Morneau to lower the small business tax rate

[Bowerpower]

well this is good news. I'll take it. Not very often we get a tax decrease. Now as for wher they will try to get the tax revenue shortfall is speculation at this point. We'll lynch trudope and morneau when the time comes.

[seabass]

What about land transfers to farming kids?

[mcfarms]

What about land transfers to farming kids?

Todays announcement was separate from the proposed tax changes hence my waiting on the final look to those before I have a sense of the whole picture. Could be the ol" here have a carrot wabbit "while Yosemite Bill has a big axe in his other hand behind his back move.

[Bowerpower]

What about land transfers to farming kids?

Gift the land, no tax.

[furrowtickler]

Many ways to skin a cat

[Richard5]

Gift the land, no tax.

Why would you ever do this? Sell it across to use any capital gains exemption left, forgive the loan. At lease the next generation has the high cost value on some/all of the land going forward. The next generation would most likely use all of their capital gains exemption up on a family farm partnership if you have an accountant that knows what they are doing

[Richard5]

well this is good news. I'll take it. Not very often we get a tax decrease. Now as for wher they will try to get the tax revenue shortfall is speculation at this point. We'll lynch trudope and morneau when the time comes.

Remember people, this is only the first level of tax. When you take funds out beyond shareholder loan balances the dividend rate comes into pay (second level of tax of 20-35%)

I struggle with the thinking that lowering is a good thing as its only going to make the second level of tax higher on “old” earnings since the dividend tax credits will be adjusted to reflect this reduction.

If the government is seriously looking for money, leaving as is or increasing to 15% may be a better and easier option.

At the end of the day, down the road, it flows through and the gov’t will get their share

[SASKFARMER3]

This is all liberal smoke and mirror look here and screw you over their. Never trust them.

Why no taxing Trust Funds.

[Bowerpower]

Why would you ever do this? Sell it across to use any capital gains exemption left, forgive the loan. At lease the next generation has the high cost value on some/all of the land going forward. The next generation would most likely use all of their capital gains exemption up on a family farm partnership if you have an accountant that knows what they are doing

Yes of course collect the capital gains. Could also transfer money to farming corp and have shareholder loan options to avoid tax. Or what if I have the mindset land will never be sold, give the next generation a head start. They will be land at some point to further the farming entity. Lots of options.

[Bowerpower]

Remember people, this is only the first level of tax. When you take funds out beyond shareholder loan balances the dividend rate comes into pay (second level of tax of 20-35%)

I struggle with the thinking that lowering is a good thing as its only going to make the second level of tax higher on “old” earnings since the dividend tax credits will be adjusted to reflect this reduction.

If the government is seriously looking for money, leaving as is or increasing to 15% may be a better and easier option.

At the end of the day, down the road, it flows through and the gov’t will get their share

Agreed, it is just a political play. And yes they will get their tax sooner or later. We are in the crosshairs, property taxes, school taxes, inheritance tax etc. gov need money.

[mcfarms]

I'm planning on using the Charlton Heston estate planning strategy
" You can have it when you can pry it out of my cold dead hands"

[Bowerpower]

I'm planning on using the Charlton Heston estate planning strategy
" You can have it when you can pry it out of my cold dead hands"

Lol. Hopefully your children don't "spike" your favourite drinks