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bS5S I Meeting Black Housing Needs: ,
vviuniuun; ,m.tU3 UCU tti Ul UclU UCVCIOpiueni anQ f;i
low-income housing rather than appropriated
federal funds. The historic Frrmnmir Ppcnvprv Tot
Act of 1981 and the proposed Urban Enterprise
Zones legislation are good examples of how the
, Reagan Administration's new philosophy will be
pursued in the years ahead.
The new tax act offers significant opportunities
to black professionals and entrepreneurs who want
, to make lots of money and, m the process, promote
social and economic goals important to racial pro
.gress. , ' ; .
. Under the 1981 law tax sheltering real estate
partnerships are proliferating like never before. The,
, government's new policy of channeling private '
lunas into rax . avmnanrp invctmntc tn tmanrpi
The Economic Recovery Tax Act' '
By William R. Morris, ASPC
. Washington Housing Consultant
. . a . . " .a... ,V. , . , V.V. .V.VV.Vi
Recovery System, the law now gives -investors in
historic properties a bonus 25 per cent investment
tax credit on the rehabiliaition expenses. For in-'
vestors who buy and renovate small stores and com
mercial buildings 3ft years old or older, the tax'
credit ranges from 15-20 per cent off taxable in
come. -, ' i
Investors also can use what is known as an ac
celerated 175 per cent declining-balance
some situations, investor earnings can be treated as
long-term capital gains and not taxed at the higher ;
.rate as ordinary income -
j 'v The new law can be a gold mine for individuals or
groups of f blacks in middle or upper-income
'brackets who invest their surplus income in limited
partnership shares to purchase a property which, in
;turn. can substantially reHun thpir tarps nn inrnnu
T i. "."vai" 1 i , flai 1 P cent aecuning-oaiance - , from a regular job or profession. By carefully selec
SIf?!3 l 15 Tnl thC f y l?cal f" dePrec,atIon toinflate lax deductions in the early? , ;tmg properties in black communities, partnership
Ficials raise funds, the way bankers analyze loans in; years AS 100.000 nronertv denreciatw. in thi mani f wJU .....t,.
. inner city areas, and the way white developers go ner will produce nearly $12,000 in first year deduc- to develop worthy projects and provide good tax
about selecting older properties for turnaround tions: In the case of rental housing for the poor, the '; breaks and additional income to the individual part
, potential. . aw permits twice the deduction one receives under ners. . It . is now conceivable that blacks by
; hAS ?Xiy' . haVe.n0t ?erst?d straight-line depreciation in the first, year. And, in c: themselves can raise large sums of money to buy
SATUH2AT, MAT 22, 1S:2 THE CA.'OU A T.MES-15
.downtown buildings, hotels, shopping centers and
rental housing developments. " ;? , : -
Non-profit groups who; by law, cannot use.
depreciation and investors who can . use the
depreciation to offset other income, can combinet
' purposes to acquire and improve older properties,
or construct new buildings, without dependence on
Federal funds. The, syndication, for example, of a
$4 million project could produce up to SI. 6 million
in equity capital if planned properly with a good tax
lawyer and accountant. , ? ; .. , ? , -
As with most laws not identified as civil rights'
too little attentionls given to whether h is good or
bad for blacks. until it V too late. This time
around it would make real good sense for blacks to
reverse past practices to" seize the opportunity
now to get and hold-on to their piece of the
economic pie, while also helping to advance black
aspirations. Reagan's new , policies, though not
designed with blacks in mind, can become a "bless-
ing in disguise" if used wisely. Some self-help in
itiatives plus lots of homework and a little more
togetherness is what it will take to make It to the
come for investors nor how real estate syndications
- are used to provide eauitv canital for iioeradinu
; run-down buildings. It's not too late to learn and,
the time to start is now!
Through the new Tax . Act, the government is
practically saying to investors, "Look we'll
make you rich if you'll rehabilitate housing and
, commercial buildings and restore historic proper--
ties." Since the first of this year all residential and
. commercial properties in the United States are
defined as having a standard 15-year economic life.
In the past, depreciation deductions for investors
have been based on 30-40-year "useful lives." A
$100,000 property depreciated over 40 years
"straight line", for example, provides just $2,500 a-,
year in deductions. On a 15-year schedule, the same
investment will provide $6,700 in annual write-offs.'
In addition to the new 15-year Accelerated Cost
Letter to the Editor:
On The Crime Series
I wish to compliment The Carolina Times and
particularly Mr. Milton Jordan for the excellent re
cent articles on crime and what citizens can do to
help themselves and assist the community in reduc
ing criminal opportunities. ' V " '
After reading the articles okApril 10 and 17,
1982, I was impressed with the realistic and prac
tical nature of the material and the manner in which
it was presented. I only hope that readers take heed
to the many important points covered in this series.
As noted by Mr. Jordan, citizens must assume
more of the responsibility for their own well being,
particularly in the area of protecting their personal
property. Any deterrent (whether it be simply a "
locked door, strengthened locks, or alarm systems)
will greatly assist in reducing the business and home
burglary rate in onr community. These are steps -that
the ordinary citizen can and should take to pro- .
tect his property. This particular crime problem is
simply too large for law enforcement to handle oh
its own. We sincerely solicit the help of all citizens :
in our Community by their interest and involvement
in Crime Prevention activities. ; .
Thanks again to The Carolina Times and Mr.
Jordan for the time spent researching and writing
' ' such a timely' series! .r7:?t;.Tt3aJ yti .. : '
,...: ;.v;, - vr v. T;H.'Las$iter
. Director of Public Safety .
Civil Rights Journal
What Price In South
By Dr. Charles E. Cobb
United Church Of Christ
Commission For Racial Justice
The small group of islands in the South Atlantic
known as the Falklands have captured world atten
tion and undoubtedly set the stage for a new com-
plexion in U.S.-South American relations. Shifting
from a position of apparent neutrality to a position
firmly supporting the British was a critical step for
the United States of which the long term effects re
main unknown. In light of these unknowns coupled
with this administration's overwhelming concern
with the proliferation of Soviet influence in this
region, I find it difficult to comprehend the
analytical process employed by our chief
negotiator, Secretary of State Alexander Haig.
. Given the fairly recent involvement ( 1 833 ) of Bri
tain in the Falklands, I cannot comprehend the
limited historical, geographical or ethnic claim of
Britain to the islands and the wisdom of the United
States in supporting this dubious claim. I believe
that the United States should have used its power of
influence with Britain in affirming Argentina's
legitimate historical and geographical claim and in
stituted the process of negotiation until the
economic investment of Britain in the islands had
, been settled rather than tacitly suggesting support
of military confrontation.
The definition of war in today's world makes it
necessary for large powers to do more than choose
,up sides and begin fighting. Because South America
is experiencing economic and political upheavals
this is certainly not the time to turn our backs. Now
is the time for this country to remain objective with
our primary goal being the expeditious negotiated
settlement of this conflict.
When I hear news reporters stationed in Argen
tina continually referring to growing antiAmerican
sentiments among South American countries, I
' question the prudence of our decision makers and
the reasonableness of their decisions. ; -
The British-Argentine controversy over the
Falklands has a long history and based on this
history must be settled in an atmosphere of even
tempered good faith. The United States should not
assume a position of condoning European col
onialism and racism in the name of political
credibility, The history of the Falkland Islands,
" formerly and now named the Malvinas Islands,
teaches us that prior to the 1830's, Britain, had no
claims of sovereignty to the disputed territory. Not
withstanding Argentina's efforts to .reach a
negotiated settlement for over 100 years, the British
have continued to maintain an arrogant position.
After all, the reality is that nuclear weapons are
poised in the South Atlantic and threaten the securi
ty of the entire hemisphere. I sincerely hope that we
are not haunted by our actions as the bloodshed in
creases and the bargaining table recedes.
Mf ;C Nfe m't ,r '-r4nmmm.mM
Warning The Surgeon Generallias Determined
That Cigarette Smoking Is Dangerous to Your Health.
The Caro"na Times
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20 MENTHOL CIGARETTES
. SMOOTH LOW TAR tOOs
rilit i t;?f ft t.i4vV
Is uii.i)Na) !
9 mg. "tar", 0.7 mg. nicotine av. per cigarette by FTC method.
1t Jl NIYMOIOI TOCCO COv