C2—Lancaster Farming, Saturday, November 14,1981
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News ,
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Business owners need
to take advantage
of new tax benefits
KANSAS CITY, Mo - The
nation’s business owners,
regardless of scope and size of
their operations, will find it ad
vantageous to pay close head to
some important tax breaks coming
out of the new 1981 legislation, says
Henry W. Block, president of H&R
Block, Inc
“In some cases, the new
provisions are especially targeted
toward helping the small business,
which has in an unpredictable
economy been especially
vulnerable in the past few years,”
said Bloch. “Others should be
extremely beneficial to the mid
size or very large company ”
Important will be substantive
changes in depreciation regulations,
with the result that businesses of
all sizes will enjoy simplified
procedures as well as faster tax
writeoffs for both plant and
equipment investments
The new provisions, widely
known as “10-5-3,” replaces the
current complicated procedures
for determining useful life of
plants and equipment, and
establishes four basic depreciation
categories.
These new categories break
down in this way: 10 years for
some types of public utility
property currently depreciated
over 18 and 25 years, and five for
all machinery and equipment,
except those used in research and
development, which are con
sidered fully depreciated in three
years.
In addition, the law now provides
for a shorter 15-year depreciation
period for real estate as well as for
public-utility property written off
An open house for the Roli-Feedmobile 102
will be held next Saturday at 10 a.m. at
Feedmobile Inc., 727 Furnace Hills Pike, one
mile north of Lititz. The new model features a
one-third reduction in fuel requirements, a
whole bale feeder, improved feed table and
currently at 25 years or more.
Other tax legislation of special
interest to businesses and cor
porations, regardless of size, in
clude ajnong others: a new 6
percent investment tax credit for
the first year for equipment in the
three-year depreciation category;
a 10 percent credit for five-year
equipment, improved tax ad
vantages for building investment;
a larger, valuable early-year
writeoff for commercial property
as well as for three- and five-year
equipment and public utility
equipment.
Importantly, the 1982 law
changes effectively extend the
allowable carryover period for
reporting both investment tax
credits and net operating losses
Now at seven years for, most
business situations, the carry-over
period has been increased to fif
teen years, generally making
possible improved long-range tax
planning over years of fluctuating
profit.
Other liberalization will be in
leasing, with a provision for relief
on costs of acquiring equipment
through leasing. This incorporates
better tax breaks to the lessee, in
the form of depreciation
allowances and investment tax
credits.
Other tax relief will be especially
appreciated by the smaller
business owner, such as a new
first-year tax writeoff for ex
penditures on plant and equipment
specifically meant to assist the
smaller business. Initially set for a
maximum of $5,000 in 1982, this is
scheduled to increase to $lO,OOO
within five years.
Feedmohile open house
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Also reduced will be corporate
tax rates for lower business in
comes of $50,000 or less. Corporate
income currently taxable at 17
percent up to $25,000 would see a 15
percent rate by 1983, with the rate
for $25,000-$50,000 dropping during
the same time frame to a 18 per
cent rate from the current 20
percent
Simultaneously, the new law
raises by $lOO,OOO the amount of
accumulated earnings a company
is permitted to hold without tax
penalty, to $250,000
“Corporation management and
business owners, regardless of
volume, assets, and income will be
advised to carefully calculate how
to best apply these and several
other new tax benefits which will
be available,” said Bloch.
“While some of these tax breaks
will not become immediately ef
fective, now would be a good tune
to take a look ahead to see what the
1981 legislation will mean in
particular to one’s own tax
situation ”
H&R Block, Inc will answer tax
filing questions, free of charge, _ on
both individual and business
returns. H&R Block offices are in
more than 9,000 locations
throughout the United States,
Canada, and 10 countries overseas.
ingredients feeder. The’ unit also has faster
hammermill operation and unloading. Another
new feature is a batch weighing system with
digital readout for accurately including sup
plements.
Terracing plow helps
HALIFAX The intensity of
cropping systems in Dauphin and
other surrounding counties has
increased considerably in recent
years. As more row crops are
grown, land is subject to increased
soil losses by water erosion.
Average soil losses in Dauphin
County on farmland with con
tinuous com and/or soybeans is 9-
14 tons/acre/year. With small
grains and com, soil losses exceed
12 tons per acre. These are com
pared with an average soil loss of 8
tons/acre/year on all cropland for
1977-1980.
Acceptable soil loss averages
are in the ranges of 4
tons/acre/year A loss of 8 tons
means that 8 tons of soil are lost
per each ton of corn produced.
These factors serve as a
cut erosion losses
~.lg plo ; . jgi
and roll soil into a terrace ridge.
reminder that action must be
taken to reduce soil losses to ac
ceptable levels in order to main
tain soil productivity. Many people
feel that conservation tillage (no
till and minimum Ullage) is
enough. However, much con
servaUon tillage is ineffective
because insufficient amounts of
residue (75%) are not left on the
soil surface.
One soluUon to meeting the
current threat of losing our soil
resources is the use of cropland
terraces. Currently, broadbased
cropland terraces are being‘used
to a limited extent in Dauphin
County. Some of these are storage
terraces with subsurface outlets.
Others are gradient terraces
emptying into waterways.
The cost ot these systems range
from $l.OO to $1.50 per foot.
Generally these terraces are not
well suited to shallow soils and
current economic conditions,
decreasing the uUhzation of these
practices.
AMCO has developed a terracing
plow which can be used to con
struct gradient narrow based
terraces. The plow, which mounts
on a farm tractor (minimum 130
horsepower' has two gangs of disc
BAY, Ark. Leon The purpose ol the conterence
Moyer, of Moyer’s Chicks, Inc., was to provide key hatchery
Quakertown, recently returned managers with the latest scientific
from a 198 J Hatchery Conference techniques for brooding, vac
hosied by OeKalb Agßesearch,.' cmation, feeding and growing
Inc. Oct. 22 and 23 at Fairfield Bay, healthy DeKalb egg-lhying
Ark. chickens. Known as the DeKalb
Nearly 100 OeKalb associate
hatchery personnel sales' and
management people ' from
throughout the United States and
Canada attended the meeting at
the Ozark resort.
DALLAS, Tx White Farm continuing support we have
Equipment Company, a wholly- received through the
owned subsidiary ol TIC In- reorganization period from
vestment Corp of Dallas, Texas, dealers, customers, and'supphers,
announced that on Friday, October and have every confidence that the
30, 1081, the United States Company will continue to provide
Bankruptcy Court for the Northern the high quality of equipment and
District of Ohio approved the order services that our customers have
of confirmation of its plan of come to expect.”
reorganization.
Stratton Georgouhs, Chairman
and Chief Executive Officer,
stated, "This is another milestone
tor White Farm Equipment
Company on its road to financial
recovery We are pleased with the
Moyer attends conference
Bankruptcy court
ok’s White plan
blades which lift and roll soil into a
terrace ridge.
According to AMCO, up to 1000
feet of terrace can be constructed
per hour. Even ,with |*ates con
siderably lessithan these, terraces
can be constructed at a cost con
siderably less than the rate for
broadbased terraces with the usual
heavy earth-moving equipment.
The terraces constructed may be
considered as a compromise
between a narrowbase and
broadbase terrace which can be
well adapted to many of our shaie
soils that are moderately deep. In
some instances with irregular
topography, the use of a dozer to
level these areas could be used to
improve alignment. In addition to
building terracing it appears that
the plow could be used to construct
diversions and grassed water
ways.
Another method used to con
struct terraces is to use the con
ventional farm tractor and plow.
This method would allow a fanner
to utilize his own equipment tor the
work. Actual construction time,
however, would be greater than
the tune used to complete a job
with the terrace plow.
Pullet & Layer Service Program,
this new approach will enable
hatchery personnel to assist their
commercial egg producers in
raising their birds in the most
comlortable and productive en
vironment.
White Farm Equipment Com
pany manufactures and distributes
a full line of farm machinery and
materials handling Equipment
throughout the United States and
Canada.