The Rural Voice, 1987-01, Page 47ADVICE
The tax act considers any passing
of farm property to a child to take
place at the property's fair market
value whether or not that was the price
paid for it. From the standpoint of the
child, any increase in value, for the
purposes of capital gains, will start
from the date of transfer. For the
farmer, the capital gains tax will be
charged against the fair market value
that exceeds the valuation day price of
the farm, or the purchase price if the
farm was bought after 1972. If this
amount is less than the exemptions
mentioned above, no tax will be
payable.
For larger farm operations that
need to have more tax deferral than the
$700,000 capital gains exemptions,
the farmer can use the capital gains
reserve and declare a small part of any
taxable capital gains, in a period of up
to ten years. This option is only avail-
able if the purchase price is paid over a
number of years by the child through a
personally held mortgage.
The outcome of a farm transfer
should be that the parents have an
adequate source of income for life, the
child or children owning the farm
property are content, and the rest of the
family is happy for them. Don't try to
sacrifice any of these considerations.
The shorter route is not always the
best.
Frank Little
ABC Investments &
Insurance Agency Ltd.
BALES BY "MAIL"
Hay bales are being sent by
"pneumatic mail" from alpine
meadows to villages and farm-
steads in the Soviet republic of
Georgia.
Scientists at the Georgian In-
stitute of Agriculture have
developed an automatic baler
which can send bales as far as two
kilometres through a flexible air -
duct.
The machine operates on slopes
inaccessible to tractors and will
enable farmers to develop alpine
meadows on a larger scale. It i\
portable and simple to assemble.
Tell them you saw
their advertisement
in The Rural Voice.
AGRICULTURAL REAL ESTATE LIMITED
8 Huron Street, Clinton, Ont. NOM ILO
519.482-3981
Excellent opportunity to sell your farm land in 1987
Because of the large European interest and the strength of the German Mark,
there has been added enthusiasm for investment in Canada.
Give us a call if you feel you are interested in selling your farm. All calls are
strictly confidential and without obligation.
AGRICULTURAL REAL ESTATE LIMITED
Pat Norman
Nil 519-482-9911 (res.)
Bruce Rathwell
519-482-3120 (res.)
PS
epp9Ltd
s
Clinton, Ontario
NOM 11.0
DUIIUTY
PRESSURE
CLEANERS
"Hot or Cold"
EPPS MFG. LTD.
INTRODUCES
... the latest in
cleaning technology
RR 4. CLINTON. ONTARIO NOM ILO
(519) 482-3418
SOYBEAN GROWERS
There is more to seed quality than
just germination.
FIRST LINE tests for
SEEDLING VIGOUR
that may make all the difference
to your 1987 yield
• HODGSON
• EVANS
• MAPLE ARROW
• PISCES
• LIBRA
• BICENTENNIAL
All FIRST LINE
soybean seed
is tested for vigour.
To reduce the risk
of environmental
stress problems,
be sure you get
VIGOUR -TESTED
SOYBEAN SEED.
Hill L3 Hill Farms Ltd.
VARNA 482-3218
JANUARY 1987 43