THE UKRAINIAN NATIONAL ASSOCIATION FORUM (06/02/96)

THE UKRAINIAN NATIONAL ASSOCIATION FORUM

The UNA and you
Tax deduction on home mortgage refinances

by Stephan Welhasch

Now is a good time to look at tax rules on refinancing, given the recent surge in refinances to get lower interest rates.

The rules differ somewhat from those involved when you purchase a home. For some, the rules affected 1995 returns this year; for others, the returns they will file for 1996.

Points (one point equals 1 percent of the loan) on refinanced loans are deducted over the term of the loan, not all in the year paid. For example, if you paid $1,500 of deductible points for a 15-year refinancing loan, you deduct $100 of the points each year as an itemized deduction in addition to deductible mortgage interest paid. The amount goes on line 12 of Schedule B. It does not appear on form 1098.

Unlike points when purchasing a home, refinancing points need not be paid from your funds or money credited to you. Nor does it matter that points are added to the new loan or exceed what others are charging at the time.

Here are three rules for points that may boost your deduction:

· On points paid for mortgage proceeds used for home improvements and paid via refinancing. They are fully deductible in the year you refinance if paid out of pocket. The points cannot be added to the loan or paid from proceeds.

Even so, only a portion is then deductible, a percentage equal to the portion spent for improvements. This could be a relatively small sum.

· On points paid if refinancing for a second time. You can deduct the remaining balance of points from the prior refinancing, the points you have been deducting over time. This could provide you with a hefty deduction. In the previous example, $1200 if you refinanced after only three years.

· On points for refinancing home construction loans - deduct 100 percent.

There may be a problem when refinancing with the same lender. In 1983, the IRS said it would not allow deductions for interest a borrower paid with the proceeds of a later loan from the same lender. The IRS was supported by several court cases and it won. Then IRS lawyers began to waffle on this and privately indicated that the remaining balance of points could be deducted, even if paid with a loan from the same lender, despite the stance adopted in 1983.

This leaves many taxpayers and their return preparers in the lurch after one of the largest refinance booms ever - many with the same lender.

If you are ready to refinance your existing mortgage loan, then start by calling the Ukrainian National Association. We offer our members low-cost financing anywhere throughout the United States and Canada.

To find out more about the UNA's First Mortgage Loan Program, refinancing your home or about becoming a member, please call 1-800-253-9862.

UNA to host annual celebration of Father's Day at Soyuzivka

by Andre J. Worobec

KERHONKSON, N.Y. - The Ukrainian National Association will celebrate its 12th annual Father's Day at the UNA estate Soyuzivka on June 16. Sunday divine liturgies for the intention of all fathers will be celebrated at the Ukrainian Catholic church and the Ukrainian Orthodox chapel.

In the afternoon there will be a program of song and dance, featuring the renowned Lyman Ukrainian Folk Dance Ensemble from Baltimore, directed by Orest Lasuk, and a concert by the famous tenor soloist from Lviv, Roman Tsymbala.

Lyman has been in existence since 1978. It is a 23-member troupe composed of high school and college students, who willingly sacrifice their weekends for practice, travel and performances, thereby actively contributing to the preservation of one of the richest parts of Ukraine's heritage, Ukrainian folk dance.

For the past 18 years Lyman has given performances all along the Eastern Seaboard, from North Carolina to New York, highlighting Ukrainian and international festivals, performing at educational and civic affairs, as well as holding their own dance recitals.

Mr. Tsymbala, a professional singer, completed Lviv National School of Music in 1979 and the Mykola Lysenko National Conservatory in 1985. Since 1988 he has been on concert tours spanning nine different countries on three continents. In 1992 Mr. Tsymbala made his debut in North America at the Opera at Florham, in Madison, N.J., where he sang the role of the Duke of Mantua in "Rigoletto."

An accomplished singer, Mr. Tsymbala has filled leading tenor roles in the popular major operas, such as Radames in "Aida," Alfredo in "La Traviata", Lenskyi in "Eugene Onegin" and other leading roles. He is a soloist at the Ivan Franko National Academic Theater of Opera and Ballet in Lviv and is looking forward to performing at Soyuzivka.

As in previous years, UNA members and non-members, alike, are welcome to attend this Father's Day weekend. UNA branches and districts are encouraged to organize trips to Soyuzivka and participate in the UNA's celebration to honor all fathers. For further information and reservations, call Soyuzivka at 1-914-626-5641.

Association of UNA Seniors to meet at 22nd conference

KERHONKSON, N.Y. - Have you made your reservation for the 22nd UNA Seniors Conference to be held at Soyuzivka June 9-14. (If you are a golfer, come early and play in the golf tournament on June 8-9 sponsored by Soyuzivka.)

The program of the conference will be varied, and organizers promise something for everyone.

After registration on Sunday afternoon and dinner, participants will enjoy a welcoming wine and cheese party on the Veselka deck and dancing under the stars.

On Monday morning, the members will attend an annual divine liturgy for the deceased UNA seniors, followed by a panakhyda for the victims of the Chornobyl disaster.

After the religious services, the 22nd Conference will be officially opened by Anna Chopek, president of the Association of UNA Seniors. After the singing of the national anthems, there will be a reading of President Bill Clinton's memorial statement on Chornobyl.

Various committees will then be appointed. Business sessions will be held mornings between 10 a.m. and noon; at which time reports will be given, new officers elected and new business discussed. One session, led by Dr. Roman Baranowskyj, will be devoted to a discussion of current problems in Ukraine.

During the conference there will also be a meeting with UNA President Ulana Diachuk, at which seniors will learn first hand about the importance of the Ukrainian National Association to our Ukrainian communities. A question and answer period will follow.

For the remainder of the time, during the conference's afternoons and evenings, there will be a no-host cocktail party, at which there will be a demonstration and teaching of ballroom dancing by Michael and Stefania Babiak, a Ukrainian sing-along, a Bingo night, an auction of Ukrainian items (members are asked to donate items, and proceeds of the auction will be donated to Ukrainian charities), an evening devoted to card playing, Ukrainian videos, and a two-hour cruise on the Hudson River.

A cocktail party and banquet at Veselka, featuring a prominent speaker, and a candlelight commemoration of Chornobyl will bring the conference to a close. There will be dancing after the banquet. It is requested that women wear Ukrainian blouses, and men wear Ukrainian shirts or ties. Those dressed in Ukrainian garb will be eligible for a door prize.

UNA members or social members who have a UNA discount card from their branch secretaries will be entitled to a reduced price for their stay at Soyuzivka during the conference.

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