0 Lancaster Farming, Saturday, December 17. 1966
TAX
PLANNING
(The following article is
the second in a series of
four articles on year-end tax
planning prepared for this
newspaper by the Committee
on Taxation of the Pennsyl
vania Institute of Certified
Public Accountants.)
Charitable Giving
And Tax Planning
Few people associate tax
planning with charitable giv
ing, however, a little tax plan
ning in connection with chari
table contributions can result
in tax savings in many cases
For example, Jones owns
stock foi which he paid $6OO
and which is now worth $l,OOO.
Jones plans to sell this stock
in the near future and also
plans to make a contribution
to his favorite charity of $l,-
000 He could save himself as
much as $lOO (depending on
his tax bracket) by giving the
stock rather than cash to the
chanty The tax saving re
sults fiom the fact that while
Jones will get a charitable de
duction for $l,OOO whether he
contributes cash oi stock, he
can avoid the capital gains tax
on the $4OO appreciation in
the value of the stock by mak-l
ing a conti ibution of the
stock
The avoidance of the capital
gains tax by making contribu
tions of stock, or other items
which have appreciated in val
ue, is not the only way of sav
ing taxes through contribu
tions of property Many peo
ple have furniture and cloth
ing and other articles lying
idle aiound the house which
v/ould be useful to a charitable
organization. If these items
were to be contributed to a
chanty, the donors would be
entitled to a charitable deduc
tion of the fair market value
of the items thus pioducing a
benefit for both themselves
and the charity It is advisable
to request a written receipt
A. H. Hoffman
Seeds, Inc.
Landisville, Pa. 898-2261
er year. Of course, if Smith’s
minimum standard deduction
and appraisal of the fair mar- ($2OO plus $lOO for each per
ket value of the donated prop- SOiW i exemption) exceeded 10
erty from the charitable or- % 0 f his adjusted gross in
ganizotion to which the con- come, the above tax planning
tribution is made. should be carried out taking
Whether contributions are the higher amount into con
made in cash or property, tax giderafion
savings can resxilt from group
ing contributions in one year
rather than having them you can have a breath of
spread over several years. For Epr i n g j n midwinter, reminds
instance, Smith, who makes j Robert Nuss, extension 0r
57,000 a year and who has nam ental horticulturist at Penn
itemized deductions other than state University. Pot bulbs of
charitable contributions of tulips, daffodils, narcissi, hya-
S6OO a year, usually gives SlOO c inths, and similar flowers
a year to his favorite charity. now After a resting period
Under these facts he gets no they can be forced into bloom,
tax benefit from his charitable .
contributions because his item
ized deductions ($700) never TAKE SOIL SA f NOW
exceed the 10% standard de- Tak ® your so * l **.'
duction However, if Smith fore the ground freezes and
were to group his charitable avmd the February, Mai ch and
contributions by giving S2OO A *> ril p urges extension
in one vear rather than $lOO agronomist Wayne Himsh
Weaverline
SNOW
PLOWS
r
• The V-blade plows to fit on most farm
tractors
• 3-point hitch mounting, or front-end
loader mounting
WEAVERLINE CORP.
Voganville Rd. ( R 1 New Holland, Pa.
Phone 717-354-9611
| f ATTENTION
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Feed Wirthmore's Top Selling Dairy Feed !
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Lawn and Bellaire
665-3121 367-2321 687^6292
each year he would get a tax.
benefit for at least $lOO of his
contributions since now his
itemized deductions for the
vear in which he gave the $2OO
exceed the 107 r standard de
duction by $lOO. He still is
permitted to use the 10%
standard deduction in the oth-
SPRING IN WINTER
You'll have to go to our competitors for an all-purpose
vitamin-and-mineral supplement for all animals.
Youngco prepares a dozen supplements, but each lb 1
specifically formulated and balanced to meet the individual
nutritional needs of each type of livestock.
/
Result: you are assured of getting the highest dollar value 1
with Young's pre-mixes and other nutritional supplements.
Ask us or your local Youngco representative for details* 1
ROBERT L. YOHN EARL L. UMBLE
R. D. #1 2460 Willow Glen Drive
Narvon, Pa. 17555 Lancaster, Pa. 17602 j
CASSEL C. MUMMAU
R. D. #1
Mt. Joy, Pa. 17552
NUTRITIONAL SUPPLEMENTS FOR LIVESTOCK
MFD IV YOUNGCO. INC. KOAAINC SPRING PA
| ONE OF THE LARGEST
\ FARM EQUIPMENT
I DEALERS IN LANC. CQ„
j "Champion of Hay Balers" ’ *
I ARTHUR S. YOUNG & CO,
*
♦
$ Announces J. I. Case Company
Model 220 Hay Baler
I Last Roundup Sale
* for December. Before we start our
$ 50th Anniversary Year January 1, 1967
WORLD FAMOUS CASE BALER
Case Model 220 PTO Baler $1799.00
Case Model 220 PTO Baler w/Lanncher $1999.00
Case 220 Engine Baler $2299.00
All payments and charges deferred to June 1,1967
Liberal trade-in program available
FREE with each baler
A'large holiday turkey from the famous
Esbehshade Turkey Farm and also
FREE ten bales of baler twine.
ARTHUR S. YOUNG
& CO.
* Rt. 30- East" - Kinzersr/ Pa. *» Pit/ 44^186
wmq’l —„
' vIT-Y-MIN
KINZERS, PA.
Outstanding Sales Performance .
Award 1966 from J. I. Case Co.