Bl4—Lancaster Fanning, Saturday, October 31,1981
what’s
(First of three articles on how the
new federal tax law affects
agriculture)
NEWARK, Del. The new tax
law has something for everyone
and farmers are no exception, says
University of Delaware Extension
farm management specialist Don
Tilmon.
If you’re a farmer, there are a
number of changes you’ll want to
consider in managing this year’s
taxable income. These include the
individual rate reduction,
maximum tax rate on capital
gams, and accelerated cost
recovery system.
Tax rates under the new law will
be reduced by a cumulative total of
23 percent by 1984. One and a
quarter percent of the cut comes in
1981. The reduction builds to 10
percent in 1982,19 percent in 1983,
and reaches the full 23 percent in
1984. Farmers who are able to
defer income or advance expenses
will be in a unique position to take
advantage of this tax break, says
Tihnon.
Taxpayers who have a large
amount of capital gains—and this
includes farmers who may have
sold a herd, a timber stand, or even
the whole farm—will get a real
break if their sale came after June
9, 1981. The maximum long-term
capital gains rate for sales after
that date is 20 percent. This means
there's no need to delay capital
sales to take advantage of the
individual tax rate reductions in
1982-84.
“Accelerated Cost Recovery” is
Capon round-up set
HONESDALE - The Wayne
County 4-H Capon Round-up will be
held November 4, at the Pleasant
Valley Grange in Dyberry.
Thirty-one 4-H capon members
will be participating in this yearly
event. Each of these 4-H members
will be exhibiting two of their best
dressed capons.
Herb Jordan, Extension poultry
specialist at Penn State will serve
as judge for the round-up.
Four-H members will bring their
dressed capons to the Pleasant
Valley Grange between 6:30 p.m.
and 7:30 p.m. for judging. At 8:00
Lansdale to start 4-H club
LANSDALE Boys and girls
age 8-16 are invited to join the new
4-H Club in Lansdale which will
meet at the Montgomery County 4-
H Center, off Route 363, near
Lansdale.
This fall four different projects
will be offered; arts and crafts,
foods and nutrition, pet care, and
electronics. Arts and crafts will be
taught by Karen Feldman and
Michelle Wilsey and will meet.once
a month, beginning on Monday,
November 9 from 4-5:30. It is open
to boys and girls ages 8-11 years
old. Participants are asked to
bring a piece of poster board or oak
tag to the first meeting.
Foods and nutrition will be
taught by Nancy Adamek and
Bridget Faulkner and it is open to
boys and girls ages 8-12. The cost
for materials used in this project
will be f 5 per person, for the entire
program. Foods will meet for
seven Thursdays, beginning on
Thursday, November 5 from 7:30-
8:30 p.m. and ending on December
17.
Pet care, taught by Colleen
Kinsky and Kelly Croissitte is open
to all boys and girls 8-13 and will
meet on the 2nd Tuesday of each
month, beginning on November 10
from 7;30-9:00 p.m.
Electronics, magnets and
motors, taught by Richard
The
new tax law,
the new name for depreciation. But
it’s more than a name—it’s a whole
new system, says the economist.
“Like it or not, it’s the new method
that must be used for recovering
costs of machinery, equipment,
and other formerly depreciable
capital items.” It applies to all
such purchases placed in service
any time after 1980.
“As far as 1981 purchases are
concerned,” he says,
“depreciation is out, cost recovery
ism.”
Cost recovery has been billed as
a simpler, speedier system for
recovering the cost of capital
purchases. “It would be easy to
say that’s not so. But the facts are,
it’s only partly correct,” says
Tilmon.
Farmers who want the largest
possible deduction in 1981 could
have received more under the old
depreciation methods.
“Those who prefer to depreciate
their property very conservatively
will recover costs faster than they
care to, unless they exercise a
special election,” he says.
And it isn’t likely that many
farmers will recognize the change
as a simplification, since all
depreciable property acquired
prior to 1981 must continue to be
depreciated. The remaining cost of
these items can't be recovered as
an ACRS deduction. Thus, farmers
will have both methods to contend
with until all machines,
depreciable livestock, buildings,
and the like have been replaced.
In a nutshell, the new system
p.m., the capon round-up program
will begin followed by presentation
of awards. An auction of all 4-H
capons'&ill be conducted after the
completion of the program.
A total of 2500 capons were
raised as 4-H projects by the thirty
one 4-H capon members. These
birds were put on feed in late May
as day old chicks and have reached
dressed weights of between eight
and eleven pounds in about twenty
weeks.
The public is invited to attend the
round-up to see the results of the 4-
H’ers work.
Adamek, a local electrical
engineer, is open to girls and boys
ages 12-16. The program will fea
ture hands-on learning in electric
safety, electro-magnetics, electric
motors and power generation, as
well as a field trip to a local power
generating station. The group will
meet for four sessions, November
5,12 (or 19th), December 3 and 17
and the field trip on December 19.
The cost will be $8 per person to
cover the cost of materials needed.
In addition to individual project
meetings, the entire club will meet
once a month for special programs
and a business meeting. The first
••community” meeting will be on
Thursday, December 3 at 7:30 p.m.
Parents are asked to attend the
first ‘*project” meeting and
"community” meeting with their
youngster and are encouraged to
attend any of the other meetings as
well, as additional assistance is
always needed with projects. In
addition, an organization leader is
being sought to organize the club.
You need not be experienced or
want to teach a project, just like to
be an organizer!!
Registration is necessary to join
this 4-H Club and will be limited on
a first call - first serve basis. To
register or for more information
call Helame Brown, 4-H Agent, at
277-0574
it for farmers?
groups property into four classes.
Machinery, equipment, livestock,
fences, silos, and single-purpose
livestock or horticultural struc
tures which qualify for investment
credit all fall into a 5-year class.
For years 1981-84,15 percent of the
cost of these items will be
recovered in the first year they’re
placed in service. It doesn’t matter
whether they are purchased in
January or December. Twenty-two
percent of their costs will be
recovered in their second year and
21 percent during each of the next
three years.
The same kind of property
purchased in 1985 has a different
scale of cost-recovery per
centages, explains the economist.
In 1986 and after, a third scale of
percentages applies. The other
three classes of property—3 year,
10-year and 15-year property
each has its own three scales of
recovery percentages.
Three-year property must in
clude light trucks and the business
share of your automobile. Ten
year property includes
"residential, manufactured
homes." Perhaps this will cover
the trailer used to house hired help.
Fifteen-year property includes
toolsheds, tenant houses, barns,
and other buildings which are not
single-purpose agricultural or
horticultural structures.
Taxpayers who are eager to
recover capital costs at a rapid
rate year after year will probably
learn to like this new cost-recovery
system. But the majority of farmer
taxpayers would probably prefer
the greater flexibility, relative
simplicity and generally slower
capital cost recovery of the
depreciation methods ACRS
replaces.
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County
Heather Staubach crowns Joyce Markey, left, the new
1981-82 York County Apple Queen.
YORK Joyce Markey, Indian
Rock Dam Road, York, was
crowned 1981-1982 York County
Apple Queen during a meeting
of the York County Fruit Growers’
Association, October 9.
Markey was crowned by Heather
Staubach, the current York County
Apple Queen, who is also the
reigning Pennsylvania State Apple
Queen.
Miss Markey will represent the
York County Fruit Growers’
Association in civic meetings, mall
promotions, and other gatherings.
Her job is to promote York County
apples and educate people about
the apple industry.
Markey is the daughter of
Ronald and Carolyn Markey of
Ken-Mar Farms. She has worked
ELECTRIC
CONTRACT
C. M* HIGH CO.
Itate Zip
.Phone
York crowns new
apple queen
FABRIC
OUTLET
STORE»
TRAVIS MILLS
Further
DRASTICALLY
REDUCING
ALL PRICES
for
CLEARANCE
I TRAVIS MILLS
I FABRIC OUTLET
' STORE
W. Lincoln Ave.
Lititz, PA 17543
Cash Sates Only
Store Hours: Mon-Sat. 9 to 5, Thursday 9 to 8
in the family orchard picking
apples and in the family’s fresh
produce stand, selling apples, in
Central and Eastern Markets.
Markey is employed by AAA’s in
the Emergency Road Service
Department. She is a 1981 graduate
of Oaiiastown High School where
she was active in the speech team,
Concert Choir, and musical
productions. She participants in
the York chorus. In addition, she is
a member of the adult choir and
director of the junior choir of
Christ Lutheran Church in Spry.
Markey is available, to speak to
civic and other groups about all
aspects of the apple industry. Ahjr
interested group may contact
Deborah Barton, Apple Queen
Committee chairman, at 993-2494.