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The Newberry Sun, Newberry, S. C., Thursday, Nov. 12, 1970—PAGE 3 Mayor Clarence A. Shealy, Jr. presents a Certificate for completion of a course in Narcotics and Dangerous Drugs to Captain Andrew Shealy of the City Police De partment. The presentation was made during the Mon day night meeting of City Council. (Sunphoto) “Best Friend” on display Southern Railway’s famous “train from yesterday’’—t h e full-scale replica of the “Best Friend of Charleston’’ locomo tive and cars—was on display in Newberry, Wednesday to help celebrate Newberry’s Tri centennial observances. The train, consisting of the “Best Friend,’’ a tender and two open coaches, was on view at the passenger station. The replica was built in 1928 from the original plans for the cele bration of the 100th anniversary of the South Carolina Canal Rail Road Company. This was the line on which the original “Best Friend” inaugurated re gular steam railroad passenger service in the U. S. at Char leston, on Christmas Day, 1830. An historically significant link with the past, the “Best Friend” has been taking an active part this year in the celebration of South Carolina's Tricentennial. It appeared on national televi sion in xMarch in the ABC do cumentary “Ballad of the Iron Horse” and has made more than a dozen appearances dur ing the year in local Tricen tennial celebrations in South Carolina. HORSE SHOW HELD AT FAIR A Horse Show sponsored by Newberry County 4—H Horse Club was held October 9, 1970 at the Newberry-Saluda County Fair. The show featured open classes as well as classes for young people and 4—H mem bers. There were trophies spon sored by local merchants for 15 of the classes. Ashley Rankin of Route 5, Sa luda, was awarded the trophy for the best horseman of the show and Wilbur Boozer of New berry was awarded the Sports manship trophy in a presenta tion ceremony concluding the show. The Judge was Don Staf ford of Newberry and music was provided by Miss Molly Mitchell of Saluda. Income Tax Information PERSONAL EXEMPTIONS AND DEPENDENTS (This is the second in a series of three (3) articles on Perso nal Exemptions and Depen dents.) Generally, if you furnish over half of a relative’s support dur ing the year and the other de pendency tests are met, you are entitled to claim the relative as a dependent on your Federal income tax return. To determine whether you furnished over half the support for a dependent, you must first determine the total support fur nished by you, by the depen dent himself, and by others. Total support consists of the following: 1. The fair rental value of lodging furnished; 2. All items of expenses paid or incurred directly for or by the dependent, such as clothing, medical expenses, food, shelter, education, medical care, recrea tion. transportation and similar necessities. PRO-RATING THE EXPENSE If, for example, your depen dent lives with you in your home, the lodging which you furnish will be the fair rental value of a room or it may be a pro-rata share of the fair ren tal value of the entire house, depending upon the extent of the use the dependent has of your house. For example, if there are five members living in your home and your food bill for the year amounted to $2,000, the pro-rata portion fur nished to your dependent would be 1-5 of $2,000, or $400 for the year. The same method is used to compute the lodging furnish ed using the fair rental value of the dwelling as the basis for share. For example, if the fair rental value of your home is $100 per month and there are five occupants, $20 per month is applicable to each occupant, provided each had full access to the entire house; otherwise, the proportion is based upon amount of space occupied. DEPENDENT LIVING IN HIS OWN HOME If the dependent lived in his home, he contributed to his own support the total fair rental va lue of his home. For example, if you contri buted $520 to the support of your father, but he lived in a home owned by him, having a fair rental value of $600, you are not entitled to claim him as a dependent since he fur nished more of his support than you. However, if you help him maintain his home by paying interest on the mortgage, real estate taxes, fire insurance pre miums, or other items directly related to the home (or give him cash with which he pays these items), the total rental value considered to be furnished by him will be reduced by those amounts in determining his con tribution to his own support. If you lived with the depen- c’enl rent free in his own home, then in determining the net amount of your contribution to his support, you must offset the fair rental value of the lodging he furnished you against the amount you furnished for his support. For example, if you furnished $1200 to your father’s support, but lived in his home and your portion of the fair rental va lue of the home was $400, the amount of your support for him must be reduced to $800. RELATIVE IN AN INSTITUTION When a relative is in an in stitution, orphanage, or old age home supported by a state or a religious, or charitable orga nization, the amount spent by the appropriate agency in sup porting the relative during the year must be used to measure total support. However, for a handicapped child, the value of education, room and board, provided by an educational institution for the handicapped is considered to be a scholarship and scholarships are not considered in determin ing total support. OTHER ITEMS Other items which are not to be considered when determi ning total support are: 1. Life insurance premiums; 2. Purchase of an automobile; 3. Federal, state and local tax payments; 4. Social Security tax expen ditures and funeral expenses. STUDENTS AND CHILDREN UNDER 19 A few years ago, Congress enacted a tax law which per mits parents to claim their chil dren who were previously not allowable as dependents. If a taxpayer’s child is a full time student (goes to school at least five months of the year), then the parent may still claim the child as a dependent if the parent furnishes over half of his support, and all other sup port tests are met, regardless of the amount of income the child receives. Also, if the child is under 19 at the end of the year, regard less of the amount of income the child receives, the parent is entitled to claim the child as a dependent if the parent furnishes over half of his sup port and all other tests are met. The marital status of a child has no bearing on the right of the parent to claim the child as a dependent if dependency tests are met. However, if the child and his spouse file a joint return, this precludes the pa rent’s right to the dependency deduction—unless the joint re turn was filed merely to receive a refund of tax withheld, and neither spouse was required by regulations to file a return. Use Christmas Seals. It’s a matter of life and breath. Are You Exporting Dollars Out Of Town? They are missed sadly when you invest out of town. A dollar that leaves town will never support our schools and churches or provide jobs and opportunities for our young people. All benefits are gone for good. Today, your dollars are the very lifeblood of the community. Buy at home and save at home. That's the way to keep our town a good place in which to live and raise a family. Every dollar you invest with us is spent right here in Newberry to afford homes for people who live and work here and most likely are your neighbors. Where you save does make a difference. INSURED * A SAVINGS INSTITUTION FOUNDED l‘J3S