Historical Newspapers of South Carolina

Below is the OCR text representation for this newspapers page. It is also available as plain text as well as XML.

4-B-^-THE CHRONICLE, Clinton, S. C., Jan. 22, 1970 Minding Your Business^ Business Expense BY JOHN SUTHERLAND Certified Public Accountant A taxpayer who operates a trade or business will have ex penditures which fall under one of three categories. They may be personal expenses, capital ex penditures, or business ex penses. To determine if a taxpayer has a trade or business, certain tests must be met. He must have entered into the operation with a reasonable expectation of making a profit. It is not necessary that he make a profit but the rea sonable expectation must exist. Of course, if year after year a taxpayer does not make a profit, the revenue agent may tend to suspect his motives and his op eration may be classified as a hobby. Hobby losses are not de ductible. Expenses of an em ployee and an investor will be discussed in future columns. It is not necessary that this be the taxpayer’s only occupation. He may have several trades or businesses at one time or he may have a job and a trade or busi ness as a sideline. If he under took the project with a reasonable expectation of profit, business expenses will be allowed and bu siness losses may be deducted from other income. Assuming the taxpayer is in a trade or business, he then must decide what expenses are de ductible. Generally, any expenses incurred which are ordinary and necessary are deductible. The HEALTH and BEAUTY AIDS Specials at Community Cash THIS WEEK HEAD and SHOULDERS Shampoo - 49' SCOPE MOUTH WASH Antiseptic -79 Secret 4-oz. Reu. or 3-oz. Anli-Perspirant Spray Deodorant - 79' concept of what is ordinary and necessary is a flexible one and changes as American business activity changes. Usually, the taxpayer’s judgment as to what is necessary will be accepted by the courts. Also, if competitors incur the same type of expense, it will be considered as ordinary. However, the tax regulations are not meant to impose a tax pen alty on business ingenuity. If you incur an expense which is not incurred by your competitors, it may still be considered ordinary if you can show that it was in tended to benefit your business. Some expenditures would be allowed as an itemized deduct ion even if they were not a busi ness deduction--for example, in terest and taxes. When this occurs, a taxpayer would ordi narily deduct these as business expenses and therefore would not be allowed a “double” deduction as an itemized expense. It is not necessary to itemize deductions to take business expenses. In other words, a taxpayer in a trade or business can deduct his busi ness expenses on Schedule C or Schedule F and still take the standard deduction. Some expenditures would seem to meet all the above tests but would be classified as capital ex penditures. A capital expen diture will have benefit to a tax payer for more than one year— for example, land, buildings, e- quipment, etc. The cost of land can only be deducted from the selling price when that land is sold. Most other capital expen ditures can be deducted through depreciation. I will discuss de preciation in a future column. Sometimes a taxpayer may in cur expenses which are both per sonal and business. For example, he may use a portion of his home for office space or jie may use his car partly for business and partly for pleasure. If this hap pens, he must allocate expenses by some reasonable method like ratio of square feet used for busi ness and for pleasure, or ratio of mileage driven for business and for pleasure. Specific types of business ex penses such as travel, enter tainment, gifts and promotion will be discussed in future columns. S. C. Tax Agents To Be Available Agents of the S. C. Tax Com mission, Individual Income Tax Division, will be in Greenwood in February and April to offer spe cial assistance to taxpayers de siring help in preparing their 1969 S. C. income tax return. The agents will be at the Green wood County Courthouse Feb. 1? and 13 and April 8-9-10. bung marrieds: Insure your car, homeland life for under $35 a month. Impossible? Ask your man from Nationwide about his One Check Plan and see! Amazing! JOHN C. HARMON 302 N. Broad — 833-3472 Nationwide InfuranM. Tl» man fnoi Nationwide if on your tide. UR - HEALTH - HOME - CAB • BUSINESS • Ntffaewfab M>*Mi kmc. Ca. Nnimwid. Muhwl Fir. Ismnoc Co. NMianri* Ub tamca Ca Ham •*». CUnafaw, OUa. EVERY YARD! CARPET & LINOLEUM CARPET Starts as low as $0.95 sq. yd. ROLLS OF POLYESTER FIBER j.95 sq. yd. BALANCE OF ROLLS AND MILL ENDS PRICES RERICEB DROP PATTERNS OF LINOLEUM Whitaker Floor Coverings Powell Leads Discussion On Graphic Arts COLUMBIA - A one-daywork- shop on graphic arts for tex tile personnel with communica tions responsibilities was held here Tuesday, Jan. 20 at the Sheraton-Columbia, Inn. The workshop was sponsored by the Public Relations Division of the South Carolina Textile Manufact urers Association. Sessions were designed to im prove communications skills. Participants were shown how to produce better publications, set up exhibits and design other types of displays and graphic presen tations. Discussion leaders were Miles P. Powell of Jacobs Press, Clinton, and George C. Crowe of Displays Unlimited, WestColum- bia. Assisting willbe HerbSmith, Advertising Studios, Greenville; A1 Barney, Saco-Lowell Com pany, Easley; and DickRhine- hardt, Dillard Paper Company, Charlotte, N. C. SS Benefits To Be Given Automatically Social Security beneficiaries need not apply for the 15 percent benefit increase just signed into law by President Nixon. “Every one of the 25 million men, wo men and children now on the be nefit rolls will receive the in crease automatically," J. C. Bag- well, Manager of the Greenwood Social Security Office, said. "The first regular check in the new amount," Mr. Bagwell said, “will arrive April 3, the usual day for delivery of benefit checks covering payments for th^ mo.ith of March." A separate check in the amount ofthe benefit increase for the months of January and February will reach benefi- ciaries later in April, probably during the week of April 20. Refiguring the benefit amounts of the 25 million men, women, and children now on the benefit rolls is a tremendous task, Mr. Bagwell pointed out, and it must be done without disrupting the re gular benefit payment cycle. About one out of every eight Americans is now receiving a Social Security checkeach month. As of the end of December, these monthly payments totaled $2.2 billion and the monthly total will go up by $345 million to more than $2.5 billion as the 15 per cent benefit increase becomes ef fective. The average retirement benefit of $100 a month will rise to $116 per month; a couple 65 or older receiving the average couple’s benefit of $170, will have their benefit increased to $196; the average benefit for a family made up of a disabled worker, wife and one or more children will go up from $237 to $273; and average payments for a widow and two or more children will rise from $254 to $292.” ON CRUISE - Mr. and Mrs. Garel Satterfield, shown above, and Gladys Sanders and Raenel Revis, below, are shown aboard the S.S. New Bahama Star prior to a Nassau cruise from Miami. The ship was their ‘floating hotel’ for the trip. They enjoyed en tertainment in the Star Ivoun^e, or gan recitals in the Bahama Lounge and movies were shown each evening in the ship’s theater. In Nassau, then 1 was time to shop and sightsee. ■ % News of Joanna BY MRS. W. J. HOGAN Conespondent-Representativ Mrs. Julia Able of Saluda will return to tier home this weekenl after spending two weeks with tier daughter, Mrs. Harriet Nabors. Mrs. Durcus Turner and daughter, Denese of Ochobee, Florida visited Mr. and Mrs. Johnnie Nabors and other rela tives and friends recently. Mr. and Mrs. C. H. Salter and D in visited M:. and Mrs. Mat Coleman in Saluda on Sun day. Deb ie Holt of Ninety Six spent Sunday with Mr. and Mr, 'Nyde Holt. BIRTH Mr. and Mrs. Maxie Lolhsan nounce the birth of a daughter, Nancy Lee, on Sunday, Jan. 11. She is the former Edna Barfield of Latta. They have a son, Mike. Dial 697-6949 Mrs. Boyce B^-wen retumedon Wednesday after spending sev eral days with Mr. and Mrs. Dean Bowen in Burlington, N. C. The latter accompanied her home fur the weekend. Mr. and Mrs. Mac Robinson and Miclielle of Honea Path and Mr. and Mrs. Billy Lollis and Jeff ofciintonwereSunday dinner guests of Mr. and Mrs. Clifton Lollis. RETURNS FROM PHILLIPINES Capt. and Mrs. Larry Garner, Lynn and Phillip have returned from the Phillipines after a two "ear tour of duty. They spent the weekend here with Mrs. Virgie Garner and Mrs. H -ney Templeton. They were enrouteto California. Vernon Garner of Atlanta also spent the weekend with Mrs. Gar ner. Taste the full-bodied flavor of Pet Lowfat Milk bk^re is the balanced, full-bodied milk that can help you look as good as you feel. High in protein energy. and 98% fat free. Winnaboro Road, Newbei 276-2884 Mi. and Mrs. Eddie Duvenp rt and Mi. and Mrs. Danny Bakei and family of Ninety Six and Mr and M T j. Charles Davenp rt anr family f Chnt'>n spent Sundu;. with Mij. Alice Davenp rt. v * LEAVES FOR HAV \fl Mrs. L V. Mills leaves t day Jan. 22 by plane for Hawaii aben she will spend a week with liei husbind, S/Sgt. L. V. Mills. Ht will lie there a week (ef re re turning to continue Ins t ur duty in Vietnam BIRTHDAYS, ANNIVERSARIES A number of people in Joanna will celebrate a birthday t day, Jan. 22. They include Helen B - zard, Johnny Johnson, Mrs.S. D. Weathers, Perry Clay and Terry Ray Knight, B. E. Brannon, Bill M un, and Thomas Summers. Gary Edward Boyce and Liza Edm mds will have a birthday n Jan. 23. On the 24th, Kathy Metts and Hershal Mays will celebrate a birthday. Howard Vaughan, Mac Be- denbaugh, Rachael Humphery, and J. B. Johnson will celebrate birthdays on Jan. 25. On Jan. 26 Chucky Bodie, Charles Crowder, and J. E. Dom inick will celebrate a birthday and Mr. and Mrs. Ronnie Si- neath a wedding anniversary. Many happy returns of the day on Jan. 27 to Gene Black and Dean Rowe. Junior Tucker will celebrate a birthday on Jan. 28. Pressley Receives Medal In Vietnam Sergeant Jerry R. Pressley, son of Mrs. Eva Cuzzart, Route 2, Copeland Road, Clinton, re ceived his second award of the Army Commendation Medal while serving with the 25th Infantry Di vision in Vietnam. Sgt. Pressley earned the award for meritorious service as a forward observer in Company E, 3d Battalion of the division’s 22d Infantry near Tay Ninh. He also holds two Purple Hearts and the Army Commendation Medal for heroism. The award was presented Dec. IF YOU CAN T FIND THE K BAG, you can make one, of so: by filling a rubber glove \ cracked ice and tying the w tightly. t T'*