D26—Lancaster Farming, Saturday, December 12,1981 Tax Deferment Deferring or postponement of income taxes is a recognized part of tax management in most business circles. Tax deferment comes in two categories; that which must be done within the immediate tax year; and that which can be done right up to the tune for filing the tax return. “Cash method” taxpayers have much more flexibility in tax deferment than “accrual method” taxpayers. Use of the “cash” reporting method is also easier than the “accrual” method. Most fanners do use the cash method. If a fanner does desire to defer or postpone taxes, he has several possibilities. The following must be done before the end of the year: He can buy supplies such as feed and fertilizer ahead for next year. They actually have to be pur chased, riot just ordered. There also must be a reason other than tax reduction. This should be no problem this year with ever increasing costs. Items purchased in November or December are certain to be cheaper than those items pur chased in March or April. This may be especially true for com. Of course, such action could cause the following year’s taxes to be higher. Therefore, a farmer considering it should know on TOP QUALITY BARN SPRAY & BRUSH PAINTING pi Penetration And Adhesion. $13.00 per gallon applied, no additional cost. Average Barn $650.00 The farmers in Lancaster Co. are lucky because of the amount of competition in barn painting. Check with us for the best deal! PHARES S. HURST Years of experience plus self Rd 1, Box 420, Narvon, PA 17555 employment gives you quality 215-445-6186 work for less expense. FRANKLIN H. KREIDER 2400 Dairy Road Lancaster, Pa. 17601 717-898-0129 Alfalfa Weed Control Custom Applied or Incorporate with Fertilizer Spreaders and Spreader Service Top Dress Your Alfalfa Now For - Better Wintering ■V'-T" * i ~ T-l*. - <xr - -C~s Brockett’s Ag Advice By John E. Brocket! Farm Management Agent Lewistown Extension Office whether it would really be justified or not. Why lower this year’s taxes to zero or less, then find yourself in a 30% bracket next year? That is where a 9 or 10 month summary would be helpful. Sales or income could be held off until after January 1. This may have advantages in two ways this year. Both grain and hay prices will probably go up after the first of the year. Thus, taxes may be lowered for 1981 and profits in creased on 1981 crops in the 1982 tax year. He could actually borrow money to pay off all accounts payable at the end of the year. Anyone doing this should carefully calculate the consequences. For example, it would not be sensible if the tax payer borrowed money at $lOO interest cost to save $5O worth of taxes. However, if the borrowed money cost was $lOO and the tax savings was $2OO, the net result would be an overall savings of $lOO. These three items are rather inflexible and must be done by the end of the tax year. Furthermore, once they are done, the results must be used whether needed or not. For example; A farmer buys $5,000 worth of feed on an advance order special in 1981 to be used in 1982. When he does his taxes in February, he finds that, as a result of the purchase, he has a gross ' ''J CALL US FOR FREE ESTIMATES BRUMN6 /■ I i'v 1 ! FREDERICK, Md. - The Maryland Fall Festival Angus Sale, held here recently, grossed $45,515 on 57 lots to average just under $BOO. Fifty-two females average $BO5 and five bulls average $722. The taxable income of $4,000. Since he has a wife and four children, he is actually permitted $94000f tax free income for 1961. His early order purchase did not save him any 1981 Federal income tax. (It may have saved some Social Security and State Income Tax.) However it may actually cost him extra tax money in 1982. Two things to consider in 1981 tax planning: 1982 tax rates will be lower and the 1982 dollar will be worth less than the 1981 dollar. Suggestion - by all means reduce 1981 taxes as much as possible but don’t use up tax free dollars. ATTENTION FARMERS... FREE ESTIMATES ON RODENT CONTROL RODENTS carry diseases which can endanger the health of your dairy herds. Your business is raising them. Ours is protecting them. ms9sn<‘ Since 1928 Pest control is too important to trust to anyone else MD. Fall Festival Angus Sale grosses $45,515 first animal in the ring was an April 6,1981 heifer calf donated by Dr. and Mrs. Emmett Full, Back Acres Angus, Mt. Airy, Md., to benefit the Maryland Junior Angus Association’s fund raising efforts. A flashy daughter of Riot 8221 of Ideal known as “Big Moose”, the heifer sold for $l,OOO to Bill Ledford of Mt. Airy, Md. Topping the sale at $2,000 was a heifer calf by Linebacker of Wye consigned by Mar Lee Farm Woodsboro, Md. She sold to Sonia Hamm, Pleasant Plains Angus, Clarksburg, Md. second high selling lot was a daughter of Wetonka 2446' con signed by Stivers Angus, Pitt stown, N.J. This 1980 heifer out of a Bonanza of Wye daughter, safe m ' v V 1278 Loup Rd. Lancaster, PA 17684 717-397-3721 calf to a son of “Elector”, sold to Rocky Forge Farm, Hagerstown, Md. for $l,BOO. The high selling bull was a June 1980 son of P S Power Play-con signed by Dale Rams, Mercer, Pa. He sold for $1,025 to Shenstone Farm, Leesburg, Va., a volume buyer with six head purchased. A. Fred Myer, White Post, Va., purchased 4 lots including a daughter of P S Power Play from Dale Rains at $1,600. Jack Corwell of Clear Spring, Md., also pur chased 4 lots. The sale was sponsored by the Maryland Angus Association, and was managed by the American Angus Hall Of Fame in Smithviile, Missouri. Lee Miller, Woodsboro, Md., was sale chairman and Mike Jones was the auctioneer. SILAGE AND FEED CARTS £ % * K ' V'.). 34" Wide, 62” Long, 53” high, capacity (to feed 35 to 40'Cows.) 16” Bali Bearing wheels For very easy handling MANY OTHER SIZES AVAILABLE We Also Manufacture Swivel Casters for 16”. 12” and 10” wheels MANUFACTURED AND DISTRIBUTED BY SCENIC ROAD FARM SUPPLY 3539 Scenic Road Gordonville, Pa. 17529 2Vz Mi. Southwest of New Holland, l‘/> Mi. N. of Intercourse -AUTHORIZED DEALERS AARONS. GROFF & SON ' RO #3, Ephrata, PA 17522 PH: (717) 354-4631 ATLEE F. REBERT RD 2 Littlestown, PA 17057 PH; (717) 359-5863 IRVIN I. PEACHEY Star Route, Box 35 Belleville, PA 17004 PH; (717) 483-6714 LAPP SHARPENING SERVICE Gibble Road, Route 2, Box 276 Myerstown, Pa. 17067 LAPP’S HARDWARE & DAIRY SUPPLIES _. cl , V r RIES Box 96, Loop Rd., RD4 - AVAILABLE Quarryville, PA 17566 AV 28” wide, 60” long. 35" high, capacity 600 lbs. Choice of 10” pneumatic or semi pneumatic wheels \ FARM BUREAU v Mill Street Dublin, PA 18917 FARM BUREAU 115 Washington Ave. Souderton.'PA 18964 PH: (215)273-4355 ROBERT GUTSHALL RD 1212 Womelsdorf, PA 19567 PH: (717) 933-4616 CHESTER INGRAM Hublersburg RD 2 Bellefonte, PA 16823 PH: (814) 383-2798
Significant historical Pennsylvania newspapers