.r/ #* »■ r 7 BY JOHN C. BECKER The value of real property is affected by size, shape, natural resources, location, accessibility to roads and utilities, deed restrictions on use or transfer, current lease arrangements, and zoning. If real property has been held for investment purposes, the income earned may prove valuable at l ax time. But if the property’s nant is someone who received special treatment, this method may not be useful. Real property can be appraised or compared with essentially similar properties. Bids from prospective buyers may be used as an opinion of value for the property. If the bid is rejected, the property may be viewed as worth more than the rejected offer. Real property used in a farm or other business may be eligible for a special provision which allows the property to be valued ac cording to its use rather than its fair market value. This provision has many specific 10 Qt. jUjgk PLASTIC BUCKETS $1.79 W CLOVER 9,000 or 10,000 ALL HORSE WORMERS BALER TWINE ... .$15.25 „ A *S** 10 Or More Bales. .$14.75 SAVE 10% * THRIFTY DUTCHMAN SUPPLY m NEW AGR! 100 So. Railroad Ave., New Holland, PA (717)354-2266 8^ s 5: Frf M SUPFPMAPKFT' Division of A.B.C. Groff, Inc. 8 am - 9 pm ' MUm Oflfashck, H*u, Htnkin, Uwn* e»nl*ityl/mm, PetSupflht, ffe “ :,AM ' 4PM Farmland Preservation * ‘ i ■ ■' ! r ?: w iw' i , W,” •;«> - ' vT*' - requirements dealing with the involvement of the property owner of a member of his family in the farm or business prior to death; the qualified heir who receives the property following the owner’s death; the heirs’ continuation of the farm or other business for a period of ten years, and the maximum amount by which property values can be reduced by the use of this provision. To be eligible, the value of all assets used in the farm, and the value of the real estate alone must exceed 25 percent of the deceased owner’s gross estate. Use of this special valuation provision may reduce the amount of estate taxes due, but the tax savings may be lost if the requirement to continue the farm or business is not met. Corporate stock value -may depend on the market. Stock sold on exchanges is worth the average of high and low selling prices on the day in question. If stock is sold over-the-counter, the average of bid and ask prices is used. If no SUPERHOOF 28 FI. Oz. Spray i S , £ •* />>' ♦ /V if y A '' »- A * >• * K 't v How much is property worth? life insurance proceeds for estate taxes are valued at the amount paid by the insurance Famam 18.65 ALL WHIPS INSTOCK SAVE 15% V .V * ; * <s prices were quoted on the day in question in either case, a formula is used to determine value from sales on the nearest days before and after the valuation date. Closely-held corporations have no recent sales. Their owners may have executed buy-sell agreements that determined the price. If they didn’t, other methods are available to determine a company’s worth. Partnerships and proprietor ships are represented by shares in the business itself. Partnerships are between two or more owners, and proprietorships involve one owner. Therefore, their value depends on a business’s worth spread among the owners. The value of corporate bonds, notes and debts is determined by the average selling price on the day in question. For a personal obligation, the unpaid balance of principal and interest will be helpful. Drive HORSE FEED SUPPLE MENT nibs. $17.75 Union P / MANURE In AND / / SILAGE H I I roKS 4/4 SAVE 10% company. For federal gift taxes, however, the premiums paid prior to the gift would be totaled to determine the cost. For general personal property, fair market value is difficult to determine because property values drop immediately after a sale. A property’s original value may be used if the valuation is made shortly after the sale of the property. These items include things such as furniture, clothing, household appliances and tools. Gift recipients are sometimes asked to put a value on gifts for tax purposes. Proceeds of an auction, prior to nm 'ii Mf payment of the auctioneer’s commission, may be used as the value of property sold by that method. In determining the value of a life estate, an interest where a person has the right to use and possess property for a period of time that ends at his or her death or the death of someone else, actuarial tables are needed. These tables will determine the value of the life tenant’s interest, and the remainderman, who will have the right to use and possess the property as well as own it after the life tenant’s death. GIGANTIC SELECTION IN Lancaster Farming's CLASSIFIEDS HORSE JtaSlfN, BLANKETS jtf Jj .. ] $29.75 Wlf^/ REDDY HE. 30,000 B' $149. SAVE 10% On All BUCKETS, PAILS & BASKETS In Stock
Significant historical Pennsylvania newspapers