Finally....

[jethro456]

Do pension funds pay tax?
If they do, the increased taxes on renting land would cost them a bundle.

[tweety]

What's wrong with passive iincome? You don't want any business owner thinking outside then box to create more wealth and therefore more taxes and what's really important more jobs? Just because that income is outside the primary reason for the business, who cares? Tweety you think farmers should only farm and not look to try new ideas or ventures?

Everyone cares, and you're about to find out exactly how much soon.

But that isn't what the corp is for. Its for primary business dealings, and to be taxed at corp rates to grow that business. Not generate income from outside investments and tax shelter them that have nothing to do with the primary business. Unfortunately.

The smart ones will figure out how to get around it. They always do.

[mcfarms]

Personally I suspect we will see some adjustments to the proposals following the "consultation " period but something wicked this way comes.. I spent the morning at a town hall meeting listening to MP Pierre Poilievre CPC finance critic he had some interesting insight into this . Came away feeling about the same as I went in not great.
I was impressed by his knowledge and ability to answer the questions posed to him on the subject. He managed to quickly set aside the political questions and focus on the tax changes as proposed. No question after hearing him I have to think it has alot more to do with paying for a social agenda than it does with fairness. He had some comments that the passive income thing is actually worth more gov't rev. over the long term but the libs want that tax rev. now to help defray some of this spending. sprinkling isn't the key part of this move it is the passive thing that could generate them the most.
Frankly think alot of this isnt targeted at us in the ag business but we are going to get swept up in the big net like a dolphin on a tuna boat unless things get adjusted.
Also don't think Bill Morneau has a bloody clue about what a incorporated family farm looks like after hearing some of his comments over the past week he keeps saying these changes wont affect the family farm.
As proposed they sure as hell will.

[Braveheart]

Is like to know who the ****head was that came up with this idea? Which prick civil servant said, "let's go after farmers, small business owners and the like"?

[LEP]

I think people are looking at this passive income thing wrong. So say a guy has a Napa franchise and is going to retire so he sells his business and inventory and keeps the building and rents it to the new business operator.

So he has any working capital from the business and sale proceeds from the sale of the business and the building in the company. So let's say he has run the business for 25 years and outside of a few rasps the sale proceeds are his retirement. His plan was to invest the money in the corp plus collect rent on the building and pay out dividends on an annual basis to live on for the next 25 or 30 years.

But because the Liberal Government can't keep the government spending in control want to tax him at 73% on any "passive income" because they want their money now. He is now in the position of taking a huge tax hit any way he turns.

This is the thing pissing business owners off to no end.

[tweety]

So if you own 1000 acres in a corp, and rent for 70 an acre, after tax income of 20k. Minus land tax, about 15k. Corp filing fees, maintenance.......

Modest 300 an acre value, pretty bad return on 3 million dollar asset.

[Oliver88]

Read an article I can no longer find. Morneaus' company stands to make a killing with some pension products with the changes?


Whatever buys votes right?

This whole tax change is looking like a very big conflict of interest for Bill Morneau.

[grassfarmer]

On and on it goes, fear mongering based on made up facts and mis-contrived scenarios. They did not decide to "come after family farms and small businesses". 75% of farms will be totally unaffected by the proposed changes as they are not incorporated - likely only 5-10% of all farms will pay more tax as a result. Even if all 25% were affected it would only account for 2.4% of corporations affected on a national basis - this is not about targeting farmers.

"The proposed changes do not raise the very low 10.5 % tax rate on the first $500,000 of net income that currently applies to small businesses that are set up as private corporations." Source NFU.ca

So it isn't going to hit all the small Mom and Pop franchise businesses in town either.
Enough with making up stories

[zeefarmer]

Is like to know who the ****head was that came up with this idea? Which prick civil servant said, "let's go after farmers, small business owners and the like"?

The same one/ones that think it's ok to take taxpayers money and instead of investing it back into the country, throw it at Middle Eastern countries, the Clinton foundation, their own special interests, etc, etc.

[farmaholic]

So if you own 1000 acres in a corp, and rent for 70 an acre, after tax income of 20k. Minus land tax, about 15k. Corp filing fees, maintenance.......

Modest 300 an acre value, pretty bad return on 3 million dollar asset.

Is the math right? 1000 acres @ $300 value = $300,0000 asset. Am I misunderstanding this post. $300 an acre land? Where?