REDUCE YOUR 1980 INCOME TAX If you replace an old machine this year you may be able t 0... 3. Improve efficiency and production 4. Lower maintenance cost with a new with a new machine. machine The investment tax credit will help to re duce your Federal income fax up to 10% of the cost of buying Badger Northland equipment. Depreciation may reduce your current tax liability even more! The credit directly reduces your Federal income tax dollar foe dollar up to $25,000 and $ 60 on every dollar in excess of $25,000 Any credit which you are unable to use i n the current year may be carried back and utilized to obtain a refund of Federal income tax paid in the three previous years The remainder, if any, may be carried forward to reduce such tax in the seven succeeding years All new and used Badger Northland machines purchased and used in business or for production of income qualify for the credit (Used machines purchased are subject to $lOO,OOO investment limit per taxpayer There is no limit on new machines) The full 10% credit is available if the machine pur chased has a useful life of at least 7 years If the useful life is less, the credit is scaled down as follows Useful life Investment lax Credit 5-6 years 6-2/3% 3-4 years 3-1/3% Generally, the credit may be obtained on the total purchase price of the machine If you are trading in your old machine for a new one, some investment tax credit claimed in previous years may be recaptured GRUMEEirS FARM SERVICE SHOW-EASE STALL CO. Mechanics Grove Quarryville, PA 17566 (717)786-7318 McMILLEN BROS. ROl Loysville, PA 17047 (717)789-3961 REX RUSSEL EQUIPMENT RDI Rome, PA 18837 (717)247-7858 Take Advantage of Investment Tax Credit and Depreciation Allowance Reduce your capital investment by 2> Reduce your taxable income with claiming Investment Tax Credit an additional depreciation deduc tion for 1980 £)■ Get a higher value on your trade-in See Your Badger Northland Dealer 523 Willow Rd Lancaster, PA 17601 (717)299-2536 ROY 0. CHRISTMAN RDI Hamburg, PA 19526 (215)562-7218 JOHN BROWN RRI Forfcsville, PA 18616 (717)924-3492 Whether the machine is paid for in cash does not affect the amount of the investment tax credit If the machine is disposed of before its claimed useful life is exhausted, the credit is recomputed and may be wholly or partly recaptured A combination of the investment tax credit and depreciation could substan tially improve your cash flow. For example Assume that your joint federal income tax liability for 1980 is expected to be If you decide to purchase 2 new Badger Northland Forage Wagons for SlO 000 yourtax liability may be reduced by The investment tax credit The 20% bonus first year depreciation S 2 000x36%’ The normal double declining depreciation assuming an eight year useful life S 2 000x'?x36% Total Reduction Reauced Federal Income Tax Liability ("Assumed marginal tax rale of 36X) PIKEVILLE EQUIPMENT INC. RD2 Oley, PA 19547 (215)987-6277 LLOYD E.KREIDER RDI Cochranville, PA 19330 (215)932-4700 RALPH KETTERER Deep Run Road Perkasie. PA 18944 (215)766-8531 SlB 000 SI 000 720 360 S 2 080 SIS 920 ALLEN ZEI6LER RR 1 Lehighton, PA 18235 (717)386-4593 MECKLEY DALMATIA Box 147 Dalmatia. PA 17017 (717) 758-3021 Lancaster Farming, Saturday, November 15,1980—Cl •3 The example assumes ADR depreciation (1/2 year convention) and a calendar tax year If you are taxed on a fiscal year basis, your liability may be even less Check wtth your tax advisor to determine the exact benefits of purchasing Badger Northland machinery before December in your particular circumstances And that is not all, for you will be able to reduce your future tax liability by claiming depreciation on the remaining undepreciated cost BADGER NORTHLAND INC. KNUDHERMANSEN RD2 York Springs, PA 17372 (717)528-4762 MELVIN 6. MILLER RD2 Spring Mills, PA 16875 (814)442-8279 MARLIN W. SCHREFFLER Pitman, PA 17964 (717)648-1120 KAUKAUNA, WISCONSIN 54130 Now CECIL DAIRY SERVICE RDI Rt. 274 '/: Mi South RisincSun, MD 21911 (301) 658-6923 C. PAUL FORD & SON RT 1 Everett, PA 15537 (814) 652-2051 BUCKINGHAM'S DAIRY SUPPLIES RD 4, Box 710 Honesdale, PA 18431