DlO—Lancaster Farming, Saturday, January 28,1984 Brockett’s Ag Advice « By John E. Brockett jH Farm Management Agent wBF *" ew,s * own Extension Office Tis That Time Again What time? Why tax season of course. It is no wonder that February is the most depressing month of the year for farmers. The novelty of the first snow is long past. Hunting season stories are now stale. Football season is done. We’re halfway between harvest and planting. Then on top of all of that, income tax reports are due. In fact some tax reports are due and you haven’t even been able to get the forms. Now we’re done with all the gripes and on to con structive ideas. 0.K.? Changes There were not too many changes for farmers for 1983. However one is a biggy. Investment Credit The value of investment credit has been reduced. You will either use a lower rate (8% instead of 10%) or will reduce the depreciable base of the purchased item by 50% of the investment credit taken. You will have to make a decision on which to use. Using the full investment credit and a reduced depreciable base saves more taxes the first year. Using a reduced investment credit and a full depreciable base saves # -tu i'* * Pats Cutter-and-Claw Gathering Chain Gives You Chain-Saw action and full-flow feeding. Cuts loose frozen and hard-packed silage Steel claws move loosened silage to blower. Choose Patz ring-drive or surface drive silo unloaders to meet varied needs. Contact your Patz dealer: ALEXANDRIA MAX ISENBERG 814-669-4027 BALLY LONGACRE ELECTRIC 215-845-2261 BEDFORD BENCE FARM EQUIPMENT 814-623-8601 BERRYSBURG LESTER HOCH REPAIR CENTER 717-362-8252 MOYER CAMP HILL FARM SERVICE LLOYD SULTZBAUGH 215-766-8675 717-737-4554 EILIOTTSBURC. CARL R. BAER 717-582-2648 BB |Bj GEORGE HEATH r 472 Woodcrect Dr., Mechanictburg, PA 17055 ■ VBHIM 717-737-0002 more taxes over a 5 year period if you are in a 30 percent tax bracket or higher. However the difference is really not great in either case. Your decision should be based on: 1. Do you already have a lot of investment credit carryover 7 (if so use the reduced credit idea). 2. Are you subject to the alter native minimum tax? (if so use the reduced credit idea.) 3. Is your marginal tax bracket below 30 percent? (if so I’d probably use the full credit ap proach). Is your marginal tax bracket between 30 and 40 per cent? (if so look to other factors to make a decision). Is your marginal tax bracket over 40 percent and apt to stay over 40 percent in the next 4 years? (if so use the reduced credit idea). 4. Are you concerned with maximizing social security? (then use the full credit.) 5. Which side of the earned in come credit picture are you on? (depreciation effects the credit you can claim by reducing or in creasing earned income depending on how you use it - investment credit does not). 6. Are you at a higher level this year than in the past? (if so use full ' * FORKSVILLE DURWOODJ. WHITELEY 717-924-3460 STONEBORO ELDER SALES i SERVICE 412-376-3390 376-3740 TERRE HILL TERRE HILL LEBANON SILO5 IL0 C 0 INC AUTOMATIC FARM 215-445-6736 SYSTEMS 717-274-5333 HAMBURG SHARTLESVILLE FARM SERVICE 215-488-1025 MILTON LANDIS FARMSTEAD TRI-STATE AUTOMATION FARM AUTOMATION 717-437-2375 301 79CF3698 PIPERSVILLh KENNEDYVILLE. MD QUARRYVILLE UNICORN FARM SERVICE JAMES E. LANDIS 717-786-4158 P « S EQUIPMENT, INC 301-452-8521 JSTRICT MANAGER credit because income averaging may offset much of the tax savings gained from extra depreciation anyway). 1 Alternative minimum tax has been changed with a higher floor ($40,000) and one rate (20%). This one is good for the average farmer but harder on those selling a farm or a lot of dairy cows (could catch people selling a chunk of cows to participate in the milk diversion program). 2. Medical expense deduction floor was raised to 5% of adjusted gross income (from 1040). Affects those who itemize. 3. Partial reduction in marriage tax for 2 earner married couples has been increased to 10% of lower earning spouse’s earned income. Watch out for this one because the eligible income must be reduced by any IRA taken out before the percentage is figured. This change is a good one for working couples (wages paid by a spouse to a spouse are not eligible). . ~ , -¥•» »<* MARYLAND DEALERS HAGERSTOWN PINDER SERVICE CO. 301-348-5263 NEW WINDSOR, MD ROOP FERTILIZER & CHEMICAL 301 775-7678 STREET. MD Other Changes “TWist-Lock” cups: newest innovation from the new leader ...another reason SWISH saves you more labor, more birds, and more money The newest twist in cage watering makes cup cleaning and maintenance a real snap it s SWISH s Twist-Lock cups for cage layers and brood-grow watering systems Saves labor. No more contortions with hand tools inside a cage-one simple twist of the wrist unlocks and removes the unitized cup and valve It s that easy to maintain when necessary But with SWISH it s hardly ever necessary That s because our cup is self-cleaning Our patented valve keeps the cup clean by flushing any feed particles out so birds can consume them with the water Installation is a snap too with SWISH s new cups they simply snap into the desired location and the hose attaches to the water line outlet These are some POTTSVILLE - Terry L. Stehr, of Pitman, has been named Executive Director of the Schuylkill County Agricultural Stabilization and Conservation Office at Pottsville. Stehr has a varied background being raised on a fruit, vegetable and poultry farm in the Pitman area. A graduate of Penn State, he has worked as a teacher with Schuylkill County’s enrichment program for eight years and, after successful!? completing the County Office Management Training Course, accepted the current position. He is the son of Mr. and Mrs. Kenneth Stehr, Pitman, and resides in Pitman with his wife, the former Carol Neugard, and their two daughters, Angela and Anne. y»r NEED MORE room? Read The Classified to*, on too „„„ ov«/ Real Estate Ads PATENTED VALVE IS KEY TO OUR PERFORMANCE -! v Orifice (A) force, water onio .- 1 deflector (B) lip (C) diverts it * —^ down lo suipend feed (0) W The NEW SWISH —total commitment to qi NORTHEAST AGRI SYSTEMS, INC PO Box 187 Fitchville, CT 06334 Phone (203)642-7529 Stehr gets ASCS post Enjoy the AFFORDABLE prices are security of STRONG, LONG- "•"< to ■»«' SSESS FENCES by KENCOVE prices free GUIDE Call these toll free numbers: In PA. 800-442-6823 KENCOVE FARMS Master Card Visa UPS Delivery of the ways SWISH s new cup saves you labor-easy installation low maintenance rjnd labor savings between flocks because our cup constantly cleans itself (uaility & service swTsh Local Representative '"'AVID NEWMAN (/IT) 299-9905 Terry L. Stehr Outside PA, 800-245-6902 RD #1 Blairsville PA 15717 412-459-8991 The Fence Of The Future Helps save more birds. Because our cup is self-cleaning algae and bacteria growth is not a problem as with cups that don t flush out feed particles Clean cups mean less chance of disease and less mortality And our big cup means good access to water for a good level of bird health SWISH saves you money. That s the bottom line with a system that cuts labor and keeps birds alive and productive Get all the facts about our new cup and other SWISH innovations See your SWISH distributor or contact us uafermg systems now a division of CTB Inc Kencove
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