Thursday's Federal Budget

[ColevilleH2S]

Does anyone have any insider info, strong suspicions, or wild assed guesses on what will be in it?

I'll stick my neck out;
There has been an awful lot of talk about the lack of productivity in Canada so I'm hoping/guessing they play with the Capital cost allowance legislation.

[SASKFARMER3]

Take the Capital Gains to 1.5 mill. Get
with the times

[SASKFARMER3]

Raising the capital gains to 1.5 would be nice.

All the more valuable to family farm partnerships and the significant tax savings realized from it.

My land will most likely never be sold and will roll to my son someday and therefore I want to use my lifetime exemption on my other farming assets.

Don't see it in this budget though, most of it will be blah, blah, blah, the west is the "have and the east is "have not"

[SASKFARMER3]

I agree it won't be in budget, not selling. I think
your right with the bla bla nothing.

[LEP]

Saskfarmer99 even though you may roll your land to your children it would be advisable to
increase the the value that it is transferred at to reduce their future taxes payable, if you have
room in your exemption. Then you only have to worry about the alternative minimum tax.

If done right it can be a huge savings for future generations.

I am not sure if the capital gains exemption comes into play on equipment or quota. With
equipment you are usually dealing with recaptured cca not usually much capital gain anyway.

[LEP]

Lep, I don't think you fully understand what a family farm partnership interest is and how it qualifies as an eligible property for you capital gains exemption.

You are correct in that you would bump your land cost if transferred to my son and I had CGE left however I have fully used my $750,000 lifetime exemption in the value of my partnership interest when it was transferred to my corporation. My son is currently in a partnership and will do the same when the time is right.

You are also correct in that seldom there is real capital gains on equipment sales but its not what this tax strategy is really about.

[cottonpicken]

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