New Liberal Small Business Tax
- Thread starter snopro
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- #42
Thanks, I sent my email out with my thoughts.
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- #43
snopro
Active VIP Member
I talked to my accountant and she told me not to even think about rolling over my farm to my kids. Its a bunch of crap. Like Lenny says get a new accountant. It will affect everyone.
Why exactly? I dont see what these 3 points have to do with handing down a family farm? My accountant works at price Waterhouse, second largest firm in the world.
In an email, Finance Canada spokesperson David Barnabe said the government is consulting on the proposed tax changes with farmers in different situations and has already made allowances.
"As to the anticipated impact the tax changes will have on farmers, the government will maintain the intergenerational rollover to the farmer's child and the lifetime capital gains exemption of one million dollars for farmers, which help to provide for intergenerational transfers," he wrote.
"Farmers and other small business owners can continue to have family members actively involved in, and appropriately compensated by the business," Barnabe added.
Sounds like you need a new accountant??
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Beels
Active VIP Member
The problem is the shares transferred to a family member are proposed to be taxed at a 40% rate, versus if sold to an arm's length party, 24%. If the Liberals are trying to kill the family farm and force everything to go corporate, that would more than likely do it.
http://www.mnp.ca/en/posts/farm-succession-planning-skewered-by-proposed-tax-changes
You should explain to us why more tax is a good thing ?? We all want to grow our businesses.
I think that's what my quote was referring to, the intergenerstional transfer has been amended now and they are in talks with farmers for exemptions. I'm sure you'll come out fine, it says this was an unintentional consequence of the new legislation.
They are intending to stop professionals who originally wanted to incorporate for litigation protection from saving up mass amounts of capital in corp accounts in order to invest, then setup trust accounts that sprinkle income amounts to their family that have no contribution to the company. Essentially escaping tax on their income. Which in my mind is a loop hole and doesn't seem right. Accountants have been using this loophole for years to avoid professionals from paying much tax.
They are intending to stop professionals who originally wanted to incorporate for litigation protection from saving up mass amounts of capital in corp accounts in order to invest, then setup trust accounts that sprinkle income amounts to their family that have no contribution to the company. Essentially escaping tax on their income. Which in my mind is a loop hole and doesn't seem right. Accountants have been using this loophole for years to avoid professionals from paying much tax.
I won't pay anymore tax next year than last. Growing your business is not affected. Saving in your business for new purchases etc is not affected, where do you see more tax coming from ? Are you a incorporated dentist or doctor?
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- #49
snopro
Active VIP Member
Why don't they get the message out now then to calm things down if this is the case? Morneau has made no mention of it in Question Period the last 2 days? If this is the case would he not want to shut the opposition up? Until my accountant sees this in writing then we all have to assume that this is not happening. Especially with your government that seems to change the rules at a whim.
Heavy Tech
New member
This selfie taking idiot will only be happy when the West is on its knees.
Doctors and dentists did the hard work to get where they are, they deserve any breaks they can get,why should they have to pay 50% tax....what's the point of getting to that level then......this is just one tiny piece of what really is going to be affected......government spends money like criminals,if we acted like them we'd be in prison, never trust a hypocrite.
Beels
Active VIP Member
You've got way more faith in these liberal buffoons than anyone I know or deal with, because none of that has been communicated whatsoever with the farming community.
The long and short of it is JT and his band of nitwits have a spending problem that needs to be reigned in. Once they get themselves under control, then they can start looking elsewhere.
X-it
Active VIP Member
Everyone should have a CRA account if you do not.. apply for it today, then look over ways to screw the system. Seems like not the Canadian thing to do, but times changes. Under the CRA account, register a formal dispute. If everyone got together it would become a real pain in the azz for selfie boy to collect money to pay for his sh!t. It may wind up costing me in the end but I will take it all the way to court. As selfie boy proclaims it is within his rights.
Are you serious?? So the guy who busts his balls drilling for oil in the freezing cold or welder working up north away from his family for months on end doesn't work hard to get where they are at? I guess it just fell out of the sky for the rest of us. The poor doctor and dentist making 750,000k+ a year doesn't deserve to pay as much tax as the rest of us because they spent a couple more years in school. Don't kid yourself, they usually come from wealth families that can afford the 250k + cost of school.
Im not defending Trudeau, can't stand the guy but let's call a spade a spade.
Thanks, you explained yourself real well there, you have informed us thread warriors.
Im sure you deserve a tax break over the rest of us too, go give your head a hard shake into the nearest wall. It's this kind of entitled thinking that has caused serious parts in society. Everyone pays the same tax, plain and simple. Everyone works hard for their money. Just because a guy did an extra 3 years of school doesn't give them a right to more of that money than the next.
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- #57
snopro
Active VIP Member
Maybe we need to qualify Merc first? So we can see where he is coming from on his stance because I have not run into one person yet that is up for more tax?So what career are you following right now? Tell us how this tax won't affect you?
Small biz owner, construction. Zero affected. Confirmed with accountant. Just hearing a lot of false info spread around for no other reason but to spread the persons personal politic views. No, I didn't vote for Trudeau.
I agree with the farming views, they would be crazy to hurt the farmers from passing on their legacy and family farm. I just think people are blowing things out of proportion and not sticking to the facts. I'm sure there will be exceptions as they encounter unintended consequences of this new reform.
I'm not for higher taxes, but closing some loopholes that professionals have raped and pillaged for years, I don't object.
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- #59
snopro
Active VIP Member
Are you incorporated? Do you sprinkle income or use profits to invest back in your business?
Yes incorporated, no income sprinkling. Yes the sprinkling is nice, but if the relative has no contribution to the company, do they deserve payment? It's a loophole to get around tax.
Yes the company puts away most of its profits yearly, that isn't affected by this change, unless you're investing that money passively into stocks, high interest savings, mutual funds etc, than only the interest earned will be taxed. Money left saved in your biz chequing account and reinvested back into your company in order to grow is not affected.
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