C6—l Lancaster Fanning, Saturday, November 26.1983 B Brocket's Ag Advice By John E. Brocket! Farm Management Agent Lewistown Extension Office Tii Planning Some farmers are going to face a real dilemma this year. Do you sell that PK corn in 1963 or 1964? There are a raft of other questions as well. Do you buy fertilizer now or wait until 1984? Will it pay to borrow money to buy supplies ahead? Which should you do to save taxes buy fertilizer or equipment? Should you feed ahead or wait? Many of these questions will be answered strictly on the basis of saving taxes. Most in fact will be made on the bais of “maybe I’ll save taxes”, because you may HiniS BRUBAKER REFRIGERATION 614 Penryn Rd. Manheim, PA 717-665-3525 Southern Service Center R.D. 3, Dry Wells Rd. Quarryville, PA 717-786-1617 Northern Service Center Rt. 1, Box 466 Palmyra, Pa. 717-469-2671 GodM 'sad THE ALL NEW 800 MW FLAT TOP COOLER Featuring... 1. Low Height For Easy Pouring & Cleaning 2. Rounded Corners For Easy Cleaning 3. All Stainless Steel Construction 4. Mueller Temp Plate Cooling 5. Mueller Dependability ■KXTT tt=:t .1 .t=:t=> ■ ■ Coolers' MOJONNIER PARTS AVAILABLE USED TANKS AVAILABLE • 400 Gal. Mojonnier • 500 & 600 Gal. Girton • 800 Gal. & 1500 Gal. Mueller • 600 Gal. Surge • Various types of Inexpensive Tanks! not even know whether you will have a tax obligation or not. Tax management is one of your jobs. Taxes are a necessary ex pense item. They provide you with many of the services you take for granted such as education, roads, laws, agricultural payments and support prices, and even the cost of writing this column (for whatever this is worth). However that does not mean we should pay more than we have to. The year of 1983 was not a big tax change year. The only major change that will have an effect on you as a farmer is the investment credit depreciation reduction. Tax Estimate First let’s see if you have a tax to pay before answering the questions at the start of this column. Do an estimated tax return for 1983. Take income and expenses for the first 9 months then project out for the full twelve months. Don’t forget to include depreciation(use last year’s if you’re too lazy to figure this year’s) and interest (probably have to use last year's). Now take dairy cow and breeding animal (over 1 year old for pigs and sheep and over 2 year old for cattle and horses) sales out of income. Then subtract expenses (including in terest and depreciation) from income. This gives you net Schedule F income to that add 40% of the cow and breeding animal you previously deducted. Now add in wages, interest, and any other net income you have. Deduct from that $lOOO per dependent and ex cess itemized deductions. The LONG JOHN BALMER INSULATION RDS. Box 61 D I Manheim, PA ' (717)665-4132 THE FARM BUILDING SPECIALISTS! nought airy Barn Is Getting Much More Than Just A Product! WE'RE OFFERING COMPLETE CONSTRUCTION SERVICES: • Experienced Construction Supervisors On The Job Site. • Quality Materials From Reputable Manufacturers. • Interaction Between The Client And The Contractor From The Time Of The First Contact To Job Completion. • “In House 1 ’ Structural And Ventilation Design Services. • Flexibility For The Client’s Satisfaction On Design Revisions. Custom Builders of Dairy, Horse, Swine, Poultry balance is taxable income. Now let’s put that into categories: A-Under $5OOO B-$5OOO to |1«,000 C-$lO,OOO to $15,000 D- $15,000 to $30,000 Sell POC Corn Buy Fertilizer Borrow to Buy Bay Feed *B and C categories may qualify for earned income credits and special provision tax credits from Pa. You may use PIK com sales and feed and fertilizer purchases to qualify for those credits. The last 2 categories are more Sell PK Corn Buy Fertilizer Borrow to Bay Buy Feed Full Warranty On Insulation For Lite Of Structure • Fully Insured • Free Estimates We Can Do The Job Now And Storai Category A yes no no no Category D Category E maybe 1984 ye* yes maybe yes to Apr. toApr We Specialize In 320 King St. Myerstown, PA 17067 25.30,35 * 45 Phone: 717-866-7544 Triple H Construction Co. 14 N. Church Street Ephrata, Pa. 17522 717-738-2142 ;e Buildini E- oyer $30,000 The first 3 categories are in rather low tax bracket, (federal income tax of 0 to 1100 dollars), pj suggest the following for them : B* maybe maybe no to Mar. apt to benefit from year end ad justments. For farmers in those two categories I would caution putting more income into 1983 unless 1983’s projected income is well below 1982’s or you predict a high 1964 income. split maybe toApr.
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