REDUCE YOUR 1980 INCOME TAX
If you replace an old machine this year you may be able t 0...
8b improve efficiency and production 4b Lower maintenance cost with a new
with a new machine machine
©
The investment tax credit will help to re
duce your Federal income tax 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 for dollar up to $25 000 and $ oO on every
dollar m excess of $25,000 Any credit which you
are unable to use in 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 tor 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 fult 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 tax 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
GRUMELLi’S 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
Reduce your capital investment bv 2. Reduce your taxable income with
claiming Investment Tax Credit an additional depreciation deduc
tion tor 1980
£)■ Get a higher value on your trade-in
\ / \liisil
See Your Badger Northland Dealer
523 Willow Rd
Lancaster, PA 17601
(717)299-2536
ROY 0. CHRISTMAN
RD 1
Hamburg, PA 19526
(215)562-7218
JOHN BROWN
RR 1
Forksville, PA 18616
(717)924-3492
Take Advantage of Investment Tax Credit and Depreciation Allowance
* 1
6 'i
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's recomputed
and may be wholly or partly recaptured
A combination of the investment tax
credit and depreciation could substan
tially improve your cash flow.
<-ynmniC'
assume tic' ,ourjc^trede r a
income fa* liability for
''OSO is expected to be
if ,ou decide to purchase 2 ne-v
Badger Northland Forage Wagons for
ycurta< liability may
oe reducea by
The investment
tax credit
The 20% bonus trst
year depreciation
52000x36%’
The normal double
declining depreciation
assuming an eight
year useful life
32 000 x - x 36%
Total Reduction
Reduced Federal Income
Tax Liability
(‘Assumed marginal tax rale of 36%)
RALPH KETTERER
Deep Run Road
Perkasie. PA 18944
(215) 766-8531
K
-*=s;
5t
—i
000
720
360
PIKEVILLE EQUIPMENT INC
RO2
Oley. PA 19547
(215)987-6277
LLOYD E.KREIOER
RDI
Cochranvilie, PA 19330
(215)932-4700
" m
(fei
_ ,>:JL
**
’SOOO
s 2 080
515920
KNUD HERMANSEN
RD2
York Springs, PA 17372
<717)528-4762
MELVIN G. MILLER
RD2
Spring Mills, PA 16875
(814)442-8279
ALLEN ZEIGLER MARLIN W. SCHREFFLER
RRI
Lehighton, PA 18235
(717)386-4593
Lancaster Farming, Saturday, December 6,1980—C7
Ti,ff
/
Cii>
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 with your fax 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 bv claiming depreciation on
Ihe remaining undepreciated cost
BADGER NORTHLAND INC.
KAUKAUNA WISCONSIN
54130
Now
RDI Rt 274
>/:Mi South Rising Sun, MD 21911
(301)658-6923
Pitman, PA 17964
(717)648-1120
CECIL DAIRY SERVICE
C. PAUL FORD & SON
RT 1
Everett, PA 15537
(814)652-2051
BUCKINGHAM’S
DAIRY SUPPLIES
RD 4. Box 710
Honesdale, PA 18431