Farmers can find worthwhile benefits
o
KANSAS CITY, Mo. The
Economic Recovery Tax Act,
which will mean lower taxes for An area of general interest
everyone, also holds extremely which will impact the farmer
important opportunities for the favorably is the increased ceiling
nation’s farmers who are more on the amount of money the self
than ever concerned with the employed farm operator will be
necessity of solid tax planning able to contribute to Individual
strategy. 'f '' t Retirement Accounts which are
Look for tax 'htseaks, .say tax currently tax-free to $1,500. The
specialists fromH&R Block, Inc.,' allowable amount, effective
in areas including estate tax January 1, will be $2,000,,0r $2,250
regulations, lowered corporate.tax forjspousal accounts (accounts for
rates, investment tax creditsrand families with one working and one
equipment and vehicle spouse)- Also m
deprecitation. Most dramatic are “ creased*, are maximum total
the changes forthcoming in estate' contributions, which . will be
taxation, whereby taxes, will be . $15,000, up from $7,500, for self
completely eliminated for ; estates employed (Keogh) Retirement
up to $600,000 m value a critical Plans. ■ ,
plus for families owning farms. Farraeni will also be positively
“While the effects of any one of affectedby new rules, regarding
these cuts may not be as much as ■ depreciation ‘ write-offs, which
hoped, they will become.; isftould.be 'generally favorable to
meaningful to today’s farmer, fanners,
whether large- or small-scale, , .'As a’result, points out Bloch, the
when considered with the general farmer will benefit from'taking a
tax cuts such as the 26 percent 'dose' look at those tax op
reduction of rates over the next portiimties which have been made
two and a half years,” says available .through the Accelerated
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Thomas A, Blochs president, tax
operations, H & R Block, Inc.
Truck Size Tarpaulins
Tpearn the largest cash profit
in our corporate history-,
GOODYEAR TarpaulinMJg..
Inc. is &uthori7cd to dispose of
$9,000,000 (nine million dol
lars) of heavy duty truck
si/c and will ship the
si/es"below reader who
secs and this publi
cation-by 3O for
the appropriate suni s $3
handling for each tarp ordered
Each tarp lot tt (Z lB PVC') is
constructed from high density
material nylon reinforced,
double strtched rope hems
Scams arc electronically wel
ded (1009 f) waterproof ‘/V’dia
brass grommets set on 3 ft cen
ters with triangular rcmfcTrce-
TOLL FREE (800) 421-5734
Call 7 Days Til Midnight
Have credit card ready
♦8 x 10
12 x 16
10 x 20
12 x 24
16 x 20
20 x 20
18 x 24
20 x 24
12 x 46
18 x 32
20 x 30
ji’-
t (
(This is noj a misprint)
SQOO
"';fFh«>e tarpaulins are suitable
for most all bulk and pallet rid
ing materials Should you wish
to return your tarps you may do
so and receive a fpll refund No
orders accepted after midnight
Nov 30 There will be a limit of
50 tarps per address. You may
call toll free and charge orders
to major credit cards, or mail
this entire original notice with
your name. Ship to address, tel
ft and the appropriate sum plus
$3 handling and crating for
each tarp ordered
26 x 26
14 x 48
26 x 28
20 x4O
24 x 36
20 x 50
26 x 40
26 x 55
30 x 60
50 x 100
60 x 120
50 x 150 699.00
9.00
19.00
21.00
27.00
29.00
33.00
35.00
39.00
49.00
53.00
55.00
Al I PRICES FOB LA OR PREPAID ON $750 OR MORE
in 1981
Cost Recovery System.
Sometimes referred to as “10-5-
3,” the legislation establishes new,
clearly outlined recovery periods
for eligible categories of buildings,
equipment and vehicles, along
With longer 15-year periods for
certain real estate holdings. This
system will replace the current
“useful life’* 'method of
. depreciation.
- With each recovery period are
delineated specific percentage
tables. The effective rate for assets
placed into use in years 1961
through 1984 is 130 percent
declining balance, switching to
straight-lme to take maximum
advantage of the deduction.
In 1985, this rate will increase to
175 percent, with another increase
in 1986 to 200 percent. Those who
will not benefit or who do not wish
to use an accelerated writeoff will
be allowed to use a straight line
writeoff over the specified
recovery period or over a longer
specified period.
• Three-year property is
defined as cars, light trucks, and
mcnt patchs in the corners
$5O 00 credit card minimum
GOODYEAR Tarp Mfg., Inc.
4107 Broadway South
l.os Angeles. CA 90037
machinery used m research and
development activities. For assets
placed in service in tax years 1981-
84, you can deduct 25, 38, or 37
percent of the unadjusted basis,
respectively, over the three-year
period.
• Five-year property covers all
other. machinery and equipment,
graiq bins, fences, etc.' Five-year
property placed in service in 1981-
84 will be written off at 15 percent
the first year, 22 percent the
second, and at 21 percent the next
three years.
• Ten-year property category
includes owner-occupied business
property. For fanners this in
cludes barns, outbuildings,
livestock structures, and so on.
The writeoffs for ten-year property
placed in service in 1961-84 are 8
percent for the first year, 14
percent for the second, 12 percent
for the third, 10 percent for each of
the next three years and nine
percent for each of the four
remaining years.
Farmers should note that each of
these percentages will increase in
3
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59.00
63.00
69.00
73.00
79.00
89.00
93.00
119.00
149.00
469.00
639.00
it
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mcastcr Farming, Saturday, Noveiwbar 14,19 H-M
tax cut package
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CRXUTZBURG, INC.
Livestock Supplies
Phone 717-768-7181
Open Daily - 8 to 5; Saturday 8 to 12
★ PRODUCTS ARE AVAILABLE BY MAIL
FREE DELIVERY on all Merchandise
within 10 Mile Radius
Send For
FREE
CATALOG:
NAME..
STREET
CITY...
1985 and again in 1986. noted Bloch.
Rules for recapture of unearned
investment credit have also been
made more favorable. A per
centage of the credit will be
allowed for each full year that an
asset remains m service. The total
credit allowable for a year’s period
will be 33% percent of the total for
three-year property, and 20 per
cent of the total for 5-, 10-, and 15-
year property.
The present period for carry
over of unused job credits, in
vestment tax credits and net
operating losses has been extended
retroactively. Farmers may carry
over for up to 15 years as op
posed to the current seven —those
NOLs sustained in tax years after
1975, WIN . (Work Incentive
Credits), and investment credits
earned in years after 1973, and job
credits earned after 1976.
For those farmers using alcohol
or gasohol as fuel, note that a 15-
year carryover period will apply
where such credits total more than
(Turn to Page DIO)
•EASILY installed
JllV lsoo STATE STREET,
/IllAl CAMP HILL, PA 17011
W 9 PHONE (717) 761-H63
CREUTZBURG, INC.
Lincoln Highway East, Box 7
Paradise. PA 17562