In 2016, British Columbia added a new tax credit for farmers and farming corporations: The Food Donation Tax Credit. It provides an income tax credit to any farmers who donate eligible agricultural products to approved charities, such as registered food banks. The credit is equal to 25% of the fair-market value of the donated food products. However, not all farm-made items are approved. Eligible items must be legal, intended for human consumption, and raised, grown, or otherwise created on a farm in British Columbia. Approved products include: Animal products such as meat, eggs, and dairy items Fish and seafood Crops such as grains, fruits, vegetables, and herbs Miscellaneous food products including nuts, mushrooms, maple syrup, and honeyThe tax credit only applies to items that undergo minimal processing to become fit for human consumption. Items such as live animals are not eligible since they are not processed at all. Also, items such as pies, jam, and jerky are generally ineligible because these products require multiple processing steps. In other words, you can claim the tax credit for harvested fruits, but not fruit pies. Individual charities may still benefit from donations of processed products, and you may be able to deduct those donations with other charitable tax credits, but not with this one. Farming corporations, farmers, and their spouses or partners can claim this farmers-only tax credit in addition to other applicable tax credits. If you’re interested in claiming this credit, it’s best to move quickly. The program is only approved through 2018, and you must claim the credit during the same financial year that you claim a charitable-and-other-gifts deduction.
2017-03-29 00:00:002017-03-29 00:00:00https://quickbooks.intuit.com/ca/resources/taxes/take-advantage-british-columbias-food-donation-creditTaxesEnglishLearn how farmers and farming business can claim British Columbia's Food Donation Tax Credit for their donated agricultural products.https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/06/Farmer-In-British-Columbia-Records-The-Amount-He-Donates-To-Food-Charities.jpghttps://quickbooks.intuit.com/ca/resources/taxes/take-advantage-british-columbias-food-donation-credit/Take Advantage of British Columbia's Food Donation Tax Credit
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