European Stars And Stripes (Newspaper) - August 21, 1988, Darmstadt, Hesse                                Page 20 the stars and stripes sunday August 21,1988 investor s guide business news by Bill Doyle  husband and i bought a House for our daughter eight years ago. Because she was in the midst of a divorce and her income was Low the House and mortgage Are in our names. The House was Pur chased for $42,500. Real estate in our area has boomed and that Little House now is valued at $140,000. How can we Doyle Transfer the House to our daughter without paying the internal reve nue service an enormous amount of capital gains tax a. First off there is no capita gains tax on gifts. And even though you have to cock an Eye toward Federal gift tax you can avoid that bite. You could give the House to your daughter Over a period of years giving her $20,000 wort each year $10,000 from you and $10,000 from your husband or$20,000 As a split gift. Everyone is allowed to make gifts of $10,000 a year $20,000 in the Case of husband and wife to each of As Many people As he or she pleases without filing Federal gift tax re turns. If you do that have the paper drawn up by a Good tax lawyer. Or you could Transfer the House into your daughter s name As a one shot gift. Because you would be making a $140,000 gift you would be required to file a Federal gift tax return. However if you have made no other gifts require to be reported under the gift tax rules no gift tax would be due. The rules permit everyone tomake gifts that require reporting totalling $600,000 before paying Federal gift tax. But that can bring on another complication. Any gift that has been reported on a gift tax return reduces the estate you can leave free of Federal estate tax. If you die without hav ing made any such gifts $600,000of your estate escapes Federal estate tax. But if you give the$140,000 House $70,000 from each of you to your daughter and file a gift tax return the estate tax bite on each of your estates will Start at $530,000. Of course one spouse can leave to the other unlimited amounts free of Federal estate tax. But if the second of you to die leaves a Bun dle the gift to your daughter could result in a bigger estate tax. Permit me to play Digger o Delland suggest that you simply leave that House to your daughter. Q. An article by a so called real estate expert has caused a lot a confusion in my retirement Circle. It said that because of the Federal tax Law passed late in 1987, it is better for a Home owner to have a Large mortgage rather than a Small mortgage or no mortgage at All. Do you share that opinion a. No the Only time it is advantageous to be in debt with a mortgage or any other borrowing is when you can put Money you have available to work earning More than the interest you Are pay ing. I be been stressing that Basic financial fact As Long As i have been writing this column. Stocks fall in week of Dull trading new York up anxious investors pushed prices Down last week in five Dull sessions amid worries that new inflation and higher interest rates Lay ahead. The Dow Jones Industrial average which slipped 11.03 Points Friday closed the week at 2016.00. For the week the Blue Chip Index fell 21.52 Points or 1  Market was battered monday As inflation and interest rate worries scared away potential buyers and the Dow industrials plunged 33.25 Points. Unexpectedly the Market bounced Back tuesday despite news that the . Merchandise Trade deficit for june had widened to $12.5 billion in june from a revised $9.8 billion the previous month ending 17.24 Points  fled to the sidelines wednes Day to consolidate tuesday s gains. The Dow industrials gained 4.45 Points. De Clines outpaced advances by a 7-6 margin. On thursday stocks ended narrowly higher after pulling Back from session highs. The Dow industrials edged up 4.45points to close at 2027.03, after having been ahead by More than 13  generally agreed the Outlook for the next couple of months was forbore of the same barring a major catalyst in the Economy such As a dramatic move to raise or lower rates. Higher interest rates draw investors away from equities by making Bonds and other interest bearing instruments More  ended mixed again on Friday closing out a Dull week with an 11.03point loss on the Dow which had spent most of the session Drifting at higher lev Els and at one Point Early in the session a was up by More than 15 Points. Broad Market indicators fell on the week. The new York Stock Exchange composite Index eased 0.99 to 147.54.standard & poor s 500-Stock Index dropped 3.50 to close the week at 298.44. Declines led advances 1,071-793among the 2,166 issues traded. Big Board volume totalled 723,040,040shares, compared with 900,402,313 the week before and 932,121,370 the same week a year  the american Stock Exchange the amex Market value Index slipped 1.45to close at 295.03, while the National association of securities dealers Index declined 1.53 to end at 377.42. Declines outpaced advances 505-307among 1,037 issues traded on the amex. Volume totalled 42,369,805, compare with 51,427,875 traded a week earlier. 21 extremists arrested of Hess oily Wun Siedel West Germany up police arrested 21 right Wing extremists and Neo nazis saturday at a Demon stration attended by about 100 people to Mark the first anniversary of the death of Rudolf Hess Adolf Hitler s Deputy a police spokesman said. Eight were arrested for giving the hit Ler Salute and 13 for carrying objects that could be used As weapons the spokes Man said. The demonstration took place in the Small bavarian town of Wun Siedel 70 Miles Northeast of Nii Raberg where Hes was buried in a family cemetery plot seven months after he killed himself aug. 17, 1987, in the Spandau War crimes prison run by the four Allied Powers in West Berlin. He was 93. The demonstrators shouted Rudolf Hess our anger will Triumph and they called him a Martyr for  the Wun Siedel town Council had banned demonstrations because it feared Neo nazis would gather on the first anniversary of Hess death in Spandau where he was serving a life term. Neo nazi demonstrations last augus forced the postponement of Hess burial in the cemetery. But a bavarian court thursday declared the ban invalid on a petition of Berthold diner publisher of the Wehr Dich defend yourself Magazine. The court ruled that a demonstration marking Hess death would not endanger Public order. But it barred the demonstrators from entering the cemetery and from carrying flags and banners. Hess body was taken from a secret grave and reburied in Wun Siedel in March seven months after he hanged himself with an electrical Extension Cord attached to a window in a cottage on the grounds of the prison run by the Ameri cans British French and soviets in the British sector of Berlin. After Hess death the world War i victors who ran Spandau razed the 106 year old prison to prevent Neo nazi from gathering there for rallies. Fund prices. 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