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Brayden has been farming for 5 years as a sole proprietor. Brayden also works away from home as an electrician, week in and out, at
Brayden has been farming for 5 years as a sole proprietor. Brayden also works away from home as an electrician, week in and out, at a mine site. He uses vacation time during seeding and harvest to get his farming done. Brayden has no spouse or kids and earns $110,000 annually as an electrician. You are his high school buddy and in discussions, Brayden mentions that his income taxes have been lumpy. You ask him to clarify what he means by lumpy. "Well," Brayden expresses, "some years I end up getting a refund, other years I've had to pay a small amount, and last year I had a large tax bill which was quite unexpected. I really don't know why it fluctuates so much. It makes.budgeting harder when I never know how much I'll have to pay the government come tax time." "Do you manage your income at all?" you ask. "What do you mean?" replies Brayden. "Do you prebuy any fertilizer or seed in the fall, use OIA, or defer grain cheques into next year?" you respond. I "I'm not sure what any of that means." Brayden replies, "I sell when I need money or when prices are good and buy my inputs in the spring. Why would I purchase inputs before I need them when I could spend that money elsewhere?" Brayden had $415,000 of his 2022 lentils that he sold in April 2023. His 2022 tax return showed he had $515,000 in his Class 10 UCC pool and $210,000 in his Class 8 UCC pool. He has a deal to sell his JD S680 combine for $310,000 and replace it with an JD S780 for $720,000. It is beginning of November 2023, and Brayden has $435,000 of canola priced for delivery later that month, and $225,000 of peas in the bin that he will sell in 2024. He paid all his expenses to date totaling $500,000. The only other expenses he has unpaid is a $25,000 fuel bill at the Co-op and a $25,000 bank input line that he plans on paying in January 2024. In 2024 Brayden is going to seed entirely canola. He has already sold his 2024 canola crop for November '24 delivery for $821,000. He anticipates his total '24 expenses will be approximately $675,000.
based on this info. what would braydens taxes payble be for 2023 and 2024 if he didnt do anything and let the year play out as he has it laud out? use acclerated CCA rates in your calculations
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