European Stars And Stripes (Newspaper) - August 11, 1985, Darmstadt, Hesse                                August 1985 the stars and stripes Page 19 business news Public spending hits per citizen Washington a state and Federal governments will spend this year for every woman and child in the United states a record trillion that is 11 percent higher than last the tax foundation that figure is larger than the entire output of the nations Economy 10 years said Robert presi Dent of the a private research Federal spending is up percent from last while other governments Are spending percent this years increase is occurring despite All the hoopla about agonizing cuts in Federal outlays and austerity Bud gets in the states and Brown in other tax news if your tax return is the internal Revenue service generally tries to mail you a report within two weeks to a month after the telling you whether you owe but sometimes the report can take far longer and while you the interest is John told colleagues of a constituent who had to wait 11 months for the irs to report on his the congressman has introduced a Bill suspending interest charges from the time an audit is conducted unless the irs tells the taxpayer the results of the examination within 30 before participation in a tax deferred individual retirement account was limited to workers who were not covered by a company pension the irs and courts Are still handling disputes about the old the tax in the first decision of its decided last week that the irs was Correct in denying an Ira deduction to Thomas eanes of he left amp there is m0 such thin6 As free Ctm claim to have discuss up his Job in March forfeited All rights to a company pension and deposited into an the irs turned him Down because he had been covered by the company plan during the first three months of that May seem the court but is clearly in line with the Vancs was held liable for the 6 percent excise tax that is imposed on excess contributions to an daily meal allowances provided Long haul truckers under their Union contract Are not taxable the irs says in a private the ruling involved allowances that were Given Only to those Drivers whose logs show they were not at the Home terminal or within a reasonable distance of it on a Given Little upsets a member of Congress More than losing his or her favorite professional sports team to another Fortney still cant forget that his Oakland raiders moved to los and he argues that greedy team owners Are being subsidized by Federal taxpayers As they move Stark for that some stadiums Are built with tax exempt and that team owners reap big tax savings by depreciating player his solution is spelled out in a new Bill deny any Federal tax benefits to owners who move their teams without regard to the pub Lic a 1984 Law growing out of the killing of marines in Lebanon allows a tax exemption for military or civilian government employees slain outside the United states in any military or terrorist in its latest weekly Bulle the irs explained to survivors How to claim the exemption and explained that the Benefit is available for two strict income guidelines set on mortgages Washington a Industry leaders say the Only potential Home buyers who will be priced out of the Mort Gage Market by new income guidelines Are those who probably should be having second thoughts about the House they want to revised standards announced by the Federal National mortgage the nations major wholesale sup plier of Home mortgage will make it More difficult for buyers to qualify for a conventional loan with fixed or adjustable rate interest if they have less than 10 percent to pay the Fannie As the mortgage association is buys individual Home Loans from lenders and packages them for resale in the nations Money Fannie Mae chairman David Maxwell said the Pri vate firm is making the change because it is suffering extensive losses from foreclosures on Low Down payment Loans made to borrowers with just barely enough income to under the new which takes effect a borrowers monthly housing expenses will not be allowed investors guide i have accumulated quite a number of savings Bonds through the payroll deduction plan at i have 52 e Bonds purchased Between May 1966 and july 88 e Bonds purchased Between August 1973 and april and 97 be Bonds purchased since Early can you Tell me the current value of these Bonds you might think youre asking a fairly simple not because each Bond now has a different value depending on the month and year in which it was the value of every e and be Bond less than 40 years old increases each As interest the oldest e Bonds reach final maturity and Stop building up interest after 40 before taking on the chore you i would have to know the Issue Date of each with that information in i could turn to the Booklet tables of redemption values for United states savings Bonds series e and the similar Booklet for be i could look up the current value of each of your after learning the current value of each of your i could add them All together and come up with the total that a major which you really should take on so should everyone else who wants to know what his or her e and be Bonds Are if i started handling requests such As i  have time to write a you can obtain the booklets from superintendent of to exceed 25 percent of their Gross monthly and housing expenses plus instalment debt cannot exceed 33 the old Standard was 28 percent and 36 respect with provisions for exceptions in certain there will be no exceptions under the new for a Home with a 5 percent Down a Borrower would have to earn to qualify for a percent fixed rate conventional mortgage compared to under the old the alternative under the new which Are not binding on individual is for the buyer to find a cheaper House or come up with a larger Down sure there could be some people caught in but if All you can put Down is 5 maybe somebody ought to Tell you you need a Little better margin than said James economist for the league of Sav Ings if you get red hot about buying a House and the Lender agrees to let you pay 33 percent of your income and you lose your he Hast done you any Christian government printing Wash do the e Bond Booklet costs the be if you want to Duck that ask your Bank to let you study the booklets it receives from the Treasury some Friendly Bankers even provide photo copies to because i am planning to retire i am consid ering either exchanging my series e and be savings Bonds for series he Bonds or cashing my is and yes and investing in something paying higher which would be the better Choice unless youre really strapped for immediate dont Exchange or redeem any of those is or yes until november 1987 at the by exchanging or re deeming you would miss out on the higher Varia ble interest rates now accumulating ones and in order to get the variable you must hold is and yes for five years past their first semiannual interest accrual Date on or after e Bonds issued before november 1947 will not be eligible for the variable does the interest that builds up on my series e and be savings Bonds have to be reported on my income tax return each year you if you report it that you also have the Choice of not reporting e and be Bond interest until the Bonds Are redeemed or reach final a the vast majority of people choose the second the change does not apply to Loans in which the Down payment is 10 percent or nor does it affect Cha and a Loans guaranteed by the Federal while not binding on lending the new guidelines mean lenders will have a hard time Selling into the secondary Money Market any mortgages that do not meet Fannie Mae Maxwell said More strict qualifying standards were needed because inflation is not the Factor it was in the go go real estate Market of the late 1970s and Early in that a Lender might not think twice about Mak ing a loan to a buyer with marginal financial standing because the Home was almost certain to appreciate enough in value within a year or so to enable even a strapped owner to sell out at a Warren executive vice president of the mortgage Bankers association of said most of the Mea sures they have taken Are new guidelines for tighter underwriting standards Are in step with lenders own concerns that today environment of lower House value appreciation makes further study a of you never report savings Bond interest on state or local income tax if you live where there Are such interest on Federal government Bonds is not subject to state or local income tax i have always listed on my Federal income tax return an amount of interest i Felt was equal to the interest that accumulates on my series e and be savings am i Correct in feeling that i wont have to pay income tax on the interest i receive when i finally redeem those Bonds youre Correct Only if the amount of e and be Bond interest you reported on each of your income tax returns was equal to the interest that built up on your Bonds for that the Only Way you could accurately tally up that inter est would be by calculating it from the savings Bond tables of redemption values unless youre a mathematical its most doubtful that the numbers you Felt were right in equal to the annual buildup of youre headed for problems when you Cash the youll receive a form listing the interest you finally the internal Revenue service will get a unless youve saved All your income tax returns and can prove to the irs youve been reporting and paving tax on the savings Bond the revenues will want their bite on the full amount of c King features