Federal Budget 2021 speech & ACCELERATED DEPRECIATION FOR FARMERS.

[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.

[shtferbrains]

So oneoff can you get a 45% govenment/power co rebate on solar panels and take a 100% write off on the full amount and then get a subsidised price when selling power to the grid if you have enough to get a contract?

With no worries abuot recycle. Just throw them in the dump when they reach Chinese made obsolescence. About 1/2 thier expected lifecycle.

Should encourage some expansion.

[oneoff]

So oneoff can you get a 45% govenment/power co rebate on solar panels and take a 100% write off on the full amount and then get a subsidised price when selling power to the grid if you have enough to get a contract?

With no worries abuot recycle. Just throw them in the dump when they reach Chinese made obsolescence. About 1/2 thier expected lifecycle.

Should encourage some expansion.

No this pertains to "accelerated" depreciation which sounds similar to what US farmers have had for years.
You certainly don't get to use more tha 100%: and when you are done with the asset (and it is sold and accounted for) there is a recaptured value that becomes taxable.
All your story pertains to a narrative that does not belong in this thread.
Now that a Canadian election is to be held
"Is the Apr 19 proposal already etched in stone for 4 years"

[oneoff]

The scarce new information on this topic leans towards only applying to CCPC "farmers". That translates to Canadian Controlled Private Corporations.

I always thought a corporation was its own unique entity; never needed to die and certainly wasn't classified as a farmer... but more correctly referred to as a farming business.

Well thanks a whole heap you Eastern SOB's and especially the Liberals who certainly didn't advertise this as a corporate incentive.

Along with the shit kicking the West comes in for almost every other initiative ; this is in line with what FARMERS come to expect from elected officials who have absolutely no idea of what is friendly and positive for all entrepreneurial farm business.

[ry0972]

The scarce new information on this topic leans towards only applying to CCPC "farmers". That translates to Canadian Controlled Private Corporations.

I always thought a corporation was its own unique entity; never needed to die and certainly wasn't classified as a farmer... but more correctly referred to as a farming business.

Well thanks a whole heap you Eastern SOB's and especially the Liberals who certainly didn't advertise this as a corporate incentive.

Along with the shit kicking the West comes in for almost every other initiative ; this is in line with what FARMERS come to expect from elected officials who have absolutely no idea of what is friendly and positive for all entrepreneurial farm business.

Yes from what I read and was told by an accountant the accelerated depreciation is for corporations ONLY.
Farm corps are just getting lucky to use something created for the corps out east and in the major cities.
The only farms it will really help is guys like me that upgrade equipment then run it till it is obsolete and sold by the pound as scrap!!!
Guys that keep modern equip and trade regularly could get burned badly as their trades are worth more than they paid and they have to pay capital gains on equipment sales.
The new(er) equipment will be worth a lot more if they are upgrading but guys that are selling out or downsizing could get hit with a tax bill??

[oneoff]

Maybe one of the real questions is then if this accelerated is designed to provide options for corporations and incorporations, but definately leaving out a whole class of farmers who are meant to have no future.

Thaks a whole heap. Like the guy said; maybe time to phone the farm stress line OR how about telling those making decisions things like what makes you think there will be any need for pipelines if producers refuse to offer any products to put in them.

Think BC and their gasoline shortages. Isn't that just too bad.