B—Lancaster Farming, Saturday, December 4, 1965 TAX PLANNING Charitable Giving And T ux Planning (T).t' following article lh thp .seroiul in a scrips of five aft jclcs oil jiw-end ttt\ planu',iia: prepared for this new spnper by the Com ml|H!iei; on Tu\ati«(u of the Pcinnsjlvaiilal InstiVulp of Certified Public Account ants.) Few people associate tax planning with charitable giv ing; however, a little tax planning in connection wflh charitable contributions can result in tax savings in many cases. For example, Jones owns stock for which he paid $6OO and which Is now worth $l,- 000. Jones plans to sell this stock in the near future and also plans to make a contri bution to his favorite charity of $l,OOO. Jones could save himself as much as $lOO ('de pending on his tax bracket) by giving the stock rather than cash to the charity. The tax saving results from the fact that while Jones will get a charitable deduction for $l,OOO whether he contrib utes cash or stock., he can avoid the capital gams tax on the $4OO appreciation in the value of the stock by making a contribution of the stock. The avoidance of the cap ital gains tax by making con tributions of stock or other items which have appreciat ed in value is not the only way of saving taxes through contributions of property Many people have furniture and clothing and other ar ticles lying idle around the house, perhaps in the attic, which would be useful to a charitable organisation If these items were to be con tributed to a chanty, the donors would be entitled to a charitable deduction of the fair market value of the items thus producing a bene fit for both themselves and the chanty It is advisable to request a written receipt and appraisal of the fair market' Value of the donated property from the charitable organization to vVhich the contribution is made. Whether contributions are made in cash or property, tax savings can result from grouping contributions in one year rather than having them spread over several years. For instance, Smith, who makes $7,000 a year and AFBf Will Meet In Chicago Dec. 12-16 More than +OOO farmers ranchers are expected to gather in the Oonrad Hilton Hotel, Chicago, December 12- 16 for the 47th annual meet ing of the American Farm Bureau Federation. Among the key issues ex pected to be discussed and acted upon by the voting del egates of the member state Farm. Bureaus are the fed eral budget 'and fiscal pol icies, international trade, and farm program legislation Speakers will include Sen ator Everett M Dirkson of Illinois, and C D. DeLoach, Federal Bureau of Investiga tion. The Federation, an inde pendent organization of more than 1,600,000 members, is the largest general farm or ganization in the nation. who has Itemized deductions other than charitable contri butions of $OOO a year, usu ally gives $lOO a year to his favorite charity. Under these tacts. Smith gets no tax bene fit fiom his Charitable con tributions because his item ized deductions never exceed the 10% standard deduction. However, if he were to group Ins chautable contributions by giving $2OO in one year idther than $lOO each year he would get a tax benefit tor at least $lOO of his con tributions since now his itemized deductions for the year in wh'ich he gave the $2OO exceed the 10% stand ard deduction by $lOO. He still is permitted to use the 10% standard • deduction m the other year. Of course, if Smith’s minimum standard deduction exceeded 10% of his adjusted gross income, the above tax planning should be earned out taking the high- er amount into consideration. For WAYNE feeds WHITE OAK MILL MAN HEIM, R. D. 4 PHONE 665-2288 Wayne Is proud to become a part of the busi ness of farming in this community through this new headquarters ,for up-to-date live stock and poultry feeding information and service. Today, more than ever before, the profit able production of meat, milk and eggs depends upon the latest scientific develop ments in feeding and management. Wayne is widely known for the Research behind the feeds and feeding programs they recommend to their customers. Stop in soon at the sign of prompt, de pendable service and get tlje facts on how Wayne can work for you. Allied Mills, Inc Bu thins of Tomorrow's Ft*cfs.> ■ Toe/*yt GALEN CROUSE, second from left, of Stevens, is presented Southeast District Hay Show Champion trophy by Frank G. Earner, professor emeritus of agronomy extension at The Pennsylvania State University. Also pictured are Mrs. Crouse and Arnold G. Lueck, associate Lancaster county agent. Earner or ganized the Pennsylvania District Hay Show program in 1956. The award was presented at the Pennsylvania Grassland Council meeting on the Penn State cam pus on Nov. 22, SEE... mb S^&3aߣ3aßOSߣ3g£ 5 i * 5 3 a w I i \ Your Best Buy Is Corbel Belgium BALER TWINE 9,000 ft. per bale (325 lbs. tensil strength) 10,000 ft. per bale (290 lbs- tensil strength) Made From Pure No. 1 East African Fiber $7.60 Per Bale 25 Or More Bales $7*25 Twine will not be April 1, 1966 with cash Available at E. R. Kreider 521 -Willow Road Lancaster, Pa. Willis 6. Krantz R. D. I Qnarryville, Pa, Edgar M. Martin R. D. 2 New Holland, Pa. R. D. 1 Name Address Tele. Township Place my order for Place my order for Refer order to dealer listed above Distributed By EASTERN STATE DISTRIBUTING CO. R. D. 2 delivered until after terms up to May 1, 1966 these dealers: Melvin M, Martin Elam N. Martin r. d. i - Leola, Pa. J. Melvin Mast R. D. 2 Parkesburg, Pa. S. Ober Jacob Conestoga, Pa. DEALER ORDER FORM R. D. 1 Lititz, Pa. bales 9,000 ft. bales 10,000 ft. Lititz, Pa.
Significant historical Pennsylvania newspapers