Al6—Lancaster Farming, Saturday, December 20,1980
Give yourself a tax break with year-end planning
PHILADELPHIA - From
a tax point of view, this is the
time of the year to get down
to basics. The right steps
now can save you from
paying unnecessary
business and personal in
come taxes that according to
Robert J. Hilly, CPA,
President of the Penn
sylvania Institute of Cer
tified Public Accountants,
often inflate your tax bill.
Between now and
December 31, you can
arrange your financial af
fairs, either to increase or
retard your 1980 taxable
income depending upon
which would serve your
advantage.
CPAs suggest you ask
yourself these questions:
Am I eligible for income
averaging if I made much
more money this year than
in the previous four?
Could I take advantage of
income averaging by
Maryland DHIC to meet
NORTH EAST, Md. - The
28th Annual Meeting of the
Maryland Dairy Herd Im
provement Corp. will take
place on Wednesday,
January 7, 1981 at Sandy
Cove Morning Cheer in
North East (Cecil County),
Maryland.
The meeting will begin at
10:30 A.M.
Following a brief business
meeting, the DHI Super
DECEMBER SPECIALS
10% OFF THE FOLLOWING JET HEMS
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JSV-4H
VISE
Reg. $119.00
NOW *lO7 10
1 Ton
HOIST
10’ Lift
Reg. $119.00
NOW
*lO7 10
MAKITA POWER TOOLS - 10% OFF Instock
50078
CIRCULAR
SAW
now s l2o°°
CALL US FOR ALL YOUR TOOL NEEDS
BLUE BALL MACHINE WORKS
Box 716, Rt. 322
cashing in a substantial
amount of certain savings
bonds?
Can I shift a capital gain
into 1981 by making a short
sale on my stock now, and
delivering it next year?
Can I still make any
energy-saving im
provements on my home
which would entitle me to
tax credit?
Can I accelerate my
deductions by paying real
estate or other taxes this
year instead of next?
Would additional medical
or charitable deducations be
better this year or next?
If you own the farm
business, there are still more
tax breaks to consider.
Suppose after computing
your 1980 income you
suspect you might save
money by shifting some
income into 1981. Here are
some options.
visors will be awarded their
Incentive Pay. Lunch will be
a buffet of fried oysters, ham
and roast beef with all the
fnans’, plus dessert. Plan to
join your neighbors for fun,
food, and fellowship.
After lunch, the VIP
program and the somatic
cell count program will be
discussed, and farmers will
have a chance to get some of
their questions answered.
J JTS-10
TABLE SAW
Reg. $559.00
NOW *5O3 10
km
FS-125
5" AIR
SANDER
Reg. $69.50
NOW $ 62 55
43008 V
JIG SAW
now $ 142 20
Blue Ball, PA 17506 717-354-4478
If you are on a cash basis
you can readily defer in
come. To an extent, you can
hold off billing customers
until next year or until so
late in December that no
payment is likely in 1980.
Income generally must be
received to be reported, so if
you want to defer income, be
sure it has not been received.
If you are an accrual basis
taxpayer, you may be able to
postpone completion of a job
until 1981 so the right to
income arises then, even
though most of the actual
work is done in 1980.
Also, hold up deliveries
that will defer income, and
not inconvenience
customers.
Step up certain deductions
to lower 1960 income by
paying all your bills now and
by paying some expenses
which would normally be
incurred next year. For
instance, you may want to
stock up on supplies for next
year and pay for them now.
Or, you may want to sell at a
loss all items which aren’t
moving.
If you buy equipment on
the last day of the taxable
year and put it into use that
day, you can take a full 20
percent first-year
depreciation on your tax
return in addition to other
depreciations for which you
qualify.
This bonus depreciation is
NOW THRU
DEC. 31
JBS-14
BAND
SAW
With Motor
Reg. $449.00
NOW
*4O4 10
.
OS-230
ORBITAL
SANDER
Reg. $79.50
NOW *7l 55
limited to $lO,OOO of cost
$20,000 if a joint return is
filed each year on
equipment with at least a
six-year useful life.
(Whether or not you qualify
may depend on your ac
counting method, so check
FARM - URBAN - COMMERCIAL BUILDINGS
SPECIALIZING IN COMPLETE SYSTEMS FOR HOG AND DAIRY
AUTHORIZED DISTRIBUTOR
SCHULO BULK FEED BINS AND
MECHANICAL FEEDING SYSTEMS
From 3 Ton to 125 Ton Capacity
• Factory Built
• Factory Delivered
• Factory Erected f
Dealer for GINGWAY FREE STALLS
• High Pitch Top
• 60° Center Draw
MERVIN MILLER
★ SALES & SERVICE ★ BUILDERS OF FINE SYSTEMS
7 KEENER ROAD, LITITZ, PA 17543 717-626-5204
&
The miracle of the Holy Birth • . •
| the inspiration of the Star. . .
I the adoration of the Wise Men . . .
| the legacy of Love.
5 May these joys and treasures be yours at Christmas.
| Thanks for your good will.
| rayoßi
r
with your tax advisor. )
Some business property
which qualifies for the
regular 10 percent in
vestment credit may also
qualify for an energy credit,
giving you a double tax
credit of up to 25 percent.
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Meuj Holland Pa.
CPAs say.
Any unused credits can be
carried back and carried
over, so consider taking
advantage of the credit as
soon as possible by investing
in such property before the
end of the year.
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