The Clinton chronicle. (Clinton, S.C.) 1901-current, May 07, 1970, Image 18
I
2-C—THE CHRONICLE, Clinton, S. C., May 7, 1970
y Minding Your Business vxjvxwx^wvx-xvx-s;:
Bad Debts
BY JOHN J. SUTHERLAND
Certified Public Accountant
If someone owes you money
and cannot or will not pay you
back, you have a tax deduct
ible, with few exceptions, bad
debt It is not necessary, as
some say, to sue the debtor to
prove its worthlessness. To be
deductible a valid obligation
must exist. This is to say that
you must have loaned money or
sold merchandise to the debtor
with full and complete expecta
tion to be repaid at some future
date.
The existence of a bad debt is
primarily a matter of judg
ment and can always be subject
to dispute. There are a few
guidelines to follow in applying
judgment, some better than oth
ers, as follows. If the debtor
is bankrupt, insolvent, or in
weak financial condition you
have a strong indication of
worthlessness. If the statute of
limitations has expired or if you
have foreclosed on the security
and found it inadequate, you
most certainly have a deduc
tion. If the debtor has refused
to pay and the cost of collec
tion would exceed the amount
of the debt, you will not be
denied a deduction. These are a
few of the factors that consti
tute proof but almost any evi
dence that indicates that the
debt will never be paid will be
considered.
If you have loaned money to a
relative or friend, you must
prove that you intended to be
repaid or it may be repaid or
it may be considered a gift.
If a personal loan, as opposed
to a business-connected loan,
becomes worthless or partially
so, you must treat it as a short
term capital loss. This means
that it must be deducted from
any long-term capital gains and
any excess deduction will be
limited to $1,000 per taxpayer
per year.
If the debt was incurred in
connection with your “trade or
business" you may deduct it
as an operating expense. A work
of caution is in order here.
Just because you are in busi
ness and incidentally make
loans does not prove that it
is a business-connected loan.
If you are in business you
have a choice of methods in
arriving at your annual bad debt
deduction. These methods are
the direct write-off and the re
serve methods.
Under the direct write-off
method, as the name implies,
you take a deduction each year
for the actual accounts deter
mined to be worthless in that
year. Timing could be import
ant because as for any other
expense you cannot switch years
just because you need the de
duction more in one year than in
another, and if you choose the
wrong year you could lose the
entire deduction because of a
technicality too complicated for
this article.
Under the reserve method you
estimate the allowance neces
sary to cover the “doubtful”
accounts. Note the term doubt
ful. It is not necessary to prove
wothlessness, just doubt. When
a debt is proved worthless it
is charged against this reserve.
The additions to the reserve are
the annual allowable deductions.
* * *
1ht Old
s
“Engineers are trying to
build a car that will stop
smoking—I’d like to find one
that will stop drinking.”
There are 185,000 (conser
vatively estimated) persons in
South Carolina 65 years of age
or more.
Lee Receives
Bronze Star
BILOXI, MBS. - U. S. Air
Force Technical Sergeant Cal
vin M. Lee, son of Mrs. Pau
line L. West, 470 S. Church
St., Spartanburg, has been de
corated with the Bronze Star
Medal for meritorious service
while engaged in military op
erations against Viet Cong forc
es.
Sergeant Lee distinguished
himself while assigned to Head
quarters, Military Assistance
Command, Vietnam, Armed
Forces Language School, Sai
gon.
He was presented the medal
at Keesler AFB, Miss., where
he now serves as an educa
tion and training technician with
the headquarters squadron of
the 3380th Technical School, a
unit of the Air Training Com
mand which provides flying,
technical and basic military
training for U.S. Air Force per
sonnel.
The sergeant, a graduate of
Clinton High School, attended
the University of Washington
extension division at Sumter.
His wife, Joan, is the daugh
ter of Roy Cannon of Clinton.
Mrs. Lee’s mother, Mrs. Vir
ginia Cannon, resides on Forest
Drive, Biloxi, Miss.
St. John's
Hosts Skillshop
On Sunday afternoon, May
10th, Lutherans from the areas
of Newberry, Greenville and
Spartanburg will converge on
St. John’s Lutheran Church in
Clinton for a Skillshop-in-the-
Round.
Sponsored by the Parish Edu
cation Committee of the South
Carolina Synod, the Skillshop is
designed to offer all teachers
in the various schools of the
church, and especially the
teachers of Vacation Church
School, training in developing
personal skills in such areas
as creative arts, discussion and
Bible study, and worship and
music.
Three members of the Board
of Parish Education of the Lu
theran Church in America from
Philadelphia, Pennsylvania,
will serve as resource per
sons for the Skillshop.
w, ; t -.i w. 4 Zif '
r r '-‘~v *
m
'v>£t
Dear Sally
Make An Appointment
'Y'
v- 1
;K-\
WINS ESSAY CONTEST — Bernadette Crumlin
receives the prize which she won in the Chevrolet
“I Am Proud of South Carolina” contest. Present
ing the prize is Tom Plaxieo.—(Yarborough Pho
to)
Bell Street Junior
Wins Essay Contest
Bernadette Crumlin, a junior
at Bell Street High School, has
been announced as the winner of
the Chevrolet Student Essay
Contest for Laurens School
District 56.
The daughter of Rev. and Mrs.
E. Wallace Crumlin, she re
ceived a $ 25 Savings Bond and is
now eligible for district com
petition. The contest is part of
a program sponsored by all
South Carolina Chevrolet
dealers in celebration of the S.
C. Tricentennial. It was spon
sored locally by Plaxieo Chev
rolet.
Miss Crumlin’s
essay reads:
winning
Una because of its people, cul
ture, institutions and religion.
The people, along with the help
of God, made South Carolina
the prosperous and industrious
land it is today. Here we have
museums, schools, colleges and
libraries. Also, here are insti
tutions for the handicapped and
beautiful churches in which to
worship.
“I am proud of this land’s
historical background, and the
love and warmth each South
Carolinian shares with one a-
nother.
“Mainly, I am proud of South
Carolina because of my heri
tage. Here, my forefathers and
I were born.”
“I am proud of South Caro-
BY SALLY SHAW
DEAR SALLY: I was recently
introduced to a doctor at a
cocktail party, and he was very
friendly . . .until I happened to
bring up the subject of a little
physical disorder I am suffer
ing from and asked his opinion
about it. He cooled off as though
I had tossed some ice water
oo him! Do you think he was
living up to his professional
code by acting this way? Mrs.
G.
DEAR MRS. G.: What you did
was probably the most common
breach ofgood manners regard
ing any professional man who
gives advice of any kind. Just
because you were both guests
at the same party did not give
you the license to solicit free
advice from him. He could not
venture any opinion without ex
amining you, so your efforts
were useless anyway. If you
meet a doctor socially and would
like to use him as your own,
make an appointment to see him
in his office, keeping that part
of your relationship on a strict
ly businesslike basis.
DEAR SALLY: A new neigh
bor is trying much too hard
to be friendly with me, and has
become arealpest She isavery
nice person, but she has the ha
bit of dropping in on me almost
every day just to sit and yak.
These caUs put me terribly be
hind in my housework. I’m at my
wits’ end as to how to deal with
her tactfully and kindly, without
hurting her feelings. Any sug
gestions? HARASSED.
DEAR HARASSED: The solu
tion is easy. The next time you
see her headed your way, meet
her at the door with some such
statement as “I’m sorry, but I
just don’t have the time to talk
now. I’m up to my ears in work.”
DEAR SALLY: We’ve been
married only five months, and
my husband keeps embarras
sing me by addressing me by
the siUiest pet names in front
of our friends . . .“Angelface,”
“Doll baby,” “Sugar cookie,"
and the like. I’ve tried to re
monstrate with him, but he just
laughs me off and accuses me of
being ashamed of his show of
affection in the presence of
others. What can I do? PET
PEEVE.
DEAR PET PEEVE: How a-
bout feeding him some of his own
medicine? Begin addressing
him with a few gushy pet names
in front of others . . .things
like “Lamby-pie," “Babykins,”
or ‘Sweetie face. ’ A little such
treatment just might cure him.
DEAR SALLY: My wife has
criticized my behaviour recent
ly while we were dining in a
friend’s home. I accidentally
dropped my fork onto the floor,
and when I picked it up I hand
ed it over to our hostess for
replacement. My wife claims
this was presumptuous of me,
and that I should have wiped
the fork off on my napkin and
continued to use it. How about
this? FUMBLER.
DEAR F t UMBLER: Your wife
is off-base >on this. One’s nap
kin is nevei'used for wiping off
or polishing one’s silverware,
nor does any hostess expect a
guest to continue using a piece
of silverware that has accident
ally faUen onto the floor.
THE ACTION
“The National Chamber is an
instrument of change -- not the
status quo. At the local level,
there’s no more natural orga
nization to serve as the com
munity’s instrument for change
and action than the local cham-
x ber. Chambers of commerce
'promote change, rather than re
sist it. They instigate, lead and
foster change.” --- Arch N.
Bpoth, executive vice presi
dent, Chamber of Commerce of
the United States.
^OSES
BECAUSE THEY SAY
IT SO WELL. . .
BECAUSE THEIR
QUALITY ADDS WARMTH]
TO WHAT THEY SAY . .
x
\\
\
vl
r
IL.
L'
II !h
di'
SEND A
MOTHER’S DAY CARD
by Cj/r>ty*
’etmeiitf
WBHIER Qua/fty, fa
dService for Your foodDl
■all SOFT I
DRINKS
HEINZ
TOMATO SOUP
lO'/z-Oz. Can
10c
POSS FAMOUS
HASH
1-LB. CAN
FRESH
FRYERS
Dixie Crystals
or Domino
SUGAR
TEXIZE
BLEACH
Yi GAL.
South Carolina
Large Brown
EGGS
Carton
PLUS DEPOSIT
Limit: 4 With *5.M or More
Whole,
29c
5-Lb. Bag
Grade A
Dozen
Limit: 1 With $5.00 or More
Grocery Order, Please!
MARCAL PAP^R
TOWELS
3 Big Rolls
Fresh
GROUND BEEF
Lb.
59c
Ole Dix
CHARCOLAL BRIQUETS
10 Lbs.
59c
A-G
TEA BAGS
100 Bags
69c
A-G H/ ? Lb. Loaves
BREAD 4 for 89c
Market Sliced
BACON
Lb.
69c
DOG FOOD
4 Cans
29c
Duncan Hines l*Os. Box
CAKE MIXES 39c
Golden Ripe
BANANAS
Lb.
15c
Warner’s
ORANGE DRINK
Quart Bottle
27c
Lor Cabin—In Pitcher
SYRUP
1 Pint
69c
P-P Sweet Mixed
PICKLE
Quart Bottle
49c
Trellis
SWEET PEAS
SOS Can
2 for 25c
SanUst, Juicy
LEMONS
NESCAFE
COFFEE
6-Oz. Jar
in*: 1 With $6.00
Grocery Order, I
PRICES EFFECTIVE MAY 7-8-9
MILLS STORE - LYDIA MILLS STORE
Y*' i , •'* r ”
v * r '
FREE DELIVERY SERVICE
PHONE 833-0631