European Stars And Stripes (Newspaper) - December 27, 1987, Darmstadt, Hesse                                Page 20 the stars and stripes sunday december 27, t987 investor s guide 11 him.  q. I ill a in of stocks neat the end of Zarli Van. Siomiak i a Sullin sri Pill Lossi Bill must Pond acc ii pro in iitift1. While preparing my1986 Infin ii to Rvl  i Down ire \ during the year s last five Busi Ness Days on either my 1986 or1987 return. Tan i do lilt same thing nil capital gains taken at rear end 1w7? a. In the new Federal tax Law liminal re that Choice. Beginning Wilh 1987, you arc required to re Portall in Pill gains and or losses on the income lat return Vou file for the year in which you sold the stocks. You were Given the Choice in1986 and four previous years be cause of a Las ruling issued in 1982. That ruling said profit from the Sale of strict in a regular Way trans action the Way a Slock is usually traded could be recognized either on the Trade Date or the Sei a lament Dale five business Days later. When great that they will put off opening the new lax forms which must be Fil cts by april 15. In his annual letter to taxpayers on the front of the forms irs commission or Lawrence a Gibbs urges Start preparing your return earlier than Ever  Way if you need More information you la have enough time Roget  the Reagan administration and con Gress have a lot Riding on that message being heeded by taxpayers. They realize that people s perceptions about the Suc Cess or failure of the tax overhaul Effort will depend on How smoothly this tax f Ling season goes. The mass mailing of the lax forms which costs the government 130 million just in printing and postage is always conducted in the period immediately after inc Christmas mailing Rush. Officials said meeting the timetable this year required substantially greater Effort considering the fact Hal 40 new forms had to he created and 200 old one reworked to reflect the changes made by the new Law. The new lax Law which look two years to get through Congress Cut tax Rale significantly almost doubled personal exemptions reduced or eliminated Sev eral itemized deductions and boosted the Standard deduction for non ii mixers. Irs officials said they expect about 107 million individual tax returns will be filed for the 1987 lax year 3 million More than last year. The forms taxpayers receive in the mail will depend in Large part on what forms they used in filing out their 1986tax a clubs. Last year two thirds of All taxpayers filed the Long form 1040, while the rest used either the Shorter form 1040a or the simplest return of All the one Page i040ez. Officials Are predicting some million taxpayers will switch from itemizing 1987 tax rates tax rates joint return head of single returns 11 percent $0-3,000 $0-2,500 $0-1,800 3,000-28,000 2,500-23,000 1,800-16,800 28 28,000-45,000 23,000-38.000 15,800-27,000 35 45.000-90,000 8x100-60,000 �7.000-54.000 38.5 above 90,000 above  above 54.000 How new rules will be phased in item 198? ims 1990 1091 personal exemption $1,900 $1,950 $2,000 $2,000 $2,000 personal interest 65% deductible 40% deductible 20% deductible 10% deductible not  will be indexed Tor inflation Chicago Tribune graphic source Ernst & Whinney i hair lax deductions to using the Stan Dard deduction because of chances made by the new Law. But most of those Tan payers still will have to itemize in order to find out if they would be better off claiming the Standard deduction. Among the charges taxpayers will no Tice the new forms will require the full names of All dependents a Lii inc social Security numbers of those Over age 4. Gibbs said this week that the j5 penalty for failure to Supply a social Security number on the 1987 form has been waived although taxpayers will gel warn ing letters if they Don t comply. The new forms will require tax pay m to list each spouse s deduction for individual retirement accounts separately As pan of new computation needed to reflect the fact Hal Congress severely restricted the number of work ers entitled to fully deductible iras. Schedule a used by taxpayers who it Emitt deductions has been revised to show the repeal of the deduction for sales taxes the phasing out of inc deduction for credit card and other consumer inter est limits on some new Home mortgage inner Cost restrictions on roving Cinense deductions and a limitation on miscellaneous deductions such As Union dues to the amount that exceeds 2 percent of adjusted Gross income. Standard deductions which for Merly were listed As a Zero bracket amount in the tax tables will be transferred from the abes to the Basic forms. Alt three of the Basic forms require the listing for the first Lime of How much was earned in tax exempt interest. Al though these earnings will still not be taxed they will be used in calculating the taxable portion of social Security Bene fits and will provide the irs with informal ton for the firs time on How much tax exempt interest is earned each year. In anticipation of an upsurge in de mands for help in filing out the forms the irs said it was adding 10 percent More toll free Telephone tines and 1,000 More irs workers to answer Telephone Calls from the Public. Despite efforts to make inc transition to the new tax Law go smoothly the irs has already had one major Embarrass ment. The Agency admitted this week Hal its original redesigned w-4 lax with holding form was too Complex and there fore the Agency will not impose penalty fines on workers who had too Little in taxes withheld from their paychecks in 1987. That decision will translate into an j86 million Windfall for those lamp Ayers who otherwise would have had to pay penalties. Turk Leader unveils economic plans Ankara Turkey a Premie Turgut Ozal announced a plan Friday to sell off state enterprises free interest rates and loosen restrictions an the Turk ish currency. He also told members of the 450-sealparliament he would seek Turkey s membership in the european economic Community. He said the plan would bolster the Economy and predicted Turkey would become a major industrialized nation by 2000 if political and economic stability continues Ozal who won last month s parliamentary elections pledged changes in the 1981 military imposed Constitution. The nation s civil code criminal code and the centralized University system. He did not elaborate. The Premier s ruling motherland parly has a 29-seat majority in the legis lature and a vote of Confidence scheduled next week is considered a formality. Ozal said that Turkey has been mov ing toward a free Market Economy since he came to Power in 1983. He said the new measure such As making the Turk ish lira convertible will continue to strengthen inc free Market system. The slate will no longer invest in Industry and Trade Ozal said. Turkey s Kiaie companies produce 40percent of the nation s goods and serv ices. Ozal predicted that by the end of his five year term exports will double to $20 billion and tourism revenues will reach 55 billion up from is billion. Trie govern mint also will aim to in crease economic and Trade ties with the soviet Union its Northern  said. In foreign policy Ozal said he will continue efforts to establish a dialogue with Greece because greek and turkish people want Friendship and disputes can Only be solved through  Ozal said the turkish Community on Cyprus will be protected until a settlement is reached under a . Plan proposed to the two sides in March. That Means turkish troops won t withdraw from the divided Island until a federation with separate zones for greek an turkish cyp nols is established. Turkey has occupied the Northern third of the Mediterranean Island since a 1974 Cyprus coup by greek cypriot sup Porter of a Union with Greece. Turkish cypriot make up a Dout 17 percent of the Island s 650,000 population. Prices not available the weekly list of Mutual fund prices and the Stock pulse were not available for this edition because of computer prob lems