-

M

ISeur Pharmacy Center*

Thousand! of area shoppers turned out last Tuesday for the grand opening of Eckerd drug's two new Stores in-Cape May County. Two others also opened last week in Turnersvifle and Voorhees Township, near Camden Other Eckerd's in Cape May County are in Ocean City and Rio Grande.

COt'HT IftHSK, MtnBKer BUI I .a (111 takas an important rail Whllr rlrrk Joan OlCola rxaminrs snmr nrw coftfartiCv

NOKTII CAPE MAY Manager Edward C.atnwaki.'wcodd left. Is surrounded by hhi staff. From left is Diane Clayromb, Bev Pfaff, Pharmaslst Ttionias Moleski. Jean Stremlek. Sylvia Hart and Joan Sodger.

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Herald * Unltrn 2 Ptctmbtr 61

tlse New Tax Law To Save

ROSE LAND — Although .most of the changes in the new federal tax law will not Apply to your 1961 federal income tax return, there are still important tax saving steps you should take before Dec. 31. to benefit from the new law, according to the- New Jersey SecieVyof'-Certified Public Accountants (CPA)'. Generally, your basic strategy should be. to accelerate all possible deducations into this year and to defer as much income into next year as you cgn. Because tax rates on your 1961 income will be higher thaniates applied to 1982 incon^, deductions taken against 1961 income will mean additional cash in your pocket IF YOUR TAX bracket is under 50-percent t your 1982 tax rate may drop about 10 percent. If your tax bracket is higher, even bigger tax savings are in store for you in 1982. As an example, if you and your spouse are in the 50 percent tax bracket in . 1981, you combined taxable income is at least $60,000. Next year, the tax cut lowers tax brackets. You will need $85,000 of income to remain in the 50 percent bracket. HERE'S HOW to approx imate next year's rate. If your taxable income is in the 44 percent bracket, subtract 10 percent or 4.4 from 44, and your income drops to the 39 percent bracket.

In considering deductions; look Over last year's tax return, reviewing deductions to remind yourself what options you have this year. Do you need eyeglasses or dental work which can be paid for before Dec. 31? If you have medical expenses amounting to more than three percent of your adjusted gross .Income, it will be worthwhile to take these deducations this year POS81RLY MAKE your January mortgage^ pay\ ment in December That way. you can deduct your interest for December, which is qften included in the Janimry payment. Speed up deductions for business expenses or charitable contributions. Advance the last payment due on your estimated state

tax.

If you plan a major purchase. CPAs suggest you buy it before the end 5f tnP year^ take advantage of the deduction'for sales tax. For exampU', if you were to buy a $25,000 boat, and you live in a State with a seven percent sales tax, you would havl{^federal income tax ‘deduction of $1,750—in addition to Ihe standard sales tax detfcuc tion computed by tyie Internal P.evenue Service. ' DELAYING INCOME until 1982 is the other phase of wise year-end tax strategy. As a salaried employee, you may not be able to do much about this

SEASHORE LIMOUSINE UKVINO ALL OF CAM MA Y COUNTY . • : ‘ ‘'/Hgn/n ; •

MORNING AFTERNOON

EVENING DEPARTURE*

T ; Door To Door Sorvico

*

A WEEK

PLAYBOY HOTEL and CASINO

PACKAGE I • Fr»* Show At PlAYBOY • $5 00 In Co*h Ouorlort • $3.00 Food Credit feapt Sat b SwU « Etpriett (Non-Slop) Rovnd Trip Motor Cdoch • Fro* Forking At Pkfc Up locotiona • Fr*« Bonny Bog , • Frto Bonny Pin • Advoncod Guorontood Roaervotion* • Froo Delivery Of Ticket* (Pockoge I Not Avoiloble Mon. I Toes.) PACKAGE II e $10,00 In Ouortor* • $100 Food Credit ff uapt Sat b Sun) • Expreti (Non Stop) Round Trip Motor Cooch e Free Porking At Pick Up locotion e Free Bonny Bog e Free Bonny Pin e Advonced Gooronteed Reaervotion* e Free Delivery Of Ticket*

SE ASHORE LIMOUSINE | REG. PRICE 10.95 WtTH THIS COUPON —

ALL FOR ONLY

$095

PER

PERSON

GOOD THRU DEC. 8. 1981

V H-L

SEASHORE LIMOUSINE - 729-4404

unless you expect a yearend bonus. If you receive If after Jan. 1, it won’t be taxable until next year. Self-employed persons ntay be able to delay bill- ' ings until after the first of (he year and thus reduhe income. Sales representatives can also think about delaying the closing of a deal, so that the commission will be part of next

year's income.

CONGRESS HAS also reduced the ceiling on long- *• term capital gains to 20 perceht on gains recogrfized after June 9, 1981. Naturally, this new^ruling favors high ^bracket texpayers, - and iq those • brackets, CPAs advise to consider cashing in assets and adding the gain to 1981 income. If you are below the'top brackets,'you can wait until next year, -when the lower tax rates will also lower the taxes on an

capital gain. -

Here’s an example to melp you decidejf it’s staart to sell collectibles now in order to realize a gain LET'S SAY yd\i are single and your taxable income (after deductions and exemptions) of $35,000 for

1981 is in the 49 percent tax t > i

bracket. You paid$2,000 for a coin collection—!a few years ago. If you selT that collection for $9,000, $7,000 is long-term capital gain because you held it for more than one year:- This

means 40 percent of $7,000, or $2,800 will be added to your 1981 income, bringing it up to $37,800. You will pay $11,434 in federal in-,

come tax this year.

However, if you delayed and sold the collection next year for, the same price, your taxable income will j>e the same, but your total income tax on $37,800 will be $10,440—$994 lese— because f 'ou would be in the 44 perctnt marginal tax

^racket.

IF YOU ARE married, and you both work and file a Joint iricome tax return, you would pay less tax next year, because of next year's reduction in the marriage penalty. You would be able to reduce thfe earned income of the lower paid spouse by five percent of the lower compensation

up to $30,000.

January } is the time to

start putting, money aside -for an" Individual Retirement Account for 1982, CPAs say? if you arc covered by a pension plan at your job, you will be "be able to invest in yftur own IRA and d^Iuct up to $2,000 from your Earned income, possibly more, if your

spouse doesn’t work. One of* the most impor-

tant parts of financial and tax planning is getting financial records In order. This helps to see more* clearly wjiat tax breaks are available* to you next year.

Districts Burgeon

TRENTON - Special districts, little known and much ignored units of government usually with a single purpose service function, ^e gradually becoming a larger sector of local government in this state, reports . the New Jersey Taxpayri's Assn. Thfcse - single purpose districts, which have powers to tax and to borrow, are crealed to provide either .fife, garbage, lighting, water sewage treatment, financial principally by a local property tax imposed on property jowners ip the district.

si.

TATEWIDE. according inf<Wmation on annual

t>\

bio's,

abstracts of

. 217 districts

levied $31.5 million in taxes , ip 1981, a $5.2 million, near ij) 20 percent, increase oyer the accumulative 1980 property tax levy of $26 3 milljon. .Nearly threefourtfi's Of the statewide levy was to support fire districts, the most numerous type of special district authorized by law Since 1976, the statewide tax total for special districts- increased $17? millionjfrbm $14.1 millM* to $31.7 million, or 124 percent. A State report shows thehe were 172 special districts in 1976. NJTA's analysis indicates 7 new special districts were

created in 1981

There are 163 fire* districts in 55 municipalities. 26 garbage districts in 20 municipalities, 23 lighting districts in R municipalities, and 4 water and 1 se\*er district in 3 municipalities. Districts showing up for the first time in 1981 include 4 fire, 1 garbage, 1 lighting and 1

sewer district.

COUNTIES IN WHICH the largest number of special districts have been created are Morris with 31, Camden with 26, Middlesex with 26, and Monmouth with 24. Middlesex County municipalities have created the largest number of fire districts' — 24, followed by Camden with 23 and Monmouth with 22 There are more garbage and lighting distridts.in Morris County than in any other county — 7 and 8 respectively Five counties, Bergen, Hunterdon. Passaic. Union and Warren report no special purpose district in 1981. The increase in Oumbcr of districts /created since 1976 indicates a number of municipalitidri resorted to special districts as a way to avoid the ■‘nunicipal speuding limitations ("cap") law which did-qpt apply to special district spending. The taxpayer usually received no reduced tax benefit when a scrivce was removed from the municipal budget according to NJTA; ih fact, he may have ended up paying more. AN AMENDMENT to the . municipal cap law in 1981, effective in 1982, has closdd the loophole which allowed municipalities to spend for another purpose the annual amount previously appropriated for a function after it was transferred to special district financing. There arc no ■ requirements' subjecting special district bugets to review and approval procedures of the State Division of Local Government Services as is required for municipalities and counties. All local governmental units should be subject to the same financial reporting and review procedures, suggests NJTA.