of the Income Tax Act for years 2019-2020
Kevin Waugh MP
Suite 5 - 2720 - 8th Street East
Dear Kevin Waugh MP,
Call for the Suspension of Section 31 of the Income Tax Act for years 2019-2020
I would like to express my concerns around the difficulties faced by farmers in Canada. Unlike other Canadian businesses, farmers, including horse racing businesses, are subject to a unique set of restrictions on the deductibility of farm losses created by section 31 of the Income Tax Act.
The deduction of farm losses against a taxpayer’s income is limited to a maximum amount of $17,500 per year regardless of the size of the farm or the amount invested. This restriction discourages investment and causes uncertainty and suffering. No other industry in Canada faces this barrier to the deduction of legitimate business losses against other income.
Farmers are already in trouble. With climate change, unpredictable crop yields, an increase in droughts and floods, and trade disputes eroding the income of farmers, we are facing a farming crisis in this country. The repercussions of the Covid-19 pandemic could tip the scales.
I strongly support the suspension of section 31 for the 2019 and 2020 filing seasons in response to the Covid-19 emergency and the financial pain that will follow.
Canadian farmers are resilient and will look to other sources of income to pay their farming expenses throughout this time of crisis. The suspension of section 31 will provide confidence to farmers and their ability to offset farming losses against other sources of income providing relief to those in need and infusing certainty into the farming community.
Your consideration of this interim measure is greatly appreciated.
Allow Jockey Club Canada to contact me