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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
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Farmland Preservation
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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
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How much is property worth?
life insurance proceeds for
estate taxes are valued at the
amount paid by the insurance
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18.65
ALL
WHIPS
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SAVE 15%
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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
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nibs.
$17.75
Union P /
MANURE In
AND / /
SILAGE H I I
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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
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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