I " federal income taxes
If you itemize deductions on pa&e two.
...I of Form 1040, • you can deduct interest,
J you paid on your personal debts, such as
, : bank loans,and home mortgages.'
rj ,Yqu cannot deduct interest paid on
money, borrowed to buy tax-exempt securi
ties or single-premium life insurance,
1! hor •• interest paid on behalf of another!,
'| personunless you Were legally liable: to .
;1 pay it. m • ' - ‘ ii' ‘
.. You can deduct a portion of sb-called
;!j. "carrying charges" paid on installment f
purchases of personal property such as '
] automobiles, television sets, etc, where
! the interest charges ;are^not separately
mi stated. The deduction'5 allowed is. six
w per cent of the average unpaid monthly
:j balance on the installment; purchase,
1 Compute the average unpaid monthly
; balance by adding up the unpaid"balance
;j at the beginning] of each month 'and divi
j ding the total by 12. For-example, ass-,
j UEie that on July 15, 1957, you bought a
! television set for.$254* plus a Carrying
1 charge of $20. Assume .you paid $5'Qa; and
l are paying the balance ; (starting :AUg 10)
| at the rate, of $14, -per • mbnth*-.; • ;THb '.pbr-,
| tion , of the, pgrrying-charge deductible
l as: interest for 1957 computed as 'follows
I . Unpaid balance - including carrying
j cnarge.i • •' ■ *
P Aug. I.’.$£2ii;0O
m Sept. 1.2.7'3C.00
| Oct. 1. ,* rl^:;y;00
i Nov. 1. . .;V I32‘*00
Deo. X...• . . ...• V-•; .
Total monthly unp&id: bal.' '$-uB0;00
Average monthly unpaid bal., ($9BQ„00 div
ided by, 12)f. .* .* ... .*
Interest deduction uvis per cent ..of
$81*67), .... .
Sometimes money is1 "borrowed .on a..disp
count basi.3. That is/ .the'.interest is
subtracted In ;;advance ^ and 'you*sign-a
note for ‘a larger 'amount' than you.recer
ive» If you report on uhe rcash basis; on
your tax returnp/du may deduct this dis
count as interest only at the time you
pay the note,.., .....
continued top of next column ;;
For example*’, assume 'that' you sign a
i note for $1,000 but receive only $960.
j .You agree .to- pay the $1,000 in' 10 month
ily installments. For' income-tax purpos
es,., ope-tenth; of the $40 discount or $4«
i will be considered paid' each time you
[make .a payment, on the note. Thus, if you
[made three.payments' on the note during
.1957, your interest deduction would be
$12. (three times $4). : ‘ 1:’
, This is the fourth in a series of ar
ticles on federal-• income tax based on
information : from the Internal Revenue
Service. •' '■
S T A R ' 1 v: ' .
t. ' G A>.Z'I N ; ■■■ ■;■ ,
■. (AFPS Weekly Feature)
. * TOPS in POPS'. . .■.At, long last a change
: and- this to report that "Get a Job"(Sil
hduettes) Assumed command of. the nations
> top ten « "^ukfe ‘‘box tunes, aa published ' in
i? this : wedk? s r"Ca:skbox Magazine. n
|v-;h Othbrsin orefer, were.:
f "At the’-’Hot?f(Danny and Juniors); "The
: Stroll^(Diamonds,;• ,;Don‘ &" (Elvis Presley)
"Sail Along Silv?ry Moon"(Billy Vaughn);
'"■La'Dee Dah'M Billy'. P.or.d's Thunderbirds);
tfSugar*tiine"('McGuire Sisters); "Stood Up"
’.(Ricky' : Nelson); "Catch a Falling, Star"
(Perry Como);"Short Shorts" (Royal Teens
Lass with Class .Ic June Blair, up
; and-tomer' 2Cth Century-Fox starlet., June
icuirently appearing in *The Young Lions"
'was'Selected as the .."Sweetheart of Fort
iiOrdV-f dr their first Soldiers' Ball,
inn-Alice Kelly, U-I starlet, was named
VTThe-Girl We'd Most. Like to Get a Valeri
i tiite-Frdm:" ' by the' Little Creek, Va.,
;Nq'/v personnel,
Virginia Mayo is a champ at holding
i-the Mho*••' After nine year.s in Hollywood
there 'have' teen no changes in her 112
pound; 36-2:3**a6 figure „
Tina Louise, statuesque stage and
screen star, provided the warming influ
en-de- at• "thief• open house and dedication of
the Sky-scraper*s Club, nev; EM -Facility
at Floyd Bennett NAS, N0Y,. ,
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