A) Yes. There are several benefits for those 65 years of age or over. For example, there is an extra $750 exemp­ tion for age, and special pro­ visions covering the sale of a personal residence. These are explained in IRS Publication 554, "Tax Benefits for Older Americans." Send a post card to your Internal Revenue district office for a free copy. HEREUAND THERE IN BUSINESS ATTEND CONVENTION Mr. and Mrs. Chris Jepsen of Jepsen Tire Co., McHenry, are among the thousands of tire dealers currently attending the 52nd annual convention and trade show of the National Tire Dealers and Retreaders Association, Inc. (NTDRA) in Las Vegas, Nevada. Comments from the Governor (In the following special col­ umn, the governor discusses the state's efforts to stop pol­ lution.) By Gov. Richard B. Ogilvie Springfield, 111.--A batting aver­ age of better than .300 in the big leagues is darn good. So I don't quite know what to make of the "batting average" of the Illinois Pollution Control Board and our attorney general. Only three of the 500 cases the board has decided have been overturned on appeal-- for a .994 record. This amazing record could be reduced slightly by adverse deci­ sions in the two-dozen pending appeal cases, but it still would provide a strong endorsement. . Starting from scratch July 1, 1970, the board has received 838 cases and has kept nearly current by disposing of 500. What makes the board's per­ formance unique is that it was test­ ing fresh legal ground -- doing things under the law which really had never been done before. This was true in Illinois and in most other states when our Gen­ eral Assembly created the board and the state's anti-pollution "po­ liceman," the Environmental Pro­ tection Agency. Past efforts everywhere had been slowed or stymied by poor organization, inadequate staffs, and a procedural maze which did little or nothing for the public, but kept lawyers busy. One key feature of the Illinois law is this: Appeals from the board's decision cannot be taken to Circuit courts, which in many areas have almost hopelessly huge backlogs of untried cases. The result is delay--almost end­ less delay. The Illinois law by this single feature has eliminated a major stumbling block in our ef­ forts against pollution. All cases the board decides can be appealed, but only to Appellate courts -- and there is a 35-day deadline for filing, another precau­ tion against delay. Yet these provisions would not result in better perform­ ance for the public unless the board's decisions could stand up. They have, obviously. Perhaps I should mention that the members of the board, headed by David Currie, represent bQjh political parties and have terms that extend beyond my own pres­ ent term. I haven't always agreed with the board, but it is independent both by law and by the spirit of that law. Since the board is a quasi-ju­ dicial body, its independence from t h e chief executive is constitu­ tionally sound. -- I vetoed a bill which would have reduced the board to the old- fashioned kind of administrative agency whose decisions get lost in the courts. The bill struck at the heart of the Illinois law by requir­ ing appeals to go to Circuit courts instead of Appellate courts. Approving such a measure, I wrote, "would bring delay to our pollution control efforts and benefit no one except those seeking by dilatory tactics to avoid compliance with clearly established statewide standards." While the board is and should be independent, this is not true of t h e E n v i r o n m e n t a l P r o t e c t i o n Agency, the pollution enforcement arm of the executive branch of state government. Like most policemen, the EPA has had its troubles -- including some serious friction with elected officials of local governments. The job the EPA must do will never be easy, simply be­ cause it's human nature for people and officials to be against somebody else's pollu­ tion, but rather tolerant of their own. But the EPA, the mayors tell me, is now making strides toward smoother relations, and I am cer­ tain these efforts will be continued. In one area, I have asked the EPA to propose a second look at air pollution regulations adopted by the board which would pos­ sibly put out of business 80 to 90 per cent of our small-town grain elevators. To be successful, pollution controls should not be puni­ tive, confiscatory or unreason­ able. They must consider the widely varying conditions between town and country, the necessity to keep our business firms competitive in the marketplace, and the huge costs to taxpayers of needed local improvements. In spite sense checks ress," our efforts in Illinois rank well with any other state In the nation. Fortunately, local officials and business and labor interests in Illi­ nois have generally been most co­ operative and enlightened. This may well be the greatest single element in the substantial progress we have made because no law, no matter how well written or administered, fares well in the face of public indifference or open hostility. Thus our good record tends to reflect more credit on the people of Illinois than on any board or agency. With our kind of people, it's a pleasure to be governor. -fUZ GOOP C/T7Z&1 eei/eves things perreR-ANP wree gATfSFtBP UN7TL- /T MAPPZNS. A lot of peopfe are going to get this expensive French Knife when they add to a savings account $25 or more at First Federal savings & Loan French Knife ... quality hand-honed cutlery. Great for chopping or slic­ ing. Yours at a nominal cost when you add to a savings account $25.00 or more. ̂ FIRST FEDERAL SAVINGS&LQAN ASSOCIATION OF CRYSTAL LAKE 1245 N. Green St., McHenry, III, Phone 385-0047 Open Efciiy 8:30 a.m. - 6:00 p.pi Friday 'til 9:00 p.m. .CLOSED SUNDAYS NAMED ASSISTANT - George Wffle, right, ha assistant administrator at Memorial Hospital for McHenry County. Announcement of his promotion from administrative assistant was made by Bert Hanson, administrator, tofey. Will* has been on the hospital staff specializing in personnel relations since October 1968. (DON PEASLEY PHOTO) From The Farm STARTING NEW CATTLE ON FEED Starting new cattle on feed is a critical period for cattle feeders. It's their battle to avoid time and profit losses that occur when cattle get sick. There's no best way to start new cattle. Sometimes the best methods fail because the cattle are sick before they arrive on the farm. Here are some suggestions to help you cut new-cattle loses: - Avoid "stale puttogether" cattle and rough handling. Move new cattle quickly from the source to the farm. - Rest newly arrived cattle. Provide hay and water. Cattle need energy from hay, silage or a small amount of grain to restart the rumen's operation - Stress feeds containing antibiotics or a combination of antibiotics and sulfa to help get calves off to a faster start and reduce the number of cattle requiring individual treatment. - Calves that "mill and bawl" in dusty pens or turn them into a small pasture lot during the observation period. - Be prepared to treat sick cattle. Look them over three or four times a day. Put "droopy" or "slow" calves in a squeeze chute and take their tem­ perature. A reading of 104 to 105 degrees F. calls for antibiotic injections. And it's important to check the sick calf for several days to see if more treatment is required. - Call your veterinarian to prescribe treatment and handle the "hot" cases. KEEP SHEEP FEET TRIMMED Foot problems keep sheep from performing at the highest level. So trim the feet of all sheep twice a year with a sharp knife, pruning shears or foot- ot shears. And keep a sharp lookout for other foot problems. Catch ame sheep and examine their feet as soon as you notice the lameness. PREPARESPRAY , s EQUIPMENT (/ Clean and lubricate your herbicide spray equipment when you put it away for the winter. You'll avoid headaches next spring. Here are some tips to help ' you store your spray equipment this winter: - Drain all spray material from tank, pump, boom and hoses. -Remove end plugs from boom so that you can flush out any accumulation there. - Fill spray tank with clear water, run pump, and flush water through the boom. -Refill the tank with water containing one ounce of , household ammonia or trisodium phosphate per gallon. Pump this solution through the system. - Disassemble nozzles, clean screens, and store screens and nozzle parts carefully - either dry or in a jaryrf fuel oil. - Drain pump thoroughly to protect against freezing. Coat the inside with a rust- ' prevention substance such as soluble oil or automotive radiator-rust inhibitor to keep pump parts from sticking. - If your tank is susceptible to rust, rinse or spray these same rust inhibitor on the in­ side of the tank. -Support the boom so that it won't be damaged by other machinery. Avoid leaving aluminum booms in contact with soil or manure ac­ cumulations. -- Remove hoses and wipe clean of oil. To store, coil the hoses in a -five-gallon bucket or straighten them out on a shelf. Avoid kinking hoses, and don't hang them over a nail. WIUQUTI wt^f.ceme ^ - I h o o There is a Houston in th< county of Texas in Missouri anrmi • FIRESTONE I* GOODRICH • SEIBERLING PUJS FREE MOUNTING STUDDING $6.00 PER TIRE BUY NOW AND SAVE SEE US FOR ALL YOUR j TRACTOR TIRE NEEDS I McHenry Tire Marl j ̂ 3931 W. Main St. Ph. 385-0294 | 1