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