Gift of farm

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Ford5610

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I have inherited the family farm, stock and machinery.
The parents are looking for a pay off of 70k.

Some of this can be written off for stock, but the machinery is depreciated already by them.

Is there anything else we could write off the 70k for tax reasons.

We are borrowing this money, so want to be able to keep our tax bill down.

Any advice?
 
Before getting into the 70k question, have you considered the gift tax, stamp duty, and capital gains tax for parent implications? Likely agriculture relief (reduce 90% of value of assets) will apply for gift tax and retirement relief will apply to parents.

Because it’s a transfer from parent to son, the 70k will not really come into it (Apart from reducing any potential gift tax). I am not sure I understand about writing off the 70k against stock and machinery?
 
Last edited:
Hi

They want 70k for the existing cattle, machinery etc basically for the set up... they put this value on it.

I am looking to pay for cattle separately and write it off at 30k, which is the approx value.

I am looking for advice on other options. E.g silage on hand, diesel etc... which are all there.
 
Sorry OP but you need to see an accountant to structure the transaction. The questions as written make no sense.
 
Yes, you need to speak with an accountant / tax adviser about transfering the family farm from parents to you. Do you view this as buying a farm from a third party? There are certain tax rules surrounding the transfer of assets & businesses between connected parties (I.e parent to child).
 
Maybe you already have the bank loan in the bag - if not, consult someone fuirst before amkig your application. Looking for a loan to buy a farm at an undervalue from a relation may ring alarm bells in the Bank.

I also agree with previous posters re accountant for the tax.
 
We are all working together and engaging with ifac, but very slow to gets answers from them.
I am being gifted the land. But we have to buy the stock and machinery etc...
Herd number in my name now. Land not yet until money is signed over.
 
IFAC are good at what they do, but I would think that this is outside the normal run of their work.
 
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