18 October 1990 Income Tax Severed Letter

By services, 22 July, 2022
Language
English
Document number
Severed letter type
Miscellaneous
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
657253
Extra import data
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"field_external_guid": [
"menu:://Federal Income Tax [CCH Tax ]/Tax Window Files/Tax Window Files/Tax Window Files/1990s/1990 [NV90_433 - OC90_200.201]/OC90_158 — Cash Advances under Crops Act and Prairie Grain Advance Payments Act"
],
"field_proprietary_citation": [],
"field_release_date_new": "1990-10-18 08:00:00",
"field_tags": []
}
Main text

ISSUE SHEET

          24(1)

CASH ADVANCES

Issue

Numerous calls have been received concerning the reporting requirements for 1990 advance payments received under the Advance Payments for Crops Act and the Prairie Grain Advance Payments Act. Misinformation has been disseminated that such payments are considered income in the year received by farmers.

Response

UNDER THE ADVANCE PAYMENTS FOR CROPS ACT AND THE PRAIRIE GRAIN ADVANCE PAYMENTS ACT, PRODUCERS OF VARIOUS CROPS ARE ELIGIBLE TO RECEIVE ADVANCE PAYMENTS ON CROPS STORED IN THEIR OWN NAMES FROM THEIR RESPECTIVE PRODUCERS' ASSOCIATIONS. ADVANCES RECEIVED UNDER THESE TWO ACTS ARE CONSIDERED LOANS AND ARE NOT TREATED AS INCOME IN THE FISCAL PERIOD YOU RECEIVE THEN. THE FULL AMOUNT OF TEE SALE OF THESE CROPS IS ONLY INCLUDED AS INCOME IN THE FISCAL PERIOD THE SALE ACTUALLY TAKES PLACE. THERE HAS BEEN NO CHANCE IN THIS STATED POLICY.

Background

* The information set out in the Response above is contained in the 1989 Farming Income Tax Guide at page 7.

          21(1)(b)
For Further Information:                     Approved by ADM
Name: Glen Thornley
Phone #: 957-2101
17 October 1990
0-902876