Federal Budget 2021 speech & ACCELERATED DEPRECIATION FOR FARMERS.

[oneoff]

Third and final reading and Royal assent to the Federal budget was reported to have been given Royal Assent the first week of July 2021.

FCC and MNP have about the only reports I have seen about 100% Depreciation for Capital goods used by farmers. It was announced any depreciable assets (except bins and buildings, good will, quota and a few other "long term" classes) could be 100% depreciated if purchased after the budget date (Apr 19/2021) and continuing for the next 4 years.

This seems to be the best kept secret I've ever seen... maybe because of popularity of leasing; maybe a slow down in real economy no one likes to talk about; etc. etc. I wouldn't know for sure.

But has anyone got any details to add; and does a potential election call have any effect on budget proposals that didn't result in a confidence motion bringing down the government.

[oneoff]

Arms length transactions only. New or used.

[bucket]

I read that. Thanks for a reminder ...I have to get a contract date changed.

[Rareearth]

Well, thats smoke and mirror for sure, that outa get the rural vote.

A depreciation write off is one thing, but when you trade or sell then it's fully taxable.
Its only deferral of tax.
Doesn't help anything in a low income year (years, year 3 now).

[shtferbrains]

There's a windfall for eqipment dealers.
Be a savior in these condions.

[furrowtickler]

Who will have money to buy ??
10-20% maybe that got lucky this year ?
Don’t help the guys in areas struggling up to this year

Definitely a good thing if your in a lucky area .

[shtferbrains]

There are well established guys that go into yearend with a crop in the bin a crop in defered cheques and next years inputs prepaid.

Some don't run new equipment because poor tax write off currently.

Some on here I'm betting.


Is SF3 in Florida these days?

[furrowtickler]

There are well established guys that go into yearend with a crop in the bin a crop in defered cheques and next years inputs prepaid.

Some don't run new equipment because poor tax write off currently.

Some on here I'm betting.


Is SF3 in Florida these days?

Yup that may be 10-20% at most

[GDR]

I've often been pissed with the CCA classes and limits, especially the first year rule but wide open is just gonna be a wreck. I can see it now, guys are gonna borrow money to buy something because "it makes sense for tax reasons" then year 2 and beyond of their payments are basically like paying with after tax dollars for equipment. Where will it end?

Might put an end to leasing companies and thats ok because they are basically legal organized crime.

[TOM4CWB]

I've often been pissed with the CCA classes and limits, especially the first year rule but wide open is just gonna be a wreck. I can see it now, guys are gonna borrow money to buy something because "it makes sense for tax reasons" then year 2 and beyond of their payments are basically like paying with after tax dollars for equipment. Where will it end?

Might put an end to leasing companies and thats ok because they are basically legal organized crime.

Looks like the Liberals are following the Democrats, and have 'Swallowed the bait, hook line and Sinker'!

"Democrats’ $3.5 Trillion Budget Framework Exposes Party Tensions
Sen. Joe Manchin expresses alarm over price tag of antipoverty and climate plan

Democrats’ Jobs and Infrastructure Plan: What’s Popular, What’s Controversial
Senate Democrats’ $3.5 trillion jobs and infrastructure plan is a sprawling piece of legislation. WSJ's Gerald F. Seib gives a rundown of the handful of provisions that figure to be the most popular, and the ones seen as most controversial. Photo illustration: Todd Johnson

Updated Aug. 11, 2021 3:25 pm ET

WASHINGTON—Hours after the Senate passed a $3.5 trillion budget framework, Democratic leaders quickly confronted looming challenges in keeping the party united, as centrist and progressive lawmakers aired rival concerns over the package set to be finalized this fall.

Sen. Joe Manchin (D., W.Va.), an influential centrist who has raised objections to previous Democratic bills, expressed alarm over the budget resolution’s price tag Wednesday, shortly after the Senate officially kicked off the process of crafting a package of antipoverty, education, healthcare and climate provisions with a predawn 50-49 party-line vote.

“I have serious concerns about the grave consequences facing West Virginians and every American family if Congress decides to spend another $3.5 trillion,” Mr. Manchin said Wednesday. “Given the current state of the economic recovery, it is simply irresponsible to continue spending at levels more suited to respond to a Great Depression or Great Recession—not an economy that is on the verge of overheating.”

Mr. Manchin voted to approve the budget framework, but said he hoped Democrats would “seriously consider this reality,” as they begin the work of translating the budget blueprint into detailed legislation.

Figures released Wednesday showed inflation remained elevated in July, but there was evidence of cooling amid signs that the recent rise in Covid-19 infections is starting to weigh on the strong economic recovery after last year’s pandemic-driven recession."

TO READ THE FULL STORY
https://www.wsj.com/articles/democrats-3-5-trillion-budget-framework-exposes-party-tensions-11628704569?mod=hp_lead_pos4

Cheers!