lIMMSSk
Ford Tractor
sponsors low 9 3 /« /«
FIXED ANNUAL
PERCENTAGE RATE
financing for up to
60 months
Buy and take delivery of any
new Ford agricultural factor
now and gat tha sacurity of fixed
rale financing. Your payments
remain the same for the entire
term of the finance period ..
even if other interest rates sky-
help arrange low 9%%
FIXED ANNUAL PERCENT
AGE RATE financing for
qualified buyers for up to five
years on Series 10 and TW
Series tractors. Up to four years
on Ford 1000 Series and the
Ford 2110. Financing is through
Ford Motor Credit Company.
We’ve Got Some Low Priced Demo And
Lease Tractors And We’re Ready To
Pass The Savings Along To You!
TWIS 4WD DEMO TW 25 LEASE TRACTOR
w/Wheel Slip Monitor, Fully Loaded, 500 Hrs., Very Clean
Loaded SAVE ssss &Well Taken Care Of
CALL FOR DETAILS
3 Year Tractor Care Warranty Available On Each Unit
PARTS * SALES ★ SERVICE
since | TRACTOR CO. |
NEW TOLL FREE NO. 1-800-822-2152
Rt. 419 Between Schaefferstown & Cornwall. Lebanon County
~;' -■ ; . J -'- ■ s>
OR DELAY YOUR PAY
MENTS UNTIL JULY 1.1985
We can help arrange a waiver of
finance charges and deferral of
payments until July 1
qualified buyers, followed by up
to four years of 12%/o FIXED
ANNUAL PERCENTAGE
RATE financing. You’ll make no
payments and finance charges
will not begin to accrue until July
1,1985. Implements purchased
with the tractor may also be
financed under these special
r3t6S.
All offers require a qualifying
down payment or trade-in Cer
tain restrictions apply.
STOP IN SOON FOR
DETAILS. OFFER GOOD
DEC. 1.1984 THRU
FEB. 15.1985
717-949-6501
Brocket's Ag Advice
> tm By John E. Brockett
Farm Management Agent
Lewistown Extension Office
1984 Taxes-
Be Careful
Some of you are going to be
shocked when you either do or see
your 1984 tax return. Shockers will
include social security, income
averaging changes, alternative
minimum tax changes,
depreciation recapture, and the
extra number of forms to file.
Self Employment
Social Security
This will be one that should get
the attention of all self employed
people. It has gone up over 20
percent. An example: Last year
the self employment tax on $lO,OOO
was $935. This year it will be $ll3O.
In most cases where your income
is over $lO,OOO, the extra social
security tax will more than offset
the reduction in your income tax.
Taxable Social
Security
This is a repeat of an earlier
column but some of you may have
missed it. If you or a relative
receives social security, part of it
may be taxable for 1984. A single
person with a total income over
$25,000 or a married couple filing
jointly with a total income over
$32,000 may have to pay income
tax on part of the social security.
This fact should become part of
future tax planning. By the way
total mcome includes half of the
social security you receive plus tax
free interest.
Income Averaging
A pretty good tax saver in the
past has turned into a lesser tax
saver and for fewer people. Ac
tually coupled with the alternative
minimum tax most farmers will no
longer receive much if any benefits
from income averaging.
Alternative Minimum
Tax
There have been no changes
since 1983 but not everyone bumps
into this tax every year. Those new
rules say that anyone who has a
total income (including the 60
percent protected portion of long
term capital gains) over a certain
level (30,000 for single and 40,000
tor married filing jointly) must
pay at least 20 percent of that
amount regardless of deductions,
tax credits, income averaging, or
dependents. This can catch people
who have had a large capital sale
or a good business year plus a
large purchase of investment
credit property. Add up gross
income on the 1040 plus the 60
percent protected capital gains. If
you have total income in excess of
the above figures, check out the
WHA
Apply
To keep
/ears is
• ngh^rai
Blue Ball, Pi
Gap., PA.
Lancaster Farming Saturday January 26,1985-Dl7
possibility of the alternative
minimum tax.
Don’t forget the 1099 s discussed
in this column last week. They
must be filed or you are subject to
a $5O fine for each missing 1099.
Many of the forms have been
changed so be careful when filling
then out. Watch the depreciation
form 4562. Also watch the 3468
because it has two sections
depending on whether you elect
full credit and reduced
depreciation or visa versa.
Depreciation
Recapture
This will prove to be a possible
problem to people interested in
using an installment sale as a way
to .sell certain property. Under the
old law if you sold depreciable
property at a profit, you could sell
it on an installment sale contract.
You paid taxes on the money as
you received it. Under the law you
can still sell it on an installment
sale but you will have to pay the
tax on the entire gain that is
subject to depreciation recapture
in the year of the sale. This does
not yet include trades.
Example: You bought a tractor
in 1975 for $lO,OOO. You depreciated
it to zero. In 1984, you sold it for
$5,000 on sales contract that
specified $l,OOO plus interest be
paid each year for five years. The
$5,000 is a taxable gain as recap
tured depreciation which means it
is fully taxable. Under the old law
you would pay tax on it each year
as you received the $l,OOO
payment. Under the new law you
pay on the full $5,000 even if you
collect nothing in the year of sale.
Implications - it may jump your
tax bracket, cause you to be
subject to the alternative
minimum tax, pay more tax than
money you collected, or result in
you inadvertently reporting the
sale wrong.
I HMDS Of ||| fiSk j
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