With Eugene Pettis. REALTOR «
Real
, Estate
Viewpoints
■
Eugene Pettis
itemizing The Worth of Your Possessions
When you pay $25,000 for a house
and sell it for $25,000 there is no
loss or gain and no tax. When you
invest $25,000 in a house and sell it
for only $20,000 you suffer a loss of
$5,000 but you are not allowed a
deduction for losses on the sale of a
residence.
When you invest $25,000 in a
4 house and sell it for $30,000 you
realize a profit of $5,000. You
cannot escape outright from pay
ing a tax on the protit but you can
defer paying the tax if you can
prove that:
1. You bought and occupied the
second house within one year
either before or after you sold the
first Jjouse (“first house” refers to
the house you sell ; “second house”
refers to the house you Buy after
selling the first house.) If the
second house is newly constructed,
you must prove that the con
struction was completed and that
occupied the second house
within one year before or within
eighteen months after you sold the
urst house.
2. You used the first house as
your principal residence and are
using or intend to use the second
house as your principal residence.
3. The price you are paying for
the second house is equal to or
greater than the adjusted sale
price of the first house.
Provided that the first two pro
visions are met,, compare the cost
of the second house with the
adjusted sale price of the first
house to learn if there is a taxable
gain. To arrive at the adjusted sale
price of the first house, deduct
selling -expensed and fix-up costs
from the actual selling price. To
arrive at the cost of the second
house, deduct expenses involved in
the purchase of the second house
from the amount paid for the
second house.
Provided that the three require
ments are satisfied, regardless of
howjnuch greater the adjusted
sale price is than your total in
vestment, you may defer the tax of
the gain when the cost of the
second house is greater than the
adjusted sale price of the first
house.
A seller under fifty-five, may
defer the payment of tax only when
he sells his house at a profit, a
person over fifty-five may com
pletely 'escape paying a tax on
profits realized through the sale of
his residence and gain up to
$100,000 tax-free.
• The following requirements
must be met:
1. The seller must have used the
house as his principal residence for
at least five-eighths of the eight
year period preceding the date of
the sale. The days do not have to be
consecutive and the periods the
seller is absent for vacation, within
reason, are considered pehods
the seller used the property.
2. The seller must be over
miy-iive wnen ne transfers title or
ownership of the property to an
other.'If the seller owns the pro
perty jointly with another and they
file a joint tax return, this re
quirement is satisfied \vhen only
one of the two owners is over
sixty-five on the date the property
is sold. •
3. The seller must elect to use
this tax exclusion in a signed
statement that he attaches to his
tax return the year the property is
sold.
4. The adjusted sale price of the
property must not be over a
certain amount.
If you are approaching fifty-five,
or are over fifty-five and are coiv
templatuig the sale of your house,
whether or not you plan to buy
another house, it is time to talk to
your attorney.
After the taxable gain on the
profitable sale of real estate is
established, the amount of taxes is
influenced .by whether the gain is
treated as a capital gain or an
Shazada Enterprises
offering
THE ULTIMATE SALE
STARTING for $£49
| Dec. 31 only D On Special
THE LATEST ALBUMS & 8 TRACKS BY
*00** TEDDY r"f J4fJ(su
_ PENDERGRASS , >n/S
C< , 332-7077
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WBTV Will Broadcast “CBS
Tournament Of Roses Parade”
Bob Barker. Phvllis George,
John Schneider and Loretta Switt
will host the “CBS Tournament of
Roses Parade," a special live
broadcast of the 92nd annual New
Year's Day floral pageant, Thurs
_ day, January 1, from 11:30 a m. to
2 p.m. on WBTV, Channel 3.
The theme of this year’s Tourna- (
ment of Roses Parade is “The |
Great Outdoors." Television star
and conservationist Lome Green
will serve as the Grand Marshall of
the 5.5-mile parade through the
streets of Pasadena.
With cameras posted at the
parade’s starting point, viewers
'will get the first look at the
magnificent floral constructions
and the other parade elements
during the Network’s live cover
age.
Sixty-one flower-covered floats,
each incorporating the “Great Out
doors’’ theme, along with 23
marching bands from all over the
country and 250 equestrians, will
take part.
. This year’s Rose Queen is 18
year-old Leslie Jim Kawai, a fresh
man at Pasadena City College.
The hosts will also present seas
son’s greetings from members of
the CBS family of stars, taped on
the sets of their Network series.
Bob Barker, popular television
host and master of ceremonies and
star on the Network of ‘The Price
Is Right," is hosting the Network s
coverage of. the Tournament of
Roses Parade for the llth con
secutive year, starting in 1969 He
has also hosted the “Miss Uni
verse Pageant," the "Miss U.S.A.
I^j>can^^n^^Th^^ndiana|»li^
500 Parade.”
Loretta Swit, who stars as Major
Houlihan on the “MASH" series,
has started in the motion pictures
for television "Shirts-Skin,”
"Coffeeville," “Valentine,” "Mir
ror, Mirror,” and "The Walls
Lome Tumbling Down."
AMERICAN DRY CLEANERS
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317 East Morehead St. 333-6111
1806 N. Graham St. 332-1667
(Next To City National Bank)
Hours 6:30 a.m. - 6:30 p.m.
DRY CLEANING MON. - SAT.
In By 1:00. Out By 5:00!
WE WORK SATURDAYS TOO!
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For strength and peace of mind, read your
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We Pay Cash
^ Ves, we pay cash for any gold or silver articles.
/ an omr n ■
-j «VHW...vu. ivciiiciuuri mai oia class ring
thrown back someplace and forgotten? It could
bring you as much as $30.00 cash. We pay cash
for; i
Diamond Rings.Pocket Watches
Class Rings.Estate Jewelry
Birthstone Rings.Sterling Flatware
Dental Gold.Franklin Mint Issues
Old Costume Jewelry.Watches
WWII and Before Military Articles.Old Clocks
Samurai Swords.Gold Coins
1964 and before U.S. Silver Coins
There is no charge for our offer.
, ■ ■
• T ZmJtV /
Treasures Recycled, Inc.
4801 E. Independence Blvd.
Suite 1000
535-5860
If you can’t come in, mail it to us and
we’ll send payment back by return mail.