Tax
(Continued from page 3)
NEW LAW — Beginning in
1987, state and local sales taxes
are no longer deductible.
INTEREST DEDUCTIONS
PRIOR LAW — Generally all
nonbusiness interest paid was
deductible as an
expense with the exception of
investment interest which was
limited to net investment
income plus $10,000 with any
excess able to be carried over.
NEW LAW — Beginning in
1987, nonbusiness interest will
be classified into one of three
categories, each subject to a
separate set of rules as shown
below:
1. QUALIFIED RESIDENCE
INTEREST — Taxpayers may
continue to deduct interest on a
debt secured by a security inter-
est perfected under local law on
first or second homes. The
homes must be ‘‘qualified resi-
dences’’. A home is a qualified
residence if it is the taxpayer’s
principal residence or if it is a
second residence designated for
this purpose from year to year
that is used for personal pur-
poses at least 14 days in a year.
Interest is only deductible on
the loan, however, to the extent
that it is attributable to the
portion of the loan that does not
exceed the sume of: a.) the
purchase price of the residence,
b.) the cost of improvements
and c.) an additional amount up
to the fair market value of the
home for educational and medi-
cal expenses if incurred after
August 16, 1986. If the amount of
the loan outstanding on August
16, 1986 exceeds the sum of the
above, then such amount is
substituted as the maximum
qualified indebtedness.
2. CONSUMER INTEREST —
Consumer interest may be
described as that interest paid
on loans other than for business
or investment purposes and
qualified residence mortgages.
Included in consumer interest
would be amounts paid on credit
cards, auto loans, student loans
and tax deficiencies. Consumer
interest will be fully nondeducti-
ble in 1991 and thereafter but
will be phased out during the
intervening four years.
3. INVESTMENT INTEREST
— Investment interest will only
be deductible to the extent of
net investment income begin-
ning in 1987. For purposes of
computing this limitation, net
investment income includes
interest, dividends, rents and
royalties in excess of any
related expenses, depreciation
required to be recaptured on the
disposition of depreciable prop-
erty and capital gain net income
from the disposition of property
held for investment. The excess
investment interest that would
have otherwise been allowable
under the prior law (i.e., the
additional $10,000 allowance) is
subject to a five year phase-out
interest previously discussed.
UNEMPLOYMENT
COMPENSATION BENEFITS
PRIOR LAW — A limited
exclusion was allowed in 1986. If
adjusted gross income plus
unemployment benefits did not
exceed $12,000 on a single return
or $18,000 on a joint return, no
amount was taxable.
TWO WAGE EARNER
DEDUCTION
PRIOR LAW — Also known as
the marriage penalty deduction,
when both spouses worked and
filed a joint return, 10 percent of
the earned income of the spouse
with the lower earned income
up to a maximum deduction of
$3,000 was allowed.
NEW LAW — The deduction is
repealed for years after 1986.
Deaths
STASIA YURKO - 67, of RD
Trojan Road, Hunlock Creek,
Lehman Township, December
13 in the Wilkes-Barre General
Hospital. A resident of Lehman
Township for 40 years, she was
a member of Our Lady of Mount
Carmel Church, Lake Silkworth
and its Women’s Society.
WILLARD R. PIATT - 675
Carverton Road, Kingston,
December 10 in the Wilson
Memorial Hospital, Johnson
City, N.Y., after an apparent
heart attack. A lifelong resident
of Carverton, he was chairman
of the board of supervisors for
Kingston Township.
EVIA ALTEMUS - 96, of 71
Valley View Park, Dallas,
December 9 at the Laporte
United Methodist Home,
Laporte. A native of Ross Town-
ship, she attended East Dallas
United Methodist Church.
PAUL JONES - 60, former
resident of Noxen, December 8
in the Laurel Hill Nursing
Home, Scranton. A native of
Noxen, he was employed on an
ore boat on the Great Lakes for
24 years.
Seas
00S
allas Post/Jane Renn
Here, Dara Cox, five-year-old daughter of Turkey Hill
Marketing Manager, John Cox, prepares to help her father
set up the cow at the new Dallas Turkey Hill Market. The
cow, which stands. 13’4’’ and weighs approximately two
tons with its trailer, came to the Back Mountain from
Lancaster and will leave Friday for Cochranville. The cow is
20 years old and participates in parades and fairs and new
store openings all year round. She does not have a name
because ‘‘Nothing’s quite big enough to fit,” said Cox. Al
Rinehimer is the manager of the Dallas Turkey Hill Market.
Completes training
Navy Recruit John Mark
Westfield, member of the Key-
stone Company, comprised of 80
select young Pennsylvanians,
successfully completed basic
training at Orlando, Fla.,
August 22, 1986.
H
Christmas
Edition
of
Ti: DALLASC0ST
December 22
Advertising
Deadline
December 18
(The following Back Mountain
properties have been listed for
transfer at the Luzerne County
‘Courthouse: )
ROBERT S. GARDNER and
PRISCILLA J, wife, to JOSEPH
T. THOMAS, and MARLENE
L., wife, 97 West Elmcrest Dr.,
Dallas, Property there - Dallas
Township, 2 parcels, West Elm-
‘crest Dr., $77,000.
LEO BATOR and wife, to
LUCY B. MANUSKY, RD 1,
Box 142A, Harveys Lake, Prop-
erty there - Harveys Lake,
Grove St.
LAME DUCK OUTLET, INC.,
to GERALD J. GIZENSKI, and
MARY ANN, wife, Box 118A,
RD 3, Hunlock Creek, Property
there - Kingston Township, 2
parcels, $72,000.
LEONARD KOZICK, and
wife, to MARTHA C. and
ALBERT E. BROWN, RD 1,
494B Upper Demunds Rd.,
Dallas, Property there - Dallas
Township, $50,000.
HERMAN F. FUNKE, and
wife, to PATRICIA A. and TIM-
OTHY J. CONNOLLY, Evans
St., Pringle, Property there -
Kingston Township, $23,500.
MANLEY ASSOCIATES,
INC., to HERBERT L. RIT-
TENBERG, and all, 419
Orchard West, Dallas, Property
there - Dallas Boro, $25,500.
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