AgriInvest is a program administered by the Canadian federal government. The concept behind this program is to help farmers put money aside for years of drought or other disasters.
How It works: You can deposit up to 1% of your net allowable sales and receive a 100% matching contribution equal to your deposit. Once the matching deposit is received, you are free to take out the entire AgriInvest amount including the grant portion and any interest earned.
Who is eligible: Generally you earn income from selling agricultural commodities such as cattle or grain and you:
Farm in Canada
File an income tax return by the deadline
File an AgriInvest form
How its taxed: The 1% grant matched by AgriInvest and any interest earned is taxable and must be included in income in the year it is withdrawn.
How to sign up: In order to participate in the AgriInvest program, a T1163 form needs to be completed if you are an individual or partnership or a Statement A form for corporations. This form must be submitted with your personal or business tax return.
The deadline: You must file by September 30th, following the end of the program year. If you do miss the deadline, you have an additional 3 months to submit the return, however, you won't receive the full 1% in matched funds.
If you are interested in the AgriInvest program or have any questions related to qualification, please contact us.
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