In a decision that could impact real estate investment trusts (REITs) whose leases include percentage or contingent rent clauses, the IRS recently changed its previous position that rent paid under a Formula rent escalation is eligible income for REITs. Revoking its earlier 2013 ruling, the IRS has now concluded that an adjustable rent clause is not based on gross receipts or sales, but rather on the tenant’s income or profits, and therefore rental payments. rent are not eligible income.

Many REIT leases include percentage or contingent rent clauses, and the analysis of their tax treatment is very factual. In light of the apparent change in IRS policy, REITs that treat rent under such provisions as qualifying “immovable rent” may want to review their leases.

Real estate rents

To qualify as a REIT, an entity must meet two gross income tests per year. First, under section 856(c)(2) of the IRC, at least 95% of a REIT’s annual gross income must come from certain types of passive income, including real estate rentals. Second, under Section 856(c)(3) of the IRC, at least 75% of a REIT’s annual gross income must come from certain real estate-related sources, including real estate rents. .

Generally, “real estate rentals” are the gross amounts received for the use of, or the right to use, REIT real estate. Adjustable rents based on a fixed percentage of revenue or sales are considered “property rents”, but those based in whole or in part on property income or profits are disqualified as rents for the purposes of the REITs.

Failure to meet the gross income criteria could result in the loss of REIT status unless the failure is due to reasonable cause and certain other requirements are met.

decision

In Private Letter Ruling 202205001, issued February 4, 2022 (the 2022 PLR), the IRS partially revoked a favorable PLR ​​issued in 2013 (the 2013 PLR). The 2013 PLR authorized the treatment of qualifying income for rents paid under a rent escalation clause according to a formula. In revoking the 2013 PLR, the IRS states that the 2013 PLR’s conclusion that the rent escalation formula is based on “revenue or sales” – and thus “real estate rents” in under IRC Sections 856(c)(2) and 856(c)(3) – no longer “consistent with the current views of the Service”. Instead, the IRS considers the adjustable rent clause to be a measure of the tenant’s income or profits.

The leases at issue in the 2022 PLR included a rent escalation clause which increased the base rent each year by the lesser of:

• a fixed percentage of the base rent for the previous year; and
• an amount (but not less than zero) which, when added to the previous year’s base rent, would yield a specified ratio of “adjusted income” to total rent payable for that previous year.

Each of these leases defined “adjusted income” as the tenant’s net income less expenses other than (i) interest expense, (ii) income tax expense, (iii) depreciation expense. , (iv) rent expense and (v) certain other expenses.

When reassessing this provision, the IRS explained that “adjusted income is not equivalent to receipts or sales and is rather a measure of the income or profits derived by the tenant from the operation of the property” . Therefore, the IRS has concluded that amounts received or accrued under the leases are not considered “immovable rent” under section 856(d)(2)(A).

Consequences

This decision demonstrates that the IRS is limiting its view on the types of rental formulas in leases that will generate income that qualifies as “real estate rents” for REIT purposes. Since the definition of “real estate rentals” for REIT purposes also applies in determining whether rental income qualifies for MLPs, this decision also has an impact on MLPs. Further, since decisions interpreting the REITs’ definition of “immovable rent” often serve as guidance as to whether a payment to a tax-exempt entity falls within the definition of rent for non-taxable income purposes related to a business, this ruling may also affect tax-exempt entities.

REITs, MLPs and tax-exempt entities with leases will need to consult with their tax advisors and carefully review lease agreements to ensure that amounts derived from leases are not based on income or profits in order to avoid a possible tax controversy.

Of note, the NJBIA supports Bill S-330 (Singleton, D-7; Scutari, D-22), which would increase the amount of funding distributed to municipalities from the city’s energy tax fund. $330 million over five years, starting in 2023. .

Municipalities are required by law to use the new funds to reduce their property taxes.

“Property taxes are also a business issue,” NJBIA Vice President of Government Affairs Christopher Emigholz said in written testimony before the committee. “New Jersey’s property taxes are the highest in the country and represent the largest state and local tax that businesses pay.”

Emigholz noted that New Jersey businesses pay $14.9 billion in property taxes, out of a total of $31.7 billion in state and local taxes.

“The $330 million distributed represents an approximate 1% reduction in the total statewide levy of more than $31 billion,” he said.

Energy taxes were once collected by individual municipalities until the state began collecting these revenues for the convenience of public utilities. The state would then pass these funds on to the local government. In 2008, however, these funds were diverted to the state’s general fund as part of a change in budget language.

The New Jersey State League of Municipalities estimates that about $14 billion in energy tax funds have been diverted from municipalities to the state budget since 2002.

NJBIA also today supports Bill S-676 (Bucco, R-25; Oroho, R-24) that indexes taxable income brackets under the New Jersey Gross Income Tax for inflation. .

“Better aligning state income tax brackets with natural wage increases is important to avoid unintended tax increases and to advance tax fairness and justice,” Emigholz said. “This is especially true when inflation is rampant, as we are currently experiencing.

“Over time, this bill will provide relief to many taxpayers, making New Jersey more affordable for families, retirees, young people starting their careers and small businesses.

Emigholz also noted that the bill’s goal of preventing “bracket creep” has broad support from advocates who are fiscally conservative, supporting tax cuts, and fiscally progressive, supporting relief for low-income taxpayers. .

“Nearly half of the states in the country have some form of indexing their income taxes, and the federal government indexes their tax brackets,” he said.

NJBIA also today supports Bills S-737 (Lagana, D-38; Gopal, D-11) and S-951 (Turner, D-15) which both provide tax relief in retirement planning. in New Jersey.

“Wealth emigration has continued to hurt New Jersey’s economic growth, and making it easier to retain wealth through retirement can help reverse some of that loss,” Emigholz said.

Consumer spending slumped as lockdowns were mostly lifted in mid-2020 and lingering anxiety about COVID-19 gradually dissipated in 2021. Of course, there are still plenty of cases of COVID, but countries around the world have come a long way. In the United States in particular, the incredible demand has surfaced acutely throughout 2021. Holiday spending has even exceeded economists’ expectations. However, with stimulus checks and unemployment benefits running out, in addition to wage gains not keeping pace with price increases, consumer perception has begun to change. At the beginning of 2022, large price increases have shaken the perception of consumers, at least the average consumer.

With this, investors should be proactive in managing their exposure to Direxion Daily Consumer Discretionary Bull 3X (WANT) stocks, Consumer Discretionary Select Sector SPDR Fund (XLY) and other individual consumer discretionary stocks which are considered to be widely useless in the consumer’s wallet.

Changes in consumer spending

The Bureau of Labor Statistics provides a detailed account in Table A of how the median US consumer spends their gross income. This information only details up to 2020, but we can understand how the 2021 price increases have impacted available savings and spending.

According to data from Rent.com, rental rates for one and two bedroom apartments have increased by more than 20% year over year. However, rent increases on average far exceed rent reductions, with many cities posting increases of 30-100% versus decreases of 4-29%. New homeowners also face higher mortgage payments compared to pre-pandemic levels given soaring house prices and given that 30-year mortgage rates have risen more than 100 basis points in the past six last months. In other words, we have the highest rents and housing costs ever. Additionally, home heating costs have also increased with rising prices for fuel oil, natural gas and propane. Utility electricity costs also increased year over year.

The second largest recurring expense is transportation. Anyone who buys a car, new or old, will face higher car payments, but will benefit from the increased value of their trade-in if they have one. That said, gasoline prices are back to 2014 highs:

For example, an annual gas budget of $2,100 grew to almost $3,000 using the new prices. Food prices have also risen sharply, and have continued to rise by nearly 7% over the past year, as well as restaurant prices:

We can continue here, but the fact is that the most important expenditure items for the average household have increased significantly throughout 2021. On the positive side, wages and salaries have at least exceeded food prices, but are lagging behind other major expenses like housing and transportation.

According to the latest survey conducted by the University of Michigan, consumer sentiment hit a new low of 61.7 in February, which is the weakest number since 2011:

According to the report, consumers are increasingly concerned that their incomes are not keeping pace with inflationary pressures: “Nearly half of all consumers expect their inflation-adjusted income to decline over the coming year.” Such worried behavior, on balance, may cause consumers to cut spending in the short to medium term. This development would be negative for the following consumer discretionary categories:

• Clothing and accessories stores
• Shoes and accessories
• Department stores
• Specialized retail
• Restaurants and canteens
• Casinos, hotels and accommodations
• And potentially home improvement too.

Again, these particular industries are directly related to the aforementioned consumer discretionary ETFs, among others. So far in 2021, WANT and XLY have underperformed the broader market by a decent margin of -34% and -12%, respectively, while the S&P 500 has fallen 8.6%.

Flattening of the yield curve

For those unaware, a flattening yield curve has occurred before every recession over the past 50 years. This is because Treasury yields on shorter-dated bills and bonds will tend to rise equal to or higher than those on longer-dated bonds. The fixed income market is many times the size of stock markets. It is therefore important to at least periodically monitor these trends as they slowly develop over time.

While the second half of 2020 and 2021 showed incredible growth, the yield curve has started to flatten over the past nine months. Specifically, the 2-10y Treasury spread and the 10-30y Treasury spread collapsed:

Interestingly, the 10-year Treasury yield fell to 1.9% as many banks expect the Fed to commit to significant rate hike schedules. For example, Goldman Sachs released a report predicting that the Fed would make seven rate hikes by the end of the year: “Passage to seven tariff increases in 2022” and BofA came out with 11 rate hikes between 2022 and 2023, according to BusinessInsider. If the Fed raised rates in increments of 25 basis points as Goldman predicted, the fed funds rate would be roughly in line with the 10-year rate. And then, based on BofA’s valuation, the yield curve would be inverted, with the fed funds rate even above the 30-year.

According to CME Group’s Fedwatch tool, the market currently believes that the federal funds rate will be around 1.5-1.75% by the end of the year and 2-2.25% higher. by mid-2023. In other words, Goldman is targeting consensus while BofA is anticipating deeper tightening.

While higher rates could offset these inflationary pressures, it is unclear to what extent the Fed will step in and induce a recession as it has repeatedly done in the past. Either way, the Fed is on the right path between controlling inflation and triggering a slowdown, especially with an already pessimistic consumer. Keep in mind that consumer spending drives about 70% of the economy and any other upheaval could cause a major slowdown. The Atlanta Fed has already cut its 2022 first-quarter GDP estimate from 1.5% to 1.3%, which would be the slowest pace since the pandemic began.

Avoid exposure to leveraged ETFs

Consumer discretionary stocks and ETFs have become less attractive after the massive 2021 run. With multiple factors converging on a gloomier economic outlook, investors and traders need to be very careful with their exposure.

The WANT ETF is a leveraged ETF, described as serving the following purpose: “seeks daily investment results, before fees and expenses, of 300% of the daily index performance of selected consumer discretionary sectors.”

Early in the pandemic, consumer discretionary suffered as the WANT ETF fell around 80%. This amount of volatility and risk is not worth any allocation in a risk-averse portfolio. Today, consumer discretionary faces a new set of headwinds, namely excessive cost inflation that trickles down to the consumer. Consumers can only take so much pressure to say enough is enough, and demand for discretionary items declines. Consumer sentiment in March will be telling.

Conclusion

Covering several consumer discretionary stocks, some management teams raised concerns about weak consumer demand in January and February. If this behavior persists into March, consumer discretionary stocks could have tough earnings and earning draws beyond the holiday season and related ETFs would also come under selling pressure. Are we headed for a recession? I think it’s too early to tell, but so far the outlook doesn’t look positive. In addition, monetary tightening is putting pressure on equity market liquidity and could trigger funding strains for highly indebted companies. These risks are circular and should not be ignored. What do you think? Let me know in the comments section below. As always, thanks for reading.

(NEXSTAR) – Have you ever had that sinking feeling when you see an unexpected letter from the Internal Revenue Service (IRS)? It can be hard not to, even if you have no reason to fear an audit.

To have peace of mind during tax season, it’s important to know how the IRS selects who to audit. It’s also important to make sure you’re not one of them.

“What people don’t understand is that there are no human beings involved in selecting which tax return to audit,” said David Klasing, CPA and tax attorney. “It’s all done by computers using statistical analysis software, and there’s an expression in the profession – pigs get fat, pigs get slaughtered.”

Klasing says every tax return gets a numerical score, with the worst being 999, then 998, 997 and so on. Government audits will usually start with the 999s and progress from there.

Here are some of the red flags to avoid when doing your taxes this year:

Round numbers

When the IRS sees crisp, round numbers all over a tax return, that’s a red flag.

“If you own a business and you put a whole bunch of round numbers on a tax return, I’m talking about everything… ends in zero,” Klasing said, “the IRS computer will look at that and say that One of two things happens: Either someone pulls numbers out of their rear end and slams them on the back and they’re not real, or someone uses estimates.

He added that estimates may be appropriate in some situations, but estimates must be reasonable and must be disclosed.

Work at home

The COVID-19 pandemic has forced many people to work from home, but taxpayers should be careful when detailing.

“I would say the home office deduction is the one that drives a lot of audits,” Klasing said. “If your employer gives you an office away from home to work in, you can’t deduct the home office either.”

You can only claim this deduction in very specific situations, such as if you are self-employed or working as an independent contractor. In fact, the IRS says anyone who receives a W-2 (and does not generate income from a side business, gig work, or some other form of self-employment) is not eligible. to a home office deduction, even if she works. from home during the pandemic.

If you do qualify, Klasing said you need to make sure the office is dedicated to work, with nothing of a personal nature — no TVs, no video games, no gaming computers. going into that space, that’s the job,” Klasing said.

repeat offenders

As for the red flags the IRS looks for, becoming a habitual offender can be dangerous.

Without ramifications, a tax evader could continue to employ the same tactic and “by the time he gets caught, he’s so far off course: ‘It’s negligent behavior and he didn’t understand the law’ in relation to “this situation”. is willful tax evasion and they should go to jail,” Klasing said.

Creating a pattern of tax crime only makes the government’s job easier by excluding the possibility of an honest mistake.

Health insurance

Thinking of deducting your health insurance expenses? Be sure to follow IRS advice on this one.

You may be able to deduct expenses you paid during the year for medical and dental care for yourself, your spouse, and dependents, but be sure to only deduct the amount of your total medical expenses that exceed 7.5% of your adjusted gross income.

See the following qualifying expenses on the IRS website.

charity donation

Thinking of claiming a charitable donation on your next tax return? If it was over $250, make sure you have written acknowledgment from the charity.

The IRS is also looking for people claiming to have made large and unlikely donations.

“I see people crossing the line with that one all the time,” Klasing said. “If you make $30,000 a year but still give $20,000 a year to your church, they’re not going to buy it.

Offshore accounts

Keeping money in an offshore account isn’t illegal, but that doesn’t mean you don’t have to pay taxes on it.

“There’s this whole required foreign information report,” Klasing said. “An offshore account with over 10,000,000… [you need] an FBAR” – a report on foreign bank and financial accounts – “for bank account reports”.

Even if you generated no taxable income, the IRS requires those with offshore accounts of $10,000 or more – at any time during the tax year – to file an FBAR.

“They will seek you out for criminal charges for reporting foreign information and may check criminal charges for failing to collect foreign income overseas.”

He added that he had seen the government, in some cases, impose 100% penalties on offshore accounts.

How can you protect yourself?

“What I tell all my clients is to prepare every statement as if it was going to be audited,” Klasing said, “and you shouldn’t be afraid of an audit. audited, what type of tax return would you prepare?

What did this data show? In 2014, the top 400 taxpayers each reported more than $126,833,000 in adjusted gross income. As a group, this small group of taxpayers, representing just 0.0000027% of total filers that year, declared 1.3% of income reported on all US tax returns. In contrast, in 1993, the top 400 taxpayers accounted for only 0.5% of reported income in all returns.

Collectively, these 400 taxpayers reported income of $127.1 billion and paid $29.4 billion in federal income tax, an effective tax rate of 23.1%.

The top 400 taxpayers in 2014 reported $82.8 billion in capital gains, or 10% of the capital gains reported on the 149 million tax returns. They also reported $5.7 billion in income from S-Corp and Partnerships, known as midstream companies, or nearly 5% of total income from this source on all tax returns nationwide.

That Trump suspended the report in 2017 was no surprise, given his determination to cut taxes for wealthy people like himself. Later that year, the President’s tax reform bill reduced the corporate tax rate from 35% to 21%, increasing the value of stocks held by the wealthiest Americans and allowing owners of intermediary companies to exclude 20% of this income from tax.

In short, Trump’s tax bill has been a boon to the nation’s 400 highest-income taxpayers (as well as tens of thousands of their friends further down the rankings).

If Trump hadn’t shut down the report, we could have gotten some clear data on the outsized impacts of these tax cuts on the Top 400 in the report the IRS would have released this year.

But it’s not too late. President Biden can and must restore that relationship. Compiling reported income and taxes paid on 400 tax returns is no big deal, especially considering how important the data could be in the fight to fund public investment priorities.

Exposing what little taxes the wealthiest Americans contribute to the common good could fuel increased public support for raising taxes on those at the top to pay for things like child tax credits, child care expansions , climate change mitigation — and maybe even more resources for the IRS to crack down on wealthy tax cheats.

According to financial technology firm SmartAsset, Houston-area suburbs topped the list of best places to retire in Texas.

On the list of 10, Houston-area suburbs took five spots, including first place.

According to SmartAsset, the consumer publishing arm of SmartAdvisor, a financial advisor research firm, the best places to retire are Katy, Richmond, Tomball, Humble and Webster.

Here is an overview of the ranking of each suburb:

1. Katie

5. richmond

6. Tom Ball

8. Humble

ten. Webster

The methodology behind the ranking is based on regional factors that affect retirees’ quality of life, including favorable taxation, medical care and social opportunities.

The researchers said they first looked at state and local tax rates, considering two types of taxes: income and sales.

“We calculated effective rates based on a retiree earning $35,000 a year (from retirement savings, Social Security, and a part-time job). We subtracted income taxes paid from gross income to determine disposable income. Sales taxes paid were calculated based on disposable income spent on taxable goods,” the research states. “Next, we determined the number of medical offices, recreation centers and retreat centers per thousand inhabitants in each locality. Finally, we measured the number of older people in each city as a percentage of the total population. In our final analysis, we ranked each location on these three factors. Next, we calculated an average ranking for each domain and weighted the three factors equally. Areas with the highest average rating were determined to be the best places to retire. »

A d

Ranking for all of Texas:

1. Katie

2. Granbury

3. Wooded path

4.Fredericksburg

5.Richmond

6. Tombball

7. Burnet

8. Humble

9. Boern

10. Webster

Click here to learn more about the best places to retire in Texas.

Copyright 2022 by KPRC Click2Houston – All Rights Reserved.

The main thing that students who want to attend university or are already taking higher education courses should know as they emerge from the COVID-19 pandemic is: apply for financial aid or other assistance to cover costs, and you will probably be rewarded.

“Right now is a really affordable time for people to go to college,” said Karen Kovaly, spokeswoman for Pikes Peak Community College.

The school offers two- and four-year degree and certificate programs at three main campuses in El Paso County, and also operates the Center for Healthcare Education & Simulation, the Technical Education Campus, the Studio West Art Gallery, and the education centers at Peterson Space Force Base. and Fort Carson.

The PPCC has infused its foundation-based and external scholarship funds with federal pandemic assistance, Kovaly said, allowing the school to provide more assistance than before.

And everyone is getting the free mandatory textbooks for all courses this year, Kovaly said.

“It can save some students nearly $1,000 on books per semester,” she said.

PPCC tuition is as low as $153 per credit hour for many programs, Kovaly said, though some, like nursing and online education, are more expensive.

It’s “almost half the tuition of some public schools,” she said. “So students start with less debt and find jobs without having to take four-year courses.”

For example, an aspiring welder can complete a program in three semesters and find an entry-level job that pays between $60,000 and $80,000 a year, she said.

Part of the reason tuition is lower than expected statewide is the Colorado Opportunity Fund, a stipend to entice local students to attend school in the state.

The fund reduces tuition at public colleges and universities for students who can prove they are Colorado residents.

State legislators set the reduction annually; this academic year, it’s $94 per credit hour, said Jevita Rogers, senior executive director for financial aid, student employment, and scholarships at the University of Colorado at Colorado Springs.

“It’s not based on financial need or grades — just that you’re an in-state student,” she said.

Depending on the number of credit hours taken, the savings can be substantial, Rogers said. For example, a tuition bill of $5,000 for 12 credits in a semester would qualify for a $1,128 deduction, she said.

“Enrolling is really easy, and it’s a great opportunity to help make college affordable for Colorado residents,” Rogers said.

Students at UCCS, one of four campuses in the University of Colorado system, are getting an extra tuition break this year.

Although the CU Board of Trustees approved a 3% tuition hike for the 2021-22 school year, the increase is also being offset by federal pandemic relief funds earmarked for the Higher Education.

“So students haven’t seen a tuition increase for fall 2021, and spring and summer 2022,” Rogers said.

It’s unclear whether the Biden administration will authorize additional funds for COVID relief, she said, though she doesn’t expect any.

“At this point, we don’t know anything about the fall,” Rogers said.

Regents will debate and vote on campus leaders’ requests for tuition increases in April, and Governor Jared Polis must also approve tuition proposals for the coming year.

With a wide range of financial aid, from traditional scholarships based on academic achievement or household financial need to funding for specific programs and general stipends, affordability shouldn’t be an issue, Rogers said.

“Students shouldn’t overlook a school because they think they won’t get any help or it’s too expensive,” she said. “There are a lot of different options.”

Her advice is to apply early to public and private schools not only for admission but also for financial aid.

March 1 is the deadline for UCCS-specific scholarships, and the Free Application for Federal Student Aid, or FAFSA, is due February 1 for priority review and by April 1 for all applicants.

“For in-state students, I get an in-state scholarship stipend, but it’s not an endless supply, so it’s first come, first served,” Rogers said.

Colorado College, a private liberal arts college in Colorado Springs, launched a financial aid initiative in 2019 for low- and middle-income students in the state.

Tuition is $61,596 this school year, but is waived for accepted students whose families earn an adjusted gross income of less than $125,000. Students from households earning less than $60,000 also receive free room and board – worth $13,668 this year – and those with adjusted gross income between $60,000 and $125,000 pay the room and board.

For in-state students from families earning $125,000 and $250,000, the parental contribution is equal to or less than the cost of attending CU Boulder, the state’s flagship public university. Undergraduate tuition costs vary there, ranging from about $29,400 for arts and sciences to $34,700 for business degrees for students in the “guarantee tuition” group that started in 1990. fall 2021.

Colorado College raised the family income cap from $200,000 to $250,000 for this academic year to qualify for the Colorado Pledge.

Coloradans make up 19.8% of the student body this academic year, up from 16.2% in 2019-20, said Matt Bonser, director of admissions.

“We’ve seen a substantial increase in interest from Coloradans as students and families realize that CC can be an affordable, high-quality option,” he said.

The college has raised $7.3 million to fund the program and is seeking an additional $20 million to endow it.

From the archives of the

Bonner County History Museum

611 S. Ella Ave., Sandpoint, Idaho, 83864

208-263-2344

50 years ago

Sandpoint Newsletter

Jan. 25, 1972 – GRADUATES HONOR DINNER

A dinner will be held at the Chateau on Saturday in honor of Anna Burns, who will be a graduate of Sandpoint Beauty Culture School. Graduates are also invited.

•••

THE MULE DEER ON THE ROAD TO CONNIE’S

A mule deer roamed Fourth Avenue on Sunday, escaping a photographer who went looking for it. Katherine Swenson looked out her mother’s window (610 N. 4th) and did a double take when she saw the animal go by. His mother, Madame Gertrude Racicot, called the News-Bulletin. “There’s a mule deer walking down the street towards Connies,” she said.

•••

SANDPOINT CONSTRUCTION DAM

Record construction created 121 new housing units in 1971 and 55 other construction projects. The city’s total building permit value last year hit a record $2,152,994. These facts were revealed in Fire Chief Art Chubb’s annual report. “There has never been a year close to this in Sandpoint history,” he said.

•••

SANDPOINT MARINA EXPANDS ITS FACILITIES

Sandpoint Marina, operated by Leo Hadley and Ted Farmin, is moving its stores and showrooms to the old Mountain States Power Station building it used for storage for years. Once the work is completed, the old workshop, which only floats during summer floods, will no longer be necessary. Hadley and Farmin said the old floating workshop had become too small to handle all the work and the old power station building was ideal.

100 years ago

Pend d’Oreille Review

Jan. 25, 1922 – INCOME TAX IN BRIEF

WHO? Single people with a net income of $1,000 or more or a gross income of $5,000 or more. Married couples with a net income of $2,000 or more or a gross income of $5,000 or more. WHEN? March 15, 1922 is the deadline for filing declarations and first payments. OR? Inland revenue collector of the district in which the person resides or has his principal establishment. HOW? ‘OR’ WHAT? Complete instructions on Form 1040A and Form 1040; also the law and regulations. WHAT? Normal tax of 4% on taxable income. Surtax of 1% to 65% on net income over $5,000 for 1921.

•••

BRIEF LOCAL

FF Reem scoured the circle of his territory from Saturday to Monday, taking Rathdrum, Newport and Priest River in search of auto buyers.

•••

CIVIC CLUB OFFERS A REST ROOM TO THE CITY

Implying that the lack of proper supervision of the ladies’ rest room is caused by a confusion of its management, a delegation of women from the civic club appeared before the city council, proposing to return the room to the city if the council did not give the club absolute jurisdiction over it. “We spent $725 furnishing and maintaining the room and it’s costing us $30 a month now,” said Ms Brooks, who acted as spokeswoman. “If the city does not want to pay for its maintenance, we are ready to maintain it but want full jurisdiction. There are too many fingers in the cake.

For more information, visit the museum online at bonnercountyhistory.org.

Before becoming eligible for Medicare, Deborah Rosenwinkel, who lives in Wheaton, Illinois, and has rheumatoid arthritis, used a manufacturer’s discount card for Enbrel, a biologic drug she injected at home once a week. . The $12,000 card covered his deductible and co-payments, while his individual insurance policy covered the balance, up to $80,000 per year.

But when Ms. Rosenwinkel turned 65 last February and signed up for Medicare, she was no longer eligible for the card. Even when a Medicare Part D plan covers Enbrel, annual co-payments can reach $7,000.

Ms Rosenwinkel’s rheumatologist advised her to change her medication. Since the new drug is injected monthly in the doctor’s office, it falls under Medicare Part B, which covers outpatient services. Medicare and its private Medigap plan cover the full cost. “I haven’t received any bills,” she said. “I’m so grateful.”

Prices for wheelchairs, lifts and other durable medical equipment can also be high. Medicare pays 80% if the doctor and provider are enrolled in the program. Disease-specific organizations or local aging organizations may be able to recommend nonprofit groups that provide free or discounted equipment.

Mr. Schwartz’s wheelchair cost $30,000, with a $6,000 co-payment. But Medicare didn’t cover a standing frame, which improves muscle and bone strength by allowing users to stand with support. To help pay for the $15,000 device, he raised over $10,000 in a GoFundMe campaign.

Another source of financial assistance: tax deductions. Taxpayers can deduct medical expenses that exceed 7.5% of adjusted gross income. Eligible costs include: drug costs, home improvements such as grab bars, assisted living costs, and medical equipment. To take advantage of the deduction, people with large medical bills should consider tapping into sources of taxable income, such as an Individual Retirement Account, Dr. McClanahan said.

As he faces his own physical and financial challenges, Mr. Schwartz helps raise funds for others with multiple sclerosis. In 10 years, first for the Myelin Repair Foundation and then for the MS Society, he performed six tandem parachute jumps. He hopes to jump again in June.

“People say I’m amazing, and it feels good to tell you how amazing you are,” he said.