European Stars And Stripes (Newspaper) - May 23, 1987, Darmstadt, Hesse Page 20 the stars and stripes sunday May 24,1987 investor s guide by Bill Doyle q. We signed Jevc cons Rodlon contract to Purchase b larger House Roan thin a year ago. During that time the value of our print Home by appreciated adore the contract Price of the new House. Would it be Wise to buy Addi Lonal builder up grades appliances Doyl carpeting Etc. For the new House in order to erase the capital gain on the Sale of our present Home which would be taxed the same As Ordi nary income under the new Federal tax Law a. That would be a Good move. Just make sure you Don t pay Oul of line prices for minor upgrades. If Here s a Bis difference Between inc Price at which you sell your present Home and the contract Price on he new House you Mignol consider major upgrades such As a finished basement or attic an additional room or even a swimming Pool. By increasing the Price you pay for the new House to or above the adjusted sales Price of your present Home you won t erase the Las on the profit you realize from the Sale of your present Home by you will postpone thai tax bite. Let s say you sell your present Home at an adjusted sales Price of s 150,000, realizing a profit and buy the new House for $ 140,000.because the Purchase Price of he old House would be less than the Selling Price of the old House you Wouldhave to pay Federal income lax on the $50,000 profit. 1 a Stead let s say you pay $ 150,000for the new House. In that Case you postpone he w on the Sale of your old Home until you finally sell a Homeland buy a less expensive one or move into rental quarters. At that time you la probably be Able to use the once in a Lif clime exemption fro tax on up 10 s i 23,000 profit from the Sale of a Home. Please dear readers do not con fuse the postponement of lax on profit from a Home Sale which is available to anyone and can be used Over and Over again with the once in a feline exemption which is available Only to people 55 and older. When you use the postpone ment you adjust the basis Cost for tax purposes on your new Home by subtracting from its Purchase Price the profit on which tax was postponed. In this example after buying a $150,000 House and postponing tax on 150,000 profit from the Sale of your previous Home the basis on your new Home would be $100,000. Q. Since buying my Home for $33,000 years ego i bid it redone with Dew windows siding and roof. Some time biter i had a second Ivory put on. Now i hut put on another addition. The House has been appraised at $140,000. If i sell it what is fld what in t capital gains a. Your profit or loss will be the difference Between your basis and your adjusted sales Price. Your basis i the $33,000 you paid for the House plus the Cost of All additions and improvements you mention and 3 whole lot you most Likely did t mention. Every Homeowner should Steep inaccurate record of every addition and improvement even the Small ones. Business hews Mart closes on optimistic note after retreating Early in week new York up the Stock mar Ket retreated last week but finished on a More optimistic note Friday As Bonds rallied the Dollar steadied metals Price dropped and inflation fears eased. Trad ing was Active. The Daw Jones Industrial dropped 29.32 Point for the week closing at 2243.20 Friday. The Market lost ground monday tuesday a id wednesday before recovering somewhat thursday in a modest rally anal on Friday moved up sharply in Light pc Holiday weekend trading. For the week losing issues outnumbered advances 1.516 to 471 among the 2,184 stocks crossing the new York Stock Exchange tape. Broad Market indexes retreated. Stan Dard & poor s Soo Stock Index fell 5,27 to 287.43 and the nose composite Index Slid 3.20 to 159.05. Inflation real or imagined was Stock pulse by uned prut Fred Fly May 23 nose Catt Fondl Moil act Tom by volum Eloch i noes Lui i court via Doh earns be 1 3.3sj.800 a i 18 so 7,8 in Mem Duaei sic pc digital Olmom c own cow by Ash pm tempt a Dun bad earn Callahan nod b f.143,600i.a?r.3co a l,7.500 35 v3s3.300 43x t.?98.j 10 Iso 1.279.?go 155f.?i.T a1 i 1,132.300 Jbv. Nose Compilli Lorgill Clos 155 Eppl 06 to 78 0 of 1,41 230 12 m 5 4.39 tou3 in 0 z s 7 50 21 0 lot l to h Cork 3v, 09 so a Togo cams be vow so t 7 50 1 0 6m 12.0 2.1? is.o3c3 270 55 ? /. 31 so. 3s. F 2k 328 180155 250 179 130 3.4 033 92.0 at fund prices from Page 19 co 13ftt14fte � m 11 o i 23z/7b4 14 a a m 7& 6 -4 612 to 1139 fle0 of Hilim in a i Hshi. Nch Ina 15unl a slut f 34.70u1. 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