. Cranberries; : the national cranberry magazine. Cranberries. Tax Reform Sideshow All that Glitters is not Gold The Tax Reform Act of 1976 has been enthusiastically greeted by many farm fami- lies because it greatly lowers inheritance [taxes, at least those below $500,000 in value. But hold on, says an economist from a (college of agriculture in the northeast. ;Granted, the Act extends the iO% investment :tax credit to 1981, saving a pile of income-tax (dollars for farmers. But in two other areas, the news is not all that good. For one, the Act increases the minimum itax on items enjoying fav
. Cranberries; : the national cranberry magazine. Cranberries. Tax Reform Sideshow All that Glitters is not Gold The Tax Reform Act of 1976 has been enthusiastically greeted by many farm fami- lies because it greatly lowers inheritance [taxes, at least those below $500,000 in value. But hold on, says an economist from a (college of agriculture in the northeast. ;Granted, the Act extends the iO% investment :tax credit to 1981, saving a pile of income-tax (dollars for farmers. But in two other areas, the news is not all that good. For one, the Act increases the minimum itax on items enjoying favorable tax treat- ment. For another, additional income tax is â due from heirs who sell farm property they ^inherit. "In the long run," says our source, "farm families lost more than they ; The minimum tax is one levied on tax-preference items like capital gains. I'he exemption has been lowered from $30,000 to $10,000 and the tax raised from 10% to 15%. When an estate transfers, it used to be that property was stepped up in value when inherited. The inheritance tax was paid on the appraised value of the property at death, but the heir could use that same value as a cost basis when he sold it later. That no longer will hold. An heir now must pay income tax on the difference between the value of property when pre- viously purchased and next sold. In the opinion of some, thus, the total tax from farm families (income tax and inheri- tance taxes combined) has not been lowered by the Tax Reform Act of 1976. In some cases, it may actually have been increased. All that ghtters is not gold. A MOST COMPLETE INVENTORY OF IRRIGATION ACCESSORIES LABCB ^. ENGINEERING & IRRIGATION, INC. Please note that these images are extracted from scanned page images that may have been digitally enhanced for readability - coloration and appearance of these illustrations may not perfectly resemble the original Portland, CT [etc. ] : Taylor Pub. Co. [etc. ]
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