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“REALESTATE | -
“ESTORS FACE TAX
OIANGES |

“ From ‘the Instiute of Char.

“tered Actauntants: ‘of, British -

‘Columbia,

In addition to a lax on capital
gains, tax reform has produced
three ‘significant changes in the
Anconie tax’ irealment 6f- in-’
_vestments in real estate. Jone

‘The’ position of the Jand~

- speculators -and “developers:

remains relatively unchanged,

‘at least. for income lax-pur-

poses, but the investor is faced
with a series ‘of-changes which.
have ‘greatly altered his lax
Position, <2

1. The first significa! change
denies the dedciion of interest

and property, taxes on vacant:

Jand-1o the extent that il did not
produce income. Inother words; :
if the land . generated: some
income,: sufficient: inlerest
expense “and property laxes
may be claimed ja reduce the -
lincome.to nil. However, to the’
extent - these” carrying. -
charges’ excecd: Income ‘from
the land they are not allowed as’
current deductions, but must be
added to the ‘cost base’ of the
land-This addition will operate
toreduce the capital gain on the

\ ullimate disposition of the tand,

allowance (tax: depreciation).
which individuals may claim in -
-respeelyuf-"venlal buildings.
Under ihe former act ldxpayers |
were:permitted lo claim capital _
“eodi allowance’ and .create |
losss_ which they’ ‘could ‘offset...

agaliist’ ‘other sources: of income an

such as business « orempl oyment
incume, *.....*-

“Under ‘the new reittietians a
taxpayer ‘may reduce his rental *
income (oni! through his: capital

: seostrt Hlowanee: claims, but. he’,

ob ereale “a: loss from -
r properties” hy elaiming
capital cost allowance. “in-
espect of the building. ‘This
<restriction applies. to 4 -taXx-,
“payer's ola rental income. not’
ego individual ‘properly. :

*glainis far purposes ufreducing ’
“this rental. income *fremone =
building through a capital cost .:
allowance claim: on nother:
. building. ” a

fice, He vatt liveina toll
Oy oa a Ask your ®, long:
Wistance operator. for
iE NUTH @-4000 and your
‘call will be -Placed.
without charge. 0-8
5°Q, My employer pays me an

* ‘pllowance: to: cover my beard .

“8 werk’ looking for leoverbarn.

andTdém while fam working at”,
disiant work sites away from.
my ordinary: place of residence
where I sypport my wile and
family, Previously, ‘I-was told °
dat this had to be.inchuded in
incume far income lax purpose”
Because: . - WaS.,.NOL;. a cone.
Riruction Waiker: L understand.
“that this no longer applies. Is ;
‘this correct?

i Any: X@8i~. This exempting -
provisisa naw applies (0° all -:
workers employed a1 a. distant -
work Site ‘providing they meel-

“AQ.

-April of {973 and Tam told that I-
Wave to prarate my, $100 stan-
dard deduction for medical fees.
and charitable donations when

filing my income-tax return.:-

 Whal, does. this. mean?

eA: AS explained in ihe Guide
which accompanies “your” tax.

raturn, you. need report only the’
‘income - you earned after: you:
arrived in Canada. On the other
hand, ou: aré not ¢ntiled to”
‘glainry personal exemptions and”
suhesseimda rd: deduction. far the”
“full year, | “For example, if you”
Jarrived‘in: Canada ‘on ‘April 15:.
ryou would have resided here for:
:2e0 of the 365 days of.1973 and"-
‘Would ‘he. entitled. (a; claim’ a.
“standard deduction of 260-3608 of

‘$100,.pr, $71.23, instead “of $100, ”

Your! 3" personal exemption’.
: “would be ‘calculated § ina similar,‘

rf ‘Do L have..to: get “jeceipls
‘Tor charitable donations?»

“teceipts.for all claims” for:
‘charttable‘donaiions..-You- may --
‘list your Clalin on Une Schedule”
provided wilh your income tax.
relurn, and you must attach the,

. Feceipls to. the return: ie +

“Q. Can a divorced woman.
“claim jhe. equivalem married: -
: “exer tion. of $1,400 for, a1
“yeatoid ‘child tho lincome) ina’

“niental institution,’ if, she pays”

Jlhé expenses such as medical,
: v‘elothing, ete:
‘a, The; chia ‘would have

Se aivatiaied

Jhon ti World War I, the
- cL alvaraft: carrier. Lexington

. ‘nd Yorpedoed, the sallors

-with leedream before flae-;
“Jing .the ship, Maybe they

” WEDNESDAY, JANUARY 16, 1914

Tex an |

“The. Sapilal. cost:-- allowance.
” restrictions apply ‘only 10. real
estate and not io other classes cf
depreciable’ properly. such “as
machinery and equipment. This
has ted some individuals to seek

“a tax advantage by investing in

‘other depreciable assets. which
provide the write-offs for lax
purposes” now, denied. to in-
vestorg in rental real estate:
.3. The third major change in

the rules relating to real estate.

‘THE HERALD,

TERRACE, BC,

vehicle insurance raics by the
British Columbia ‘has resulted
- premiums for many types. of

vehicles.
Norman Bortnick,

A review of commercial .

Insurance Corporation . of”

‘vice-
president and general manager

re “PAGE 7

Commercial Vehicle
Insurance. Rates

° ye recognized hat. ‘there.
were. some anomalies in-|be

‘vate structure originally struck’
“and, ag Is ICBC's: policy, we -
in substantial reductions -in™ “reviewed ‘the. circumstances
“and - made--

“Borinick sald.

“adjustments,”

“Revised rate tables detailing
the changes have been sent to
atithorized. Auloplan insurance «

ensure that depreciation ‘will be.

: offers the economic advantages

“Accordingly, a-laxpayer, can
pool. his capital cost, allowance, *.

investments requires thal each
rental building purchased after
January “1,-1972) and. costing
_ $50,000 or more must be placed .
.in a'seperaie depreciation class.
- The effect of this separation
into different classes has ben to

‘recaptured in respect af each
building a1 the time il is sold,

. This differs from (he- old
system: where it was péssible to
‘defer ‘the. realizalon of
recaptured depreciation by
'merely purchasing another
building of (he same class i ia the
same laxation year..

‘Thus, the real estate investor
wha is: contemplating “step-
‘ping-up” his investments must
be wary of the paleatial tax cost
“of such a irangaction. »~. :

:-Although the changes-in our

-tax laws have eliminated much ~
of the previous lax advantage,
investment. in: real: estate. still

helpful’ in: combating. the’ in-
flationary ‘eroiston’ of  in-
vestment capital, ”

-k=
SS.
=
=
=
o>
™“™

tba wih i
(| 1n/ 1966, King Edward IIL
.[lof: England, thought he.
4was on. the ball when he
called.: bowling dishonar-
‘able, useless and unprofit-
able,and had it outlawed.

tn "1467, poll. was oul
lawed in ‘England, because
cil-was-feared it. would dis-
5 tract the soldiers from de-
“Tense.

ips: Column.

re dit a} ar wee We VE

fib abewle

savings plan up to-a combined «+ $4,000-ore20.;]
“total of $2,500 or. 20-per. cent. earned é
your earned income if itis les ‘whiche
: than $12,500, .

QT am self-employed and I

lo ‘live with the imiaye i ae :
elf-contained: domestic,”
stablishment™ “maintained by"
ihe taxpayer.”

QT contribute, amy place of

“Qt “understand” that <1
eriph nl expense deduction

of ICBC, said the review was
carried out as a result of the
crown corporation's: policy of
‘first establishing . broad
principles of ‘operation, then
working oul sperific delails |
through careful examination of
circumstances.” 7 :

‘A total of 15 vehicle classes
were affected by the changes,
with reductions varying from
class to class. There was no
over-all percentage t reduction
applied,

-agenis.and.to Motor Vehicle
Branch licensing offices.
Commercial vehicle owners
may obtain detatls though
agents and local MVB offices.

The most significant changes
are in rates for several varieties
of delivery trucks, for U-drive
trucks and for third-parly
liability extension caverage on
laxis and. U-drive cars. Other
changes affected pleasure-type
snow vehicles and ali-terrain
| vehicles.

BENSON & HALES LTD.

CARPENTRY & JMAILLWORK
_ 2101 Blakeburn St., Terrace

GENERAL MILLWORK |
CUSTOM CABINETS — PRE-HUNG. DOORS
_ COMMERCIAL ond RESIDENTIAL

E “Over 20 Years Of Craftsmanship".

‘No Job Teo Large Or Too Small
Free Estimates ° > Qur Office Cr In Your Home.
Financing Available
Call

635- 5455

Evoninas Call, /Evaninga Ci Cail

a b38 57028 Bie 7323

PEO

‘PHAR
GRAMME FOR THOSE

employment, to a pension plan.‘
Hawever, | wants to- have. a
‘larger pension when I retire I
have, also

irust company. What -is. the-
maximum contribution. that 1
can claim on my income: tax
form for both of them? *

“AJ As" anemployee you are
allowed ‘to deduct your con-
Aributions:to the pension plan

dakén aut, a z
*? retirement savings plan with-a-

pay, intoa registered retirement
“savings plan with an- insurance:
_corapany. -1 have..no ‘salari
income and understand that. I:
‘ ean- claim: Tor income tax’
“Purposes, & maximum of. $4,000 ,
-for my retirement savings plan. 1
Is this-correct? ”:”

. A.M you ‘are not. covered by...
.an employee pension plan. you"
would .be- entitled. {o.- claim,
amounts pald inta a “registered.

: ean be claimed to.a: maximum

‘of $150.Can‘T-still: claim.,my .
< inion dues, in addition, to bis

claim? :, ..

“AL Yes; You! ean ‘still FS im
your, unian- dues as you did-in
“previous. “years... Pleasey: -fiote, -

owever, thal receipts are’nol

‘required “for |-the-: ‘employment -

expense deduction: bul. you

. should secure:receipts Tor your oo

“Union dues and altach thes: to
_ your retuen, wos

- 65 YEARS OF AGE AND - f
QOVERIS EPFECTIVE — .
 SANUARY 31,1974.

~ the’dthiér necessary. conditions: :
1 arrived in Canada in’

“CA. Yes, You have to secure °

eM.

-on board filled containers]:

and your registered retirement: “retirement savings plan up ta.

» Kitimat-Stikine Regional, District |
lan Commission Rot.

TAKE ‘NOTICE that a draft bys iaw intended to ‘enable: the
adoption of Agricultural Land ‘Reserve: Plans for the Regional:
..: District, to preserve tan. land, for farm: use. has ow. been.
‘prepared and the draft by- law. foyether with the’ proposed :.
- ay Agricultural Land Reserve. Plans will be presented ata Public’ .
2? > Hearing to be held at Thornhill Elementary School on January”

a, 20th, 1974, oe we

” Tha. proposed ‘by-law ‘and Agriculural Reserve Pians may ‘be’
inspected: at ‘the office of the: ‘Secretary-Treasurer at ‘the.
Kitimat. Stikine Ragional District..office from the Ist day of”
Januay: ‘to the: 25th day af. Janvary “(Saturdays and Sundays
excepted) at No.?- 4644 Lazelie Avenve, Terrace, ‘B.C:, between:
t 130: a.m, and 4 30_p, Ms oe pes, 7

.

Please’ refer. to the’ Notice: oF: Public. hearing. in the ‘Legals. a
ction’ alt formatign >

7m

‘John Pousette”

‘Secretary-Treasurer ae

‘What is Pharmacare? pen on ea as

Britis Cohimbiaris who’ are 65 ¥
0-day residency requirement are eligible ‘to. receive : a Pharm is
enetits provided: must be: for: the sole use of the person-to whom th
sstied: Individuals over 65 who are in the. same: ferily grou ach te
hel own ‘ard: ‘Dependent c children ands 5 ouses: nia +t

5: years. of age. ‘or over
MSA, oF, CU &:

you are 65 years < of age or over, ‘and av
vat’ east 30 days but are not enrolled in any ‘of the above medical plaiig.yo
must apply for eligi Application forms ai are available from: our pha

a iFyou
uring: December?

tt your card has been delayed in the mall or dent toa _ rig addr
will! accept: Jour MSA. ¢ Cu. ‘ee Cc. or. BC MP: card “as ‘temporary: proof of

When you. receive your personalized elighility
tat once Your card Is for your! use s@ only