insurance

[railway]

Anybody run into this problem? We recently incorporated, and insurance agent says we can no longer run farm plates on any of our personal vehicles not included in the corp, and registered under our personal names.

We are not considered farmers anymore? Does this mean no farm fuel in these vehicles either?

In addition, no more write-offs of any kind pertaining to a farm expense on our personal returns??

WTF? My accountant says he has never run into this problem (regarding a personal vehicle not owned by the corp)

[ado089]

Technically thats all correct, you can play games with leasing ,on paper, back and forth. Your personal income should drop to the income tax exemption level or as close as possible and the rest of your personal income should come from dividends from the corp as the corp will have alot friendlier tax rates. You might want to find a more competant accountant as well.

[charliep]

You have to work the math but may be worthwhile to keep vehicles out/charge mileage when used for farm related activites. Keeping a mileage log of a vehicle use is a pain in the hind end but can work out to be financially beneficial (farm expense on one hand/not income on personal side from what I remember in a previous life).

[cchurch]

Just put all your personal vehicles under the corporation.

[FarmRanger]

"Just put all your personal vehicles under the corporation."

And when you get audited, you will pay tax on all the benefit you received from the personal use of company vehicles. Plus interest plus penalty (neither of which will be tax deductible).

As Charlie mentioned, you're much better off just charging the company a per km charge for trips you make on company business with your personal vehicle. Make sure you can justify any charges, which will be repaying your personal car expenses; and are therefore not taxable to you, but still deductible by your company.

[lesm]

Put all your regular half tons (1 seat only) under the corp.- only have to prove 50% business use. In the case of trucks with a front and back seat, they are considered passenger vehicles and than you have to prove 90% business use.In the event you can't,they will charge you a standby charge which is very expensive- you don't want to pay this charge. Good luck.

[cris]

You may need to set up a joint pin number for the vehicles. Joint between you and your corp(it's a separate pin from you and your corp). For example a truck that hauls your grain and the company's grain should be joint registration.

[railway]

thanks for the input, but what about running dyed diesel in a personal truck, even if its used for farm use and charged to the company?