HomeMy WebLinkAboutZurich Citizens News, 1972-11-30, Page 19THURSDAY, NOVEMBER 30, 1972
1 ttransfer estates
(by J,J, Hagarty, Ontario Min-
istry of Agriculture and Food,
Stratford.)
What's wrong with my farm-
ing system? A farmer with this
question in mind, looking at
his assets from the advantage
of 1, 000 feet up, might spot
some obvious problems. The
layout of buildings could be
improved. The need for drain-
age may be apparent. The
barnyard might be close and
sloping towards a stream.
What may not be obvious is
his lack of any plan to transfer
these assets to his family. And
this may be the one "bug" in
the system that will keep him
from reaching his goal. Tax
management will become a
regular concern for more and
more farm families. They will
want to reduce and defer in-
come tax, succession duties
and tax on capital gains.
ZURICH CITIZENS NEWS
PAGE 19
ESTATE TRANSFERS
Estate transfers must focus
on the advisability of selling,
gifting or bequesting various
types of assets today, In light
of the capital gains tax and
the provincial gift taxes and
succession duties, should you
sell, gift or bequest a partic-
ular farm asset? Generally:
*A gifting program should
be considered first. The most
important items to gift are non -
depreciable assets such as land.
(e.g. sell farm and gift in lots
of $2, 000. through a demand
note)
* What you want to bequest
should be considered with refer-
ence to your gifting program.
The most important items to
bequest are depreciable assets
(e. g. machinery), income-
producing items ( e.g. invent-
ory) and (possibly) basic herd
animals.
* Anything can be sold. The
ZURICH LIONS CLUB
ST T
FRIDAY, DECEMBER 8
Admission by advance tickets only. There
are still a few tickets available - get
yours now from any member of the Zurich
Lions Club.
Fri,.};ec® '
8:30 P.M.
14 Rounds For $I.®®
SHARE -THE -WEALTH DOOR PRIZE
SPONSORED BY MT. CARMEL C. W. L.
ST. FEVER'S PARISH HAL
SL Joseph
8 P.M.
12 TURKEY GA liES
3 GA xl` 1 ES OF
SHARE-THE-`1,'rI EALTH
PROCEEDS FOR
St. Fury's School P.I.A.
priority items, however, are
probably rapidly appreciating
assets which will eventually
be subject to a very large cap-
ital gains tax.
BEQUESTING
(1) Machinery - Bequesting
may be the least expensive way
to transfer machinery. (a) the
deemed proceeds are estimated
to be half -way between the
undepreciated capital cost and
fair market value (not simply
the fair market value)
(b) it is profitable (from the
recipients point of view) to
defer using the diminishing bal-
ance depreciation method.
(2) Land - The Ontario Suc-
cession Duty has a tax-free base
of $100, 000. ($500, 000. if
passed to spouse). By leaving
estates under $500, 000 to a
spouse, both succession duties
and capital gains tax are defer-
red.
When a person gives or wills
assets to a spouse, that spouse
is considered to have acquired
the asset at a value equal to
the original adjusted cost base of
the asset. e.g. a farmer who
pays $200. for an acre of land
in 1972. In 1982 when the land
is worth $400. his wife receives
it in the will. National Revenue
will consider that the value to
the wife is $200. (not $400.),
so there will be no gains tax
paid at that time, When the
K rwf C dinner
hGwid Z rkh
The 10th Charter Night Anniv-
ersary banquet and dance of the
Father Stephen Eckert Council
of Seaforth and District was
largely attended in the Zurich
Arena. The proceeds of the
evening were donated to the
Arthritic and Rheumatism Soc-
iety, a program which has been
endorsed by the Ontario State
Board in which all Knights of
Columbus Councils are particip-
ating in as a charitable project.
The sum of $250. was turned
over to the Society.
On Sunday evening the Coun-
oil held its annual Memorial
Service for the deceased memb-
ers, Rev. P. Oostveen, Assist-
ant Chaplain, celebrated the
Mass and also tool< part in the
commemorative service which
followed for the three deceased
members of the past year. The
arrangements were made by
Ewart Wilson, Catholic Activ-
ity Chairman, assisted by Grand
Knight, James Devereause and
other officers.
Ecologists for the evening
were John Moylan, Wilfred
Hogan and William Regier. In
attendance were inany relatives,
friends, as well as council
members. The members who
passed away during the past year
were John Mahoney, Auguste
Ducharrne and Lawrence Mc-
Cann. Members of St. James'
Choir also assisted with the
service.
daaa
(ALSO FORM WORK)
McCann Cont. Ltd.
DASHWOOD
Phone 237-3381 or 237-3422
wife disposes of the land, a cap-
ital gains tax unavoidably arises.
ROLLOVERS
A rollover is said to arise wher
capital gain or loss is deferred
for income tax purposes. In this
way, at attempt is made to
leave the parties in the same
capital position they were in
prior to the transfer.
( on Highway 21 - between St. Joseph & Grand Bend)
WE ARE NOW TAKING
RESERVATIONS
For Christmas Parties
We will make all arrangements!
CALL MRS, BECHARD
236-4850
FULLY LICENCED UNDER THE L.L.B.O.
OPEN !DAILY
BREAKFAST & LUNCH
8 a.m. to 1.30 p.m.
DINNERS
MONDAY to FRIDAY
5 to 8;30 p.m.
SATURDAY
5.30 to 8.30 p.m.
SUNDAY
5.30 to 9 p.m.
(Dining Room licenced
under L.L•B.O•)
`i YOU ARE ALWAYS WELCOME
SATURDAY, DECEMBER 2
Mozart's Melody Matters
Dining Room closed Saturday night, December 2 only
JOIN OUR "GREY CUP" PARTY SUNDAY AFTERNOON
r
o t
YOUR I-IOSTS; "PETE" and "CAROLE" DEITZ
Highway 21 - GRAND BEND
�i --" * _===>1Fc. 3 3
The
WILLIAM WYLER,,,,
RAY STARK •
Production
mp dY Dec.
Thu. al Fri.
1
Sat.
2
42'.1111ire the stickiest
t9 eeet►i,e its the /4/04v
ea
COLUMBIA PICTURES
and RASTAR PRODUCTIONS present
BARBRA STREISAND•OMAR SHARIF
In "FUNNY GIRL"
pA
TECHNICOLOR" • PANAVISION"
THURS. 1SHOWING 8 P.M.
2 SHOWINGS. 7:00 P.M. & 9:30 P.M.
FRI. & SAT.
Saturday Matinee 2
TI -Hs WEEK ONLY
S
HOWTIMIE 2:15 P.M.
EASTPIAPICOLON
R055A110 AAAI;I PAUL TRIPP
•
Sumo Mon, 4 Tue.
Anybody's Back Seat will do
•;L',- - N „„„ .
JACK ALBERTSON LESLEY WARREN MARTIN SHEEN �'�1 p,,
AO aLTENRRTAINMLNI
4! .CL
CaIOR �, R nIXnAX Nu+xA'
ANtIONYBLARL CHR S1IAN WHITTAKER,.+a CO GARNER IOHNFLOAEA iitiP iLLIPs r},� ' ; A