European Stars And Stripes (Newspaper) - July 4, 1987, Darmstadt, Hesse Saturday july 4, 198? the stars and stripes Page 17 investor s guide by Bill Doyle q. I am looking for t Safe plact to i Rem �75,000 1 May not need for Al least five Yean. In Ltd like something hat pays t Little interest thai u Tux free. A. Take a took at Zero Coupon tax exempt municipal tones. Unlike most municipal Bonds which pay interest semiannual Azero Coupon Bond do snot pay Peri Odic interest. Instead a i to is is sued Al a big discount Way below is face value and is re deemed at face value when it Doyle reaches maturity. The difference by tween the Issue Price and the redemption value is interest. A Large number of municipal Bonds those issued by states and their political subdivisions Are zeroes. Until 1984, interest from at municipal Bonds was free from Federal income tax. Now some municipal Bonds have Federal lax exemption Tome Don t. And so Cial Security recipients who own otherwise tax free municipal Bonds can get socked with Federal income tax. Here s one More wrinkle in the increasingly complicated tax Pic Ture. Most Silies do not Levy stale income tax on interest from Muni Cipal Bonds issued within their Borders a handful do. Q. You Hare stated tint interest from tax Tret municipal bunds does not Bare to be reported on Federal income to ret Anu the internal rare Noe service does t by thai municipal Bond inter Ett h taxable but it takes i Halfe Tepla that direction. On line 21b, form 1040, there 1 place id list tax Chi not interest isl this a More to Ward taxing Mem Lopol Bond inter tsp an old proverb goes if the Camel can act Sis nose under the tent. It won t be Long before he d inthe a. That entry on line 2ib has been on form 1040 for to Yean. It is used by social Security recipients whose adjusted Gross income plus tax free municipal Bond inter est and half of social Security benefits pass certain amounts 132,000 for married couples tiling joint returns $25,000 for individuals and Zero for married persons Miliru separate returns. That has been explained in this column often Ever since the social Security act amendments act of1983 was passed. Social Security recipients fill in line 2lb after completing a work Sheet to figure out if they owe tax on part of their social . Technically this Don not result in a tax on municipal Bond interest that is exempt for Federal taxation. But it s certainly a Back door tax on that interest beginning with 1987 returns All investors who receive tax tree Muni Cipal Bond interest will be required to list it on their Federal tax the tax status of municipal Bond Uit emt wont change with one exception. Wealthy Inye Jion who pay toe alternative minimum tax will have to include the interest in come they receive from some Muni Cipal bouts when Urey calculate their taxable income. The proverb you quote ii Apt the irs camels head neck and shoulders already arc in the Muni Cipani Bond Lent. Business news Dow average Down slightly after Short lacklustre week new York up tic Slock Mir Kcal posted narrow losses in a four Day week lacking in fireworks and shortened by the fourth of july Holiday weekend. The Dow Jones Industrial average which Rose 10.05 Points monday skidded 28.38 Points tuesday posted Amare modest loss wednesday and rallied nearly 27 Points thursday. For at that the Dow ended the week off 0.16 Point. Declining issues outnumbered gainers 1,013-826 among the 2,144 new York Slock Exchange issues changing hands. Broad Market indexes posted Small de Clines. Standard & poor s Joo Stock Index fell 1.53 to 305.63, and the new York Slock Exchange composite Index slipped 0.84 to 171.83. As happened a week earlier anticipated window dressing in Advance of the end of the Quarter june 3d did not materialize. Window dressing refers to the inclination of Money managers Toby stocks so that stocks in their portfolios end the Quarter Al higher prices. Steady Bond prices and a firm Dollar contributed to stability in the Stock mar Ket bul All the Markulj moved in quit narrow ranges. Al Goldman head of technical Analy Sis at , Edwards & sons in St. Louis said thursday s rally could Spur a Little More buying neat week bul he said the Markel was showing signs of fatigue. Goldman said volume last week was heavier than expected but thai the mar Kel shows signs of fizzling he predicted that the Dow could near its High sin the 2,460 area and then Retreat. Aggressive Money can slay on Board for another week before raising Cash an preparing for a pullback in the Dow 10 the 2,200 area Goldman said. On the big Board at to was the mos Active nose Lis cd Issue rising i to 29v,. Santa pc soul him Pacific followed advancing 6w to 52 w on news that in would sell one or Bolh of its Railroad units. Pacific to Lysis was third slipping i to26v. Texaco jumped 34 to 41 it while Pennzoil fell 614 to 76w on news that the Sec had Allied itself with Texaco in the Oil giant s dispute with Pennzoil and amid signs action was under Way outside court thai could Lead to the conclusion of Texaco s Mulli Bivion Dollar Battle with Pennzoil the Purchase of Golty Oil. Korea fund was a Star performer climbing 10 ,4 to 70. On news that the chairman of South Korea s ruling party in key concessions to opposition de mands had recommended thai South Korea s next president be chosen through direct elections and that Korea s most prominent dissident Kim Dae Jung have his political rights restored. United technologies climbed 3w to 52. It said it will evaluate offers from parties interested in buying some of the operations of its Essex subsidiary Ell holdings closed at 15 in an Initia Lottering of 28 million shares. The Slock was offered at 115 a share and was Trad ing at 14%. The company is headed by former Esmark inc. Chief executive do Kelly who plans to use in to launch acquisitions. Merck jumped 5w to 177k. Two Large brokerages raised their earnings Esti mates on the Stock tuesday and Wal Street believes l in Fra win soon give final approval to Merck s Anil cholesterol drug Lova statin. Reichhold chemicals which soared1 tvs to 61 a week ago when it received a s52.50-a-share takeover bid from a subsidiary of Dair Tippon Ink & chemical climbed to 64 and said it would explore merger inquiries from Oiher the number of shares changing hands on the new York Slock Exchange during the week totalled 620,214,690, compared with 854,049,570 a week earlier and 541,003,120 shares traded during the same week a year ago. The Dow transportation Index climbed 0.64 to 1030.41 and the Uii Lily Index fell 1.32 to 205.90. Prices Rose in Active trading on the american Stock Exchange. Gulf Canada led the Macx actives unchanged at 18v,. Blocker Energy Fol Lowed rising it to a i. Wickes was third slipping % to 4the american Slock Exchange Market value Index Rose 2.05 to 339.74, declines led advances 367-432 among the 976 is sues traded. Volume was 50,420,145 shares compared with 65,913,960 last week and 46,749,795 during the Sam week a year ago. Honda to import cycles Tokyo a Honda motor . Said thursday in will import motor cycles made by its . Subsidiary and sell them in Japan taking advantage of Price differences resulting from the yen s Rise against the Dollar. The company the world s largest pro Ducer of motorcycles said in would begin Laic this year to import 1988 models of the Honda Gold Wing made i Marysville Ohio. Stock pulse this week Stock pull a unavailable became of transmission in new York fund prices from Page 16 21.04nl.21 i2 n l us Wal 21 73 no set us 10 k n l Lihn Ukel. 7i�. 11.79 n l. 4mbnl i.44nl id.44 n l . 14 . 12.24 n l. Ib.&0 2o.1d 20.42 21.04 Fla b j2m22m Foron 70 49 72 h Shlitt 11 3 n l 13knx. W3i no a Emlu v Ifim Kiihnl 1moml 7 67.so 717 706 7417h in 77 114774 by b997u b?7 17bit by Iii 747t0 721 in inl10 Tell h 14 4 15 is ii041imta 10hi1u 1s3suw Ivet no 1 k l self Mun r to n u Auh Rrt Orth. 10w of l-1ikui Itu tier no High in tune z Locton fans got Mun by Muri n n Cone us us us 4d4 63319 a 21j9 p.13 by 2d9ni 1.12 Mlou o t Kcf Kcf Noma us to. 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