European Stars And Stripes (Newspaper) - February 22, 1987, Darmstadt, Hesse Page 20 the stars and stripes sunday february 22,1987 investor s guide by Bill Doyle q. I am a Nellree and will soon be in a pin Ilion to pay off the $38,000 Bali net on my 10.5 percent tort k it. Should i do so or would i Beher off invest Lnig i hit $38,000ind retaining the morgue on my Home if i pay off the Morange i will Dill be $40,000 left to invest a. It sound As if you Are com ing into a $98,000 Windfall congratulations. My advice is to pay off the mortgage. Here we run into a Basic fad of Finan Cial life. Any Lime the in i Crest charged on Money you have Bor rowed is higher Ihan the rate you can earn on investments you come out ahead by paying off your Chi. These Days you can t invest your Money at 10.5 Percy no with out taking a substantial risk. So. Unless you re willing to move into risky investments the natural move is to retire your mortgage. This reasoning is simple but it always draws arguments from some people who claim it s Wise to stay mortgaged up to the Hill be cause mortgage interest is deductible on your income tax return. They ignore the fact that you have to pay income lax on investment interest and dividends. On the off Chance you can put your Money to work earning a higher Rale than your mortgage in Terest invest All your Money. Otherwise pay off the mortgage. In your particular situation you la have 160,000 left to invest. As a Retiree you should invest thai Money conservatively. Don t take big risks with that nest egg. Q. I moved several months ago und still own my previous Home. I rented it out for the Winter months and a Peet to sell it in the Spring. Should tile depreciation on the House for the months i rolled rent How will depreciation affect me at the time of Sale u i Tike be once in a ii feline exclusion How will ibis affect the profit i might show a. By All Means take depreciation for the months you rent out the House. The irs requires you to report As income the rent you col Lect. Even though you Don t by out any Money for it depreciation is an expense item and reduces your taxable income. Depreciation also Lowers your basis Cost for lax purposes. Naturally ibis increases your prof is when you sell. Because you rented the House oui for a Short period of Lime for what should be counted a a non business purpose you la be Able to take the once in a life Lime exclusion when you sell q. To 1909, my father bought five vacant lots for si00, he turned thai land Over to Roe As a gift in 1940.1 now have in Opportunity toll the land far $10,000. How would i Han dle his an my income lax return a. Based on your numbers the Sale will produce a $19,900 profit which you la be required to report As a capital gain. Since the beginning of this year 100 Pyrc Cal of a capital gain is taut. So you la add that s19,900 to your other taxable income and pay whatever income tax applies. A a Fiu unt Khu Enlil Dou it ten in in que Mioni bul Hun or ovum Iniwan Only Hough the to turn. You in win Loh a in Cut 01 to Sun ind a trip Upo os21i. Us. Foini financial news prices Rise in Active trading after posting modest losses by Ellen Freilich up1 business writer new York the Stock Market resumed its 1987 climb last week after posting a modest loss the week before. Trading was Active during inc Holiday shortened period. The week opened with a surge of across the Board buying As individual and institutional investors returned from the president s Day Holiday with a revived appetite for stocks. The Dow Jones Industrial average scored a record one Day gain of $4.14 Points tuesday finishing at a record nigh. The Index had another High wednesday and advanced again thursday on Friday profit takers gave the Blue Chip barometer its first loss of the week but it was a modest one analysis said the Market spent the last part of the week consolidating tuesday s spectacular a i a for the week the Dow gained 51,89 paints ending at 2235.24, a 329-Poinl Advance since the Start of 1937. There is Little to suggest that the Market s Advance has run its course commented Newton Zinder 0. F. Hut Ion technical analyst. In the broader Market 1,207 issues posted gains while 736 had losses among the 2,177 issues traded. Standard & poor s 500-Slock Index Rose 5.79 to 2s5.4s. The new York Stock pulse a Tochini Atit Al Amin pah in Plum Holt act tvs b vat Loffl pm com Euirn i 1.4kjw 23 1.15 2t3.jj7.1x us 383 ii j.34vjoo a 2514.00 2s 4 2234.100 17 Tew Kmil inf Fly it so in wont it jul to of Tutu Clou cite end it 1oh i t 4b390 14 Cut to 320 4 11.20290 fill of Arlin 14 4h pm 12.0 1.9 Milwe inn 4 4 a 210 01naif wbk 4 or 1rw ids 3k 7ja lfi.0 30 Gam s9s. 3% it 100 30 Hon m t is m3 to 16 Cin Whf 1mx � 3 i 4.14 300 06it,ii Kin i59h 3 11" 14001-3 and prices Flora pith 7jv Coole 0/wttlsway by pm it am cd 77.4030. 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Carter Wallace had climbed 51 i Points Over the three pc ceding weeks amid optimism about prospects for the company s Trojan condom sales. Other pharmaceutical manufacturers attracted buyers. Merck climbed 10 to 49 i and Squibb Rose 14 id 148v on prospects for heir respective Anli Choles Crol drugs. In Phalace Licals fell 5tt to 17. The Wall Street journal said the food and drug administration and a House panel Are investigating allegations hat serious Side effects from the use of in i vira2ole drug have not been re ported. Piedmont aviation climbed 11 to 70 i. Piedmont is considering competing bids from Norfolk Southern corp. Ai $65 a share in Cash and from us air. The number of shares changing hands on the new York Stock Exchange week totalled 763,309,500, compared with 869,960,760 a week earlier and with 629,545,680 shares traded during inc same week a year ago. The Dow transportation Index climbed 29.19 to 951.35 it set record highs tuesday and on wednesday when it finished Al 953.00. The Lilily Index Rose 1.27 to 222.02. Composite volume folded 894,380,660 shares compared with 1,016,639,920a week earlier. Prices Rose in Active trading on the american Stock Exchange. The american Stock Exchange Index added 1.6 to end the week Al 316.90, below the High it set tuesday Al 319.25. Gainers outpaced losers 422 350 among the 916 issues traded. Vol ume was 66,508,095 shares compared with 67,859,580 last week and 58,586,095 during the same week a year ago. Home shopping led the amex a lives falling 54 to 28 a. Wilkes a Lowed casing i to 4. . Industries was third rising h to 8-5/16. Of Soho Syril Al Benwig fund inc Anvil Urple to 1s.15 him b4o �5z 1307 Llort 13811439 ib.3tnl. 14 79 k l. 207421 in 771 443 b44 933 13.01id.b3uj4 iv.17nl. 1312 n l.1-Ibnl. 14ij7hlb4whl 9130 z.7�hl. 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