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Developers Get Two Tax Breaks Real estate operators and speculators are the benefici­ aries of tax loopholes that annually cost the U. S. Treas­ ury $750 million, a sum made up from the pockets of other taxpayers, according to government estimates. "The $750 million revenue loss is a conservative esti­ mate by the Treasury De­ partment. The loss is prob­ ably millions more," said for­ mer Senator Paul H. Douglas of Illinois, chairman of the National Committee on Tax Justice (NCTJ). The basic tax loophole that real estate operators have is the ability to deduct depreciation from their in­ come faster than it actually occurs. They can depreciate at double the actual rate for new real estate developments. len the amount of accel­ erated depreciation begin to low, the operator sells le real estate. His profits >m the sale are then taxed at'the low capital gains rate. The proceeds from the sale are (hen used for an­ other project, an4 the proc­ ess is repeated. The buyer, usually another real estate operator, starts the depreciation ball rolling again on the same property, this time at 1 Vi times the rate. The same property may depreciate several times over at this fast rate. The ability to deduct amounts in excess of the tax­ payer's equity, and capital gains treatment on the sale of the property make it pos­ sible for profitable real estate operators to show substantial losses. The losses are then set off against income from other sources such as salary and dividends. Thus, these loopholes al­ low successful real estate op­ erators to avoid paying taxes not only an income from the real estate venture but other income as well. One such operator with a total income of $7' y mil­ lion over a 7 year period had an average effective tax rate of 11%. Eleven per cent" is about the effective f> SALE 1969 Toyotas at Clearance Sale Prices. Buy Now and Save Big Dollars 1969 Saab X96 •• Last new '69 in stock. Be the Lucky Onet Buy it tod^f! USED CAR SPECIALS 1968 Chevy II Nova Power steering, radio, automatic 6 cylinder. ( ' 1968 Saab V4 Deluxe Radio, tachometer, radial tires, disc brakes. 1967 Chevrolet Impala Hardtop, AM-FM Radio, Air Cond., Automatic, Power steering, power brakes. 1967 Toyota Land Cruiser • Toughest 4-Wheel drive vehicle madei First class condition!! 1967 Saab r Strokes 1965 VW Squareback 1960 Buick FROM '109500 *1495°° <1795* 159500 s995oo Europa Motors 3318 W. PEARL ST. McHENRY, ILL 385-0700 tax rate of a $10,000 a year working wage earner with a family of four. These work­ ers pay the same rate as the real estate operator with over 100 times their incomes. PHYLLIS WILL BE GLAD TO TAKE YOUR ADS CALL 385-^170 NOW Time To Spare Making the Most of Retirement Many of us seniors have come to the conclusion that a good way to enjoy our sum­ mer vacation is to spend it at home Serenely we leave the heat and humidity, the crowded highway and beaches, the problems of finding acom- modations, to the younger fry. Wintertime is another mat­ ter. TTien we come into our own. We have time and leisure to go where we like. But vacations must have sunshine, I hear you say in protest. In winter that means the Caribbean or South Florida. And we all know about prices there. Sky-high this time of year. Much too high at any rate for the av­ erage retiree. Where, then, would you suggest we go? Well, thanks to Harvest Y e a r s M a g a z i n e , I ' m r e a d y with the answer. Just read an article in the October issue b travel editor, Norman For tate ILLINOIS I itol News .vBfivivv "CRISIS OF CONFIDENCE" Delegates to the Illinois Con­ stitutional Convention face a complex task, filled with polit­ ical booby-traps and legal snarls. Gov. Richard B. Ogilvie told members of the printing in­ dustry in Chicago last week. He added that the task demands the kind of statesmanship and vision which created the original doc­ ument. There is a "crisis of con­ fidence among our people in government, a decline of faith in its operation, its effectiveness, its responsiveness to public needs and demands,' and its ability to adapt itself to changes in our society," the governor said. Gov. Ogilvie proposed philo­ sophical and structural changes in the new constitution, in­ cluding establishment of strict accountability in the office of governor. He proposed removing four state offices from elective politics and strengthening the office of state auditor as an in­ dependently elected official. DISASTER FUNDS Gov. Richard B. Ogilvie an­ nounced the release of $250,000 in disaster relief Junds for Iili- I»^*|»si4ent^i^, Tfie money, requested by Gov. Ogilvie to repair essential public facilities damaged by heavy flooding last spring, was released Dec. 3. It will be al­ located to communities in Adams, Calhoun, Carroll, Han­ cock, Henderson, Jersey, Jo Daviess, Mercer, Pike, Rock Island and Whiteside counties. Col. Donovan M. Vance, di­ rector of the Illinois Civil De­ fense Agency which administers the emergency funds, said this release brings the total disaster relief monies granted to Illinois during 1969 to more than $3 million. CONTRACTOR AWARDS Construction firms honored by "Contractor of the Year" awards for outstanding jobs on Illinois highway projects during 1969 were announced by Public Works Director William F. Cellini. Sangamo Construction Co., Springfield, won an award for bridge construction and Central Engineering Co., Davenport, Iowa, won an award for paving. FIRMS VETOED Gov. Richard B. Ogilvie ap proved a memorandum to all state executive agencies ordering an investigation of hoodlum- connected firms recently listed by the Chicago Crime Com­ mission. The governor's order follow­ ed his declaration in Chicago Nov 6 that he would "not tolerate business dealings of any kind be­ tween the state and firms linked to the crime syndicate." The memorandum, with a listing of 73 firms, is being sent to all state departments, boards, commissions and agencies under the governor. Ogilvie directed the agencies to terminate any business rela­ tionships they may have with the firms. The memorandum calls for "a complete avoidance of any business contracts of any description." CAMPING GUIDE A new edition of "Illinois Camping Guide" will be publish­ ed early next year. Director Ray C. Dickerson of the Illinois De­ partment of Business and Econ­ omic Development, said. The division has distributed more than 200,000 copies of tht camping guide to tamper! throughout the United States in the last two years. Listing in­ clude campgrounds operated by agencies of state and federal gov­ ernments as well as by those under private ownership. According to a recent nation­ al survey, 68 percent of the campers prefer to stay in private campgrounds. VISION SCREENING An increasing number of pre­ school and school age children are given vision screening tests each year, Dr. Franklin D. Yoder,. director of the Illinois Department of Public Health, said. According to recent figures, 652,699 Illinois school children and 32,154 pre-school children, ages 3 V4 to 5, participated in ap­ proved vision screening programs in 1969, compared with 504, 198 screened in 1968. The vision screening program is to identify children who need a thorough eye examination by an eye doctor. called "Winter Sunshine at Bargain Rates." Mr. Ford is well-known for his genius at sniffing out en­ joyable vacation spots at most reasonable prices. This time he spells them out for us in the form of sue driving tours, all headed into the sun -- the same sun that shines, as he p o i n t s o u t , o n J a m a i c a , Nassau and Palm Beach. There's just one difference. A t M r . F o r d ' s c h o s e n s p o t s , rates tumble Instead of soar, b e c a u s e t h e y a r e s u m m e r resorts. To give you an idea: the tours feature Hot Spot Fishing from South Carolina to Texas, Boldly Vivid Deserts between San Antonio, Texas and San Diego, California, The Heart of Malco, the Bajio that is, where you can count on almost f l a w l e s s w e a t h e r s i n c e i t probably won't rain there until next June . . . and so on. So much for travel. Norman Ford's article is only one of a number that are; both entertain­ i n g a n d i n f o r m a t i v e i n t h i s issue of Harvest Years. There's a charming account of cele­ brated cartoonist Rube Gold­ berg, now turned sculptor at eighty-six . . . and turned philosopher too, it would seem. "Making Money Work" is a title that will catch everyone's eye for sure. And did you know that many banks offer free checking accounts to seniors? In short, the October issue is well worth having. You can get a copy by sending 50c to Harvest Years Publishing Co., Inc., Dept. OT, 104 East 40th Street, New York, N.Y. 10016. When You Buy Land This column has been sparked by a newspaper clip­ ping about a couple who put out good money for some pretty worthless real estate. They began, as so many of us do, with an eye on their retirement. Decided to move to another state. Noticed an ap­ pealing advertisement about a tract of land that seemed ideal for their needs. , And paid for the tract sight unseen. When they finally had time to go and have a look at it, they were shocked to find it extended up a hillside. An im­ possible site for the kind of house they wanted to build. An old story, you might say, and you'd be right. Sharp practices regarding real estate seem to be always with us -- along with those vulnerable to them. Still, Uncle Sam is trying to make things a bit more difficult for the smooth operators. Only last April a new law went into effect, laying down some hard- and-fast rules. It states that any developer subdividing a tract into fifty or more lots must file a report with the Secretary of Housing and Urban Dvelopment. Secondly, the developer has to make a copy erf the report available to the buyer. If the developer doesn't give the b u y e r j t h e r e p o r t 4 8 h o u r s before signing, he has a right *to change his mind within 48 hours after signing. Such a report involves a fairly comprehensive statement about the land in question -- ownership of land, state of its title, physical nature, availa­ bility of roads and utilities, etc. Which means that an in­ terested individual can start negotiating with more informa­ tion at his disposal than he might have had before. The point, needless to say, is not to scare anyone off. The government doesn't tell you to buy or not to buy. It just tells you to look before you leap The new law is hardly the last word on your prospects if you plunge on real estate, but it makes a pretty good first word. Be sure you get t h i s f e d e r a l r e p o r t b e f o r signing on that dotted line. The Question of a Nursing Home Every year more Americans enter nursing homes. At first glance, this seems rather sad. A second glance may create a different impression. In thou­ sands of cases, the older people decide themselves to move from their children's homes into an institution. FINAL PR ICE. 69 BUICKS "Specials -La Sabres--»Electros -- Driven Never titled--Full Factory Warranty*up to $1500°° Savings. 2192-66 OLD LUX SEDAN-power-factory air $ 1245 2196-66 T BIRD HT- Needs paint ^ 845 2197-67 BUICK WILDCAT 4 dr. HT- power-factory air.. 1745 2201-67 BUICK ELECTRA 2dr. HT- power-factory air 1845 2202-65 BUICK LS 2 dr HT- needs some bodywork -- 645 2205-66 BUICK WILDCAT 2 dr HT RH-PS-Vinyl roof 995 2209-60 PONTIAC CAT 2 dr HT power-factory air 1045 2212-60 CADILLAC 2 dr HT - a classic car 445 2215-67 BUICK WILDCAT 4 d *, Sedan-at PRH perfect 1545 2218-68 BUICK ELECTRA 2 dr HT -fully equipped 2695 2230-64 CHEV BE LA 2 dr Sedan -fine transportation _____ 495 2237-66 RAMBLER ABBM. - 4 dr Sedan - only__ . 695 BABER Buick-Opel .91 S. RTE. 12 JU-7-2555 FOX LAKE boOOOOOOOOOOOPOOOOOOOOOOOOOOOOOPOPOOOPOPOOOOOOOOOOOOOOOOOOOOl DELTA Snow Tires GUARANTEED MORE MILES PER DOLLAR THAN ANY OTHER TIRE 6.50-13 -$17.90 6.95-14 -$19.90 7.35-14 -$19.95 7.75-14 7.75-15 S20.95 8.25-14 8.25-15 $22.55 8.55-14 8.55-15 $24.90 Tractor Chains ALL SIZES WW $1.50 ex. PLUS F.E.T. Passenger, Truck and Tractor Tires and Batteries in all sizes !!!! McHenry Tire Mart 322) WE$T MAIN ST. PH. 385-0294 And their reasons make sense. There's the question of in­ dependence. Residents of a nursing home often feel free to d o t h i n g s , a n d t o a s k f o r things, when they know they're not being a burden to a house­ hold. They know they're n o t being handed favors, but being accorded their rights. I know more than one £ase where this kind of thinking is a real boon to self-esteem. It keeps people from brooding too much, at a time when they need all the peace of mind they can get. Another great nioti^-ation is the desire to mingle with people of the same age. The individual f i n d s h i m s e l f a m o n g t h o s e whose memories coincide in a large part with his own, so that he can reminisce with them about the years gone by. Again, people of the same age tend to share a common outlook on the present. Kven the morning newspaper may furnish material for a con­ versation piece that would not s t a r t a m o n g t h o s e o f t h e younger generation. The experience of life creates values. Men and women who remember the turmoil of the past wil l view the present quite differently than their children, let alone their grandchildren. A nursing home may be just the place to exchange ideas with one's contemporaries. T h i s c a n b e a s u s e f u l a s therapy in prolonging a happy PG. 15- PLAINDEALER - FRI. DEC. 12,'19» life. So can the fact that tele-*7 vision and cards are always available. So far, I 've been talking a b o u t s o u i x i r e a s o n s w h y some seniors prefer a nursing home to their children's home. T h i s i s n o t n e c e s s a r i l y t h e answer in every case. The moral is that you shouldn't feel too bad if your parents want to go to such an institution. Your big obligation t h e n i s t o s e e i t ' s t h e r i ^ h t nursing home. SHOP IN McHENRY >oooooeooocoocooocoo> Ancient Bird The eagle, national bird ot the United States, has long been used as an emblem dt courage and power. It syrrf- bolized the Sumerian city of Lagash in the third millenium before Christ. Island Vine Thfe Virginia Creeper, an annual vine, although known in Bermuda as "sarsaparilla" is not related to the true Sarsa­ parilla; it was introduced into the colony in 1846 and has been flourishing ever since. 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