HomeMy WebLinkAboutThe Exeter Times-Advocate, 1972-01-27, Page 14BIG
Horsepower
COCKSHUTT 2150 DIESEL with cab 23,1 x 24 rear tires
MASSEY 1100 DIESEL, 2000 hours, like new
FARMALL 856 DIESEL, 1700 hours, like new
FARMALL 806 DIESEL, real good
FARMALL 806 DIESEL, with cab, good
FARMALL 656 DIESEL, completely reconditioned
CASE 741 Comfort King, gas
ALLIS CHALMERS 017, engine overhauled
FORD 5000 DIESEL, like new
N. T. MONTEITH
EXETER LTD. 235-2121
"The best in service when you need it most!"
PROVINCIAL ELECTION
EXPENSES
Charles S. MacNaughton -• Progressive Conservative Candidate
HURON RIDING — October 21, 1971
Expenses
Advertising $6,661.98
Newspaper , $1,410.10
Promotional Material . ... 2,265.06
TV and Radio 1,216.00
Signs 1,780.82
Taxes
Provincial 199.12
Federal 179.67
378.79
Payroll
Committee Room Attendants etc.
Quarters Rentals
Committee Rooms
Other
758.60
900.72
Sundries
Telephone 342.57
Postage & Stationery 354.42
Fuel (Goderich & Clinton) . . 26,19
Hydro 53.74
776.92
$9,477.01
Receipts
6 Donations in excess of $50
Sundry donations under $50
$2,815.00
26.00
Charles L. Smith
Official Agent
681.22
219.50
SPRING NEEDS
NOW
• All Varieties of Seed Oats and
Barley Now Available
• All Mixed Seed Grain Is From
Certified Seed
e Grass Seed Mixes should be Ordered
Now So We'll Have It Ready to go
When You Want It,
• Don't Miss Out — Place Your Seed
Corn Order Today.
EXETER
DISTRICT
Phone 235.2081 Beside CNR Station
Order Your
AT OUR SHOWROOM Highway 4
Just North of Exeter
Continuous Showing
of
FARMING
FRONTIERS 72
An Informative Film
Covering a Wide Selection
of Topics of Interest
TO ALL FARMERS
See the New
JOHN DEERE
Equipment for 1972
ON 'DISPLAY INSIDE
• 7700 Combine
• 2120 Tractor
• 4320 Tractor with Saddle
Tank sprayer
FREE COFFEE and DONUTS
uwo rr
IR A IC 11- CI Ft
exeveR, L11) 235..1115
You're Invited to Attend
Farming
rontiers72
MON. Et TUES.
Jan. 31 and Feb. 1'
1:00 to 5:00 p.m.
TAX
TROUBLE?
Let
George
Do !
CONTACT
GEORGE El ZENGA
107 Main St. -Lunn
2274851
Horsepower
To Spare
Ford 5000 Diesel
Ford Super 6 (4-wheel drive)
John Deere 4020 Diesel with cab
David Brown Croprnaster
Massey 35 Diesel, like new
Case 430 Diesel
Massey 333 Gas
IHC Super W-6 T-A Gas
1HC W-400 Diesel
Massey 44 Gas
11-IC 460 Diesel
IHC Model "C" row-crop & 4-row cultivator
Ford 9N with loader
Ford 4000 Diesel
BETTER FARMING STARTS AT
EXETER FORD
Equipment
Sales Ltd.
Tractors
Equipment
EXET5Ft 235-2200
Page 14 TimesAdvocate, January 27, 1972
Hill favors incentive
Whiting Auctioneering
and Appraisal Service
Profit by Experience
We give complete sale service
nook your sale early to avoid
conflicting dates.
Free service for charitable organizations
NORM WHITING, LICENSED AUCTIONEER
Phone collect 230-1964 Exeter
SWINE COURSE AT CENTRALIA COLLEGE -- A large number of
area farmers attended a swine conference at Centralia's College of
Agricultural Technology, Wednesday and Thursday, Shown above
during one of the sessions are from the left, Usborne township
Amendments still to come
farmers Hugh Rundle and Sam Skinner; CCAT principal Jim
MacDonald; Ralph Winfield, Ontario Hydro agriculture sales
department and Martin Wrubleskie, Ontario Department of
Agriculture and Food extension engineer from Ancaster, T-A photo
JIM'S ABATTOIR
r .
For beef production
Ontario needs an incentive loan program for beef cows
program to increase beef calf would also allow young farmers
prOttetion, That was the decision to get into the industry more
reached last Wednesday by the easily."
Ontario Federation of Kent county farmer Ian
Agriculture's Board of Directors, Maynard warned that Ontario
The decision Conies in the face would become a cash-cropping
of province-wide debate over the province if it didn't take the long-
advantage and disadvantages of term view. "We need a good
a 1PW'Post loan Program to assist livestock industry here," he said.
farmers in establishing cow Grenville's Keith Matthie saw herds for beef production, the incentive scheme as a way for
Federation President Gordon older farmers to convert their Hill favoured an incentive dairy tions. operations into beef in-
dication that beef production will opera
scheme, "There is every
not keep pace with demand," he The directors debated the issue
told the directors. "And the fact for almost an hour and inspite of
is that producers in most other sortie opposition from directors
Provinces get assistance to set up concerned that an incentive
beef operations." would result in overproduction of
Grey county beefman Ken beef, they voted convincingly in
Leith also backed an incentive favour of a scheme.
scheme. "Increased beef calf The Ontario Federation of
production in Ontario won't upset Agriculture will present its
the apple cart because our supply recommendations for an in-
would be just a drop in the bucket centive program to Prime
compared to U.S. production," he Minister William Davis and his
said to the directors. "A low-cost cabinet in the near future.
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s• ea.
7.— Tax changes for farmers
F.2
Custom
Butchering
and
Complete
Processing
aa
Ea-
= EE
FE
PORK KILLING
MONDAY ONLY
$4.00
Cutting, Wrapping and
Freezing 5c lb.
Making Sausage 10c lb.
Render Lard 5c lb.
Smoking & Curing 12c lb.
BEEF KILLING
MONDAY AND WEDNESDAY
$5.00
Cutting, Wrapping and
Freezing 5c lb
Grinding Hamburg 5c lb
Making Stew
Hamburg Patties No Charge 7.
Minute Steaks /
likely - unless they are in an area
likely to increase dramatically in
value, Appraisals cost money and
in many cases the cost may not
be justified. Remember $500
today invested at 8 percent in-
terest is equal to $4,000 twenty-
four years from now. A savings
that might result from an ap-
praisal will not be realized until
the asset is sold, which might be
next year or 30 years hence.
o If a capital gain occurs, a
taxpayer may use either the
original cost or the value of the
asset on Valuation Day -
whichever is higher (therefore
gains which are simply a
recovery of cost will not be
taxed).
o If a capital loss occurs, a
taxpayer will measure the loss
against the lower of original cost
or the value of the asset on V-day.
o Alternately, taxpayers may
simply elect to use V-day value
for all their assets.
-7.
All Meat Wrapped in Waxed Butcher
Paper or New Freezer Film
Pick-up service available
JIM DARLING — EXETER 235-0420
gllifillilli1110111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111115.,. Farm books
now available
Farmers in the area are
reminded that the Ontario Farm
Record books are now available
at The Times Advocate or from
the Department of Agriculture
and Food office in Clinton,
These books are becoming
increasingly popular with area
farmers as it enables them to
keep a comprehensive report of
the year's business,
By using these record books,
farmers are able to keep a better
eye on their business and the
Department also notes that such
a record makes credit easier to
obtain and income tax easier to
calculate.
items held prior to and on
Valuation Day. Subsequent
acquisition will be measured for
gains or losses on their
acquisition costs - farmer should
record a present fair market
value of real estate, buildings,
existing basic herds and
machinery as of December 31st,
1971. If the farm is a limited
company, all assets should be
given a fair market value as this
value will determine the value of
Common Shares. Every
valuation of these properties
should be supported with per-
tinent information such as
(a) land - your purchase price,
particularly if recently pur-
chased, sales of similar
properties - condition of
development, clearing, levelling
or tiling, productivity of
property, a detailed sketch
showing power lines, roads,
permanent buildings etc., a few
photos to be included with
records might be quite useful,
(b) building and machinery -
structure, material, year con-
structed or purchased, major
repairs or changes and condition.
(c) basic herd - number of
animals, age of animal,
productivity, (R.O.P, or D.H,I.A.
records), weights of animals,
similar sale values.
If a farmer has been carrying
assets (real estate) on his books
at original cost for some time, he
should revalue the real estate to
fair market value as of
December 31st, 1971.Provide as
much documentation as possible
and keep in a safe place,
Remember a fundamental rule of
taxation; a memorandum
prepared by a taxpayer may be
acceptable evidence in a tax
appeal provided that it was
prepared at the time of the
transaction or event. If the
taxpayer reconstructs things
later on, the forcefulness of the
memo will not be nearly as
strong.
By J. J. HAGARTY
Area Co-ordinator and
Farm Management Specialist
Quite frankly it is too early to
tell what all the changes might
mean. The new tax legislation is
now law. Many amendments are
still to be included, Just what the
official interpretation might be is
open to speculation. The ad-
ministrators are guided by legal
advisers and by considerations of
reasonableness and practicality.
The Department of National
Revenue states that "where two
interpretations seem to have
equal support, having regard to
equity, reasonableness,
statutory interpretation and the
general intent of the legislation
as a whole, the interpretation is
adopted which gives the benefit
of the doubt to the taxpayer."
This is a big mouth full.
Obviously not everything is "cut
and dried."
It will be some time before the
implications are clear. The
Department of National Revenue
will be sending out special
pamphlets on subjects such as:
Valuation Day, Capital Gains,
Partnerships, Basic Herd,
Goodwill (Quotas) etc. Farmers
as a group will receive a package
of pamphlets of direct interest to
them.
Each District Taxation office
will receive visits, telephone calls
and written inquiries. They will
be holding special tax reform
briefings in various communities
and individual officers will be
,available to speak at meetings.
They prefer to do this from next
May on - following the 1972 filing
season.
In the meantime we all have a
responsibility to inform ourselves
of the basic changes. And
perhaps put ourselves in a
position of being able to say -
what is reasonable and practical.
Farmers should be encouraged
to record realistic values on all
assets as of December 31st, 197i.
This is important on records such
as CANFARM, These records
will be valuable assets in years to
come.
Some of the Major points are as
follows:
Capital cost allowance
(depreciation)
o Straight line depreciation
may be used for assets purchased
before December 31st, 1971.
o All assets purchased after
that date, the diminishing
balance method must be used.
o Straight line depreciation will
be phased out. However, for a
number of years farmers may
use both methods, Assets on
straight line depreciation which
are sold for more than their V-
day value or book value will be
subject to Capital Gains.
o A farmer could switch all
assets to the diminishing balance
method if he wishes - We would
not advise a farmer to make this
move because if V-day value is
greater than book value e.g. a
tractor book value $1.500, V-day
value $2,500, the trade-in value
for the tractor could be up to
$2,500 without being subject to
Capital Gains. If the tractor was
transferred to diminishing
balance method, the $1.500 value
must be used.
Averaging
o 5 year averaging for farmers
will not be changed.
o Automatic averaging will be
used if taxable income is up over
10 percent of last year and 20
percent over last four years.
o Forward averaging will be
permitted. This will be a boon to
retiring farmers. Certain large
unusual receipts such as Capital
• Gains on sale of livestock, or
inventory of quota can be in-
vested in an annuity. This money
will then be taxable over a
number of years as it is being
received at a greatly reduced
rate compared to the rate if taxed
when first received.
Basic herd
No new basic herds can be
established after December
31st , 1971 and no further in-
creases made to existing herds
(application covering 1971 may
be made when filing returns for
1971 prior to April 30th).
o A Basic Herd will be valued
as of V-day. Following this date,
if a Basic Herd is sold for the V-
day amount or less, this income
will not be subject to Capital Gain
or Income Tax. If Basic Herd is
sold for more than the V-day
value, the increased value will be
subject to Capital Gains but not
Income Tax.
o Livestock sold outside the
Basic Herd will be treated as
income rather than Capital
Gains.
o There is a priviledge of
electing to decrease the Basic
Herd a limited amount each year.
This decrease must not be
greater than 10 percent of the size
of the Basic Herd as of December
31st, 1971 nor may it be greater
than the number of animals sold.
OFA supports
corn marketing
The Ontario Federation of
Agriculture is now on record as
supporting a marketing plan for
grain corn. The federation's
Board of Directors decided last
Wednesday to support a
resolution from Dundas county
farmers calling for the establish-
ment of a corn marketing plan.
Dundas county director Hugh
Blaine of Mountain explained
that commercial corn growers in
the county have found that they
cannot maintain a viable corn
industry with corn selling at $1,05
a bushel. "We need an organized
system of marketing our corn,"
he said, "and the federation
should work for one."
Directors from other counties
producing grain corn agreed.
o One-half the capital gain will
be taxed at the regular rate of
Personal Income Tax.
o Unrealized (accrued) gains
taxed on death,
o One-half of the capital losses
in a year first deducted against
one-half the capital gains in that
year, Any deductible excess up to
$1,000 may be deducted against
other income.
o No capital gains tax will be
imposed on gifts or bequests at
death between spouses. Capital
gains tax would apply when that
spouse transfers (sells, gifts or
bequests) that asset.
o Capital gains tax applies to
all other gifts or bequests -
personal residences and one acre
of land are exempt of capital
gains tax when sold,
o Farmers will be entitled to
claim as an alternative to the
above, a $1,000 annual deduction
against gains on his farm house
and all his farm property if this is
to his advantage,
o Should farmers have an of-
ficial appraisal of their land,
livestock or machinery? Not
Capital gains tax to commence on
January 1st, 1972
December 22nd, 1971 for Stock
Market Shares, December 31st,
1971 for all other assets — the
evaluation date affects only
CLINIC
on the
New 400 Series
AIR. PLANTERS
See It In Action
Thurs., Feb. 3 — 8:00 p.m.
At Our New Location
1% Miles North of teaforth
INCEINIT
FARM EQUIPMENT
Our Motto:— "AFTER WE SELL — WE SEEVICE"
AYfI- GAIT ti11$60:101 OhDno 52/.01/0