Business and Farm Groups Call To Drop Federal Tax Changes For Small Business.

[GDR]

If it looks like these changes are going to go through would anyone rush to transfer land to next generation early to avoid taxation but increase risk of other losses due to divorce, inexperience or bad debts?

Would incorporated farmers unwind their corps and go back to sole proprietors??

I never incorporated yet, have toyed with it for years, partly talked out of it and partly too lazy to get it done.

[Rareearth]

Governments of all size spend trillions on incentives, schooling/education trying to attract industry and business to grow their economy.

Then you have those that doesn't understand the economy and the force the current industry and businesses to move else where.

It's much cheaper, better, many times the spinoff benefits to encourage, develop, motivate and let those that have genuine interest, ability and foresight (locals) do the job right

[Horse]

I don't know the ins and outs of this proposed tax change, but there is defiantly room to close some loopholes, and I would say most on that list are scared shirtless because that's how they make there living by screwing the system,sk3 how much does he write off globetrotting as farm tours, any one with a teacher to pay wages to, he'll she makes more than most farms, the motor home to take meals to field, write off gas to go fishing even booze for entertainment, and the list goes on, but you do have to be in the upper class to benefit from gimmies. As for poor hard workers there are a he'll of a lot of those and most don't farm. If it wasn't a good deal why are drs, dentists, lawyers, hockey players all using the corps to hide behind.

[LEP]

The income sprinkling is fair game. That is a benefit that alot of professionals use.

Personally, a corp has allowed me to grow my farm by alot faster rate because most of what I earn has gone back in to buy land, buildings and equipment which is paid for with 87.5 cent corporate dollars versus 58 cent personal ones. But as things get paid down and I begin to draw the profits from my hard earned labour these dollars become equivalent to 58 cent personal ones.

I also benefited in a corp because my income varied quite alot from year to year and income averaging was taken away on the personal side.

I heard a chartered accountant mention that the government could generate several times more tax revenue by tax defined benefit contributions as they are earned rather than as they are paid out. He also stated that retained earnings in a corp was like a small business persons pension.

Also any investment income is actually better to be earned outside of a corp rather than in because it is taxed at the high rate.

Finally, I find it annoying that the real rich people get all kinds of special treatment , like the Irvings getting a tax bill of $1 billion waived as they moved a pile of assets from Canada to the Cayman Islands when Cretian was in power.

[fjlip]

I don't know the ins and outs of this proposed tax change, but there is defiantly room to close some loopholes, and I would say most on that list are scared shirtless because that's how they make there living by screwing the system,sk3 how much does he write off globetrotting as farm tours, any one with a teacher to pay wages to, he'll she makes more than most farms, the motor home to take meals to field, write off gas to go fishing even booze for entertainment, and the list goes on, but you do have to be in the upper class to benefit from gimmies. As for poor hard workers there are a he'll of a lot of those and most don't farm. If it wasn't a good deal why are drs, dentists, lawyers, hockey players all using the corps to hide behind.

Every write off you list can be done by any farmer/partnership also. Those are NOT Corporate only.

[sumdumguy]

Trudeau will kill this country I see he gave a mosque in newfoundland 46000.00 for security from hate crimes. What a dick head he has lots of money for that kind of stuff but he has yet to give the money he promised to fort mac for the fires last year. This shows where his priorities are and yet there are people so stupid and blinded by ideology that they support this clown (grassfarmer).

What's the deal with his disproportionate love for fringes? Not fridges!

[blackpowder]

We do need to fight this.
Listened to Brekinridge talk show guest. Regarding same. Some Calgary economics professor.
3 times during interview stated it not fair rich have access to high priced accontants and lawyers to wriggle out of taxes.
What kind of an interview was that! Unfair advantage?!
Now consider that little prick is teaching our kids. The common mindset out there is shitty enough already.

[blackpowder]

Which leads to a question.
How many Canadians are affected by, or even understand capital gains.???
A very small number # I bet! And getting smaller with every generation as our culture 'matures'.

[sumdumguy]

We do need to fight this.
Listened to Brekinridge talk show guest. Regarding same. Some Calgary economics professor.
3 times during interview stated it not fair rich have access to high priced accontants and lawyers to wriggle out of taxes.
What kind of an interview was that! Unfair advantage?!
Now consider that little prick is teaching our kids. The common mindset out there is shitty enough already.

They may just wriggle out of the country now, how you like dat? No more geese to pluck, lil pluckers!

[blackpowder]

The point was,regarding the proposed changes. Those are "loopholes" that my $2k a year accountant would know.
Working poor are new middle class and everyone else deserves to pay more......

[helmsdale]

I don't know the ins and outs of this proposed tax change, but there is defiantly room to close some loopholes, and I would say most on that list are scared shirtless because that's how they make there living by screwing the system,sk3 how much does he write off globetrotting as farm tours, any one with a teacher to pay wages to, he'll she makes more than most farms, the motor home to take meals to field, write off gas to go fishing even booze for entertainment, and the list goes on, but you do have to be in the upper class to benefit from gimmies. As for poor hard workers there are a he'll of a lot of those and most don't farm. If it wasn't a good deal why are drs, dentists, lawyers, hockey players all using the corps to hide behind.

Sole proprietor, joint proprietor, or Corp it doesn't matter. You can "write off" whatever the hell you want. When You're sitting across the table from a CRA official, or worse yet across the aisle in a court room you'll find out what you were legally allowed to deduct. None of these things are loop holes, available only to the rich and powerful. Want to write off your living room furniture as shop supplies? Or your surround sound system piece by piece so as to not have to depreciate it but straight up expense it as a p.a. system for the farm? Or hell you can even deduct your wife's garden seeds and potted flowers as a yard maintenance or improvement expense. All depends on how confident you feel undergoing a full audit.

All of this "fair share" talk has everyone worked up into a lather about the rich and powerful being able to work the rules to their favor. On the one hand one government attempted to level the playing field in the common folks favor by allowing income splitting for all couples thereby treating each household as an income earning unit. Income sprinkling has no benefit when allowed to split income personally so long as income derived from dividends is roughly equal to salaries. Another was the implementation of TFSAs in small part to entice income out of Corp savings into personal. Take the hit once when you pull it out, but earn tax free for eternity.

On the other hand is another government that canned income splitting and reduced TFSA limits thereby incentivising incorporation which their previous incarnations had been strongly in favor of, and indeed many former and current members have taken and or currently take great advantage of.

When you're running near $30B deficits with no end in sight and can't get control of your spending everything has to be on the table. Even if everything you're doing is above board and by the financial rules, what you need to remember is that gov't can change the rules and pull the rug out from underneath an entire lifetime of prudent planning for You, your husband or wife, your family, and your multi generational estate. When they sic the horde on you and make you out to be the enemy of social progress where will you turn?

For a gov't that one way or another is going to need to balance the books, what's next? Full inclusion of capital gains at personal income tax rates with no exemptions? An insufferable inheritance tax? An annual net worth tax? All of a sudden those high land values look detrimental rather than beneficial. Perhaps it'll be a removal of all benefits like 50% of crop insurance, dyed fuel, or pst and carbon tax exemptions.

Call me a cynic, but these changes to small business taxation IMHO are only the beginning. Once they're done soaking those above you, they'll be after you and yours. And so long as they can keep the horde on their side and the target group outnumbered (equity rich farmers for example), everyone but the working poor is at risk.

[farmaholic]

Well said.

Best we get rid of the group of spend and tax eenthusiasts in the next federal election. Thou shalt not covet......