The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

us 2] FE SERA 5 kis . REE SRR S TEN " December 31st. IES § NEE RY . £2 At the end of each fiscal year, the farmer, like all other people, is faced with the' problem of income tax filing. A good manager will try and place himself in the most advantageous tax pos- ition by making use of the tax laws as they exist. Now, or before the end of the fiscal year for the farm is the time to be thinking about tax management. [t'is too late if action is delayed until income tax filing in April if one is filing on the calendar year, as most adjustments must be made prior to the close of the business year on Won " The effectiveness which you put yourself in the most advantageous tax position has a real effect on the success of your farm business. On the other hand, tax decisions shouldn't be over-emphasized, while important they are only one of the factors in manage- ment decision making. Tax. decision should always be in terms of the overall benefit to the farm business, in the current year and in' years to come. It isn't easy to achieve the most advantage- ous tax position. However, sound planning will make the decision easier for you. For most farmers, tax manage- ment means minimizing in- come tax, and there are many ways to accomplish this, but for some, it is better to pay extra tax so as to improve one's Canada Pen- sion Plan position for instance. Tax regulations are complicated and they are changing all the time. The task of keeping tax records and making out tax returns can be burdensome, however, if you have all the information available to you, there is no reason why there . Farm tax mana should be problems in making tax management decisions and in filing income tax. One of the purposes of a good farm record-keeping system whether it be Canfarm, the Ontario Farm Account Book, or your own method - is to provide data to individual farmers in a'form and at a time that will be useful in the important area of -income tax and farm business man- agement decisions. Farm- ers, however, must remem- ber that tax considerations are only one of the factors in management decisions. Be- fore actually making the tax decision, ask yourself these questions: Can you afford it from a credit and equity position? It is good for the business? Will the tax savings balance the extra cost involved, if any? If the answer to these questions is "Yes", then, you can effec- tively make use of tax man- agement alternatives that are available to you. How- ever, if the answer to one or all of the questions is "No", then farmers must look very carefully at the type of tax management decisions that they make. As we approach the end of the calendar year upon which many people base their year-end financial statements, now is an excel- lent time to sit down and determine your possible tax position at the end of the year. For some, who are on the Canfarm record-keeping system, this information will be. available to you starting in the month of September? For others it may mean doing some pencil work to add up the income taken in so far and projected income until the end of the year. Once you obtain the differ- EU EEE TE ETT CTS Inna 66 Brock St. W., Uxbridge 852-5291 [SITRIFCTIEN IVAN (2 1 9 5) PEN BC D JAN VA SA % HS (ONNOIC)I92Y 4 5 A'% Uxbridge Or Call Co D. THAPAR Denture Therapist 214 Dundas St. E., Whitby 668-7797 ET 163 Simcoe St., Oshawa 579-8752 = rw 852-6050 ence in income and expen- ses; you can adjust this for personal expenses such as: portions of the house and the car and other items not allowed .as total farm expense. An estimated Cap- ital Cost Allowance for the year should be added to" the expenses. The amount of personal exemptions can now be subtracted from the difference, and this will give estimated taxable income that you might have. Once the adjustments have been mage, the individual concernéd, must decide on his course of action. If the projected, taxable income varies to a larger extent from previous years, then decisions may be needed. The advantages of the Canada Pension Plan must, of course, be considered in the decisions. If you are filing on the cash basis, which most farmers do, and you wish to reduce. taxable income, some considerations might be to pay outstanding accounts, payable on current expense items such as: ferti- lizer and seed, purchase live- stock for cash, prepay seed and fertilizer for the coming year, pay wages to the child- gement ren in the family, or make needed repairs to buildings and machinery. If you are filing on the cash basis and wish to 'increase taxable income, or bring yourself from a loss position to a zero tax position or possibly put yourself into a - taxable position, some consider- ations might be to collect outstanding accounts receiv- able on current items, sell more livestock and crops, if the crop or animal is suitable for marketing and the price is right, delay payment of current expense type charge accounts until the new year, or withhold a portion of your Capital Cost Allowance. Your accountant or book- keeper or staff of the Minis- try. of Agriculture and Food is in a position to help you arrive at a decision after the home records have been done. The main thing to remember is that in order to be effective, tax decisions must be made before the end of the taxation year.. They should all be done in terms of the overall benefit to the business. 'When making tax decisions, it is important to look at the long range effect that they might have on your farm operation. Louise Patterson Guild meeting by Mrs. Sadie Hobbs The November meeting of the Louise Patterson Handi- craft Guild was held on Wednesday, November 9th, in the St.John's Church hall. A demonstration of String Art was given by Mrs. Mary Briscoe. Mrs. Briscoe be- came involved with String Art while working in a school library. Her daugh- ter chose to read a book about it and to show that she had read the book, had to make an article using the information from the book. The principal of the school saw that some students were interested in the art nd asked Mrs. Briscoe to teach groups of children at the school. Each group attended once a week for a month and in that time every child was able to produce a work of art. "A pattern is the first com- sideration and can be made on paper from pictures or children's colouring books or geometric designs. De- ciding how to display the picture comes - next with choice of size of wood for backing and choice of colour for cloth or felt covering on the wood for a background. The paper pattern is then fastened to the covered wood with pins and the nails, either lingleum type nails or escutcheon pins, are hammered in and the pattern torn off. Mrs. Bris- coe advised that the use of long nosed pliers to hold the nails is a definite asset and "saves many fingers being hammered. Any kind of yarn or string is used start- ing at one nail and strung around the other nails until the various pattern pieces are filled in. Mrs. Briscoe had brought many examples of the art to show to the members, among them a mosaic, bridge, boat, parrot, owl, roadrunner, fish, --peacock and also a Snoopy which had been done by her daughter. E The business meeting of the Guild was short but members decided at that time on the format of the December 14th meeting. It will be in the form of a Pot Luck luncheon to be held at 12 o'clock in the St.John's Church hall followed by an exchange of gifts, hand- made if possible, value of materials used not to ex- ceed $1.50. Members who wish to bring articles of crafts to sell at this meeting may do so. . te Trustees vote "no increase" While Durham Board of Education trustees voted November 14 not to increase their salaries in 1978, one trustee wanted to know why the issue was brought up in the first place. Trustee Cathy O'Flynn presented a notice of motion at the last board meeting that board members' salaries not be increased in 1978 over the 1976-77 level. The board narrowly sup- ported O'Flynn 8 to 7, how- ever, those voting against the motion 'weren't as con- cerned about more money as they were with the tim- ing of the motion. Trustee Lloyd Clarke said he was concerned about the intent of the motion. "No increase was ever consider- ed by this board," he stres- sed. Other trustees felt the issue should come up when the budget is being discuss- ed. O'Flynn suggested the board set an example for others to follow, citing what - she called. the *'grab, grab, grab attitude" of the teach- er federations. . Trustees currently earn $6,000 a year, vice-chairman $7,500 and the chairman $9,000 per year. O'Flynn said the taxpayers were get- ting a bargain". PORT PERRY STAR -- Wednesday, Nov. 23, 1977 -- 31 DELL- The #1 Nationa High Tain Bestseller! ing... ed Book of Oy, Time 2.75 available in These & hundreds more available at ... STAR 191 Queen Street - Port Perry, Ont. Stationery & Office Surprly 9858123...