—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.
The Badger BN -103 Pump/
Agitator will put-agitate...
out-pump...and out-last any
other pit pump/agitator on the
market today! It can fill a 3000
gallon tank in less than a
minute! And the BN 103 is built
to keep running hour after
hour... inthe heaviest material.
The BN 103 is “super-charged”
by special external cutter
blades that force more mate
rial into the impeller...for a
smoother, more uniform flow.
See your Badger dealer for
complete details on the BN 103
Pump/Agitator... THE CAPACITY
LEADER!
See your Badger
Dealer for complete
SHOW-EASE STALL CO.
523 Willow Rd.
Lancaster. PA
Ph.(717)299-2536
CECIL DAIRY SERVICE PIKEVILLE
rd i Rt 274 EQUIPMENT INC.
Vz Mi South Rising Sun, MD rq2
Ph (301)658-6923 oiey, PA
Ph.(215)987-6277
LF.
PETERMAN A.C.HEISEV
FARM EfIUIPMEMT, INC. FARM EDUIFMENT INC.
225 York Road
Carlisle, PA
Ph. (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 ]