Land rent

[bigzee]

As long as he shows $10,000 farming income and some farming expenses he is a small farmer. Not all farmers are big farmers. He can just scale back - you could custom farm a piece for him. Lots of guys just keep a bit to stay in the game. Tax man doesn't care. This is still a free country and we can do what we like.

You tell him sumdum we all support you. Maybe we can all sit back and smoke up after you give him your piece of mind. LOL

[sumdumguy]

Yep Bigzee, our Agriville reunion could be memorable.

[bigzee]

Yep Bigzee, our Agriville reunion could be memorable.

When are you guys going to start seeding?
I hope to start end of month, she's pretty wet in places this wind has really helped though.

[mbratrud]

I believe as long as they have skin in the game they can carry on farming status. For example crop share or some kind of variable cash rent based on production. He should talk to his accountant to confirm.

[Guest]

"Elite" is a word I've never heard used to describe land quality...is there such a beast? ...not here in the slum of the Ghetto.

What's with the farming status thing? Only save tax on diesel now. Bit of a saving on farm location vehicle registration (in sask anyway???). Is there really anything else I'm missing?

some gst back I guess? I think power rates a little cheaper , etc.

we farm a few quarters of that elite land , supposedly best in Sask., but 42 " rain ,well, it really doesn't matter, lol

[blackpowder]

Many reasons out there. No clue what would pass close inspection. Over the years saw a lot of different combos.
And bs and hassle. No one was audited so I dunno. Today, rule of thumb, if Ll has tax problems or multiple income streams, we sell grain in their name. Cash Lls seem to be the ones who survived never leaving the farm. See the pattern?

Who knows where capital gain rules are going? Farmer status always seemed a little sadistic to me anyway.

Here, #cos have farm land rental income taxed at 46%.

[Quadtrack]

Gotta agree with 550. If he wants farmer status, keep farming himself. If he wants rent, then cash rent. Unless you are taking the risk and doing the work, you are not a farmer.
We did this 'custom work' rent bs for a guy once. Was not worth the hassle. And the very few breaks we do get as primary producers are more difficult to justify if they get abused.

[bgmb]

Gotta agree with 550. If he wants farmer status, keep farming himself. If he wants rent, then cash rent. Unless you are taking the risk and doing the work, you are not a farmer.
We did this 'custom work' rent bs for a guy once. Was not worth the hassle. And the very few breaks we do get as primary producers are more difficult to justify if they get abused.

Totally agree, but lots of ppl do it. Can be a win win in certain situations. Sometimes a guy needs to keep farming for a few years to sell of grain and machinery

[rockpile]

If you retire but cash rent your land, if you haven't used up your capital gains exemption then the cra still calls you a farmer. Not really your choice.

[sumdumguy]

I don't know if CRA has changed their stance on capital gains exemption, but in the past the capital gains exemption on your farm sale only applied to farmer and spouse who were farmers, so if you cash rented you may not qualify. Best to check with an accountant on that matter for sure.