STRICTLY BUSINESS: NEW MAR PRESIDENT WANTS TO `MAKE THINGS HAPPEN'

Rising interest rates may make mortgage bargains hard to come by in 1995, but Thomas M. Meyer believes the new year will be a good one for real estate.

"I think 1995 will be a good market year," said Meyer, new president of the Missouri Association of Realtors (MAR). "It may not be as good as 1994, but there is still a big demand for homes."

Builders can't keep up with the demand, noted Meyer, "especially those homes in the $75,000 to $100,000 range."

Meyer, who has been in the realty business for almost a quarter-century, keeps up with happenings on the realty scene.

Real estate economists see two things happening with the rising rates -- buyers will be negotiating more aggressively to shave a few dollars off the asking prices and sellers will have to make sure they don't price their homes higher than the market will bear.

"ARMS may be the answer to the higher interest rates expected next year," said Meyer. "Right now, you can still go with an adjustable rate for about 6.75 percent."

The ARMS are available in one to three year adjustable rates, with a cap of five percent.

"When we had the high rates of the early 1980s, we didn't have ARMS," said Meyer. "They were in the experimental stages. Now, we can make things happen."

"Make Things Happen" is the theme of the new president as he embarks on his new duties.

"The theme is appropriate," said Meyer. "As entrepreneurs, realtors are self-starters. They're motivators and make things happen every day. Whether assisting a customer or client, or working for the betterment of their community or their industry, realtors hit the pavement running and get things done."

Meyer, of Thomas L. Meyer Real Estate and Insurance of Cape Girardeau, 230 N. Sprigg, has already "hit the pavement running" in his new duties as MAR president.

He already has visited Anaheim, Calif., Maryville and Chillicothe, Mo.

Still on the list of places to go this year are national meetings at Orlando, Fla.; Washington, D.C.; Atlanta, Ga.; San Francisco, Calif.; and Hawaii and other areas in Missouri.

Cape Girardeau to host meeting

Meyer will also bring hundreds of the state's realtors to Cape Girardeau in June of 1995.

"We're already planning for a district meeting here," he said. "We could have as many as 1,000 people here for a four-day meeting."

All the traveling and visiting is old hat to Meyer, who used to accompany his father, Thomas L. Meyer, on many presidential trips.

Thomas L. Meyer served as president of the statewide organization in 1968, and was accompanied on many of visits by the younger Thomas M. Meyer.

"Now, I'm taking my father on some of my visits," said Thomas M. Meyer.

When Thomas M. Meyer was installed last month, during the realtors' annual meeting at Springfield, he was installed by his father.

"We have been the only two state presidents from the Southeast Missouri area," said the younger Meyer.

Thomas M. Meyer is representing more than 18,000 realtors at national realtors' meetings held throughout the United States.

A lot has changed between the two Meyers' reigns.

In 1968, the MAR consisted of about 8,000 members, with a budget of $100,000 and a two-person staff at state headquarters.

More than a quarter-century later, in 1994, the MAR has 18,000 members, a $1.6 million budget, and 20 persons operating a 60,000 square foot headquarters building.

Meyer has been active on national committees, with emphasis on city and state government concerns, finance and international real estate affairs. He has been associated with the family firm since 1970 and is involved in a number of local and state civic boards and committees.

"We have some exciting challenges for 1995," said the new MAR president.

In area of education, MAR will explore alternative delivery systems -- satellite and television -- for continuing education. "We'll be looking at efforts to establish and recognize real estate as a specialized area of study at more colleges and universities within the state," said Meyer, "we'll be working with university to make real estate a career opportunity."

The MAR's Economic Development Task Force is also poised to work with the Missouri Department of Economic Development in providing information and aboaut commercial and industrial real estate to prospective new business and industry representation.

"Our goal is to create a partnership with that department so they will seek the confidential and professional services of our member," said Meyer.

The MAR will also set up chapters of the National Association of Real Estate Brokerage. "With all the new technology now available, we're getting into national and international activity," added Meyer. "As the Technology Task Force continues to study the role of new technologies in the real estate business we will continue to face challenges and changes and we will make things happen."

Gambling winnners are taxable

Hit the jackpot? It's taxable!

The tax man may turn your "ho, ho, ho" to "oh, oh, oh," if you're lucky in Las Vegas, Atlantic City, or on one of the many riverboat casinos along the Mississippi or Ohio rivers.

Gambling winnings are taxable income for federal income tax purposes. said Nova L. Felton, public Affairs officer with the Internal Revenue Service, St. Louis District Office.

All gambling winnings, regardless of source or amount, should be reported as "Other Income" on IRS Form 1040.

Casino operators are required by law to file an information return for certain gambling winnings of $1,200 or more. When slot machine players hit a $1,200 or more jackpot, casino workers converge to the machine and offer congratulations. They leave for a few minutes, return with the jackpot winnings and a Form W-26, which calls for name, address, Social Security number and driver's license number.

You may be feeling good about your modest jackpot, but come April 15, the downside of the winnings crop up. You owe the government money that, in many cases, you have already spent.

Money won at the gaming tables or slot machines is taxable income in Uncle Sam's Eyes.

"Any amount you win is taxable," said Felton.

IRS officials point out that a lot of folks have become caught up in visiting casinos since the arrival of the riverboat casinos in the area and they don't realize that every dollar won is taxable.

People who win small amounts probably don't think much about the tax end of it, noted Felton.

But any jackpot win of $1,200 and over is recorded by the casino and reported to the IRS. For example, a $1,500 win can result in a $420 tax bill if the player is in the 28 percent bracket.

The IRS realizes that unless a jackpot win is $1,200 or more, reporting of gambling winnings is a voluntary compliance and many people won't comply.

Gambling losses can be deducted, but there are some conditions.

If the tax filer has gambling winnings to report, they must use the long-form, 1040, not 1040A, or 1040EZ, the simpler, easier versions of the individual returns. They must itemize deductions. Gambling losses fit under other miscellaneous deductions.

"You may deduct only an amount up to the total of winnings you list as other income," noted the IRS...unless you are a declared professional gambler.

Professionals may deduct costs of traveling, food and other expenses associated with gambling. To be considered a professional you must have a federal gambling stamp, which costs $50.

To deduct a gambling loss, you must be able to prove it, pointed out Felton.

Keep a dairy

The IRS has some suggestions for people who visit casinos on a regular basis.

Keep a dairy, record your visits to a casino, and keep records of everything lost and everything won. These records should be made regularly and "contemporaneously," which means writing it down when it happens.

That would be evidence, said the IRS spokesperson, but it's not absolute proof of anything.

The casinos can help.

Most casinos have player cards that slot players can pop into the machines when they start play. Such cards provide an electronic record of wins and losses on the machine.

For table games, a pit boss, manager or supervisor can track your activities if you ask for it. But that, too, has to be handwritten in a log book.

In case you win more than you lose, or you don't get the information down on paper you need to verify those losses, you should plan ahead to avoid a money crunch next time.

One reason: If you owe the government a big chunk of cash, you may get slapped with penalties and interest on top of the added tax.

To avoid such penalties you must have paid the government at least 90 percent of the total tax you owe -- including tax on your wages, interest, dividends and other income, or 100 percent of what you owed last year.

That money can come from cash withheld from your paycheck, or held out at your request from your gambling winnings. Or, you can send the IRS estimated tax payment to build up your account with the government.

Any time you win, it is a good idea to set money aside to pay the taxes, suggests the IRS.

The IRS recommends putting a portion of winnings into a special bank account, money market fund, or some short-term investment-- something that is not prone to drop in value so the cash will be there when the time comes to pay the tax man.

In future columns we'll take a look at gift taxes and other IRS tax rules and regulations

Business expansion

Sleepy Hollow Furniture Store, 1809 N. Kingshighway, Cape Girardeau, is expanding.

Owner David Patrick announced this week that he will add 12,000 square feet showroom space and 6,000 square feet warehouse space.

"We'll expand all of our departments and add home-office and entertainment galleries," said Patrick. "We hope to open our new expansion in mid February and have a spring grand opening in early March."

The expansion will give the business more than 40,000 square feet.