Capital gains increased taxes WILL hit farmers HARD,,,,,,,,,Upon Researching the DATA for Alberta farmers__Indeed they WILL Get
Hit HARD by the NEW Capital Gains Rates whenever Their Farm is
DISPOSED__Either by SALE or ESTATE Transfer Upon Death.
The MAJOR Asset for ALL Farmers IS Their LAND__And The VALUE
of that Land HAS INCREASED a LOT During the LifeTime of the Farmer
I Used the Period 1974 to 2013__In That Period the Average Land Value
in Alberta ROSE from $140 to $3728 Per ACRE.
For Every SECTION of FarmLand__640 ACRES__The VALUE Rose from
$89,000 to $2,385,920
The AVERAGE Farm in Alberta is NOW Around 1.75 SECTIONS of Land
THUS Upon the SALE or the Transfer via ESTATE the Farmer WILL BE
Exposed to LARGE Capital Gains Taxes__The Difference Between the
1974 Value to the CURRENT 2013 Values
For the Average 1.75 Section Farm the TAXABLE Capital Gain @ 50%
INCLUSION Rate Would BE $2,009,280
At the NEW 2/3 rd INCLUSION Rate the TAXABLE Capital Gain would
BE $2,679,040__An INCREASE of $669,760 From the 50% Rate__NOTE
that I am NOT Making an Adjustment for the FIRST $125,000 Taxable Gain.
In ADDITION to the Tax on the LAND__The Farmer Will ALSO Face MORE
Capital Gains on the SALE or Deemed Dispostion of ALL the Farm Buildings
and Machinery/Equipment.
DID Alberta Farmers DESERVE THIS__By BEING Targetted As THE RICH
Who CAN and THUS SHOULD Pay MORE eh ????