My client bought a farm land in 2020 he has no income from farm. only his expense is property tax
he has gst number related to farm. is he has to report his farm. even he has zero income
thanks
If there was no income, what is there to report?
He has to file HST to record the HST on the farm purchase. He will have legal fees on the purchase to report on the HST and on the income tax. If he is intending to use the farm property to earn a profit, he should file and claim his loss. If he does not intend to do that and bought it only as an investment, he needs to pay his GST on the purchase.
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Not to mention that if he isn’t going to farm the land, he needs to inform his municipality so that he pays the proper amount of property taxes and the regular water rates
Depends on which province he is in. In Ontario, you have to apply for the lower property tax which only is applicable if the person farming the land has income over $7,000.