European Stars And Stripes (Newspaper) - February 20, 1987, Darmstadt, Hesse Changing tax liability by would be let Otlet losing passive investments Les that generate income to neutralize Taxt t. Consequence of such a strategy investors become less willing to put their Money in riskier As that do not guarantee a Cash return. My t think that anybody is going to be going into Ien led deals said Barry Salzberg a partner in Ork with the detente Haskins & Sells National Llang firm. Real estate has been a popular Haven a one area to which he passive loss limit most 1 applies. Moral deduction for losses from passive real holdings would be allowed up to $25,000. Bui Jtj baled Gross income exceeded $100.000, the d deduction would be reduced gradually to Zero Obs a $150,000 and above. Positive byproduct of the upheaval in tax ing would be thai people wiil have extra be to find economically sound investments Ning that most experts have Long Boon Sling said a bum Baufle director of tax a financing and investment transactions at the iting lorm of Coopers & Lybrand. A Wise investor has always looked at the a los he said. Phasing in the new tax Law associated press principally to save Money Many of in provisions in the naw tax Law will be phase Din gradually. Here Are effective dates of som of the key provisions. June 30,1986. Government and private sector workers who contributed to their own pensions and retire after this data started paying tax immediately on their benefits losing a Brief tax aug. 16,1986. If a Home equity loan obtained after this Date exceeds the Purchase Price of the Home interest is deductible Only ii the Money is used for medical or educational expenses. Jan. 1,1987. Most provisions of the Bill Lake effect. These include interim reductions in individual rates and increases in the Standard deductions and personal exemptions repeal of tha two Garner deduction income averaging safes tax deductions from individual retirement accounts medical expenses Job related and other miscellaneous expenses elimination of charitable deduction for consumer interest 65 percent is deductible in 1987. Begin five year phaseout of deduction Lor consumer interest 65 percent is deductible in 1937. Begin three year phase Down in deduction for business meals and Jet mm0m/ a my do expenses. Begin taxation of certain scholarships. Repeal of special treatment of capital gains. July 1,1987. Corporate rates reduced. Jan. 1,198b. Individual rate reduction becomes fully effective with new maximum rate of 33 percent. Standard deductions increased to $5,000 or couples and $3,000 Tor singles. Personal exemptions Rise to $1,950. Jan. 1,1909. Resumption of annual adjustment in tax brackets and Standard deductions to offset inflation. Jan. 1,1991. Deduction for consumer interest totally phased out. Irs will do it for you associated press he internal Revenue service will calculate your tax liability Lor you if you do most of the preliminary work that May not sound like much of a bargain until you realize that year in and year out she most common tax Weium error is caused by copying Down in incorrect liability from tha lax tables. If you want the irs to do the Caj Culata fill in All the Blanks that apply to you on form1040.104qa or 1040ez. The irs Wili compute the earner income credit and the special credit for the elderly and disabled if you qualify for either or Boih. But you must make a notation on your tax form As outlined in the instructions. You will have to figure the child care credit Lor yourself a Filer of the Long form 1040 May have tax figured by the irs Only if All income consists of wages lips pensions interest and dividends adjusted Gross income is no More than $50,000 deductions Are no itemized income averaging is not used and if none of the refund is applied to 1967 estimated tax no matter what form is used the irs will not compute liability on any return that is not filed by the april 15 deadline. Irs humor iry20,1987 the stars and stripes Page is
