Dissident Democrats Likely to Join in Such a Fight Was Conservative Wing of the Party "Jack Told Me Senator Kennedy’S Car Was Massachusetts
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ZO - MANCHESTER HERALD, Mondiiy, Aug. 20, 1984 BUSINESS Hurricane spins away Two boards In Bolton Atlantic City New law limits Investment credit from military outpost seek better relations had town entry Businessman loses out on car depreciation page 4 ... page 9 ... page 11 One prospect that appears a certainty in an era of do with your present car than selling it and buying Suppose Rachel Green uses her $4,000 computer 40 economic uncertainties is that the next Congress and another. percent of the time for business, 35 percent of the time the Congress after that — and on and on — will waste Example: Stephens bought a car in 1983 at a cost of for analyzing her investments and lets her kids use it horrendous amounts of time amending the tax law Your $30,000 that he uses 100 percent for business. He sells for the rest of the time for video games. She gets no this Congress put on the books in July, The new law is the car in July 1984 and buys a new one for $40,000. investment credit or fast depreciation. Clear tonight; Manchester, Conn. so geared to special interests that in many phases the Money's Result: He gets no depreciation deduction in his old Green's direct business use misses the 50 percent sunny Wednesday Tuesday, Aug. 21. 1984 general interest is utterly overlooked. It's so complex car for '84 (depreciation isn't allowed in the year of mark and her annual write-off is a puny $250. Had she that it becomes meaningless in other sections. It's a Worth sale). And his depreciation deduction on his new car is used the computer entirely for business, she could — see page 2 Single copy: 25C monstrosity in an area where "monstrosity” has a Sylvia Porter limited to $4,000 for '84, the first year of ownership. claim an immediate $4,000 deduction. significance all its own. 'Diat's a mere $4,000 write-off on a $40,000 car. iianrijpatpr Mprali) Suppose, though, that instead of buying his own For instance, the '84 law puts dollar limits on the Stephens' move: Stick with his 1983 car. New result: computer, Daniel 'Ward's company buys the compur investment credit and annual depreciation deduction He continues to write off the full cost of his car over ter and lets Ward use it at home. He uses it only 40 for cars — even if you use your car 100 percent for three years, giving him a 1984 depreciation deduction percent of the time for business. His company treats business. No matter how much you use your car for limited to $1,000 and your depreciation deductions over the first three years cannot exceed $16,000. Total of $11,058. That's more than twice what he would get the value of the personal use of the computer as business, your investment credit cannot exceed $1,000 with a new $40,000 car. — and that's true even if the car costs $16,000, $20,000 three-year tax savings in the 50 percent bracket: compensation and includes it on Ward's W-2 Form. or $40,000. And no matter what your use or cost, your $9,000. The tough new rules for cars also apply to other But caution: The more-than-50-percent business-use Eighth District You can write off another $6,000 in the fourth year assets: planes, boats, trucks, personal computers. test must be met every year you use the computer. G O P WOOS depreciation write-off cannot exceed $4,000 the first year and $6,000 in each year after that, according to and the remaining cost in the fifth. You do get the full What's at stake is that key tax breaks are lost if you The first year it isn’t met, you flunk the test. And your Prentice-Hall. write-off but you must wait longer. don't use the computer, say, more than 50 percent for deductions in succeeding years are lost as well. (**> But the extra investment credit is lost forever. And business. If you use your computer for business 50 You must keep a contemporaneous diary that shows to consider Say you pay $24,000 for a new car and use it 100 if you use your car for personal as well as business percent or less of the time, you recover the you use the computer more than 50 percent of the time percent for business. Before the new law, you claimed reasons, your deductions may be a lot less. If you use depreciable part of its cost over 12 instead of five for business. dissident an investment credit equal to 6 percent of your cost this car 60 percent for business, your investment years. TAX TIP 1: Use your computer to keep track of your ($1,440). And you wrote off your full cost (less one half credit cannot exceed $600. What is business use? Tricky rules! If you, an business use. That’s a business use in and of itself. hew firehouse of your investment credit) over three years. If you NEW STRATEGY: These dollar limits apply only to employee, use your own computer at home for TAX T IP 2: As with cars, if you find you’re falling were in the 50 percent tax bracket, your total savings cars placed in service after June 18,1984. The law does business, it counts toward the more-than-50-percent behind as year-end nears, use your computer ONLY Bv Kathy Garmus over three years came to $13,080. not affect the car you are currently using if it was test only if your employer specifically requires your for business. There are big tax dollars at stake here. Herald Reporter D em ocrats Under the new law, your investment credit is acquired before then. You thus would be wiser making home use. Meet that more-than-50-percent test! The Eighth Utilities District is ‘ 'back to square one’ ’ By Laurence McQuillan in its efforts to provide volunteer fire protection from United Press International ■ the town-owned Buckland firehouse, district Presi dent Walter Joyner said today. DALLAS — The Republicans, enlisting women and Town officials have finally rejected district offers to minorities to usher in their national convention, are State looks for extension either buy the station or lease a part of it, Joyner appealing to millions of mainstream Democrats reported to the district directors at a meeting Monday "abandoned by their national leadership” to seek night. refuge In "our home.” Joyner said discussions with Mayor Barbara B. Wrapping their 33rd party conclave in the patriotic of urban enterprise zones Weinberg and town General Manager Robert B. Weiss spirit of the American flag and the national pride of on leasing part of the station on North Main Street Olympic success, the Republicans hailed President By Mark A. Dupuis enterprise zones were seen as an of the economic development have reached an impasse. Reagan and blasted Walter Mondale in opening a O United Press International experiment and his agency in the department’s top priorities. "They both concur that any mutual sharing of the convention they hope will further expand the lopsided next few months will be reviewing He said most of the investments Buckland fire station with the Eighth District is out of lead the incum- .............. ............ HARTFORD — State officials the enterprise zone program for in the enterprise zones so far were the question,” he said. “ So we're back to square one bent has in opin say Connecticut's urban enter possible changes and expansion. made by commercial and retail on the deal.” I • ion polls. Related stories prise zone program has proven David Driver, director of mar firms, but the zones appear to be “ We tried everything we could with the town,” T h e 2,235 on page 5 successful and are thinking about keting for the economic develop "getting off the ground” to lure Eighth District director and former president Gordon delegates today expanding the pioneering effort to ment department, said the agency more industrial firms. Lassow said today. " It ’s a shame the town isn’t more give formal ap- bring economic vitality to inner- had opposed bills in this year's The zones also have lured "fairly amicable to at least discussing it.” proval to a conservative-crafted party platform that city areas. 4 Legislature to expand the enter substantial” investments for con Joyner said the town's refusal to sell or lease the offers a continuation of Reagan administration The state’s first six enterprise prise zone program. struction or renovation of housing station means the district will probably again policies adhered to during his first term. zones were designated in October Driver said the agency opposed within the urban areas. Driver consider purchasing land in the area and building a Tonight, during a nationally televised session, the 1982 and in the months since have the bills because it didn’t think the said. new station. party faithful will listen to an address by Gerald Ford taken off to the point where the program had reached the point Companies that invest in enter " I think if we’re going to service the Buckland area, — the last GOP president and a once bitter Reagan program is now hailed as a where it could be adequately prise zones receive credits on their that would probably be the answer,” he said. rival — as Republican harmony is carried into national model. reviewed. He said officials now state taxes and local property However, Joyner said it would be difficult to find America’s living rooms.