can corp build machine shed on private land?

[poorboy]

I own the farm yard in my own name and have my farm corp doing the farming in Alberta. Personally, I have no extra money without paying tax to get it out of the corp.

Would like to build a new storage shed. Can the crop build a storage shed with a signed lease for say 10 years with me and then the shed becomes mine? Or can I lease the new shed and then deduct the lease payments off my personal income tax and have the corp pay me rental equal to the lease rate? Or how to do this?

How does everyone handle wanting to use corp money to build on farm yards that are owned personally?

[bgmb]

I would think you might be able to lease it in your personal name and then have the corp pay you rent equal to the payments.

You can also just use corp money to build it on your land and not have any rent or interest expense. If you ever quit farming you could use your shareholder loan to buy it from the corp at its book value which will likely be very low at that time.

We have corp owned bins and sheds on personal land.

[TOM4CWB]

poorboy,

If you have your corporation lease the shed... LIKE grain bins for instance... this may be a good way to accomplish your objective. The you could buy the building after the lease is finished.

[mcfarms]

The operating company just builds the bins and buildings on the land companies land really you mightbe over thinking it , If someone else owned the land it might be a deal where you'd have to get a lease agreement. Our accountant has never said anything about it.

[wd9]

I'm in partnership with my own corp. A
good tax lawyer/accountant will solve
your tax problem even minimizing any
AMT. You just have to decide where the
future of your operation is going. For
example Felesky and Flynn out of
edmonton can do almost anything.
Including disproportionate income
between a corp and personal. Think of it
as income sharing with a spouse except
one is a corp.

Your shed question then becomes
irrelevant, you both own it. Corp pays
majority of tax at low rate of income,
you pay a disproportionate amount of tax
as your income is much lower, you both,
you and the corp share equally in all
assets of the partnership.

Just one of many scenarios of legal tax
evasion.

[poorboy]

Just thinking that if someday I want to retire and
rent out my farm, I don't want to have to buy back
all the buildings and bins from the corp at fair
market value.

Still new at this corp thIng and want to get a
bunch of different ideas before seeing my
accountant.

[wd9]

See a tax lawyer well versed in farms,
land, and yes, tax. Make sure your
accountant is experienced working with
one. If not, it will save you tens of
thousands in tax, future options and
flexibility by staying 'dedicated' to one
who doesn't.