Loading...
HomeMy WebLinkAboutTimes-Advocate, 1979-03-07, Page 11ATTENTION FARMERS Liquid Manure Tanks Must prove wife contributes Times-Advocate, March 7, 1979 F Any Size with or without lid. We do the excavation, pour the cement and back fill. One complete job. For freo estimates in Ontario. Call 296-4218 Collect T.W. Van Bree & Sons Ltd R.R. 3, THEDFORD PURINA RESEARCH FARM TOUR TO ST. LOUIS, MISSOURI APRIL 1-2-3, 1979 *249” From London, Chatham & Detroit Metro. Airport Price Includes Air Fare, Meals, Buses Ac­ commodation and Exchange on U.S. Funds See, Hear and Enjoy! — World's Largest Commercial Research Farm. — Visit Beef, Dairy, Swine, Laying, Turkey, Broiler, Horse, Dog & Cat, and Rabbit Units. — Management Techniques and Equipment in Special Interest Sessions. — Veterinary Sessions Covering Day to Day Disease Problems. — Finest Purina Farm Stage Show Entertainment. Good Fellowship and Contact with Ontario's Successful Farm Owners and Managers, — A Dynamic, Condensed, Informative Livestock, & Poultry Seminar. — An Income Tax Receipt Will be Issued on Purchase of Tickets. Good accountant help to farm tax problems — Contact Your Purina I LIMITED. □X DUBLIN FEED MILL, DUBLIN 345-2330 E5>: BEV. MORGAN & SONS HENSALL 235-1487 E5K REVINGTON FEED SERVICE RR3, LUCAN 227-4584 EX WATER'S ELEVATORS LTD. PARKHILL 294-6231 Dealer Today — SPACE IS EE-: WRIGHT'S FEED SERVICE AILSA CRAIG 293-3170 EE< J. LORNE ROSS ST. MARYS 284-3434 SM FISCHER FEEDER SERVICE MITCHELL 348-8725 QW MILTON J. DIETZ SEAFORTH 527-0608 EX BAKER'S FARM & GARDEN CENTRE CLINTON 482-9333CUNTON 482-9333 iHMKfflJWMKPI By ALICE GIBB Getting a good accoun­ tant, one who is knowledgeable about far­ ming and familiar with provincial and federal legislation covering farm transfers or partnerships, is the best way farmers can deal with tax problems, ac­ cording to a Grand Bend tax consultant. Bill McEachern, who worked for Revenue Canada for 30 years, and now operates his own firm, told a meeting of the Huron County Federation of Agriculture that any farm transfers between family members or any farm sales are being carefully checked today when capital gains taxes are filed. McEachern said although hrtisband-and-wife partner­ ships may provide a slight tax credit and pension ad­ vantages, there are pitfalls. The consultant said in order to have a legal partnership arrangement, the farmer must prove his wife contributes both capital and labour to the farm operation, He said the labour con­ tribution is the most impor- tant aspect of the partnership to prove. Bev Brown, a federation member, said an Eastern Ontario farm women’s organization has recommended that women in partnership arrangements keep a daily schedule of their labour on the farm and get witnesses such as vets or R.O.P. men who may visit the farm to witness their contributions to the farming operation, McEachern said while the taxation department recognizes the wife as a partner in the operation, the Farm Credit Corporation doesn’t take the wife’s labour into account. Many of the questions at the meeting dealt with the transfer or "roll-overs” of property and assets from a father to a son. McEachern advised the audience to consider profit- sharing arrangements rather than a full partnership operation since the accounting costs are way out of line when a father and son go to divide the farm assets. In a profit-sharing arrangement, each partner would have their own assets, and "a son could buy a new tractor without his father’s permission.” McEachern told members he doesn’t recommend in­ corporating a farming operation, unless partners are making between $20,000 to $30,000 each year, since incorporation brings "ac­ counting fees and troubles to farmers.” He advised if family members do incorporate an operation, then the farmer shouldn’t put his farm into it, since this can create a problem if one member of the family wants out at some future date. McEachern said transferring a family farm from a father to son can cost as much as $100,000 in avoidable income taxes un­ less the farmers can get someone who really knows the tax legislation to assist in the transfer. By handling a roll-over properly, Mr. McEachern said you can pass the capital gains tax down four or five generations down the line, so the taxes won’t have to be paid for 30 to 40 years. The problem in roll-overs however is that many ac­ countants aren’t familiar enought with provincial and federal legislation in transferring property. The tax consultant told the audience "I know only three accountants who can do a roll-over properly.” The rights of federal auditors in demanding access to farm records was also questioned by members of the auditors. McEachern told the members that Revenue Canada can examine all of a farmer’s records, as long as they do it at the farm "They aren’t allowed to take them (the records) out without your permission un­ less they have special iden­ tification to seize your records, if they do, that’s when you’re in trouble,” the tax consultant said. He said the threat has been used by auditors, "well, if you don’t want to give them (records), we’ll taken them” but records can’t be removed from a farmer’s home except for a special investigation. He said if the auditors used any of the information on the farm records outside the audit procedure, then they would lose their jobs. Also, he advised the audience that they now have a right to go into a Revenue Canada office and view their file under new government legislation. He said if farmers are un­ happy about the audit, there are appeal procedures they can follow when the audit is completed. The tax consultant also told the audience he feels the Canfarm accounting ser­ vice is an excellent one as long as information is fed into the system correctly. In other business, the Huron County Federation of Agriculture decided to withdraw and earlier resolu­ tion on binder twine and port the resolution made by the Canadian Federation of Agriculture. The national body has ask­ ed the government to withdraw their investigation by Revenue Canada on the countervailing duties for bailer twine because of pur­ ported subsidies in countries such as Brazil, Mexico and Tanzania. The resolution said these countries produce the only sisal twine available, since it can be grown only under certain climatic conditions. Also, many Canadian farmers prefer the sisal twine to the plastic twine manufactured in Canada, since the sisal is bio­ degradable. The federation said they didn’t feel the present situa­ tion was harming the Cana­ dian binder twine industry, since only plastic twine is produced in the country. Andy Durand, a Zurich area farmer, reported he had been unsuccessful in in­ vestigating foreign land ownership in Hay Township. Durand said the township clerk and the regional taxa­ tion office in Goderich both refused to give him informa­ tion on foreign ownership in the township. Doug Fortune said his township council also turned down a similar request for foreign ownership informa­ tion, since it would involve too much work for the township clerk to research the information from the tax roll. Jim McIntosh, a Seaforth area farmer and former clerk of Tuckersmith Township, suggested federa­ tion members could gain access to this information if they were prepared to go through the township tax rolls themselves. Fl CROP INSURANCE APPOINTMENT a - The Crop Insurance Commission of Ontario is pleased to announce the appointment of DONALD H. WEIGAND As agent for the South Huron Area. Mr. Weigand will be taking over the area formerly held by Glenn S. Webb. FARM 1 EQUIPMENTj MARCH SPRING the amount of TO ATTEND CONGRESS — Brian Miller, left, of Exeter receives airplane ticket to Paris, France, from Jack Hale, On­ tario Federation of Agriculture general manager. Miller is one of four Junior Farmers selected to represent Ontario at the Second World at Paris. Congress of Young Farmers, March 5 to 8, SPECIALS USED TRACTORS 1085 MF, cab, heater, duals, low hours, ex­ cellent cond. $13,900 1100 MF 20.8 x 38 rear tires, no cab. $9,250 165-D/v\F - High arch. $4,500 180-DMF $6,200 35 Gas MF and McKee snowblower. $2,195 1456 IHC, cab, heater, 20.8 x 38 rear tires with axle duals. $15,300 1066 IHC, 4WD, low hours, cab, heater, air cond., radio, 23.1 x 30 snap-on duals. $21,900 $7,900 $8,900 $13,300 ,800 hours, $23,500 Ask us about our interest free programs and FCL leasing. CUSTOMER UNITS Used New Holland #346 tank spreader, 852 gal. hydraulic lid opening, $825 885 Case, less than 100 hrs. 990 Case, 300 hours, like new 185 AC, low hours, nearly new 1370 Case, cab, heater, air, 1 duals. SPECIAL 2670 CASE — 4 WD, 20.8 x 34 tires, cab, heater, air, AM/FM radio, 3 P.T.H., P.T.O., 647 hours. $38,900 1 - Used Century saddle tank sprayer with pump. 2-100 gallon tanks with 400 gal. sad­ dle mounting kit. NEW HOLLAND INTEREST FREE PROGRAM ON HAYING, HARVESTING, FORAGE EQUIPMENT. USED GRINDER MIXERS NH 352 - Excellent condition.$2,200 IHC 1050 - Good condition. $2,450 Farmhand 100 bu. Ex. Cond.$l ,995 Check with us for savings on New Holland grinder-mixers and New Holland spreaders. SERVICE Repairs made to all makes and models of tractors and machinery at a resonable hourly charge. Cl * , ___ > ____-' 'Lt w *-w % $ iwifew wo$ M IF YOU THINK TOBACCO, ALCOHOL AND DRUGS ARE BADTOR YOU, IMAGINE WHAT THEY’RE DOING TO YOUR UNBORN CHILD. As parents, you can reduce the risk of having a mentally retarded child by developing proper dietary and lifestyle habits during pregnancy. To get all the facts, see your doctor. Many forms of mental retardation can be prevented. Your child’s health and well being depend on it. For more information, write for a booklet on the Prevention of Mental Retardation. Write to: Mental Retardation Prevention Queen’s Park Tbronto, Ontario 8 M7A1E9 Keith Norton, Minister of Community and Social Services Ontario William Davis, Premier Mr. & Mrs. Toronto are staying with Mrs. Loughleen’s mother Mrs. Jane Bickell who has returned to her home in Kirkton after spending sometime at the home of her son Mr. & Mrs. Bill Bickell in St. Marys following eye surgery in Stratford General Hospital. Miss Donna Switzer, R.N. of Beaumont, Texas has spent the past week with her parents Mr. & Mrs. Jack Switzer and Murray. Mr. & Mrs. Earl Carroll, Exeter visited Sunday with Mr. &Mrs. Rea Stephen. Mr. & Mrs. Gary Ballard and Craig, Mississauga spent the weekend. Cecil Dobson has returned home after being a patient in St. Marys Memorial Hospital. The family of Mrs. Wm. J. Blackler gave a gathering held basement of St. Anglican Church afternoon in honor mother’s 80th birthday. Guests were present from London, Exeter, Zion and the Kirkton vicinity. Philip Blackler presented his grandmother with a corsage. A beautiful flower arrangement adorned the table. A social afternoon was spent and a lovely lunch served. Miss Mellisa Dunnell, Woodstock celebrated her third birthday with a family dinner at the home of her grandparents Mr. & Mrs. Ewart Crago. Mr. & Mrs. Ron Marshall and family, Kitchener and Bob Marshall, Hamilton visited Sunday with their parents Mr. & Mrs. Lome Marshall. The World’s Day of Prayer was observed in Kirkton United Church Friday morning with guests from Anderson Carry On Group, Kirkton Class That Counts, Woodham U.C.W. and Kirkton St. Pauls A.C.W. Those taking part were Mrs. Allan Eveleigh, Mrs. Robert Ratcliffe, Mrs. Jack Urquhart, Mrs. G. H. Burgin and Mrs. Clayton Ross. The offering was taken up by Mrs. Lloyd Jaques and Mrs. Harold Davis. Mrs. George Burgin In­ troduced the guest speaker Miss Maureen Mayne, Mission Officer for London Conference, native of Saskatchewan, took deaconess training at Wesley Kirkton By MRS. HAROLD DAVIS Loughleen, THORNDALE, ONT.A For more information call anytime. Phone 519-461-1530 inDeaconess College Yorkshire, England. Mrs. Clayton Ross thanked Miss Mayne and presented her with a gift. Following the service a delicious dinner was served by U.C.W. EH2 Gord Hutchison Res. 461-1380 SPEFRV-^-hEW HOLLAIXD Clarence Woods Res. 283-6422 I THE ROYFARM MORTGAGE PROGRAM surprise in the Paul’s Sunday of their LONG TERM AGRICULTURAL LOANS FOR ADDITIONAL LAND, PROPERTY IMPROVEMENTS OR DEBT CONSOLIDATION Whether you are farming as an individual, in partnership, or as a corporation, proven farm business management ability will likely qualify you for a ROYFARM MORTGAGE. • Maximum per farm is normally $500,000, with higher amounts available in some circumstances. • Minimum per farm is normally $50,000, with lesser amounts handled through the regular FARMPLAN loan program. • Amortization is for periods up to 25 years with a fixed 5-year interest rate, offering you protection against any rate increase for that 5-year period. The current prevailing interest rate is 11.5% subject to change without notice. • Group Mortgage Life Insurance, low cost coverage, is available to you as an option. Because mortgage financing is a long term commitment requiring the best of judgement, your first and best move is to contact your local Royal Bank branch. From the manager you will have sound advice that comes with long experience. ..a detailed pamphlet out­ lining the ROYFARM MORTGAGE PROGRAM...a special bulletin, "A Guide to Land Purchases”... and a handy farm mortgage calculator. And then you can get down to serious planning. J.R. (Jene) Seller Manager ROYAL BANK serving Agriculture Exeter Agri-Branch Exeter, Ontario 235-21 1 1====^