Tabor City tribune. (Tabor City, N.C.) 1946-1991, 1962-10-03

affected BY the event. Or IA
other words when your tax
year is ended there Is little you
can do To alter your income
tax liability for the year.
With a little forethought and
planning a person or corpora
tion can quite often vary or
alter his tax liability for a
particular year. For example,
after the year is over, a tax
payer or his agent refers to
the applicable regulations to
determine the taxable gain or
dcductible loss. But by a little
| tax planning he could verify
the tax consequence before the
sale. Possibly the tax law
o would make the sale more adj
VantageouS in a subsequent
year to offset expected losses.
Or it may be fore to his adj
vantage to rent an asset with
or without an option to purch-
aSe) instead of buying it, or
vice versa. This could be dc
termined by comparing the
various acceptable means of
ucprct alton with the amount
of rent oeductible.
The courts give each tax
payer the prerogativc of eXcr-
cising his every right that the
law grants for decreasing taxes.
But there is limit TO the ex-
trcmcs to which one can go in
cffectlng tax economy if the
goal sought is by means of a
devious or illogical method
even though he may stay with
IN the letter of the law. But as
long as the most economical
route for the taxpayer is direct
and logical. nc will not be
subject to the government
; Criticism. Also, as long as the
transaction is all that it pur-
ports to be, and not merely the
! form of a valid transaction
without any significant chang"
in the positions of the parties,
the fact that one form is adopt
ed rather than another in ord
er to minimize the tax will not
Ccprivc taxpayer of the bene-
fits sought.
Regardless of whether you
plan your business transaC-
! tons in light of the tax conSc-
quencc or whether you only
worry about taxes when tn"
return is due. you should seek
competent advice in cithcr
case. Do not rely on wha,
. someone else did or said. Each
transaction stands alone on its
only particular facts. Very sell
dom are the facts the same in
| each case though they may
often be similar.
If you do consult someone
for tax advice be absolutely
/ sure II is someone skilled in
this field, not a person VINO
looks at the tax regulations,
4 only occasionally. This beins
true simply because a little ali
could sometimes be worse than
none al all. All aspects Of each
, problem have Ia be considered.
Since ali tax returns are sub
ject To audit bv the Internal
Revenue Service irrespective
, of who prepared the return. b.
sure your tax conSultant Is
/ authorized 10 practice before
The Treasury Department.
/ Should your tax return have
items questionable by the Int
Crnal Revenue Service. but
which you feel are bOnafidC
deductions, you should have 4
person representing you who
is properly enrolled to practice
before the ]. r. S. Lawyers
! and certified public account
ants arc qualified by virtue Of
their training and experience.
and become enrolled after they
have filed the proper applica-
ton. Other persons can be-
come qualified by passing an
exam given by the /. r. S. Just
be sure your representative is
qualified.
(PlCaSc write To me in care
Of this newspaper if you have
a question pertaining To bust
less that is general in nature
OF have subject that you
| would like discussed \