6—Lancaster Farming. Saturday, December 19,1970
Tax Advice Given to Two Local Young Farmers Chapters
Year-end meetings to assist
in planning and prepaiation of
the 1970 Income Tax return
were held by two Young Farm
er oigamzations this week
Richard Denison, manager,
Pennsylvania Farm Manage
ment and Business Analysis
Service of the Pennsylvania
Farmers Association spoke to
both the Manheim and Garden
Spot Young Farmer Chapters
Among the advice Denison
gave was the following:
Avoid wide fluctuations in in
come from year to year.
Total for the year to date all
expenditures and incomes at
the end of October to get a pre
limmaiy idea of the yeai’s in
come picture Then buy ahead
or delay purchases of feed,
seed, feitilizer and machinery
to help maintain a stable in
come He noted that while pay
ment must be made in the year
for which the tax deduction is
claimed, delivery of merchan
dise can be made in a seperate
year
Livestock faimers should stay
aleit to the year end market
Selling the last week in Decern
her can be just as good a mar
ket as the first week in January
or,vice versa, depending on the
year the income is desired
Review the depreciation sche
dules each year to be suie that
all depieciable items, such as
buildings, fences, tile drain
lines, wells, dairy equipment,
breeding stock, machinery, are
included Even the garden trac
tor, if used around the bam,
can be deducted for that por
->
tion or percentage used for the
farm
Ways to decrease taxable in
come- Pay children up to $1,700
salary each - year, before .they
have to repoit an income: make
deposits up to-10 per .cent of
income or up to $2,500 in re
tirement plans through an ap
proved insurance plan >
Don’t forget to deduct such
items as; dues to agricultural
organizations,. magazine sub
scriptions, phone for business
use, office space in the home,
and business travel
On charitable contributions,
the limit has been increased
- May the peace and happiness of Christmas
be yours today and each hour of the Yule Season.
YOUR RED ROSE FEED DEALER
Walter Binkley & Son Heistand Bros.
Lititz Elizabethtown
Brown & Rea, Inc.
Atglen
Elverson Supply Co.
Elverson
L. T. Geib Estate
Manheim
I. B. Graybill & Son
Strasburg
E. Musser Heisey & Son
K D #2, Mt Joy, Pa
from 30 to 50 per cent Gifts of'
appreciated property are allow
ed under the new rules.
The holding period for capi
tal gains on cattle and horses
acquired after 1969 has been in
creased to two years.
The involuntary conversion
replacement period was extend
ed to the second year following
conversion.
The real estate depreciation
rules have been changed to al
low farmers with straight line
depreciation to have the option
of a 150 per cent declining bal
ance depreciation on new build
ings.
All real estate depreciation
Red Rose Farm Musser Farms, Inc.
Service, Inc. Columbia
N Church St, Quarryville
David B. Hurst
Bowmans ville
G. R. Mitchell, Inc.
Reftoir, Pa.
Mountvilie Feed Service
Mountvilie
in excess over straight line after
1969 is subject to recapture.
Land clearing and soil and
water conservation expenses
can be recaptured if land; is sold
within 10 years.
Farm loss is limited to $25,000
as an offset to non-farm income.’
Crop insurance proceeds-anay,
be reported in the year the crop'
would normally be sold. !
Investment credit carryover
is limited to 20 per cent of 1968
plus all of 1969 carryover. i
Five per cent penalty plus six
per cent interest will be charg
ed for failure to make deposits
and pay tax.
A
* /
Musser's Mill
The Buck
Chas. E. Sauder & Sons
Terre Hill
Ammon E. Shelly
Lititz
E. P. Spotts, Inc.
Honey Brook
H. M. Stauffer & Sons,
Inc.
Witmer
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