·1 ---l
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I )II'IIU" . uuun, , ,
...._____ ------------�-----�-- �
om
e tary
To find out valu of your p t car, cl it up and
to. . car deal and y you want to
thout ding. and you want their 0 1". The
you will your c::ar: whol valu
it' on to hat Bank, Savings Loon, Credi Union,
Car Deal or I� Company the inte fa
the term and amount of money you want to borrow.
You will want to pi the lending . itution with the 1
annual percen rate. As the lend to compute how much
money your monthly payment will buy you. For exampl a
monthly paymentof$250 will meanyou will pend a total of 9 000
, 7,� of which will go to buy the car and 2,000 will inU; t�
rhe 7,000' called the loan cash.
Determining the amount of equity you have in your car . imple.
Subtract the amount you owe on th car from its whol value.
Ifthewhol value' $7,OOOandyouowe 8,000, your equity .
,000. Next, you want to figure your available 11, This' the
. :� of your loan cash plus the equity in your car you plan to
Visiting the several dealerships . next on the agenda. You want
to 100 for autos that have a manufactures' sticker price about 10
to 15 percent higher than your available cash.
Do not discuss price with any sales person. Just find a few cars
you like and drive them. Write down the price of each item on the
manufacturer' ticker and leave.
.Using a new car guide can help determin how much the dealer
paid for the car and evety item on the sticker.
The Deal
Armed with the amount of money you plan to spend and the
dealer's cost of your dream car you are now ready to wheel and deal.
Ask the sales �n fo� an appraisal of your ear, not an
allowance figure. Keep in mind the appraisal prices you got from
the used car deale If he or agrees on your fi , write it
down. Make an offer on the new ear that t tn'ax:i1Jrabl
offer �ou are willing to make. This gives the sales person room to
negotiate '. Once you have agreed on a figure, write it down. Deduct
t�e trade � offer from the car price. If the figure is acceptable, tell
him to wnte up a buyer's order. Sign it and give a small deposit if
. requested. , .
Perhaps now you will better understand what it takes to get a
good deal on a new car.
tati no
1\ GOOD for Cana ? After
ti of a Canadian-U.S. • trad •
pact, Canada now ita high unem-
ployment rates ince the 19308.
Ho iery
de igned for
. Bl ck WOIll n
African American women can
now purchase at Sears a brand
of hosiery designed specifically
for them, Sears Vice P ident
Janice E. Page announoed.
"Tested among African
American women, Essence ho­
siery has special features that
were developed with an empha­
sis on quality,. said Page.
Special attention is given to
color, heem , tyle and a fit
both attractive and comfortable.
An evening
with Louis
Rukeyser
Economic expert, Louis
Ruke�r, will be too keynooo
speaker as Hudson's hosts an
evening of information and fash­
ion at the Grand Manor at Fair­
lane inDearbom on Wednesday,
September 29. The event will be
----�-------.--.--------....J hosted by Bill Proctor of Chan-
Minority businesses
gain' under new tax law
DETRorr - Small business
owners, especially those whose
businesses are organized as part­
nerships, S-rorporations, or sole
proprietorships, will pay higher
taxes under the new tax law
passed by Congress last month,
according to Coopers & Lybrand,
the international professional
services fum.
However, the new law has at
least one provision that should
help minority-owned businesses
attract new investors.
"Small businesses often are or­
ganized as flow-through entities
that pay tax at the individual tax­
payer's level. This means that
many will now pay more in taxes "
said Bill '
Schroeder, a partner of C0o­
pers & Lybrand in Detroit. "How­
ever, with some planning. they
may t;>e able to I n the impact,
he said."
Under th new law, those af­
fected will be taxpayers with tax­
able incomes over $140,000 for
married taxpayers filing jointly
and $115,000 for singles. A new
rate of 36 percent applies for in­
come that exceeds this threshold;
the new rate is effective beginning
Jan. 1, 1993. Hardest hit are indi­
viduals with taxable incomes
above 250,000, who are now sub­
ject to a 39.6 percent tax rate.
Individuals who are subject to the
alternative minimum (AM'I') will
a rise from 24 percent to a
two-tier rate of 26 percent and 28
pe nt, also effective for 1993 in­
come.
Busin organized as Ocor-
porations will pay 35 percent in
tax if their taxable income ex-
10 million. Those with 10
million or I will oontinue to pay
at th 34- percent rate.
DESPITE THE GREATER
increase in rates for individuals
than C-oorporations, companies
that are organized as partner­
ships or S-corporations should
think twice before converting to
an�her form of ownership," ex­
plained Schroeder. "Unlike con­
ventional corporations, these
entitles still provide their owners
the benefitofa single level of tax. "
A number of other provisions
in the new law will negatively
impact small business of all
ownership structures, although
some playing may help to miti­
gate these increased taxes. .
The new law prohibits all de­
ductions for club dues, effective
for amounts paid or incurred after
1�93. Until now, dues for clubs
were deductible if their use was
primarily to further a trade or
busin and the specific expense
was directly related to the active
conduct of that busin
BUSINE SE MAY be able
to save on taxes by prepaying club
dues where possible during 1993,
Schroeder suggested.
No amount of planning will al­
leviate other tax law changes, but
small busin that are aware
of them will better be able to con­
trol their associated costs. In­
cluded in this are:
- Reduction of the deductible
portion of all busin meals and
entertainment expenses from 80
to 50 percent, effective for tax
years beginning after 1993. No
deduction is allowed for expenses
that are considered lavish or ex­
-travagant;
- A deduction for moving ex-
pe only if the job' located at
least 50 miles farther from the
individual's former residence
than the previous place of em­
ployment (oompared to 35 miles
under earlier law); related costa
are also subject to reduced deduc­
tions, starting in 1994.
The new law allows small busi­
nesses expenses to $17,500 com­
pared to $10,000 allowed under
the earlier law. It is effective for
property placed in service during
tax years beginning after 1992.
"Small businesses that are
considering investing iri new as­
seta should take advantage of this
increased allowance," Schroeder
advised.
Another provision of the new
law that may help small busi­
nesses is the exclusion of 50 per­
cen� of th� capital gain
attributable to mvestments in the
stock of certain small businesses
n.ev.: business ven� and �
cialized small busin invest-
I ment companies. Under the new
law, 50 percent of the gain from
"qualified small busin stock"
. held five or more years will be
taxed at. a marginal rate of 14
percent.
�YOURBUS�m�
the eligibility requirements, you
should be able to attract more
equity participation from long­
term investors," Schroeder ex­
plained. "However, this capital
gains exclusion will not apply to
investments in partnerships or S­
corporations. "
"If your busin is minority-
owned or you are located in an
economically disadvantaged
area, there is one tax break that
should help you to attract inVOJ­
tors, " explained Schroeder.
nel 7 De team.
As the host of Wall St
Wee With Loui Ru eyser,
Rukey er dra the large t
audience in the history of finan­
cial journalism. He has written
best- lling boo on both eeo­
nomies and in ting and his
weekly column appears in news­
papers across the country.
A light supper will be served
and informal 100 offall fashions
for men and women will be pre­
sented. Joe Dumars will make a
guest appearance.
Tickets are $25 each. Reser­
vatio required, 313-443-6334.
Alpha-Hydro flgh
rln I Ilk R t n-A® ithout'
·thelrr tatlon.
Now there's a product that reduces the appearance of age
lines and wrinkles with no pai'nful burning or redness I and you
can even go in the sun.
The Alpha-Hydrox Creme skin treatment system fights the
skin's aging process by sloughing off dead skin cens to
expose new silky smooth skin.
To order this nonprescription creme with the benefits of
Glycolic Acid, mail check or money order for $33.95 for two
2 oz. jars tQ.: American Melody. 123 South St., Oyster Bay.
NY 11771.
ADVE TISE
First Home?
First Home Mortgage?
First Federal
.� Loan tart Pre-Qualifie You For ortgage Financing
Before You Buy A Home.
ir t
t Federal of ichigan,
in 1934.
48226 n : (313) ·14