CRA Beekeeping Taxes

[vincent]

Hi all,

This will be my first year reporting income and expenses with the business. I have noticed that Beekeeping in Canada qualifies as a "Farm Activity" which is new to me. So rather than reporting Business Income am I supposed to use the "Report Farming Income" Form?

Also wondering if anyone has insights if there's stuff I can claim etc? Aside from deductions from expenses (Equipment, Bees, Sugar).

Thanks!
v

[apisbees]

When you start a lot of your purchases will get put in to capital expenses and will get written off over a number of years as they depreciate. hive equipment, vehicle, extracting equipment. office computers. They get entered on to the capital expense form and are written off according to the allowable percent, depending on the category.
Small wares and supplies that are used during the year are listed in income and expense forms and are written off in that year. Like sugar, containers, bees and queens, treatments, maintenance, gas, insurance, membership fees. 
Remember you can claim a portion for, use of home, utility's, use of vehicle, insurance.

[vincent]

Thanks apis. Sad to see that woodenware are Capital expenses. But I guess it make sense.

About the vehicle costs, does this apply in a sole proprietorship do you know?

[Perry]

I have been.

[vincent]

You are costing per km? logbook etc?

[apisbees]

If you purchase a vehicle or use it solely for the use in your beekeeping operation then 100% can be claimed thru capital expenses. If it is used for a portion then that percentage can be claimed. Any costs associated running your operation can be claimed. Keep in mind that to be considered a business in Canada the enterprise is expected to make a profit. When you first start you can show a loss for the first couple of years or occasionally if  you suffer losses or capital expenses thru expansion, but they frown on ones trying to use it to wright off other earned income. You do not need to claim all the expenses in any given year but can carry over some of the capital expense to following years.

[apisbees]

What ever works for you. As long as you can prove it if they come looking.

[vincent]

This is great info, thanks. I didnt keep logs this year, but will be next year for sure. Rural driving isn't short distances.

[Perry]

I haven't gone so far as to claim mileage. I have done repairs and gas though.

[iddee]

I don't know about Canadian law, but in the US, the cost of a capital expense item can be written off the first year if it doesn't exceed a certain amount. IE: A 100.00 time clock. A smoker. ETC. They don't have to be all totaled and depreciate them from the annual total.

The vehicle expense is choice. Either mileage or actual cost. That's after the capital expense of the cost of purchase.

[gtrr4]

In the states I think you can claim either mileage or a percentage of your fuel and repair costs.

[apisbees]

Iddee is correct small tools can be written off in the year bought. Somethings that are on the capital cost list will require it to be claimed only a certain percentage per year. Like a new computer, would have to be added to the capital expense list. but if you just upgraded your monitor of printer ,bought a new mouse, they could be claimed in 1 year. If you bought a $200.00 table saw you could get away with claiming it in one year if you buy a $2000.00 table saw you better add it to your capital expense forum.