The West News (West, Tex.), Vol. 97, No. 13, Ed. 1 Thursday, March 26, 1987 Page: 10 of 18
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Page 10
The Scientists Tell Me...
New Tax Laws Tell Farmers
To Get Big or Get Out
By Marilyn Brown
TAES Science Writer
Changes in federal tax laws over
the past 10 years generally have been
favorable to agricultural enterprises,
but the Tax Reform Act of 1986 has
given a new signal to commercial crop
farmers: Get big or get out.
Farmers who normally have tax-
able incomes over $40,000 will have
reduced taxes under the new bill,
while those who earn less will have
greater tax liabilities, according to
Clair J Nixon and James W. Richard-
son. agricultural economists with the
Texas Agricultural Experiment Station.
The 1986 tax law is the most radical
change in federal income (ax law in
recent history, according to Nixon and
Richardson, who recently studied
how changes in the law will affect
agriculture.
Using a computer model to simu-
late different sizes of farms of differ-
ent regions of the country, the econo-
mists analyzed the tax outlooks under
the new tax law.
One of the most sweeping changes
under the bill results from the new
passive loss rules, which prohibit de-
duction of losses in excess of farm
income for nonfarmer investors. This
could lure investors, who play an
important role in money-losing enter-
prises (such as beef production), away
from agriculture toward more profit-
able investments, Nixon and Richard-
son say.
If that happens, consumers can ex-
pect to pay more for some agricultural
products.
“In the past, investors in agricultur-
al enterprises have been able to deduct
farm losses against other sources of
income. The agriculture tax shelter
activity has been especially attractive
Onion Lovers
Can Expect
Sweet Crop
(AUSTIN)--Fans of fresh Texas
onions are waiting longer than usual for
a bite of the onion that doesn't bite
back RainfallintheRioGrandeValiev
delayed harvest, making it late March
before onions headed to market.
From early April through May,
supplies should be plentiful enough to
dress every hamburger between Alice
and Amarillo.
That’s welcome new* for onion
lovers, who must winter over with hot,
pungent storage onions that make a
nice pot of stew but a “tear-able" salad.
The Texas crop—mild Grano and
Granex varieties-is the first in the
country to mature every spring. Shorter
days and fewer hours of sunshine
during the winter growing season plus a
high water content give the onions their
sweet, mild flavor.
Around mid-April, harvest of Texas
1015 SuperSweets will begin Super-
Sweet is the trade name for the star of
the crop, a yellow Grano that grows to
three inches or more in diameter. The
onions have single centers and
symmetrical rings that are great for
french frying. They're also the mildest
onion of the lot. For two years running
SuperSweets have won the title of best
raw onion in the Sweet Onion
Challenge, a national competition
among states that raise sweet onions.
Now that the crop is on its way, try
this recipe from the Texas Department
of Agriculture.
FRESH ONION SAI.AD
.1 4 lb linely chopped sweet onions
I sm. linely chopped tomato
I 2 sm. seeded and chopped bell pepper
1 4 C. distilled white vinegar
.1 T soybean oil
2 I 2 tsp tomato paste
2 12 tsp. chili powder
I tsp. salt
1987 West Trojans Baseball Schedule
March 17 at Hillsboro
La Vega *
at Whitney - 4:30 p.m. *
Marlin *
at Robinson - 4:30 p.m.
at Gatesvllle *
March 20
March 24
March 27
March 31
April 3
The West News * March 26,1987
Over $1,074,000 in Scholarships Offered
to Texas High School Seniors
to high tax bracket individuals, who,
before 1987, were able to take advan-
tage of the many favorable tax bene-
fits available to agricultural invest-
ments,” the researchers say.
The passive law changes, in addi-
tion to the repeal of the capital gains
deduction, will hit hardest in cattle
feeding and orchard development, the
researchers say.
The repeal of the long-term capital
gains deduction also hurts individuals
who sold their farmland on an install-
ment basis, hoping to receive capital
gains treatment throughout the term of
the contract, Nixon and Richardson
say.
This provision greatly increases the
taxable incomes of dairy and beef
producers, two members of the agri-
cultural community who do not need
any more financial adversity.
The elimination of the investment
tax credit and changes in depreciation
methods provide for a generally less
generous investment climate than
under previous law, the economists
say.
Changes in depreciation or expens-
ing methods will most directly affect
farm operators with large investments
in special purpose buildings, such as
poultry houses, silos, and again, dairy
bams.
"With the elimination of the invest-
ment tax credit, there is a strong
likelihood that expensing (deprecia-
tion) will be heavily utilized by profit-
able farming operations," Nixon and
Richardson say.
But expensing is not allowed for
farm operations purchasing more than
$210,000 of equipment annually. The
amount of expensing is limited to
the taxable income generated from
farming.
Income averaging also has been
repealed under the new bill, which
will most directly affect those farm
operators who have highly variable
incomes from year to year, the re-
searchers say.
The new tax law also does not bode
well for some conservation efforts.
“The modification of soil and wa-
ter conservation expenditure deduc-
tion will discourage some farm opera-
tors from future investment in conser-
vation activities,” the researchers say.
After 1986, expenditures for soil
and water conservation activities are
limited to expenses consistent with a
conservation plan approved by the
Soil Conservation Service or a com-
parable state agency.
Expenses such as cleaning or filling
wetlands, land preparation for the
installation or operation of center
pivot irrigation systems, or clearing
land are no longer deducted, and must
be added to the taxpayer’s basis in the
land, the economists say.
Some of the provisions of the bill
are favorable for at least some seg-
ments of agriculture.
Farmers whose debts to non-
relatives are forgiven after April 9,
1986 will not have to report that as
income. This will greatly reduce the
income tax liabilities for solvent farm-
ers who receive debt forgiveness from
a lender, the researchers say.
In addition, my gain dairy farmers
realize from the sale of dairy cattle
under the U.S. Department of Agri-
culture dairy herd buyout program
will be treated as capital gain income
until September 1, 1987.
While the average annual taxable
farm income for the crop farms stud-
ied declined as a result of the Tax
Reform Act of 1986, the lower tax
rate set forth in the bill is often offset
by its other provisions.
Crop farmers with taxable incomes
greater than $40,000 benefitted more
from the reduction in the income tax
rates than they lost from the elimina-
tion of the investment tax credit and
depreciation rule changes.
The same is not true for crop farm-
ers who earn less than $40,000 Be-
cause small-scale crop farmers have a
relatively greater investment in ma-
chinery and generate less profit, the
loss of the investment tax credit
makes them relatively worse off.
April 7
April 10
April 14
April 21
April 24
April 28
May 5
May 8
May 12
Connally *
at McGregor - 4:30 p.m.
at La Vega *
Whitney *
at Marlin *
Robinson '
Gatesvllle '
at Connally - 7:30 p.m. '
McGregor *
District 7-AAA games
All games at 7 p.m. unless noted
1987 West JV Schedule
Feb. 24 - Alvarado, 4 p.m. Feb. 27 • at
Mexla, 5:30 p.m. March 3 • Cameron Yoe,
5:30 p.m. March 6 • at Hillsboro, 4 p.m.March
10 • Hillsboro, 4 p.m. March 17 - at Red Oak,
4 p.m. March 20-at Marlin, 7 p.m. March 24
- La Vega. 4:30 p.m. March 27, at La Vega,
4:30 p.m. March 31 - Gatesvllle, 7 p.m. April
3 • Bruceville-F.ddy, 7 p.m. April 10 - at Gates-
vllle, 7 p.m. April 13 - Connally, 7 p.m.
Kanafy
on Money
On the surface, the role of executor
may seem simple and straightforward.
The executor assembles assets of the
decadent, pays debts owed by the de-
cedent, and distributes the remainder
to heirs designated in the will. Because
this responsibility may look simple,
many people name relatives or close
friends as executors.
In fact, the task often is unexpectedly
time consuming, and it nearly always
is amazingly complex. Beyond the ob-
vious, these are a few of the executor’s
many normal responsibilities:
Safeguard assets. Make certain the
estate is adequately insured. Place cer-
tain valuables in a safe or vault.
Arrange for the interim support of
dependents until the estate is settled.
Manage assets. This responsibility may
become enormously complex if assets
include an investment portfolio, rental
properties, or a closely held business.
Asset management alone may require
investment expertise, business acumen,
and accounting know-how.
Coordinate with others where the de-
cedent held property jointly.
These responsibilities are but a sam-
pling from the full list. The executor
is faced with a formidable task. When
you write or update your will, resist
the impulse to “honor” a friend or
loved one by naming that person as
your executor. You do no honor; you
simply impose an onerous burden.
Look instead to an experienced pro-
fessional executor, probably a regu-
lated trust institution. Don’t waste time
if you do not now have a will, but do
shop around enough to be comfortable
with whatever decision you make.
And if you are so unfortunate as to be
named as executor by another person,
remember that the same professionals
are generally available to serve as your
agent in fulfilling your responsibility.
E. Deane Kanaly, chairman and CEO
of Kanaly Trust Company in Houston,
is author of The Kanaly Concept, Keys
to Understanding, Accumulating, Pre-
serving and Enjoying Your Money. He
invites your questions on money mat-
ters. Address your letter to KANALY
ON MONEY. 45HO Post Oak Place
Drive, Houston, TX 77027.
Mix all ingredients in large bowl Serve
chilled or at room temperature. Makes
4-6 servings.
MAYTAG
“Thu tax deadline is —
looming. H&lR Block block
is never too busy to ' \
help you." * ;X 1\
WASHERS & DRYERS
DISHWASHERS
Salts • Sarvica • Installation
• Fast, courteous service
• Genuine Maytag parts
IF. G. Gerik & Son
IQusI
m
Qusllty Home Appllsnces & TV
HlHI
IsssLBsatei.
H&K BUk’s rax preparers are work
uijj every Jay and evening through
April ISth. We re pledged to find you
the biggest refund you're entitled to.
This year get back everything you've
got coming.
H&R BLOCK
THE INCOME TAX PEOPLE
1011 N. Harrison West. Tx Phone 826-5461
Mon.-Sat. 9-9 No Appointments Necessary
Senior Citizen /Teacher Discounts
1 Day Service Forms 1040A & 1040EZ
WHERE MORE AMERICANS FIND A BIGGER REFUND.
The 1987 Texas Association of
Private Schools (TAPS) Scholarship
Program is officially underway.
They will award over $1,074,000 in
scholarships to selected 1987 high
school graduating seniors in Texas.
Scholarships will be offered in 74
vocational/tcchnical career fields,
including computer programming,
cosmetology, accounting, air condi-
tioning, fashion merchandising,
medical and dental assisting, video
technician, welding and many
others. Over 260 scholarships are
offered with values ranging from
$ 1300 to $12,000.
Scholarship program information
has been mailed to Texas public and
private high school counselors. To
apply for a TAPS Scholarship, stu-
dents should submit I) letters of
recommendation, 2) academic rec-
ord to date and 3) an original 250-
word essay detailing their career
objectives and goals in the field for
which they have applied. Interested
applicants may request information
from their high school counselor or
may contact the TAPS office at:
P.O. Box 13481, Austin, TX, 78711,
(512) 444-8463. Application dead-
line is April 10, 1987.
Nearly 80% of today's jobs re-
quire technical or vocational skills.
Privately-owned schools are able to
provide those skills in a relatively
short time so that a student who
cannot afford or who does not
choose to pursue a 4-year degree
may obtain a challenging position
and be a productive member of so-
ciety.
The Texas Association of Private
Schools, a non-profit organization
representing proprietary vocational/
technical schools, is dedicated to as-
sist people attain education and mar-
ketable skills in their community.
Governor Bill Clements (center) received the first scholarship packet presented
by TAPS President Paul Compton. Looking on are TAPS officers and previous
scholarship winners (from left) Tracy Brumley, Capitol City Trade & Technical
School graduate; Delia DeMottier, Durham Nixon-Clay Business College grad-
uate; Kathy Grigsby, Jackie Nell Executive Secretarial School graduate; Jamie
Williams, poster and directory artist; Don Hall, ITT Technical Institute grad-
uate; Nelda Brock, Jackie Nell Executive Secretarial School; Vernon Stewart,
TAPS Executive Director; Orlund W. Rury Sr„ Durham Nixon-Clay Business
College and Paul Compton, TAPS President.
SEEDS FROM
THE SOWER
By Michael A. Guido, Metier, Georgia
A young couple was on laws about in-laws, or they
the way to celebrate their do not manage their rsoney
first wedding anniversary, but they let their money
“Why," asked the wife, “do manage them, or they are
we sit so far apart? We used combative instead of
to sit close to each other." communicative, or prayer
The husband, who was is the last resort instead of
driving the car, answered the first resort,
kindly, “I haven’t moved, But many grow closer
dear " together because they mind
Some grow apart by their manners, they keep
substituting luxuries for courting, they live love, and
love, things for thought- they keep coming closer to
fulness, comforts for com- Christ. No one is far from
panionship, and gifts for his companion who is close
godliness. to Christ.
Others grow apart be- Grow closer together, do
cause they do not have by- not grow farther apart.
The Rag Bag
(A Resale Shop)
206 W. Columbus
Come in and see the quality used clothing we have
for sale at our low prices.
Now taking spring and summer clothing on
consignment.
Please call first, call 826-5202.
West Sales & Service ^
112 East Pine West, Texas 76691
826-3842
• Sales • Service • Repairs
• Heating & Air Conditioning • Electrical
• Refrigeration • Appliances
Authorized dealer for Amana, Rheem,
In-Sink-Erator, Magic Chef, Roper
and Speed Queen
Ernest and Kay Kaska_
Something Old.
Something New.
At HCA
Medical
Plaza
Hospital,
we're breaking
tradition through
non-surgical alternatives
for kidney stone
sufferers.
Kidney stone removal used to mean
painful surgery accompanied by a six week
recovery period. Now, thanks to modern
medical advancements, traditional surgery
is something old.
Extracorporeal Shock Wave Lithotripsy,
ESWL, is the name for a new, one hour
non-surgical procedure that disintegrates
painful kidney stones through the use of
harmless shock waves. The spark plug
replaces the scalpel. ESWL is in use at
select medical facilities throughout the
United States and in Fort Worth only at
HCA Medical Plaza Hospital's Regional
Stone Treatment Center.
ESWL is actually something borrowed
from aircraft research on the destructive
effects of shtxk waves.
These effects have been positively
directed to create a medical miracle for
those who are plagued by kidney stones.
ESWL patients are partially submerged in a
tub of warm water. The exact location of
the stone is carefully pinpointed. Then, a
series of shixk waves is emitted directly
toward the stone. Kidney stones are
reduced to sand-sized particles and are
passed
through
normal
elimination.
And,
lithotripsy relieves most
of the blues associated with
kidney stone removal. Most ESWL patients
report little or no pain with the procedure
and recovery time is generally no more
than two to three days. That means you
spend less time in the hospital and you're
back on the job sooner. Lithotripsy costs
the same or less than traditional surgery
and is covered by most insurance policies.
The Regional Stone Treatment Center
at HCA Medical Plaza Hospital. From
something old to something new.
Something borrowed and a lot less blues.
The perfect marriage of technology and
medicine for kidney stone sufferers in the
Fort Worth area.
For more information about lithotripsy
and the Regional Stone Treatment Center
at HCA Medical Plaza Hospital, call (817)
336-2100 or 1-800-722-8567 (toll-free). Or
simply clip and return the coupon below
for a quick, confidential response.
Please send me more information about lithotripsy and
the Regional Stone Treatment Center at HCA Medical
Plaza Hospital.
Name-
Address-
Cily-
State-
Phone-
Doctor's Name-
mail to:
Regional Stone Treatment Center
At HCA Medical Plaza Hospital
1612 W. Humbolt Street • Fort Worth, TX 76104
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Knapek, Larry. The West News (West, Tex.), Vol. 97, No. 13, Ed. 1 Thursday, March 26, 1987, newspaper, March 26, 1987; West, Texas. (https://texashistory.unt.edu/ark:/67531/metapth715743/m1/10/: accessed April 25, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting West Public Library.