stock relief for young qualified farmers

viztopia

I am looking at this for my brother and am not 100% sure if it applies to my brother. Part of the conditions to qualifty for stock relief (100% for young qualified farmer) is that you can only claim it for the first 4 years. This is his fifth year but he only qualified as a young farmer last year and never claimed it yet as it didnt apply but would this year. Has anyone ever come accross this?

MOOVAN

viztopia wrote: »

I am looking at this for my brother and am not 100% sure if it applies to my brother. Part of the conditions to qualifty for stock relief (100% for young qualified farmer) is that you can only claim it for the first 4 years. This is his fifth year but he only qualified as a young farmer last year and never claimed it yet as it didnt apply but would this year. Has anyone ever come accross this?

Give your farm accountant a buzz,they are paid enough every year !!
Or get your brother to give his local ICMSA or IFA reps a buzz,if he has joined either group he will have paid to get advice when he needs it.:)

viztopia

I am his accountant! I have never come accross this before - I would say it is unusual in practice. I will get on to the tax office but I doubt it if they will be any help. They only seem to knwo the answer during an audit.

KCTK

viztopia wrote: »

I am looking at this for my brother and am not 100% sure if it applies to my brother. Part of the conditions to qualifty for stock relief (100% for young qualified farmer) is that you can only claim it for the first 4 years. This is his fifth year but he only qualified as a young farmer last year and never claimed it yet as it didnt apply but would this year. Has anyone ever come accross this?

You can only claim the 100% stock relief for first 4 years where you are assessable for Schedule D case 1 income on the trade of farming per s.667 TCA'97 and you are a "qualified young farmer". If your brother has been farming and assessable to tax on the farm for the past 4 years before becoming qualified then this relief has passed.

Dont forget that he can avail of the 25% relief under s.666 regardless of whether a "young trained farmer or not", if he hasn't for the past few years and has been paying tax then he may have overpaid.

MOOVAN

MOOVAN wrote: »

Give your farm accountant a buzz,they are paid enough every year !!
Or get your brother to give his local ICMSA or IFA reps a buzz,if he has joined either group he will have paid to get advice when he needs it.:)

No offense intended about accountants !! Oops:).Just paid my accountants bill , so I'm still a bit sensitive:(.
Don't forget to give one of the above groups above a buzz really all have top notch advisors on these issues and will know who to contact on your behalf.

Plenty of helpful advice on this forum too.

dungfly

How best to avail of stock relief in my situation?

I am about to qualify as a young trained farmer. I have purchased calves (half a herd) in parents name during the year due to be milked in 2015. I plan on purchasing the replacement heifers between now and 2015 and purchasing the other half of the herd closer to 2015. Farm not in my name yet but soon due to be. Currently working off farm. Confused? What to do?

Bodacious

dungfly wrote: »

How best to avail of stock relief in my situation?

I am about to qualify as a young trained farmer. I have purchased calves (half a herd) in parents name during the year due to be milked in 2015. I plan on purchasing the replacement heifers between now and 2015 and purchasing the other half of the herd closer to 2015. Farm not in my name yet but soon due to be. Currently working off farm. Confused? What to do?

Anyone have a link for info on this scheme?! I'm young qualified farmer and bought stock

KCTK

Bodacious wrote: »

Anyone have a link for info on this scheme?! I'm young qualified farmer and bought stock

Here is a quick overview of scheme from Grant Thornton website, much more detail on revenue website. Worked example shows how 25% normal relief works, for young farmer 100% relief your taxable profits are reduced by the total of the increase in stock, remember this relief can only reduce your profit amount, it can not increase a loss for taxation purposes.

http://www.grantthornton.ie/MediaandEvents/Stock-relief-is-good-option

KCTK

dungfly wrote: »

How best to avail of stock relief in my situation?

I am about to qualify as a young trained farmer. I have purchased calves (half a herd) in parents name during the year due to be milked in 2015. I plan on purchasing the replacement heifers between now and 2015 and purchasing the other half of the herd closer to 2015. Farm not in my name yet but soon due to be. Currently working off farm. Confused? What to do?

I am guessing you are not a "farmer" for taxation purposes yet (ie you have not submitted a TR1 to revenue saying you have started a business as a farmer and that you will be submitting tax returns for same) If you have not then you can not avail of young trained farmer stock relief, it is only available to reduce your profits from farming and it sounds like you have no profits in your own name from farming? Once you take over the farm and start farming in your own name then you can avail of this relief to reduce your profits by the amount you increase stock in your first 4 years. Link in my last post shows how it all works in simple terms.

bob charles

Has anyone recently gotten the 100% stock relief as young farmer? Says your supposed to have a plan approved by Teagasc and you have to be a small to medium sized farmer under EU off the wall definitions, I qualify for everything else try by being a bit creative. all above board though