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4 The Canadian Statesman,E Agricçýultul Income 'fax Considerations for 1976 As we head into the month of Decèember, many farmers start to look at ways that they might increase or decrease their taxable income for the taxation year, which in most cases, is the calendar year of 1976. You will note that we said "increase" or "de- crease" taxable income and there are cases where farmers' Bowmanville. December 8.,1976 irai Nemws Would wanl. to increase their taxable income, so they could n1ake maximum contributions to Canada Pension Plan or, other reasons that might pertain to their specific farm operation. We would like to take this opportunity to point out gome of the things that are available to farmers that will help them in increasing or decreasing their taxable in- corne for their benefit. In June of 1975, the Federal Government introduced an Investment Tax Credit, whereby a farmer who pur- chased new equipment, machinery, or constructs buildings can deduct 5 per cent of his investment from' hîs Federal Income Tax payment. This is especially important because it means that a farmer dan deduct directly from the tax that he is goîng to pay, rather than, deducting from the income that he bas received during the year. The Investment Tax Credit applies to qualified property purchased after June 23, 1975 and before July 1, 1977. The credit is limited in any one year to $15,000 plus one-haîf of the taxpayer's Federal Tax payable in excess of that amount. Any balance, or unused credit, may be carried forward for up to five years. The amount upon which the farmer can take Capital Cost Allowance, however, has to be reduced by 5 per cent before calculating the capital Cost Allowance for that item in the taxation year. An example of how the Invest- ment Tax Credit works would be as follows: 'A farmer purchases a tractor for $15,000 in 1976; the Investment Tax Credit that is allowed is 5 per cent of the purchase price or $750. This $750 will be deduct- ed from any Federal Tax payment he would have to 400,000'acres is abfir suce of Coaada's corn cake There will be close to 2.6 million acres of corn grown in Canada this coming year. More than 400,000 acres wiIl be planted with Pride varieties. And that's a fair slice of the cake. No-one g ives you that sort of market share, Its not magic and it's certainly no accident. It has to be earned the hard way - like 25 years experience in the corn business, a continuaI research and development program and an aggressive expansion program into the new corn areas of the Maritimes, Quebec and Western Canada. You can buy seed corn from more than 18 different sources, each with* a network of dealers, but yqu cannot escape the facts. There's no substitute for experience. Let us prove it to you. King Grain Limited P.O. Box 1088, U!.ii!.L~ Chatham, Ontario, Canada ' W N7M 5L6 R. R. 2, Newcastle 987-4474 JOH N MAN UE L, C.G. ,A. 67 King St. East, Suite 2 623-6555 HAAR, CHAPMAN & FLETT Chartered Accountants Suite 202, 54 Centre St. N., Oshawa, 728-7363' 133 Church St., Bowmanville 623-6868 JOHN P. WINTERS Chartered Accountant 20 Col borne St. W. Oshawa, Ontario Phone 579-5659 Chiropractic LAURENCE A. GREY Doctor of Chiropractic 270 King St. E ast Bowma nvi le Phone 623-4004 G. EDWIN MANN, D.C. Chiropractor Office: EIgntre Corner of Horsey Street Phone 623-5509 Office Hou rs: By appointment Dental1 DR. ANGUS M. BLAIR D. D.S. 26 Frank St., Bowmanville (near Dominion Store> Office Hours: 9:30 a.m. to 9p.m. including Saturday Telephone 623-3181 DR. WILLIAM KEANE Dental Surgeon 222 King Street East Professional BIdg. Office Nours: Weekdays 9 -5 Telephone 623-7412 If busy - 623ý4731 DR. WILLIAM KENT D. D. S. 222 King St. E., Suite 106 Professional BIdg. Bowmanvil le Telephone 623-7349 Office Hours: 8:30 -5.:00 Weekdays ClosedFriday Afternoons DR. W. M. RUDELL D.D.S. 75 King St.* E., Bowmanville Office H urs : Mon., Tues., and Thurs., 9 'til 5 Wednesday - 9 'tii12 Friday - 9 'tii 4 Not open Saturday or Sunday Off ice Phone 623-5790 PATRICK G. DEEGAN DENTURE THERAPY CLINIC 36 King St. W. Office Hours: Mon., Tues., Thurs., Fni. 8:30'til15: 00 Wednesday 8:30'til 12: 00 Saturday - By appoint ment onîy Phone 623-4473 Son ta Claus Parade Section«Two make in 1976, The amount he can use for Capital Cost Allowance will be reduced by $750, meaning, that he can daàim Capital Cost Allowance on $14,250 for the tractor. For 1976, two groups of farmn assets continue to qualify for accelerated or fast writeoff privileges under Capital Cost Allowance. Grain storage facilities and grain drying equipment purchased between April 1, 1972 and August 1, 1974 qualify for an additional Capital Cost Allowance. t is important to remember that this is in addition to regular Cost Allowance that is dlaim- ed for these items. As well, pollution control assets pur- chased before the end of 1976 can qualify for a fast {vriteoff of 50 per cent per year over two years. Special application for qualification under this programn must be made to the Manager of the Accelerated Cost Allowance Program, En- vironmental Protection Ser- vice, Environent Canada, Ottawa, Ontario. While each' application, under this pro- gram is judged on its menit, eligible property may include items such as: liquid manure tanks, injectors, aeration equipment, pumping equip- ment, oxidation ditches and handling equipment. We have had some questions this fail from farmers who have purchased new grain drying or grain storage equip- ment, as to whether or not they would qualify for accel- erated amounts? A new grain storage building acquired after February 19, 1973 can now be put into Tax Class 8, which gives a normal Capital Cost Allowance of 20 per cent. In addition, fresh fruit and Business Directory Accountancy WM. J. H.COGGINS Chartered Accountant 115 Liberty Street South Bowma nvi le Phone 623-3612 WILLIAM C. HALL B. Comm. Chartered Accou ntant 36/ King St. E., Oshawa Telep hone 725-6539, D. V. SNODDON 212 Liberty St. North Bookkeeping and Tax Service Business: 623-7950 Residence: 623-7308 FROZN. CONCENTRATED Sunny Orange Drink OZ, TI 39e FR020 N Fraservale. Fancy Peas O'[Y"AÀ 69e, FROZEN. 661.69E 15 INCHI 3-Z Famosa Pizza 3102 2. 49 IGA. ROYAL GOLO, MIL. MEDIUM, 01. COLRED OR OLD WHITE Cheddar Cheese WlI.T 18165 106. BLENORI'E Shortening. CRTN. 49e FANCY Mitchell's Applesauce OZJAR 69e PEACO. RASPBRRROOR STRAWBERRYWI 2 SFL, Berrybox Jams PETI AS Allowance available to them. The order in which the less than maximum amount is allocated to the various assets or groups of assets can be quite important. Generally, the amounts should be allo- cated in the following order: 1. To Part 17 Assets-that is, those that were on, hand before December 31, 1971, since there is no possihility of recapture of the Allowances claimed on these assets. 2. To grain storage and grain drying assets qualify for additional allowances, since these allow- ances are only available untîl 1977. 3. To Other Part il Assets, that is, those on the #PRODUCE 0F U.S.A. CANADA NO. 1 GRADE Toinatoes 3(9LeÎ PRODUCE 0F U.S.A. Broccol i diminishing balance Capital Cost Allowance schedule going first to the Class with the smallest Capital Cost Allowance rate, then the second smallest and s0 on. This will, then, provide larger amount of Capital Cost Allow- ance available in subsequent years when you may need it. One other caution we want to mention is that some farmers have been counselled to swîtch from the old Part 17 to Part il Capital Cost Allowance Sched- ules. We do want to emphasize strongly that you could be subjeict to recapture if this takes place, and would urge that you do not do it, without considering tirst all of the implications. The only place where we could see that switching would be advan- tageous is in the.case of a terminal loss, where the selling price of the assets is decreasing faster thani the undepreciated Capital Cost Allowance. This is flot a likely situation, particularly since one specific asset cannot be switched over to the new schedules. Useful Tips on Buying Beef There is probably somneone who knows where you can get a "good deal" on the purchase of a side of beef. Before you firm up the deal, make sure of PRODUCE 0F U.S.A. Floria Oranges 125'S DOZ. $1 ONTARIO GROWN BUNHE $CAN AD A FAN CV GRADE 2. FRMclntosh Apples Green 2l BUCHES 39M Onions f.FOR ;9 GOLODSEAI. BRIGHT'S FANCY Sockeye P O. Q %0% Tmt Samn TIN Juice B.79 ,1l2J certain facts. Be sure that the meat is inspected. In inspect- ed plants, federal veterinar- ians examine meat animaIs before, and after slaughter to ensure that only wholesome meat is sold. Be sure you know the grade. You may be told it's Grade A, but within Grade A the range goes from Canada AI to Canada A4. Canada Ai is the highest quality young beef, while Canada A4 has the thickest fat covering. This means that with Canada Ai you will lose about 25 per cent of the total weight of the side or front quarter, or hind quarter, through fat, b ones and shrinkage, while with Canada A4, you may lose upwards of 30 per cent. Be sure to refer to a beef chart in one of your cookb ooks and know which cuts to expect from the parts of the animal you buy. For example, you should get sirloin steaks and Porterhouse steaks fromn the hînd quarter. Be sure you buy that part of the animal your think you can use within a reasonable period of time. For example, if you buy a hind- quarter, expect to get about 27 pounds of stewing or ground beef. Its a lot of ground beef if you like only the roasts and steaks. Be sure to make arrangements to have the PURE Camp Maple Syrup 61 I ORANGE PEIIOE Tetley Tea Bags'O Nabisco Cream of Wheat TOASTMASTER (49 OFF LABEL) Tea Biscuits DEMPSTER'O (5c OFF LABEL) C60006 PROM 1VARIETIES 1 Unnrt~n'cUnI; nk, P.,.U'0 $1 ýFL. I .25 meat dut, wvrapped, in freezer paper, labelled, and frozen. Lt takes the usual home freezer of 15 du. f t. a period of 24 hours to freeze 371/ý lbs. of meat. A hindquarter could yield a total of 105 lbs. of meat, not to mention the bones and fat. The giftA for al seasons... 9 PARÎNER OROMO 983-5206 ESSO HOME HEAT SERVICE Coupons. et IGA. WILTHTHIS COUPON I OAE10 N THE PURCHASEI I PKGS. OF FLAVORED, I JOLLY MILLER -Orange i Crystals EFfIECTiIVE UNTIL CLOSING STUDAY IlECEMB 11 1976 WITH 1 H15 COUPON I ISAVE 100 ON THE PURCHASEI IF 0A28-OL.TIN 0F Mapie Leaf Mincemeat EFFECTIVE UNTII. CLOSING SATURDAY, DECEMBER 1il 1976ý WITH THIS COUPON O F Ai1'/2-LB. PEAR-SHAPED TINI OFCOOKEO Maple Leaf Ham EFFECTIVE UNTIL CLOSING ISATURDAY, DECEM13ER il. 1976 WITH THIS COUPON I SAVE 25e ON TUE PURCUASEI S OFA 4kg PKG. OF I Dog Chow EFFECT IVE UNTIL LSN S ATURDAY DECEMB R I11976 *x $ WITH THIS COUPON F2 S ~ AVE 10C ON THE PURCUASE 0F A 32-OZ. JAR 0F SMOOTH i~29< : HOMOGENIZED Kraf t PKEUF 65<1 Peanut Butter' I EFECIV UNTIL-CLOSIN PO1 o w....,. ..aua. c * U.oUay t,( MOUS, ONICKERS OR03 MUSKETEERO Fun Size Candy Bars 1.10610 lvory Detergent CON FIOET SanîtaryNapkins 3 OONCE Dixie Bathroom RefilI Cups PLASTIC, 15 MIL, (26 x36" SIZO> Quikki Garbage Bags BIOD CHOICE, FROZEN ASSORTED FLAVORS Strawberries or Mîss Mew CRUSRED . 9 DZ.$ , DZ. TI N59 PineapplesCTS Cat Food 'u'uIe emeo'I1 WITU THIS COUPON S AVE 10e ON TUE PURCUASE 8- 'I. 8 Ie OF APKG. OFl10oxl-OZ. 802 G. ENVELOPES 0F NESTLÉ'S INSTANT 327FL. 02. RIMNG S"'EL9ri ot PLAOTiC RT99 Chocolate p~o 7~C EFFECTIVE UNIL. CLOSING opt 5e SATURDAY, DECEMBER 1il 1976. sio77< l -,I WITU THIS COUPON I PXG 89< 1SAVE1e ON TUE PURCHASE I 144 ORANGE PEKOE * Tetley "' ITea Bags EFFECTIVE OUTIL CLOSING I WITH THIS COUPON I jSAVE 15e ON TUE PURCHASEI 0F A 46-FL. OZ. PLASTIC BTL.OJUSN I Future Floor Polish TINZ ATUROAY DýECEMBER 111976. WITUTIS COUPON OF A 300-ml BTL. 0F DRY OR REGULAR Jergens Hand Lotion EFFECTIVE OUTIL CLOSINO ATURDAT DECEMBER 111976 PRClEFCIE'ADC 10GI.DC 117 ERSRE U IU OLMTOATTE 77 King Street East IWITH TIS COUPON I ISAVE 109 ONTUE PURCUASEI I OF A 5O-mlTUBE OF I Bowrranvi lie FRIESUMINT OR MILOMIINTI IMacLean's Values Effective at I Toothpaste EFFECTVE UNTIL CLOSING BOWMAN VILLE STOREî SATURDA'YDECEMBER il, 1976. 1 --- - - - James, Agency Limited 24 King St. E. Bowmanville For allyour insurance needs Nesta Akey or Doug James at 623-4406 MONEY ON QUALi fY IDX PREMIUM and STOVE OIL BOWMANVILLE CUSTOMERS CALI COLLECT Ask Operator for 668-3381 or Dial 1-668-3381 CALL US F E I TODAY DXF% FOR PROMPT, COURTEOUS SERVICE ONTARIO GROWN CANADA NO. 1 GRADE Rutaâbagas vegetable storage facilities can also be placed in Class 8 at the rate of 20 per cent if acquired after February 19, 1973. Many farmers wonder in what order they should dlaim maximumà Capital Cost AlloW- ance, if they are, not going to take aIl of the Capital Cost PRICES EFFECTIVE WED., DEC. 8 TO SAT., DEC. 11,1976. WE RESERVE THE RIGHT TO LIMIT ûUANTITIES. PRnniir.F nu ii -ç à Bmbm*d6d6mU