Real Estate This Week

211 - MANCUFSTF.R HERALD. Friday. Fob 8 I'tBS MANCHESTER OPINION WEATHER Comb those tax laws Reverse mortgages becoming available Heritage earnings Wouldn’t you really Townes leads Vinal Windy, cold today; HARTFORD (UPI) — Home equity conver are up substantially rather pay more tax? to win over Cheney more sun Sunday Employment expenses tricky sion. which allows the elderly to use their homes to obtain cash, is becoming available ... page 6 ... page 15 ... page 2 the state but isn't for everyone, a state task lorce / ... page 3 1 the fees. warns. „ When you enter the field of employment-type THOSE OF YOU WHO paid to attend investment The Governor’s Task Force on Home Equity expenses, in which millions of us have a direct, vital seminars should be alert to two 1984 IRS rulings that Conversion said Thursday at least four lenaers, interest, you are into an extremely murky area. You Y o u r dealt with whether the cost of attending tjie including the state-backed Connecticut Housing must be precise in your knowledge of details and use seminar(s) was deductible. A published ruling Finance Authority, are offering reverse [y of the tax laws for your own benefit — or you will be an Money's involved an investor who owned a substantial amount mortgages or other forms of horne equity out-and-out loser. of stocks and bonds. The investor bought a seven-day conversion to eiderly residents statewide. A university associate professor in the Department W orth trip to a resort area from a travel agency. The object Under the program, elderly of Communication taught a required course on receive monthly payments from a bank using Sylvia Porter of the trip was to combine travel to the resort with a “ Journalism Law and Ethics" for journalism two-hour investment seminar on the second and third their homes as collateral and at some point, students. The professor enroiled in a law-school days of the trip run by investment specialists of a usually when the house is sold or the person dies, degree program for the sole purpose of improving his the loan must be repaid. HanrhfBtf r I f ralh national brokerage firm. The seminars dealt with Saturday, Feb. 9.1985 — Single copy: 25$ knowledge and skills as a professor of journalism law. many of the stocks and bonds owned by the investor. Commissioner on . Aging Mary Ellen KlincK, ...... * Saturday. Fe Under one tax rule, he could deduct the cost of courses whose department worked with the task lorce, Manchester, Conn. — A City of Village Charm she needed to teach her classes. In view ol this burden, The single fee charged by the travel agent covered taken to improve knowledge and skills in his own transportation, hotel and meals — but didn t allocate said many elderly people are “ house rich ana business. she drove to work in her own car, instead of taking cash poor" since their major asset is their home. public transportation. any amount to the seminars. But the Intemai Revenue Service in a 1984 private The IRS barred a deduction for the transportation She said 570,000 senior citizens in Connecticut letter ruling pointed to another tax rule that bars his She, therefore, deducted auto expenses, dep^cia- have median incomes of about $12,000 a y®®*" tion and investment credit on the car. The Tax Court costs because so little of the time was spent on deduction even though the courses improve his skills, investment activities. The IRS a|so barred any while elderly residents “ are sitting on more than etc. This rule prohibits a deduction for courses that pointed to facts showing that she would have driven Voicker warns $7 billion in equity” in their homes. her car to work even if she did not have to transport deduction for attendance at the two seminars because wiii help qualify the ihdividual for a new trade or no part of the cost was allocated to the .seminars nor to Since the task force began its work^ three business. Since a law-school degree program will help the books. One example was that she drove in to attend lenders and the Connecticut Housing Finance meetings on days when she had no cla.sses. Thus, she other activities involving the investor. qualify an individual to become a lawyer, the In a 1984 private letter ruling, the IRS dealt with an Authority have begun offering reverse annuity journalism professor cannot deduct the costs of his incurred no additional expenses in driving with her mortgages and the loans are now available books beyond what she would have spent in driving investor who paid for attending an investment courses even though he intends to continue as a statewide, Klinck said. U.S. economy seminar. Here, the seminar discussion touched on teacher and not switch to becoming a lawyer. without hei^ books. However, in a report released Thursday, the In connection with Individual Retirement Accounts, some of the types of investments held by this investor. But the IRS disallowed a deduction for the cost of task force urged that people considering^ the ANOTHER UNIVERSITY PROFESSOR LOST a the IRS issued a published ruling that says you. the option look at it carefully before commiting investor, can deduct both any initial fee for attending because the seminar discussion was too 1984 Tax Court case involving her right to deduct broad and general and didn't concentrate on this themselves. „ certain transportation costs. She taught in New York establishing the account and any annual custwial The state has allowed lenders to offer home heads for fall investor’s type of investment. City but lived in a Westchester County suburb of the fees that may be charged by the brokerage firm, equity conversion loans since 1978 but it wasn t mutual fund, etc., that handles your account. This is a Wow! Talk about murky! But you can see how to city. If she had used public transportation to get to apply each of these cases and rulings to your own until the task force began its work that the idea ing out" exports instead of the work, it would have consumed I'/i hours for a bus plus deduction that is separate from your IRA deduction. By Denis G. Gulino Thus, you can take your maximum allowable IRA situation. caught on, Klinck said. United Press International housing industry, Voicker indi the commuter train plus a taxi. Because she had no cated. But he added that if the work area at the coilege, she had to carry the books deduction plus an additional separate deduction for Next: Sales Tax Tables WASHINGTON - Federal Re forces that led to the trade deficit serve Board Chairman Paul had been “ bottled up" witinn the Voicker warned Congress Friday United States, “ We would have 9 8 i L that the U.S. economy may be kissed two-thirds of the housing SELLING? headed for the kind of fall Latin industry goodbye." American countries suffered after Voicker contrasted the United riding high just four years ago. States with Japan, where savings REAL ESTATE WE NEED Voicker chose his second ap are so high that no foreign We have more buyers than homes! If pearance this week before a borrowing is necessary to finance you’ve considered selling over the last congressional committee to put for business investment and the several years but were hesitant because aside economic jargon and spell government deficit. of m arket conditions. call the professio out in plain language the urgent “ In a prosperous economy the nals at 646-2482. need to curb federal deficits as the federal budget ought to be bal THIS WEEK anced," Voicker said. But he said “WE’RE SELLING HOUSES!” only alternative lo severe eco NEW DUPLEX nomic reverses some lime in the the interest cost of the national Spacious 5-5 home presently under construction! 3 future. debt is growing faster than the bedroom, custom kitchen with range, dishwasher and Acknowledging it as an “ ex economy can keep up, meaning featuring: built in microwave oven. Carpeting, separate base treme example.“ Voicker said, growth alone can no longer bal ments, heating systems and driveways! Still time to pick “ You could have sat in Latin ance the books. out some ol your own colors. America four years ago and they “ I hope we have a fair period of STRANO REAL ESTATE were growing at 6 percent a year." time" to repair the economic 1.S6 E. CENTER S I., MANCHESTER, CT. Those countries “ were borrowing distortions, Voicker said. “ But I a tremendous amount from abroad just don't know." Herald photo by Tarquinio relative to their gross national 647-'^SOLD” product. Banks were lending mo What a day for balloons ney very freely." ” The ACTION Number” “ It looked wonderful while it was Students at Assumption Junior High School fight the temperatures expected Sunday. Strong winds Friday lasting," he said. “ It couldn't last Walters F forever.” Most Latin American Say “ H E L L O ” to success with STRANO! We’re selling night caused drifting snow in several areas, and cold CLASSY SPLIT LEVEL REDWOOD FARMS! wind Friday as they try to release helium balloons to economies have been locked into houses better than ever and we need YOU! Training Pro Located near the South Windsor town line. 3 bedrooms. Luxurious 4 bedroom Dutch with den, 1st floor family celebrate Catholic Schools week. The blustery, bitterly temperatures caused some icing on the roads, forcing V/i baths, real nice family room, living room with harsh long-range austerity pro room, formal dining and living rooms, fireplaced eat in the Manchester Highway Department to put two snow grams because of overwhelming gets post gram starting soon for licensed or soon to be licensed vaulted ceiling, formal dining room and more! 80's size kitchen and a beautiful treed loti HURRYI $124,900.

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