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!

[TOM4CWB]

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!

Not sure about‘Farmers’…

“What properties are eligible?
For purposes of this new measure, eligible property generally includes all depreciable capital property, other than property included in capital cost allowance (CCA) classes 1 to 6, 14.1, 17, 47, 49 and 51. These exceptions generally pertain to long lived assets, such as buildings and certain structures, and unlimited life intangibles including goodwill.

Interesting…

Immediate expensing would generally only be available on eligible property that:

Was neither previously owned by the taxpayer or a non-arm’s length person
Has not been transferred to the taxpayer on a tax-deferred rollover basis“

Cheers

[blackpowder]

Hmmm, maybe a good time for my corp to buy my machinery???

[oneoff]

All interesting...but the real question is if this budget measure is in effect today. If so the it would apply as of Apr 19 2021 as announced on Budget day..and be in effect for next 4 years.
Has anyone fo
nd out for absolute sure.

[oneoff]

US farmers have had similar depreciation p

US farmers have had similar depreciatipn full write offs against income for years. Never saw any reports of complaints about their depreciaion schedules.
As a farmer there is no obligation to claim any depreciatipn at all, so can anyone think of any reason at all to fight such an initiative.

Maybe poorest of money and finance managers couldn't handle such a change; but for the rest it just provides more potential options to use.

[oneoff]

[QUOTE


Is SF3 in Florida these days?[/QUOTE]
C'mon it was specifically reported to also include used equipment. It's not only those with big appetites and egos that pay income tax. And who knows, maybe a lot more farms will become profitable in next 4 years.

As a general rule perhaps not anyone should complain about their ice cream and even accelerated tax advantages; while fully realizing that there is nothing left after the full 100% is used up.