CI)e CJjarlotte
THURSDAY, FEBRUARY 22, 1996
:6A
STRICTLY BUSINESS
Umbrella
policy
CHARLES ROSS
Your
Personal
Finance
It's unlikely that you'll ever
need to defend yourself
against a huge lawsuit. But
just one brush with disaster
can wipe you out. With
umbrella liability insurance,
you are covered for up to a
million dollars.
Should you get an umbrella
policy? In general, the greater
your assets, the more advis
able it is to carry this kind of
insurance. An important point
to remember, most claims
spring from car-related inci
dents, so if you drive, you're at
risk.
Lawsuits can be based on
household or sporting acci
dents, slander, invasion of pri
vacy, all subjects of past suc
cessful claims. Even if the
courts rule in your favor,
you'll have to pay to defend
yourself Umbrella insurers
must defend you. As your
.assets grow, it is wise to have
an umbrella policy.
Opening an umbrella
Umbrella liability policies sit
on top of other insurance, that
includes liability coverage,
such as car and homeowners
policies. When your primary
insurance is not enough, the
umbrella policy is triggered,
spreading its protection, thus
the name umbrella.
The most common policies
pay up to a million dollars per
incident beyond what's cov
ered by the underlying policy,
although claims against indi
viduals rarely go that high.
The average pay-out is below
$500,000.
The easiest way to buy em
umbrella policy is through the
same carrier that handles
your homeowners or auto
insurance. Be sure you are
covered for all your real estate
and for your home-based busi
ness.
The cost of the umbrella
Buying all your policies from
a single company might earn
you a discount on premiums.
If you had trouble getting
your standard auto or home-
owners policies, it might be
tougher to get an umbrella.
You can get an idea of what
you can expect to pay with
this example: The cost for a
married couple with one car,
good driving records and no
underage drivers ranges from
$135 to $300 a year, but it
goes down the further away
you live from big-city hazards.
An alternative is to increase
the liability coverage on your
regular policies, but this can
cost more than the umbrella
itself So check prices and con
sider carefully.
Threats to retirement
A major threat to retirement
is the danger that you will not
save enough money while you
are still working. A recent
survey revealed that employ
ees who save through a 401(k)
plan put in 5 percent of their
See UMBRELLA page 7A
Magic’s movie houses grow
By Wade Nash
SPECIAL TO THE POST
A tlanta - when
it comes to lead
ing a fast break
Earvin Johnson
was so proficient
he earned the
nickname "Magic." Johnson
found out when it comes to
business and luring one to his
city, Atlanta Mayor Bill
Campbell, is quite adept at
creating a turnover and scor
ing .
Johnson visited Atlanta in
1995 and casually mentioned
to Campbell that he was con
sidering building one of his
Magic Theatres outside of Los
Angeles. When he returned
home, Campbell had already
called to tell him why Atlanta
should be that city, and visit
ed the star’s operation to get a
close up view. Now Magic
Theatres will open in July
prior to the 1996 Olympic
Games.
Johnson admirers packed
the Greenbriar Mall court and
the NBA star delivered great
news. "This theater is going to
supply a lot of jobs for you
people in the community and
for African American busi
nesses and the contractors
who are going to help building
Johnson said. “We just don't
want to take your money, we
want to treat you with
respect.
“It's your house and you'll
get served like you've never
been served before,” Johnson
continued. "African Americans
are the No. 1 moviegoers, but
we don't own any theaters.
Magic Johnson’s first-run theaters are proving popular among groups many major chains eschew. A new theater should be open In
Atlanta in time for this summer’s Olympic Games. Altanta Mayor Bill Campbell moved quickly to get Johnson to open the teahatre
In the city’s troubled Greenbriar community.
“Since I've opened up, we've
led the nation four times in
gross revenues for opening
days with "Waiting To
Exhale" being one of those
leaders."
Campbell and those living in
the Greenbriar community
hope the theatre will revive
the neighborhood that's had
trouble keeping stores at the
mall.
"Southwest Atlanta has
waited for too long to have
this kind of economic develop
ment for our community,"
Campbell said . “It shows that
if you build it, we will come to
it and we will spend money...
This is but a start, there is a
lot more to come.”
The 12 -screen Magic
Johnson Theaters in partner
ship with Sony Corp. will be a
first -run movie complex in a
circuit of MJT’scurrently
being developed and built
around the country to serve
minority and suburban neigh
borhoods. The first MJT
opened in June 1995 at the
Baldwin Hills Crenshaw
Plaza Mall in Los Angeles.
The venue is outpacing the
aters in upscale districts all
over the country.
"We've had attendance of
over 1 million since we've
opened," said Barrie Lawson
Weeks, co-chairman with.her
husband, Jim, of the Sony
Theater chain. "That puts it
clearly in the top 10 locations
of our circuit, which includes
160 locations around the coun
try."
The notion is that African -
American and Hispanic audi
ences are willing to pay for
first run pictures as readily as
anyone else. Theater chains
See THEATRE page 7A
Securing your business meals and entertainment deductions
Amanda S. Danchi
SPECIAL TO THE POST
Wining and dining business
clients and prospects is a part
of doing business. However,
Uncle Sam is willing to help
pick up the tab.
According to the North
Carolina Association of CPAs,
you may deduct 50 percent of
the cost of business meals and
entertainment on your federal
income tax return, provided
you meet certain tests.
Who can claim the deduc
tion?
Both employees and self-
employed individuals may be
able to claim deductions for
business meals and entertain
ment on their tax returns.
However, the deductions are
treated differently and tend to
be more valuable to the self-
employed. Self-employed indi
viduals can deduct 50 percent
of qualified expenses directly
from their taxable income on
Schedule C. Generally, there
is no limit on how much they
can deduct. On the other
hand, unreimbursed employee
business expenses come under
the category of "miscellaneous
itemized deductions" and, as
such, can only be deducted to
the extent that they exceed 2
percent of adjusted gross
income. 'There is an additional
restriction for employees: if
they have an AGI above
$114,700 ($57,350 if married
filing separately), they must
reduce itemized deductions by
3 percent of the amount by
which their AGI exceeds this
limit. However, itemized
deductions will never be
reduced by more than 80 per
cent.
What qualifres?
Regardless of how you claim
the deduction, there are strict
rules governing what qualifies
as a legitimate business meal
or entertainment expense. For
starters, all business expenses
must be ordinary and neces
sary to your business or
industry. An ordinary expense
is one that is typical for your
line of business. A necessary
expense is one that is viewed
to be in the interest of your
specific business. The expense
need not be vital to the busi
ness's operation, but must be
appropriate or helpful to its
performance. So, for example,
business meals may be viewed
as an ordinary and necessary
expense for an insurance
salesman who is trying to
drum up new business.
However, the IRS may disal
low a deduction for similar
expenses to a chemist or com
puter programmer, who gen
erally doesn't need to incur
them to carry out his or her
job. All expenses incurred for
meals or entertainment also
must be directly related to or
associated with your business
in order to qualify for a deduc
tion. Essentially, you must
expect to derive a specific
business benefit and actually
See BUSINESS page 7A
Afro-Aanerican shuts doors to long history
By Herbert L. ’White
: ' 'rHKCHARLaTTOI>(^
The Richmond’ '__Afro-
American, one of the oldest
black newspapers in Uie tl.'”
is no more.
The Baltimore-based Afro-
American Newspapers closed
the Richmond Afro because of
lagging profits. The Feb. tO;
paper was the last for the
Richmond Afro. Afro-
American Newspapers’ other
publications in Washington,
D.C. and Baltimore, which are
more profitable than
Richmond, remain open.
“Closing our Richmond oper
ation was a painful decision,”
John J. Oliver Jr . chairman
of the board and publisher of
Afro-Amcriciin new.-papers
said in the final Richmond
. ^fion. “Pie Richmond Afro-
qbas employed a tal-
bted and dedicated staff, ful
filled a vital role in informing
the community, and has
greatly valued our loyal read
ers. Our decision was motivat-
ed purely by business consid
erations.’
Poor advertising revenue
was partly to blame for the
Afro’s demise, but the compa
ny also blamed the high cost
of newsprint in Richmond for ;
driving the cost of producing
I, the paper beyond expecta-
' tions. The publication, found
ed in 1883 by John MitcheD as
the Richmond Planet, »av
purchasf'il by Afro-American
Newi-paporv in 1938 and had
ti readership of 120,000 at the
lime It closed. The Afro was
the most widely-read black
newspaper in the Richmond
nuirkct, but had only 800 pmd
subscribers, with the remain
der delivered to readers free of
charge.
With the Afro’s demise, the
full-time staff, as well as free
lance and part-time workers,
will have to find employment
elsewhere. Frances M.
Draper, president and chief
operating officer of Afro-
American Newspapers, said
I1> other publications
Ri sources that were going to
Richmond will now shift to the
ILiltiinure and Washington
papers as well as marketing
and expanding the company's
electronic information ser
vices The Afro, founded in
1892 in Baltimore, is the first
blm:k newspaper publisher to
put its editions on, the
Internet, The Afro also has a
- hhtihhiiiol®
archives of black history
events and subscription ser-
Mce>- on the World Wide Web.
As the Afro expands into ^
tyber.-oaci'. it.- print opera-
tioii.s will remain a major part
of the company’s mission
“Since our inception, we
ha Vo been irailblazers in dis-
seimnaling credible informa
tion to the black community,”
Draper -aid. “We will continue
to fulfill this role in print as
well as on new technological
The advtmcements came at a
pnee for the Richmond opera
tion, which fell victim to the
downsizing that’s synoymous
with bigger media companies.
What's left of the Afro's hold
ing!, IS expected te benefit.
"This IB a very exciting time
for tho.io of us in the commu
nications field," Draper said.
“Wo have found, however, in
the necessity to close our
Richmond operations, grtjwth
BUSINESS TO BUSINESS
CRAIG MICHAEL SIPLIN
Multimedia Specialist
Keep The Faith
Matthew 7:7
NIGHT OWL TV & VCR SERVICES
SPECIAUZING IN REPAIRING
TV, VCR, Big Screen, Stereo & Speakers, Universal Remote Controls,
Computer Monitors, Selling Repaired & Used Equipment
SERVING ALL OF METRO CHARLOTTE ■ (704)-523-0642
"In Home/In Business Service"
* BLACK OWNED ENTERPRISE *
If you have an idea for a
business story, call:
Herbert L. White or John Minter
at 376-0496.
E-mail - charpost@clt.mindspring.com
ecause you can not physically reach all of the people
you wish to serve, you must be well represented
through visual communication. We can custom
design your material to maximize the
potential of your product or service!
CREATIVE INNOVATIONS
QUALITY TYPESETTING
DESIGN
3400-D St. Vardell Lane • Charlotte, NC 28217
Phone 704.529.1195 • Fax 704.5228737