Brockett’s Ag Advice /m By John E. Brockett jH Farm Management Agent j" Lewistown Extension Office Transfer Property Transferring property today is not as simple as it was at one time. If you are not careful, you could run into income tax or gift tax problems. Let’s look at the ways property can be transferred from you to your children. Installment Sale Any sale whereby payments are made by the buyer and reported by the seller in installments. It can be done in part (a percentage of the farm for instance) or in total now PRE-HARVEST YES WE ARE DEAIJNG AS NEVER BEFORE. The reason we are over stocked on Combines due to the 1983 DRY weather. 1984 crops appear to be of machine “BUSTIN” capacity So don’t take a chance on that old machine. Make your selection now before the rush and while the bargains are still around. We have a finance plan to fit your needs whether its Waiver, Low Rate Financing, Lease, or Cash with BIG Discounts. MARSHALL MACHINERY Honesdale, Pa. 717-729-7117 "■Hi* Airville, Pa. 717-862-3967 B, EQUIP., IHC. Waynesboro, Pa 717-762-3193 B & R FARM EO. INC. Beavertown, PA 717=658-7024 OOTTERER ft KOLESAR, INC Mill Hall. Pa 717-726-3471 NICHOLS FMM EUIIP. Bloomsburg, Pa. 717-784-7731 or by will after death. If you do it now, you will have another piece of property (mortgage or sale con tract) that you can will to other children if you so desire. Annuity A form of installment sale where the payments are set up by a formula using your life expectancy and the sale value of the property. The big advantage is that there is a zero value on the annuity upon your death. The big disadvantage is you have no security. Check Our Deals Befbrelfou Buy. AG-INO. Eli, INC. Rising Sun, Md. 301-398-6132 SHARTLESVH.LE FARM SERY. Hamburg, Pa. 215-488-1025 B.HM. Fjjgl EQUIP., Annville, Pa 717-867-2211 Flemington, N.J 201-782-4242 ROY H. SUCH, INC. Ephrata, Pa. 717-859-2441 CJ. WONSIDLER BROS. Quakertown, Pa. 215-536-7523 GRUMELLI FARM SERVICE Quarryville, Pa 717-786-7318 ALUS-CHALMERS DOWN CJ. WONSIDLER IMS. Oley, Pa. 215-987-6257 L.H. BRUBAKER, INC. Lancaster. Pa. 717-397-5179 JOHN W. SAUMS t SONS INC. CANYON IMPLEMENTS INC. Manfield, Pa. 717-724-2731 WERTZ GARAGE, INC Lineboro, Md. 301-374-2672 PET cSSsIf!a EBUIP 717 249-5338 - Somerset. Pa 814-445-4189 Gift Each person can give any other person up to $lO,OOO of value per year tax free. Thus a father and mother could gift a child and spouse up to $40,000 per year. This can not be a gift of a portion of an installment sale contract unless you pay income tax on the gift amount as if you had received it. Inheritance (By Will) The recipient receives the property with a cost basis, for income tax purposes, that is equal to the appraised value set for estate or inheritance tax purposes. The recipient could receive the property at less than fair market value if he or she is a qualified heir (see column on use value). Thus estate and inheritance taxes could be reduced considerable. Corporation Incorporating in itself is not a transfer of property from one , I /fill | »u'l POWER PM EQUIP. CO. Milroy, Pa. 717-667-6504 HUGHES BROS. INC. Westminster, Md. 301-848-6313 VERNON E. STUP CO. Frederick, Md. 301-663-3185 JACK SHEARER EQUIP. Johnstown, Pa. 814-266-9721 person to another. It can be a conduit thru which a property could be transferred via piece meal gift, sale, or inheritance. Business Agreements Part of your estate plan could be contained in various business agreements that you have with family members. A partnership could be devised so junior partners gradually acquire a greater share of the business assets or of the partnership capital account. A joint venture could allow a son to build his farm venture with tools ownetLby the parents (Example: using parents machinery to plant New shear mount reported CARLISLE - Bob Weaver, of Carlisle, Bush Hog representative for Pennsylvania and New Jersey, announces a new rigid shank shear mount for the 1560 Soil Hog coulter chisel that protects against damage from obstacles and is quickly re-set by raising the machine and replacing the shearbolt. “The new rigid shank shear mount is designed for use in fields where there are too many ob stacles for a rigid mount but too few to justify the expense of spring shanks,” Weaver said. “It shor tens the time required to re-set tripped shanks.” The new mount uses a grade 5 * ii. - *» *v**'’''•'**•» Bush Hog announces a new rigid shank shear mount for its Model 1560 coulter chisel. s■l AAA “No Gimmick” CiIUU CASH REBATE FromCoalbrookdaleCo. All Models Now thru Sepi DARi “A Rema Efficient and Wood Magnificent. COAL and W H 2533 Old Phila. Pike, Rt. 340, Smoketown, Pa. ____ (717)397-7539 VISA I, T & F 10-8, W & S 10-5, Mon. by appt. Immmi Lancaster Farming, Saturday, August 25,1984—D7 and harvest crops to sell - thus reducing expenses and hopefully increasing net worth). A cor poration could be set up whereby a child receives a certain number of shares per year for extra work performed. At any rate it is a good idea to consider all business agreements when a family is making an estate plan. They could help with the decision of how much and what type of insurance do we need. They could also be dovetailed into the construction of a good bypass or non-marital trust. They should certainly be a part of any will that is written. shear bolt which shears if a load of more than 3,500 lbs. is applied. The shank functions as rigid shank until an obstacle is encountered that shears the bolt. Then the shank pivots up and out of the way of the obstacle instead of falling off the machine. The operator quickly resets the shank by raising the 1560 and replacing the shear bolt rather than re-attaching a shank that has fallen off. The 1560 coulter chisel is a minimum tillage implement that cuts crop residue and shatters plow sole in the same pass. For further information, contact Bush Hog, Department NR- 1560 m P.O. Box 1039, Selma, Al. 36701. fej
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