HomeMy WebLinkAboutThe Lucknow Sentinel, 1983-05-04, Page 12news
Lucknow Senttnel, Wednesday, May 4, 1983—Page 12
Federal budget measures will affect farmers
1. Business Loss Carryovers
The Budget significantly
enhances the ability of farm-
ers (and other businesses) to
carry over tax losses incurred
in one year to reduce tax in
other years. The measure
will allow farmers to obtain
tax relief for their losses
more quickly and thus en-
hance cash flow.
In particular, losses incur-
red in a year will now be
eligible to be carried back to
offset against profits for up
to three previous years.
Under the current rules only
a one year carry back is
allowed. This will allow a
farmer with a loss in 1983, or
later year, increased ability
to carry back the loss to
offset income in previous
years and thus obtain a tax
refund in 1983. Under pre-
vious rules the farmer might
have had to carry forward the
loss and only obtain tax relief
later. As farmers and fisher-
men are generally small
business corporations or un-
incorporated businesses this
three year carry back will
apply immediately, For larg-
er firms it is phased in over
two years.
As well, the Budget in-
creases the ability of farmers
(and fishermen) to carry for-
ward losses incurred in a
year to reduce tax in later
years. The loss carry forward
period will be doubled from 5
to 10 years. (For other busi-
nesses the carry forward is
increased from 5 to 7 years.)
This measure will be of
particular importance to start
up farmers who may incur
losses in the early years of
their operation and might
otherwise not have enough
time to fully use them to
reduce tax.
Polka Dot Door
LIVE SHOW
Appearing et:
Kincardine Community Centre
Sat., May 7 - 1:00 pm & 3:30 pm
tICKEtS: CALL:
396-4615
• ®0
396-2056
SPONSORED SY UNITED CHURCH WOMEN
CORRECTION
The fallowing ad appeared Ineorroctly In FOCUS. This I,
tiro correct information.
HURON COUNTY HEALTH UNIT
Invites You To Attend
OPEN HOUSE
HEALTH FAIR
Thursday, May 12 '83 4:30-4 pm
Auditorium Of The Ontario Street
United Church - Clinton, Ontario
OPENING CEREMONY
JOAM
Attending Will Be Jack Riddell -
Murray Elston -
Tom Cronin -
Dr. Closlar
DISPLAYS BY HEALTH UNIT SERVICES
AND COMMUNITY HEALTH AGENCIES
"JUMP ROPE FOR HEART" SKIPPING DEMONSTRATION
10:30 AM
Tea Room Available AU Day -Free Admission
Everyone Welcome)
2. Changes in the Investment
True Credit
Farmers, along with other
taxpayers, are eligible for the
federal investment tax credit
at a basic rate of 7 per cent,
with rates of 10 per cent in
DREE regions such as Sas-
katchewan and Manitoba,
and 20 per cent in Atlantic
Canada and the Gaspe.
The modifications to the
credit are part of the Special
Recovery Program. These
measures enhance the ability
of farmers to obtain more
immediate tax relief for tax
credits they earn on invest-
ments after Budget night. in
particular:
— the Budget provides an
increased opportunity to car-
ry the credit forward (7
years) and back (3 years) to
reduce tax in other years.
Previously, there was no
carry back and the carry
forward was only 5 years. It
also removes the previous
limit on ability to reduce tax
in a year using the credit.
--- it provides for the next
three years that a portion of
unused investment tax cred-
its earned in a year will be
refunded directly in cash to
farmers in the year, even if
no tax were payable. For
small farm corporations and
unincorporated farmers this
rate of refund will be 40 per
cent. Larger businesses re-
ceire a refund at a rate of 20
per cent.
3. Special Farm Financial
Assistance
Over the next year the
Budget extends a further
5100 million in reduced int-
erest rate FCC loans to
farmers in financial distress.
Eligible recipients are entit-
led to interest rate rebates of
4 percentage points for the
first two years of the loan.
4. Capital Gains - Farm
Holding Companies
The Budget also proposes
to broaden the application of
the Income Tax Act provision
that allows a deferral of tax
on capital gains on shares of
a family farm corporation
when they are transferred by
a taxpayer to his/her child.
This measure facilitates in-
tergenerational transfers of
farm holding companies.
Congratulate new parents...
*from page 10
and Mrs. Steve Readman of
Wingham on the recent ar-
rival of a baby bov. Mrs.
Readman is the former
Dianne Kerr of the Lochalsh
area.
Janice McCutcheon and
girls of Lions Head, and
Shirley Irvin of Ashfield
Township visited with their
parents, Mr. and Mrs. Gor-
don Robb on Saturday.
Jim Webster of Waterloo
was home on the weekend
with his parents, Wellington
and Kae Webster and they
visited with Charles and
Mayme Wilkins; Norma
Young of Goderich and in
Dungannon with Jack and
Marion Smith. Jim is making
spice racks as a hobby in his
free time.
Allen Finlayson of Tor-
onto, son of Dorothy Finlay-
son, will be displaying his art
at the David Jean Gallery of
Fine Arts on Queen Street in
Toronto from May 3 to 10.
Good luck, Allen.
Last Friday evening the
community held a party for
Mr. and Mrs. Alex (Sandy)
Simpson which was well
attended.
1
Ontario Tax Grants
For Senior Citizens
1983 Instalments are in the Mail
Ontario Tax Grants for Seniors is ct program designed specifically to help
offset municipal and school taxes for Ontario residents 65 and over. The
Ontario Ministry of Revenue is mailing cheques which comprise the first
instalment of the 1983 Property Tax Grant of up to $250 and a temporary
Home Heating Grant of $40. These cheques were mailed on April 29th.
Who will receive it?
■ If you are 65 or over and own or rent your home, you are eligible for the
Property Tax Grant.
• The 1983 instalment cheque is mailed to Ontario seniors who received
the 1982 Property Tax Grant.
■ This is intended to help you pay your property tax or rent for the first
part of 1983.1n the fall you will automatically receive an application for
the balance of your grant.
Who will not receive it?
Basically, if you didn't receive a 1982 Property Tax Grant, you will not
receive the spring instalment. In particular, seniors should note that:
• If you reside in a nursing home, home for the aged or any property
tax-exempt institution, you are not eligible for the Property Tax Grant.
■ If you turned 65 after December 31st, 1982 (and therefore did not qualify
for a grant last year) you also will not receive the spring instalment.
However, you will receive an application for the entire 1983 grant in
the fall.
For more information call the Ministry's multilingual Information Centre
IN In Metro Toronto- • In Area Code 416- ■ In Area Code 807- ■ In all"other areas -
dial 1.800-263-7700 ask the Operator for Zenith 8-2000 dial 1-800-263-3960
or write to:
Ministry of Revenue, Guaranteed Income and Tax Credit Branch
P.O. Box 624, 33 King St. W., Oshawa, Ontario, UM 8148
dial 965-8470
Ontario
Ministry George Ashe
Minister
of
Revenue
M Russell
Revenue Deputy Mlnister