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.
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