—Lancaster Farming, Saturday, March 4,1978 36 Tax planning guides aired for IJAMSVILLE, Md. - Cattlemen ought to become familiar with at least three of the four methods of depreciation allowed by the Internal Revenue Service for federal income tax pur poses; they should project a planned growth pattern for their herds, and follow that plan; and they should keep a Goodwill tour returns KANSAS CITY, Mo. - A 27-member delegation of Pennsylvania agricultural leaders-led by Dennis Heisey of Leola and in cluding Mr. and Mrs. Abram R. Mummau of Manheim has just returned from a three-week People-to-People goodwill tour of Australia, New Zelan'' and the Fiji Islands. During the diplomatic travel program, delegation members met with American Embassy officials in Canberra, Australia, and with local farm, represen tatives in Sydney, Wagga and Canberra. Counterpart meetings also were held in Christchurch, Palmerston North and Hamilton, New Zealand. Purpose of the tour was to give delegation-members an opportunity to carry messages of friendship to their counterparts in the South Pacific. It also allowed them to visit typical agricultural operations, and to compare methods and procedures. The mission was an official program of People-to-People In ternational, a non-profit, non-governmental organiz ation founded in 1956 by President Dwight D. Eisenhower to promote world peace through in ternational understanding. People-to-People’s ac tivities include arranging homestays for international visitors, a letter exchange referral service, an in ternational magazine ex DID YOU LOSE A BUILDING DURING THE RECENT SNOW STORMS?. . . . .CALL MORTON BUILDINGS FORA REPLACEMENT ipF’' MORTON BUILDINGS GUARANTEES IN WRITING: 5 YEARS AGAINST SNOW AND WIND LOADS. REPLACEMENT OF MATERIAL AND LABOR. 5 YEARS PAINT WARRANTY 5 YEARS AGAINST ROOF LEAKS AND 40 . YEARS ON POSTS V. FIND OUT HOW MORTON BUILDINGS CAN OFFER SUCH A WARRANTY /NO. 1 CHOICE OF FARMERS RD 4, BOX 34A GETTYSBURG, PA 17325 Moil This Coupon or Coll (717)334-2168 cumulative total of income from cattle sales so they can make quick adjustments toward the end of each year that could vitally affect the size of their federal income tax liability. So spoke Dave Battistoni at the recent third annual Maryland Cattlemen’s change and the sponsoring of adult and high school student diplomatic travel programs. Headquarterd in Kansas City, Mo., the organization has national committees in 24 countries. Extension offers weaving class WEST CHESTER - The Chester County Extension Service of Penn State University is planning a course in weaving, to be held on Mondays, April 3,10,17, 24 from 9:30-11:30 a.m. The series will be taught at the Community Room at the Elverson National Bank, Bucktown Branch, Rt. 23, Bucktown. The course is designed for the beginner stressing basic weaves, creating effects with color, texture, and using materials you have on hand. A frame loom is used to learn the basic techniques of handweaving, to create fabrics. A small fee includes the frame loom and in structional materials. Deadline for registration is March 28, 1978. For further information contact the Extension Service 235 W. Market Street (3rd floor). West Chester, Pa. 19380 or call 215-696-3500, O send more information on MORTON Buildings I O Please have your salesman phone me for an appointment NAME ADDRESS Tofepfton* No Winter Seminar held at the Holly Hills Country Club north of Ijamsville (Frederick County) in north central Maryland. Battistoni is a cattle management advisor and co-founder of Tartan Angus Farms at Max Meadows (Wythe County) in southwest Virginia. His remarks were seconded by Dr. William E. Kunkle, Extension livestock specialist at the University of Maryland in College Park. Battistoni advised his listeners to use straight-line depreciation for old cows which might be assumed to have a remaining breeding span of two years. He declared that the 150 per cent declining balance method works better for voung cows, assuming a five-year breeding life. And he suggested using the 200 per cent double-declining balance technique for heifers with six or more years of breeding life ex pectancy. On the last two methods, he pointed out, you can still switch to straight-line depreciation for the final two years of each animal’s breeding life expectancy. Both straight-line depreciation over the ex pected life period and in vestment tax credit in the first year of ownership are good accounting tools that all farmers can use for depreciating their machinery, Battistoni remarked. Journal entries, showing birth dates and dates of sale or death, can help cattlemen pay strict attention to the rules for capital gain in come. He noted that proceeds from the sale of breeding animals are taxed at the capital gain rate if the animal is more than six months of age, or has been owned by tne seller for more than nine months. However, capital gain tax applies only to the excess of sales proceeds over cost for purchased animals. Amount of income over salvage value, but not exceeding original cost, is taxed as ordinary income - a higher tax rate. Salvage value is the value remaining after depreciation has been deducted. All of the above guidelines are based on the assumption of a cash rather than an ac crual system of accounting. B attistom warned that there is a move afoot at the federal level which would force farm operations with $1 million or more in annual gross sales to do their taxTaccounting on an accrual basis. Regarding other new developments on the federal income tax scene, he noted that the 10 per cent in vestment tax credit has been proposed by President Carter as a permanent item. 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(717)249-5338 Md. cattlemen In the 1976 the Tax Reform Pressed concern over Act came down heavy on President Carter’s proposal prepaid feed, creating a big to eliminate 50 per cent of jolt for cattle feeders. But a the federal income tax recent court decision ap- deduction for businessmen’s pears to have reversed the lunches. He pointed out that IRS ruling on this matter. such a policy, if im- Battistoni warned that the plemented, could adversely present carry-over section of affect the amount of beef the federal estate tax law consumed in restaurants could wipe out the family particularly steak, farm in two generations. But More than 100 persons bills have been introduced in fumed out for the Maryland Congress to repeal this cattlemen’s seminar, section. And he advised despite an overnight five farmers to urge their U.S. Inch snowfall in the representatives to support Frederick area. The either H.R. 1563 introduced program was planned by the by Rep. Barber B. Conable Cooperative Extension (R.-N.Y.) or H.R. 2674 in- Service at the University of troduced by Rep. Omar Maryland, with assistance Bufleson (D.-Tex.). Both from f he Maryland Cat are located in the Rayburn, tlemen’s Association and the House Office Bldg., marketing division of th£ji Washington, D.C. 20515. state Department oT Finally, Battistoni ex- Agriculture, details. ORUMELLI’S FARM SERVICE Mechanics Grove Quarryville. PA Ph.(717)786-7318 RDI Jonestown, PA Ph. (717)865-4526 LLOYD E. KREIOER ROl Cochranville.PA Ph.(215)932-4700 CM L. SHIRK RDS Lebanon, PA Ph (717)274-1436 McMILLEN BROS. RDI Loysville, PA Ph. (717)789-3961 ROY 0. CHRISTMAN v RDI, Box 119 Hamburg, PA Ph.(215)562-7218 488-1904 ,1 ' o ]
Significant historical Pennsylvania newspapers