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Jim's Towing Service
November 16, 2001     Cape Gazette
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November 16, 2001
 
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56 - CAPE GAZETTE, Friday, Nov. 16 - Nov. 22, 2001 BkrSINESS & REAL ESTATE Farm equipment auction expected to draw crowd those useful items around. At 10 a.m., Saturday, Nov. 17, auctioneer Dave Wilson will open the bidding for scores of special- ized, unusual and antique farm items and equipment from the Lewes farms of Mitchell and his neighbor Oscar Warrington. The auction will take place on Warrington's King's Highway farm, recently purchased by Beebe Medical Center. It will un- doubtedly attract many interested farm owners and antique restorers from Sussex and Kent counties. Some will come looking to bid on Mitchell's low-mileage work- horse, a dark green 1954 Chevy By Jim Cresson Many changes have come to the business of agriculture since Low- der Mitchell's family purchased Zwaanendael Farm in 1897. But it still takes a lot of special equip- ment to operate a farm, and an old-fashioned farm equipment auction is still a great way to pass Jim Cresson photo Sitting astride his favorite tractor, Lowder Mitchell prepares to haul a 1947 Sears Roebuck David Bradley model manure spreader across Freeman Highway to the farm of Oscar War- rington, where auctioneer Dave Wilson will call for bids on a host of big and small farm equipment, at 10 a.m., Saturday, Nov. 17. Mitchell's International Harvester Farmall Cub tractor is not for sale. "It's my special toy," he said, "but this manure spreader would be per- fect for somebody with two or three horses and small acreage." Mitchell said he and War- rington have already had several interested people inquire about and even come look at some of the many items bound for auction. "Some people are interested in using the equip- ment on their farms," he said. "Others are interested in restoring them as nice antiques." 6500 stake body truck. Others may be looking to get the winning bid on Warrington's Sears Roe- buck David Bradley model hay rake or Mitchell's David Bradley manure spreader. And still others may want any of the numerous tractors, mowers, cultivators, hoes and planters that will be on the block. Mitchell, who plans to keep on farming his 59.7 acres, said the auction is simply a "good way to get rid of a lot of the equipment I just don't need anymore." He said he intends to farm his land as long as he can and then pass it on to his son, Danny. Until that happens, he wants to begin a new way of farming using the no- till process of working the land. With that in mind, a lot of his cur- rent equipment won't be needed. "I know we're taking a chance, but I joined a Delaware State Uni- versity field trip to a no-till farm in Beltsville, Md. last year, and I was really impressed with what I saw," Mitchell said. "There was great mulch on the ground and a beautiful crop of corn growing• I'm going to give it a try - no tillage and no chemicals." Among the trucks, tractors, cul- tivators, wagons, mowers, sprayers and spreaders will be some items only farmers would recognize. For those who want a good hog oiler, pig crate, compost grinder, horse collar, chicken feeder, de- homer or a head gate. And for those homeowners who need that extra special item in the back shed, there will be lots of lawn mowers, two sulkies, a gar- den trailer, a coal brooder stove, wheel barrow, cement mixers, hay wagons, grease guns, rakes, shov- els and hoes. Millsboro chamber award nominees announced The Greater Millsboro Chamber of Commerce is asking members in good standing to cast a ballot for its annual Chamber Member of the Year award, The nominees are Randy Dell of Suburban, Adrianne Moore of Delaware National Bank, Denise L. Matz of DLM Computer Associates and Joe Shoup of Indian Valley Carpet Cleaning. Members may submit one vote only. The deadline to hand in ballots is 5 p.m., Friday, Dec. 7. Votes may be called into the chamber office at 934-6777, faxed to 934-6066, emailed to Millsboro@intercom.net, or mailed to Greater Millsboro Chamber of Commerce, P.O. Box 187, Millsboro DE 19966. The trophy will be presented at the holiday din- ner Dec. 11. Tax law increases college, retirement savings options The Economic Growth and Tax Relief Reconciliation Act of 2001 encompasses a wide range of changes that benefit taxpayers of all ages and income brackets. For example, a new 10 percent tax bracket, a drop in tax rates over the next 10 years and an increased child credit. But some of the greatest opportunities created by the law are in three major areas of personal finance - retirement sav- ings, college funding and estate planning. Retirement saving. Both indi- vidual and employer-sponsored retirement savings plans got a boost with the new law. Begin- ning in 2002, the contribution lim- it for Individual Retirement Ac- counts, both traditional and Roth IRAs, increases to $3,000 per year, up from the current $2,000 annual limit. After that, the limit will move up in phases until it reaches $5,000 a year in 2008. Individuals age 50 and older will be eligible to make additional "catch-up" IRA contributions of up to $500 in 2002 through 2005. The catch-up contribution limit will increase to $1,000 in 2006 and later years• Participants in certain defined FINANCIAL FOCUS Allen Jones contribution retirement plans, such as 401(k) plans and 403(b) plans, will have increased salary deferral limits. Beginning in 2002, they may contribute up to $1 !,000 of their salary in 2002, an increase from $10,500 this year. The contribution limit is sched- uled to rise annually in $1,000 in- crements to $15,000 in 2006. The annual elective salary de- ferral limit for Savings Incentive Match Plan for Employees (SIM- PLE) plans, available to compa- nies of 100 or fewer workers, will rise to $7,000 next year, up from $6,500 this year. By 2005, that amount is slated to rise to $10,000. Participants age 50 or older will have the opportunity to use a catch-up provision that may allow them to contribute an additional amount above the deferral limit. Eligible participants in 401(k) plans may be able to make catch up contributions of $1,000 next year, an amount that increases in increments of $1,000 a year to $5,000 in 2006. SIMPLE plan participants in this age group may be able to mtke catch-up contri- butions of $500, a limit that in- creases in increments of $500 a year to $2,500 by the year 2006. College saving, With the new law, two popular college savings vehicles - state-sponsored 529 plans and Coverdeli Education Savings Accounts (formerly known as Education IRAs) - be- come even more valuable funding avenues. State-sponsored 529 college savings plans allow parents, grandparents and others to con- tribute to an account that can be used to pay a child's college tu- ition, room and board, as well as other expenses. The maximum lifetime contribution limit is often substantial: for example, Maine's plan allows a maximum lifetime contribution limit of $225,000. Previously, the assets in the plan could grow tax-deferred, but were generally taxed at the child's rate when withdrawn for er education purposes. Starting in 2002, gains will be tax-free when withdrawn for qualified expenses. People saving through 529 plans can use the assets for private colleges and universities, as well as public in- stitutions, and graduate and post- graduate schools, such as medical schools. Also starting in 2002, for tax- payers who qualify, the annual nondeductible contribution limit • to Coverdell Education Savings Accounts was increased to $2,000 a year per designated beneficiary, up from the current $500 annual limit. The assets can grow tax-de- ferred and be withdrawn tax-free if used for qualified higher educa- tion expenses. The new law al- lows assets to be used for quali- fied elementary and secondary ed- ucation expenses, inclu.ding tu- ition for private and parochial schools. Estate planning. The new law repeals the estate tax in 2010. In the interim, it increases the credit that allows taxpayers to exempt a portion of their assets from estate taxes. In 2001, up to $675,000 of as- sets qualify for the unified credit. Beginning in 2002, the estate tax exemption will be raised to $1 million and then gradually rise to $3.5 million in 2009. In 2002, the highest estate and gift tar rates will be reduced from 55 percent to 50 percent and will then gradually drop to 45 percent in 2007. Unless the repeal is extended, in 2011 the estate tax exemption is scheduled to roll back to $1 mil- lion, the top estate and gift rate tax is slated to return to 55 percent. Because of these changes, you should thoroughly review your current estate plans. Plan new strategies. Meet with your tax and financial advisers to review the new tax law and its im- plications for your retirement sav- ing, college funding and estate planning strategies. Editor's note: Allen N. Jones is senior vice president and director of Merrill Lynch Business Finani- cal Serv&es. For more informa- tion, call 227-5300.