D2B-Lancaster Farming Saturday, December 20,1986 New Tax Law Taxes Previously Untaxed Income UNIVERSITY PARK - Several sources of income not taxed prior to 1987 will be subject to tax under provisions of the Tax Reform Act of 1986. This means that taxable income will be larger and, in some cases, the taxes paid will be more than before the tax code was changed. Prizes and awards: Prior law provided that prizes and awards received for artistic, scientific, and similar achievement were excluded from income. The ex clusions applied if recipients did not specifically apply for the prize or award and they were not required to render substantial service to qualify for it. The Tax Reform Act of 1966 repeals the above exclusion, ef fective after 1906, except when the recipient assigns the prize or award to a tax-exempt charitable organization. However, awards presented to an employee for length of service or safety achievement may still be excluded from are not qualified plan awards (awards based on safety record or length of service) do not eexceed $4OO. If the qualifying criteria are met, employees may exclude the prize or award from their income and employers may deduct the cost of the prize or award. Scholarships and Fellowships: The new tax legislation makes major changes in the tax treat ment of grants, scholarships and fellowships. In the past, degree candidates at a college, university, or other educational institution could exclude from their income money received as scholarships or fellowship grants. Incidental amounts used to cover expenses for travel, research, clerical help, and equipment were also excluded. Arts-Way Grinder Mixers MEET THE 475 - More Work-Saving Features BASIC 475 has mechanical auger drives Manual lift for unloading auger 9. Control lever for unloading cranks easily auger is near feed door Spring-loaded lift assist is 10 Shutoff control for auger feeder standard equipment can be operated from either Built-in stop prevents vertical side auger from rotating into the 11 Auger feeder positioner lets you mixing tank snug hopper up tight to bin Lock keeps vertical auger from without moving tractor Up to rotating while you’re unloading 5" backward movement is Screen holder is on left fender provided close to mill 12 Hydraulic drive on auger feed Concentrate hopper is at left er (optional) rear, has built-in sack cutter 13, Lift & swing of unloading auger Magnetic catch holds lid open with tractor hydraulics (optional) while you load 14. Extensions for unloading auger Rotation of unloading system are optional Shown is 3' ex is by hand crank No reaching, tension pulling or pushing Feed door in tank opens smoothly, has friction lock to V j hold it open J AREA REPRESENTATIVI MILTON R. ANDERSON, INC PO Box 6126 Harrisburg, PA 17112 (717) 652-6043 or (800) 543-3000, Ext 2002 ROME, PA LEBANON, PA RISING SUN, MD Histands Farm WAYNESBORO, PA Evergreen Tractor Co. Ben Haines Centers B Equipment, Inc. Inc 301-658-5359 717744-2371 717-762-3193 717272-4641 The new legislation permits amounts received from grants, scholarships, and fellowships to be excluded from income only to the extent the proceeds are used for tuition, fees, books, supplies, and equipment required to complete a course of study. Amounts spent for room, board, and incidental ex pense are not excludable from income. A provision under prior law that permitted exclusion from income for payments for services required of all degree candidates is repealed. Also, an exception under prior law relating to federal grants made to nondegree candidates is repealed. The changes are effective for grants, scholarships and fellowships awarded after Jan. 1, 1987. Prior law continues to apply to scholarships and fellowships granted before Aug. 17,1986. In the case of scholarships and fellowships granted between Aug. 16, 1986 and Jan. 1, 1987, any amount received prior to Jan. 1, 1987 and attributable to ex penditures incurred before Jan. 1, 1987 is excluded from income by prior law. Business expenses: Before passage of the Tax Reform Act of 1986, deductions were generally allowed for ordinary and necessary expenditure connected with conducting a trade or business. Travel expenses in curred while away from home in the course of a trade or business, including expenses for meals and lodging, were deductible as long as they were reasonable and not lavish or extravagant. The new law includes important changes relating to business travel expense. These changes permit only a percentage deduction, rather than total deduction, of some expenses and place a “floor” on deductibility of certain ex penses, similar to the floor used in deducting medical expenses under the old law. The deduction for the cost of operating an auto or pickup for business purposes is unchanged when the vehicle is used entirely for business by the owner or, in the case of an employee, to the extent the employer reimburses the employee for such expense. Business vehicle costs may be based on the actual expense of operation or on a standard mileage rate. If a part of an employee’s business vehicle expense is not reimbursed, the unreimbursed amount may be deducted only as an itemized deduction and only to the extent that the amount exceeds 2 percent of his adjusted gross income. Business meal expenses are deductible to the extent of 80 percent of the amount spent. To qualify for the deduction, business must be discussed immediately before, during, or directly after the meal. Deductions for business entertainment expense other than Franklin Co. (Continued from Page 027) Burk Lea Farms 78 Donald L Brechbill 14 Robert E Harwood 32 Keith & Margret Clark Linda 3 6-3 Dale Wadel Creek Joseph S Middour Lindsey Imm>rial avaeSble “Wifli m ZlMmsr PAINTED STEEL Brown & Black. ’ > T» 0 > strength, Durability and Beauty! • High tensile galvanized steel panels • Five major ribs 13//’I 3 //’ height) • 36" coverage • Anti-siphon feature • Warranted Ceramic Siliconized Polyester Paint System • 12 colors in galvalume, plain or painted Imperial Rib is custom-cut to the inch to fill your needs in lengths up to 45 feet, reducing or eliminating end laps. You get a tighter, stronger, more attractive building. T PECIAL NQTI Now Stocking Overhead Doors - All Types - All Sizes NAPCO VINYL REPLACEMENT WINDOWS “ M |l( it ' si* <■ ' J - jw Complete Pole And Other Buildings meals are also reduced to 80 percent of the amount spent. If the expense deduction involves tickets to athletic events or other types of entertainment, any ticket cost in excess of the face value of the ticket is not deductible unless Support Vocational Agriculture & FFA! & i L * "j DHIA 3 8-3 305 22,849 4 0 3 5 1 305 24,979 3 6 3 5 2 305 25,504 3 5 28,800 3 1 305 3 5-3 305 24,600 3 6 3 8 6 305 25,027 3 5 The Latest Advancement InCost Saving, High Performance Quality Windows MAII BOX MAKKI T KJR SALt Thermo King NWD-30 diesel. Reefer Units, some units w/3 phase electric stand by motors. Best Offer. Cecil Co., MD. 301- 287-5277 JD 50 tractor, runs good, $750.; 1975 Int. dump truck, needs work, $1,300. Chester Co. 215- 869-2001 3 year Appaloosa TB Sorrell, well broke, safe for beginner. Also registered Arabian at stud. Adams Co. 717-359- 5281 2 wooden range chicken feeders, approx. 12' to 14' long. 1019 Millersville Rd., Lancaster, Pa. 17603. Lane. Co. 717- 872-5886 Snow blade, sickle mower for Cub Lo Boy; Complete fast hitch for Parmall Super C, 200, $375. Ho. Co. 301-489-4993 (2) 12 hole hog feeders, good condition, $75. each; 500 bales, choice 3rd cutting alfalfa. Baltimore Co. 301-592-2969 40' curb forms, $450.; Sidewalk forms, $200.; 2500 lb. scale, $800.; 6" aligator shear, $500.; 8' aluminum brake, $5OO. Northumberland. 717- 286-5306 904 904 35 extra large Embden and Toulouse geese. Breeders. 717-732-4035 903 892 Auger Butler, 26'x4”, $90.; IH grain drill, temi mounted H lO, $375. Colora, Cecil Co. 301-658- 3767 880 879 NOTE Please Call Us For Prices On Your Pole Shed Needs. We Can Supply You With All Materials Needed For Pole Shed Con struction At Very Competitive Prices. 4”x6” 6”x6” 10’ 4.17 RD 2, Box 267, East Earl, PA 17519 Csll us for low priest (717) 354-7561 the tickets are for charitable fundraising or sporting events. Deductions for rental of luxury viewing areas at sporting events is not allowed to the extent that the cost exceeds the cost of regular tickets. 2 Registered Quarter horses, 7 month old colt, and l‘/2 year old gelding! Dauphin Co. 717-944- 5374 (1) 9.5x24 tire, $55.; (1) 7.5x24 tire, s2s.;Delivery to Lancaster available. Henry Stauffer, P.O. Box 115, Loveville, MD. 20656. St. Marys Co. 3 yr. old Saddlebred horse, broke & ready to go. Emanuel B. Stoltzfus, RD3, Box 87, Honey Brook. Pa. 19344. IH 155 manure spreader; JD 355 plow, 5x16: AC 600 no till planter; MF 10‘/z' plowing disk; Mc- Curdy 250 bu. bin wagon. Clinton Co. 717-726-6822 Maytag wringer washer, $55.; (2) floor type stereo's, Magnavox, $65., Sears, $15.; Child’s desk, $6.; Men's skates. Berks Co. 215-670-1260 Handmade quilt rack. Also AQHA weanling colt, Blue Roan w/good confirmation and disposition. Berks Co. 717-933-8063 SHP Directair air com pressor in excellent condition. Juniata Co. David M. Swarey, RD #l, Box 140, Mifflintown, PA 17059. AC WD on steel for parts (or can be fixed), $400; loader, $5O; cultivators, $25. Union Co. 717-966- 3964. John Bean potato-onion grader, rubber rolls, size aggers, autocar, 4WD, CSC, runs well, 1100-22 rubber. Corland, NY 315- 696-8602. SQUARE BARN POLES Pressure Treated 15.95 13.12 11.25 8.25 19.20 25.15 20.95 18.50 29.9: 2x6 CENTER MATCH TREATED BOARDS 14’ 12’ 4.99 6.15 SALES 22.50 44.75 19.90 34.7! 16’ 7.25
Significant historical Pennsylvania newspapers