European Stars And Stripes (Newspaper) - March 13, 1988, Darmstadt, Hesse Page 20 the stars mid stripes sunday. March 13,1988 investor s guide by Bill Doyle q. I m us Lent the Bone to which t Kotti Unell Al Pnra to. I rented or Home for those five Bretn. I m 56. But old 1 Annot Uke a Vanir go of the us break flu Etc to Peaple 55 and older who Tell their a new in Curise i did melt in thit House for the thru Vears prior to the Sale. If that i True. Is there any 1em put the morn 1 into Rollner or Stimel Lilym where 1 won t hive Topa tax on the profit 1 nuke from the Sale a. It s True and you re stuck Ivich paying tax on your profit which is the difference by Zwiren your basis and the proceeds of the basis is the Price you paid plus the Cost of All additions and any improve ment minus. Any Duduc Doyle Lions you look on your income la a Courm for depreciation during the years the House was rented. Tic Rule on this says anyone 55 or older who Sells the principal residence he or she owned and lived in for three of inc five Yea before the Sale can Lake a so called once in a lifetime exclusion and nol pay Federal income Tan on up to si25.000 of the profit from the Sale providing no such exclusion has been taken since july 26,1978. Vou can t use the exclusion. There s no legitimate Way you can jul out of paying Tan on your profit. No rollover or any other method of Tux deferral it available to you. The internal Revenue Sci inc will get its bile. Q. We Boot the our first Home to 1951 for $20,000 wid sold it in1973 for $30,000. Al the Lime of that Sale we Ink the exclusion from tax tin our Prool which then was limited to $56,000. The Home we bought in 1973 can now be sold for at least double what we up for it. If m la ran we derive any Benefit from exclusion which now up a is 15,000. A. Sure. You Haven t taken an exclusion since july 26, 1978, so you arc eligible to take an exclusion from tax on the profit from the talc of your present Home. The old exclusion changed by act of Congress on thai Dale in 1978,was available Only to homeowners 65 or older. Having used it in 198that Means you re at least 80 you the exclusions can be a twice in a lifetime thing. Q. 1 am put is and have lived inlay Home for Mere thin throw years. If i sell my Home 1 will have a prod of Man than $115,000. Can i use the one time $125,000 exclusion and defer us on the rest of the profit by buying another Home a. Yes. Let s say your basis on your present Home is �50.000 and you sell it for s240.000, producing i t190,000 gain. By using thes 125,000 exclusion you reduce your gain 10 $65.000, now lets say you buy a new principal residence for 5200,000. You defer paying lax on the165,000 by reducing the basis in your new Home by that amount. That makes the basis on your new Home 1135,000 1200,000 minus $65,000, you have used the exclusion to eliminate lax on $125,000 of your gain and have deferred lax on the 65,000 balance of that gain. Clash of Wall St. Titans looms Nev York a a clash of titans loom on Wall Street in the next few Days when the Trade deficit meet head on with the triple witching hour. Though both of these ogres have Beanie devising Wall Street for some time they have rarely put in simultaneous appearances. But All thai will change on thursday new York Exchange hew Tod. Up ii re is Man pm Stoft n in Vosi it e a torque cont of b of in tour it bib 4i6i.o� 10 in ibo cd end Scarp Auto my sue is. Dub Cora inn Kikm i 1.t99jgo 1.4mjw 41en 114cat a amen can exc new com Furj the 10 rent now Tycki Luck idling Cai nut suns with. 1 Brt ii14 to 35 h 21i "3a Wilts kit 11 041 h1 to is it Viup when the Commerce department issues its report on the nation i Trade balance for january just m the Market head into the final hates of trading in a group of Stock Index futures and option thai arc approaching expiration. The combination looks highly explosive. The effect however May be nol to create a fireworks display but rather a period of extreme caution and safely consciousness. The triple witching hour which occurs on the third Friday of March june sep tember and december apparently was tamed to some extent last year when procedure were adopted to spread in out. Some futures contracts on Hock mar Ket indexes which Are used by professional Ira Den in computer As Index arbitrage Are now tied As of Ibe opening on Friday while others Art ruled Al the close that Day. This Lime program traders will be operating under a further restraint the so caused Collar adopted by the new York Stock Exchange on feb. 4, this procedure doses off the Exchange s main computerized trading facilities to Index arbitrage any Lime the Dow Jones vaudeville comedian Dies Warwick , a Steve Mills one of the last of the great vaudeville comedians who worked with the Stubert organization in the i Sjoland 1940$, Bai died. He was 92. Industrial average run or Folk 50 Point from the previous Day i dose. Thai poses a threat of prot my to any program trader who might need to close out Apos Tjon just before expiration. For All the controversy surrounding them Index arbitrage arc de signed As Low risk propositions. If one Wen Losi wry u could quite conceivably cause brokerage firm to lose valued clients and traders them selves to lose their jobs. So the people who play Thil game Are presumed to be proceeding very carefully As Thil triple witching hour approaches. Seemed i past we industrials hit a new Eurly-19tl nigh on tuesday bul then backed off dosing Fri Day at 2,034.98. Down 22.88 from the week before. The new York Slock Exchange composite Index fell .98 to 149.49, while the american Stock Exchange Market value Index Rose 2.3s 10 296.09 and the Nas Day composite Index for tie Over the counter Market gained 2,12 to 375.48. Big Board volume averaged 199.77 million shares a Day against 208.08 Mil lion the week before. Since the Collar was set up in has never gone into effect although the Dow has risen or fallen about 48 Points on three separate occasions. Thus it appears that it has become Ade Facto Boundary an informal equivalent to the limit on daily Price swings used in the commodities markets. . Aide to Confer with South african Washington a assistant Secretary of stale Chester a Crocker will hold his first talks in two years with South Africa s foreign minister in an Effort to Advance a . Peace initiative for Southern Africa the stale depart ment said saturday. Crocker s meeting with Roelof Pik Bolha next week at an unspecified euro Pean location also will give the United Stales an Opportunity to Reg Jator concern about recent developments in South Afri Ca spokeswoman Anita Stockman said. The United states has complained about Anil dissent measures proposed in South Africa in the past few weeks. A slate department working group arrived in Angola on wednesday to explore the possibility of further talks on getting inc estimated 40,000 cuban troops out of the country As part of an Overall settlement Stockman said. Since he took office in 1981, Cracker has been seeking to negotiate a withdrawal of cuban troops from Angola in return for South african withdrawal from neighbouring Namibia the cuban troops have been bottling b powerful guerrilla Force Unita. Which is backed by South african and . Assistance to what appeared to be a major break through when Crocker was in Angola in january Cuba declared its willingness in principle to pull inc troops out of inc country bul the Overall settlement that would bring that about is still to be arranged. Angola has said South african willingness to participate in the negotiations and abide by a . Resolution giving Independence to Namibia is a Nec Essary ingredient of settlement. Stockman said Crocker s meeting with Botha will afford an Opportunity to re assess South Africa s willingness to proceed toward a settlement involving total cuban troop withdrawal from Angol and namibian Independence bated of , Security Council Resolution 435." fund prices from Page 19 Fri nth pm 944, 01 Orfi 1.16 i Felt 01 Ufa in f7l Htu. 1 cd ii4i Itta Tab i u i Ctm 1i7j 1u v Bill in 411 in Al 12u a n in i 764 to 01 7 0 70 01js fio 5cl&"i ii4t la do Spellr it no d4mm ii Aan Job emf us i1w. 07smm us m. 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