Devine CLINIC
Dr. Robert W. Levine
47th STREET
-
JEWELRY EXCHANGE
Quality .it4 a h....4 ti
of Chiropractic
WW1 "
(End of the Golden Corridor
Orchard Lake Rd.)
OLD NNW SHOPPING CENTER
ORMAN wri RD. DOR. MAPLE
737-2322
MEMBER OF THE MICHIGAN STATE CHIROPRACTIC ASSOCIATION
OP:
• Board Certified Chiropractic Physician
• SPECIALIZING IN DIFFICULT & CHRONIC CASES
• Most Insurances Accepted
I',
31390 Northwestern Hwy. • Farmington Hills • 855-2666
• • •
"Where You Come First"
Kosins
percent to 90 percent of the
current year's tax liability.
The tax act provides that
home office expenses will not
be allowed to create or increase
a net loss from the business
carried on at home. Thus, home
office deductions cannot exceed
the amount of gross income
from the business after sub-
tracting all other deductible .
expenses. Disallowed de-
ductions may be carried for-
ward and deducted in later
years, provided there is net in-
come from the business ac-
tivity.
The act also disallows all
home office deductions (except
otherwise allowable de-
ductions, such as mortgage
interest and property taxes) in
the case of an employee who
rents a portion of his home to
his employer. Likewise, an in-
dependent contractor who
rents a portion of his home to a
contracting party may not
claim home office deductions.
Other provisions of the tax
act include:
• The act repeals the deduc-
tion for charitable contribu-
tions made by taxpayers who
do not itemize deductions, be-
ginning in 1987.
• The act repeals the $100
dividend exclusion ($200 on
joint returns), beginning in
1987.
• The act repeals the tax
credit for political contribu-
tions, beginning in 1987.
• The act provides self-
employed .individuals with a
deduction of 25 percent of
health insurance premiums, if
the plan is nondiscriminatory
to employees, beginning in
1987.
The tax act eliminates the
incentive for people who invest
in capital assets by repealing
the 60 percent capital gain de-
duction. The current
maximum tax on net long-term
capital gains is 20 percent, but
this will increase to a
maximum of 28 percent in
1987.
Taxpayers must still keep
separate records on capital
transactions, since the rules on
capital losses have not
changed. Capital losses still
may only be deducted to the ex-
tent of capital gains, plus
$3,000.
In 1987 and thereafter, tax
deductions for IRA contribu-
tions can be claimed only by
those who are not covered by
another retirement plan, or for
married couples who have joint
adjusted gross income under
$40,000 ($25,000 for single re-
turns). If joint adjusted gross
income is between $40,000 and
$50,000 ($25,000 and $35,000
for single returns), deductions
-1) 3
4.
e 97
•E
I t,
for IRA contributions are per-
mitted on a pro-rata basis.
Other individuals may make
non-deductible contributions
to an IRA within the present
law limitations of $2,000 for
individuals and $2,250 for
combined individual and sp-
ousal IRAs. All earnings and
gains on contributions to an
IRA will be tax-deferred until
withdrawn, 'regardless of
whether the contribution is
deductible.
With the restrictions the act
imposes on IRA contributions,
the availability of 401(K) plan
contributions will become
more important for individuals
covered by such plans. Unfor-
tunately, the act cuts the
maximum allowable contribu-
tion from $30,000 to $7,000 per
year, or 25 percent of the em-
ployee's compensation,
whichever is less.
To take advantage of the old
tax rules, you may consider
doing some of the following be-
fore Thursday:
Purchase the big-ticket item
you wanted, such as a car or
boat, because the sales tax on it
will not be deductible after
1986.
Be charitable' Taxpayers
can get a bigger tax ,ienefit by
making an extra year or 'wo of
donations to religious groups,
schools or qualified . nonprofit
organizations by Wednesday.
Next year, only taxpayers who
itemize deductions will be able
to subtract such gifts from
their taxable income. In addi-
tion, lower tax rates will lessen
the tax value of future dona-
tions.
Pay your "miscellaneous de-
ductions" before Thursday,
such as dues to professional
societies, your safe deposit box
rental, CPA fee, IRA custodial
fee and investment advisory
fee.
If possible, schedule elective
surgery or cosmetic dental
work before Thursday, and pay
off any large medical bills.
Contribute the maximum
amount possible to your Indi-
vidual Retirement Account.
For 1986 any worker can shel-
ter up to $2,000 of income
($2,250 for a spousal IRA).
Put rental properties into
service by the end of the year in
order to qualify for the
accelerated-cost-recovery rule.
Exchange installment loans
for mortgage debt, since there
are limitations on the de-
ductibility of interest on con-
sumer loans after 1986.
Consider realizing long-
term capital gains in 1986 to
limit the tax burden to 20 per-
cent. Generally, delay taking
long-term capital losses until
1987.
11. ‘ •?,
A 0 A I:
Uptown
Happy Hanukah
TO OUR MANY FRIENDS AND CUSTOMERS
Southfield Rd at
11'2 Mile • 559.3900
Hank's Clothes
Big & Tall
Southfield at
10' ,2 Mile • 569-6930
28950 Orchard Lake Road
Between 12 and 13 Mile Roads, Farmington Hills
Unique
Reasonable
Fashion Sweats
always 20% off
only at
626-7000
626-7007
SNEAK PREVIEW
wee
TOP IT OFF
3015 W. 12 Mile Rd.
Berkley 547-5992
Wishes You .. .
HAPPY CHANUKAH
Across from the
Berkley Theater
TO ALL OUR CUSTOMERS
FIND IT
•
L
ALL WINTER MERCHANDISE
IN THE
1111
50 to 75%
• Dresses
THE
20%) OFF
MAGAZINE STORE
SOUTHIFIELD
• Sweaters
• Skirts
• Pants
• Jewelry
BOOK CENTER
• 111 MuE & WIFE&
569.3200
OFF
NEW ORLEANS MALL
Maii•• ■ INNEN/VIML
29508 Northwestern
SoutMleld
354.3554
Park WO Gallerlaync.
Park West Plaza
29469 Northwestern •
Southfield, bet. 12 & 13
354-2343 •
rI
Marc Chagall-Part Two
31 works shown this weekend for the first
time including hand
colored etchings from "The
Bible",1931-39.
Subjects from "Dead Souls",
1923-27 and richly drawn lithographs
from the 1960's and 1970's.
•
Gallery Hours:
Gallery Tours:
(complimentaty catalogues) • Mon-Wed 9am-6pm
Thurs-Fri 9am-9pm
Saturday and Sunday
Sat-Sun 11am-6pm
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