Defering Pulse Sales. You can't.

[mcfarms]

Was told today by the accountant that when the gov't and everyone was going back and forth last year over the proposed end to being able to defer grain sales into the next tax year it was discovered that pulses do not and never did qualify for deferall, and they are advising their client they can't/shouldn't do it going forward as they believe it may or will be enforced now.

[farmaholic]

**** them!

I see deferral of income and prebuying some expenses as a method of smoothing out the lumps in primary grain commodity production.

[bucket]

They allow the banking industry to defer their taxes until a loss comes along....not sure why a guy can't defer this...

[MBgrower]

They allow the banking industry to defer their taxes until a loss comes along....not sure why a guy can't defer this...

if the govt wants a simple way to help farmers it would be to bring back 5 year income averaging. good years you dont have to spend yourself out of a massive tax liabilities, bad years you use your nest egg. Plus would eliminate they need to defer cheques and the associated risk. Pretty simple.

[blackpowder]

I haven't deferred in 30 years.
But I agree losing this tool is just another clawback of any recognition that primary producers in agriculture face huge swings in inventory etc etc.
If only the multi Nationals were farming then different.
You see, a lot of eyes are on all the 'money' farmers have.
I have been harassed continuously by a family lawyer digging for more. Impossible to convince these people there isn't any more. To them we are millionaires after all, and we're visible, identifiable, and we bitch all the time. Not to mention we have 'special ' status re taxes.
I suggest it will get continually worse for us all. Society needs to pull everyone down to the same level not up. Today we appear special to society.
How do we feel about Indians being special.

At any rate, have hired a court recognized financial appraiser to stop the harassment once and for all. See, nobody understands farm accounting haha.

[farmaholic]

Being incorporated almost eliminates the need for deferral. I suppose there are some cases that the lowest income tax bracket threshold of small business tax rate may be exceded....but I'm thinking there are other tax planning measures that could be employed then.

Punitive regressive tax scheme that punishes success!

[bigzee]

With what happened with Ilta, who wants to defer anything anymore? No guarantees the cheque will be good come Jan 1.
Yes, all the grain companies will be safe by all these processors could be in trouble a heap of trouble if demand doesn’t start picking up, and tariffs don’t get eliminated.

[LEP]

Once I incorporated I never deferred again. No point. Several times I was over the small business threshold. When you pay the higher rate just declare a dividend and get a higher dividend tax credit on personal income and it all comes out to a wash.

Worst management strategy by far is deferring. A neighbor in the CWB days waited to haul until July, then stored until August so he could defer until the next August so obviously had a pretty low opportunity cost on money.

One customer of mine when I was banking had a July yearend and he would say he never deferred anything and would just take a salary large enough to get his business down to the small business threshold. That was a long time ago with different tax rules.

[farmaholic]

Deferring and prebuying to pay zero tax is a losing battle.

Not everyone is incorporated.

Can't see me breaking the lowest small business tax bracket....we're just not big enough for that to happen.

I think the lowest bracket is 600K net income.

[Wheatking]

Who in their right mind would be brave enough to defer a pulse cheque.