Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: MONDAY, May 31, 1993                   TAG: 9305280333
SECTION: MONEY                    PAGE: A-8   EDITION: METRO 
SOURCE: MAG POFF
DATELINE:                                 LENGTH: Medium

BEING BULL-HEADED, BANKER DESERVES AN OFFICIAL LETTER

I deal with several banks, and I have this problem with only one. This bank cuts the check on the due date, if it's not a weekend or holiday, but holds the check for seven to 10 days before mailing it.

I have gone to see the president of this bank and was told: "Since you were given a high interest rate, we cannot cut the check on the due date. But if you open a savings account with us, you will get the check on the due date." I do not need more savings accounts.

To whom can I write and ask if this bank has the right to hold up on my checks for this length of time after the due date?

A: A national bank is supervised by the Comptroller of the Currency. Such banks have the word "national" in their names or the abbreviation "N.A." for National Association after their names. If that's the case with your bank, write to the Comptroller of the Currency, Compliance Management Department, Mail Stop 7-5, 250 E St., S.W., Washington, D.C. 20219.

The comptroller will forward your letter to a regional office for investigation.

If your bank is instead state-chartered and does business in Virginia, write to State Corporation Commission, Financial Institutions Division, P.O. Box 1197, Richmond 23209. If it is chartered in another state, the SCC can help you find the address for the comparable agency in that state.

Such agencies investigate complaints and questions only if sent to them in writing. They will not respond to telephone inquiries.

Turning over property

Q: I have some land in a small town in Wake County, N.C. These lots are on a hard-surface road and have water and sewer available. We bought this land in 1947, and it was in my husband's name. He died in 1987 and willed the property to me.

I would like to purchase some property in Salem. I am wondering how this would work as far as capital gains laws are concerned. I am 72 years old.

A: The North Carolina property was obviously not your home, so it is investment property. Presumably the lots have no buildings, so you have not taken depreciation.

Your tax basis in the property was the fair market value as of the date of your husband's death, the time at which you came to own the land. The appraisal figure for the value at that time should be in the papers pertaining to your husband's estate.

You would pay capital gains tax on the difference in value between the date of your husband's death and the time of the sale. In other words, you would be taxed on the amount you realize from selling less the value in 1987. That is probably not a large amount of money. Because you inherited the property, you escape tax on what was probably a large gain between 1947 and 1987.

You can use the money you realize from the sale (after taxes) to buy other property if you wish. That would include investment land in Salem or any other type of investment.

If you are buying a home in Salem instead, you have another option: If you own your own residence now, you could sell it (if you wish) and roll over the value of your present house into the new one. The Salem home would have to be of equal or greater value than your current home if you want to postpone taxes. If you are renting now, you could use the investment money to buy a house as well.

Old company found

Thanks to Bob Williams of the Virginia Milk Commission, Coble Dairy Products Cooperative Inc. of North Carolina has been found. A reader who discovered certificates for that company in her mother's estate had asked in last week's Money Matters column if they had any value. A stockbroker could determine only that the shares had ceased trading after the 1950s.

Although the company is still in business, its certificates unfortunately are worthless, according to spokeswoman Martha Tysinger.

The milk cooperative incurred large losses in its early days in the years 1955 through 1957, Tysinger said. The board at that time voted to apply all of the capital from the outstanding shares toward the debt, so all the value was lost.

Tysinger said all holders of those certificates were notified of the action, but some people still held on to them. These certificates are still turning up in estates, Tysinger said, and the company gets inquiries.

She can, if you wish, help you to document the loss for tax and estate purposes. You can write directly to Martha Tysinger, Coble Dairy Products Cooperative Inc., P.O. Box 629, Lexington, N.C. 27293. The phone number is (704) 249-9931.

Mag Poff will help find answers to your personal finance questions. Send them to her at the Roanoke Times & World-News, P.O. Box 2491, Roanoke 24010.