firming, Saturday, February 10,-1978
Changes in tax credit can benefit fanners
WASHINGTON, D.C. i-
The new federal income tax
law contains several
provisions to encourage
farm and other business
owners to boost their capital
investment, according to the
USDA.
For example, any cost you
incurred after October 1978,
to rehabilitate a budding
used for production in your
business may be eligible for
a 10 per cent investment tax
credit
“There are several
qualifications,” said Charles
A. Sisson, tax analyst at the
U.S. Department of
Agriculture. “The structure
such as a hog house, barn,
horticultural facility or
general storage building -
must have been in use 20
years or more. The im
provements must have a
useful life of five years or
more. No more than 25 per
cent of the exterior walls
may have been replaced.
And the building must not
have been enlarged.”
Houses for people don’t
qualify under the investment
tax credit, Sisson said.
Neither do costs of, buying,
completing or enlarging a
building.
Sisson gave an example of
the rehabilitation credit.
“Suppose you put 84000 into
replacing partitions and
electrical wiring in a bam
that has been in use at least
20 years. You could get a
LATE MODEL DAIRY
FARM MACHINERY
AUCTION
PIPELINE-TANK
LIKE NEW FARM MACHINERY
WEDNESDAY, FEBRUARY 21
At 12:00 Noon
For Crown Tree Dairy
(The former Hideway Farm)
Located on Huntsville Rd., off Rt. 611 which is
off Rt. 206 at Springdale, NJ. 3 mi. South of
Newton, N.J. 3 mi. North of Andover, NJ. Ar
rows posted from Rt. 206. Blizzard date Fri.,
Feb. 23,1979 at 12 Noon. Almost ail Equipment
purchased new within 2 years!
12 Noon - only 15 min. worth of small items! 12:15 Barn
Equipment - Mueller 800 gal. Bulk Tank OH 800
w/complete Fre Heater set up, holds 7310 lbs., Mueller
matic tank washer. Surge 45 cow Stainless Steel 2”
pipeline w/4 units, 6 unit pump, automatic washing
system, 4 ft. stalls. Pacemaker 80 gal. HWH. Patz 45
cow barn cleaner w/elevator (runs dock wise). Patz 16
or 18 ft. silo unloader 1 yr. cld, 55 Jamesway stanchens,
32 water cups. 2 surge buckets. 1 P.M. Tractors - Ford
8600 DL sun roof W.F. loaded like new 650 hr., Ford 7600
DL, 450 hrs., like new, Ford 4100 DL utility roll bar
loaded A-l low hrs., John Deere 450 DL Crawler Dozer
w/angle blade. The Following Ford Machinery - Ford
#230 10’ hyd. disc, heavy duty, Ford front end loader,
hyd., #354 plateless 4 row com planter w/Oliver 5400
airless planter attc. set up for liq. and has disc openers
and electronic DJ, #l4O - 4 btm 16” semi mtd auto reset
plow, #542 hay baler w/PTO kicker, 5 bar hay rake,
#6lB PTO hopper blower, 2 sets 50 ft. blower pipe, 3
sect, springtooth harrow.
Other Makes - Hesston 7020 forage chopper w/1 row
com and haylage hds. (hyd. sharpener), Hesston PT 7
7 ft. haybme, N.H. #3B flail chopper, Bnlhon 8 ft. seeder
packer, N.I. 125 bu. PTO manure spreader (single
beater w/pan), 2-18 ft. factor kicker hay wagons on 10T
gear, 2 - Lamco chuck wagons, Hasten chuck wagon.
Century field Sprayer w/electromc control, 2 Chevy
cars, 10 ton of bagged 15-15-15 Fertilizer and 800 gal. of
hq. 9-18-9 and 10-10-10. Attention - Mostly all equipment
is in like new condition, kept under cover, and purchas
ed new within 2 years. This sale offers a tremendous
opportunity to hedge the rising inflation! No Lunch
counter!
Terms: Cash or Good Check with Identification Paid in
Owner
CROWN TREE DAIRY
201-383-8644
Sale Conducted by:
Col. Fred R. Daniel Auctioneers, Inc
NeshanicSta., NJ. 201-369-4784
$4OO credit against yopr
taxes.”
Sisson said farmers should
check with a tax advisor or
the local Internal Revenue
Service office for answers to
questions about whether a
specific improvement on a
farm building would qualify
for the credit.
There also is a new in
vestment tax credit for new
construction. It specifically
is for buildings such as
greenhouses, swine con
finement buddings, milking
parlors, poultry houses and
other facilities to produce
milk, feeder cattle, pigs,
broiler chickens or eggs, or
to breed hogs, cattle or
chickens.
IRS rules say that to
qualify for the credit,
greenhouses must be
specifically designed, built
and used for commercial
production of plants.
A structure must be used
only for qualifying purposes.
If part of a building were
used for storing feed or
equipment, for example, the
IRS could disqualify it for
the tax credit. And if the
building were later con
verted to some
nonqualifying use, IRS could
recapture the credit granted
earlier.
This credit was made
retroactive to August 15,
1971. However, IRS
regulations allow you to file
an amended tax return no
Full Sale Day!
more than three years after
the deadline or two yearn
after you paid your tax,
whichever is later. But if you
happened to have an “open
year” after 1971 because of a
dispute with IRS and had
waived your statute of
limitations, you might still
claim a refimd even if it
occurred more than two
years ago.
The new tax law retains
the 10 per cent investment
tax credit rate for purchases'
of either new or used
production machinery or
equipment. The rate had
been scheduled to drop.
’’’he credit - to be deducted
from your tax liability, not
your income - is based on
your investment cost or the
qualifying portion of it.
The limit on the cost of
used equipment for which a
deduction could be made is
$lOO,OOO for a single year.
This means a maximum
credit on your tax liability of
$lO,OOO - 10 per cent of
$lOO,OOO.
The limit on tax credit
allowed for the cost of
buying new as compared
with old equipment, for the
1978 tax year, is either (1)
your tax liability or (2)
$25,000 plus 50 per cent of
your tax liability over $25,000
whichever is smaller.
For a tax year ending in
1979, the percentage of tax
liability over $25,000 that can
PUBLIC SALE
FULL LINE OF HORSE DRAWN
FARM MACHINERY - MULES
HAY-INI. 806 DIESEL
THURSDAY, FEBRUARY 22
9:30 A.M.
Located-in the Village of Springville, Lane.
Co., PA. 5 miles South-East of New Holland, 1
mile North-West White Horse along the
Peters Road. Take Rt. 340 to Rt. 897 North half
mile to sale.
LIVESTOCK WELL MATED MULES
4 pair Sorrel mules, 1 pr. 3 years old, 1 pr. 6 years old,
1 pr. 7 years old, 1 pr. 9 years old, all well broke,
upstanding mules; Shetland driving pony.
Farm Machinery
International 806 diesel, wide front, 1,000 and 540
P.T.0., A-l cond. on steel; 600 Gehl recutter with
screens, P.T.0., hopper for high moisture com, self
sharpening; McCormick Deering com binder with
loader; 2 bottom Radez 14” trailer plow, plow master
John Deere 24 disc transport disc harrow; 3 section
John Deere spring tooth harrow; 9’ cultipacker; 8’ log
field roller; New Idea 7’ cutditioner with 58 h.p A''
motor; 7’ John Deere bar mower with 7 h.p. Briggs
engine, hyd. controls; New Idea 751 hay crimper,
mounted Wisconsin engine, clutch reduction, like new;
New Holland 56 hay rake; International 430 baler, A-l
cond.; 24 ft. bale elevator; 3 flatbed wagons, wide
tread; BrillionSft. alfalfa seeder; McCormick Deering
2 row com planter with fertilizer and herbicide attach
ment; New Holland 3231 row com picker with mounted
John Deere power unit; 2 grain bin wagons; Farmec
and McCurdy; com drag with hyd. motor; Farmhand
com burr for high moisture corn, P.T.0.; 1 row McCor
mick Deering cultivator; 3 fore tracks; 3 pt. post hole
digger; 50 ft. 9” silo pipe; 4 set heavy harness; collars;
bridles; single, double, triple, 4 horse trees; 2 wagon
load small items sold first.
1 horse sleigh; bob sled; breaking cart; pony cart
and harness; Lincoln 225 amp. portable welder;
acetylene torch complete'; full line shop tools. 2 - 300
gallon fuel tanks and pumps; approx. 50 ton alfalfa
hay; approx. 50 ton com fodder.
Antiques - Household Goods
Old cloth cupboard; 2 dressers with dove tailed
drawers, very nice; old night stand; wash stand; old
crib; side by side desk; box lots; books; 3 sofas, 1 like
new.
TERMS BY
CHRIST F. & SARAH S. BEILER
AUCTIONEER:
Steve Petersheim - 215-869-2508
LUNCH BY SPRING GARDEN SCHOOL
AUCTIONEER’S NOTE:
Gavel falls on well maintained equipment
be offset by the credit rises
to 60 per cent. And then it
increases by 10 percentage
points until it reaches a
maximum of 90 per cent in
1982 and after.
“Although a tax credit
may not exceed your
liability,” Sisson said, “a
credit exceeding the limit for
one year may be carried
back to the preceding three
years. And any balance still
unused in those three years
can be carried'forward as
much as seven years in the
future.
“To qualify for the in
vestment tax credit, your
property must be
depreciable and used in your
business, and have a useful
life of at least three years.”
Fences used in production
qualify for full credit, since
they have a useful life of 10
years or more.
Sisson gave this example
from IRS rulings on how
“Fanner Green” computes
his tax for 1978, assuming he
bought a used farm tractor,
three cows for milking and a
bull for breeding. Thetractor
cost $3OOO and has a “useful
life” of four years. Each cow
cost $6OO, still has a useful
life of five years, and had not
been used for dairying. (IRS
says a cow generally has a
useful life of seven years;
these animals were not
(Turn to Page 141)
PUBLIC SALE
OF REAL ESTATE
SATURDAY, FEBRUARY 24
AT 10:00 A.M.
The undersigned will offer at Public Sale at
the Courthouse, Chambersburg, Franklin
Count/, Pennsylvania, the following:
A desirable farm located in Hamilton Township on
Legislative Route 28039,4 miles from Chambersburg,
107 acres of shale and creek bottom land, 90 acres
tillable. 322.7 feet frontage on Ft. McCord Road,
bounded by Clyde Burkholder, Ft. McCord Road, Dean
Meyers, Archie Lehman and other land of the Sellers.
Back creek flows through the farm. Approximately 1
milp of Creosoted post 5 wire fence around the pasture.
An 8 room brick house with full attic, full basement,
white baked on paint on metal roof, guaranteed 25
years. Attic floor insulated. Oil fired hot water heat.
Storm windows.- AUemen built-in kitchen with
automatic dishwasher and 30” double oven. “Classic”
electric stove. Wall to wall carpet Ist and 2nd floors.
Utility room on first floor and storage room on 2nd
floor. 16x20 concrete Mock washhouse, with kettle
furnace installed, attached to house.
A 76 ft. s 100 ft. framebarn, built in 1975. White paint
baked on metal roof, all single sheets 36 feet long and 12
sky lights, all 2”x 8” rafters and frame. Ist floor has 80
foot drag feeder, concrete block wall and feeder pens.
2nd floor is clear span with no posts, adjacent to the
bam is 3 older tile silos. This bam is used for a cattle
feeding operation, by adding a milking parlor, it could
have a fine dairy set up.
Other buildings include 6 car concrete block garage
22’x60 1 with two 10 foot overhead doors and four 8 foot
overhead doors. 20 ft. x 40 ft. concrete block shop with
coal furnace and, loft. Round concrete block 12 ft.
poultry house.
TERMS: 5% down. Balance on March 30,1979. Other
terms made known day of sale. For information: call
Glenn D. Dice at 263-3239.
j. Robert Meyers, Auct.
Smith & Alleman, Clerks
J. Glenn Benedict, Attorney
ON THE FARM
MONTHLY BRED GILT
SALE
FRIDAY, FEBRUARY 23
Sale to start promptly at
1:00 every 4 weeks.
Located 18 mi. South of Lancaster, Pa., 6 mi.
South of Quarryviile, take 272 to Little Britain,
turn North, follow Little Britain Rd. to Jackson
Rd., turn East, second farm, or take 222 out of
Quarryviile to Ceder Hill Rd. to Little Britain Rd.
to Jackson Rd. Watch for sale arrows. .
50 HEAD 50
(More or Less)
2x3 way cross bred gilts,
York & Hampshire & Duroc.
This sale consisting of 25-3 way cross bred gilts
(parent stock, Wayne Better Bilt Gilts that came in out
of the West) York & Hampshire & Duroc cross. These
gilts are sired by purebred duroc, bred to purebred
York. Looking for Better Stock? Need replacements &
adding on or just starting in? Here is an opportunity to
buy Better BUt Gilts (acclimated) due to farrow from 3
days to 4 weeks after sale date. These gilts have size &
quality to suit most any buyer. If you are in need of
bred gilts plan to attend this sale. They’ll be ready,
some will be dose.
Same time & place, 25 head (more or less) 2 & 3 way
cross. Direct offspring from gilts purchased from
Mark Nestleroth well known hog breeder from
Manheim & a few from Willow Glen. These gilts are
sired by purebred duroc also from Nestleroth stock and
bred to purebred Hampshire from Franklin Feeser,
Md. Due to farrow from 3 days to 3 or 4 weeks after sale
date.
Everything vaccinated for erysipelas, wormed &
sprayed for lice. Trackers Available.
Owner
JOHN B. STOLTZFUS
Abe Diffenbach - Auctioneer
NEXT SALE DATES - March 23 & April 20
GLEN D. DICE &
CATHERINE M. DICE,
Owners
Owner
CHRIST A. BEILER
R.D.2
Quarryviile, Pa.