What Are News In Tax Incentives Impacting Farmers/Ranchers?

Payback deadline of CEBA is extended from December 31, 2022 to December 31, 2023.

The immediate deduction of up to $1.5 Million of eligible capital purchases is now expanded to proprietorships and certain partnerships for assets purchased after January 1, 2022. Knowing this, you might reconsider leasing or renting capital assets. Corporations have been eligible since April 19, 2021 for this write off; however, it is still NOT LAW.

Companies, trusts and individuals actively farming or ranching and incurring total farm expenses of $25,000 or more starting in 2021 will be eligible for a refundable tax credit. For every $1,000 in expenses $1.47 tax credit is available ($1.73 for 2022). I know it does not seem like a lot, but it all counts. Again, it is still NOT LAW.

Sit down with your tax advisor today to get more details on the above and to see if you qualify.

I acknowledge that the Department of Finance issued these releases related to Budget 2021.

I ask that our politicians get on their feet to vote for passing this bill NOW. Our farmers are preparing for seeding and our ranchers are calving. They need this incentive to combat carbon tax…which we are all too familiar with…

I look forward to next week when I'll be talking about The bank of mom and dad.

Fred Mertz
Fred@thevoiceofagriculture.ca