yes according to this lot you even have to charge yourself rent if you own the land and farm it [I wonder if they get on with their landlord]
funny enough I know someone that does charge themselves rent for a farm all official with a written up FBT
Land ownership and farming
- Thread starter Henarar
- Start date
funny enough I know someone that does charge themselves rent for a farm all official with a written up FBT
caveman
Member
- Location
- East Sussex.
My father in law (insurance salesman) used to charge mother in law for the veg he grew in the garden. Tight old bugger.
Perhaps that's how he could afford seven kids.
Perhaps that's how he could afford seven kids.
Grassman
Member
- Location
- Derbyshire
Has your land no value?yes according to this lot you even have to charge yourself rent if you own the land and farm it [I wonder if they get on with their landlord]
funny enough I know someone that does charge themselves rent for a farm all official with a written up FBT
Yep same as everthing else mentioned and no different
Grassman
Member
- Location
- Derbyshire
Where do I sign up?
Feck. It's going to be a bit of a job if I forget to bring something!
Tarw Coch
Member
- Location
- Bottom of Wats Dyke
Was there nothing she could have charged him for?
the word can was the important one in that sentenceWhere do I sign up?
Feck. It's going to be a bit of a job if I forget to bring something!
tommyurray
Member
Yes
Turnover is vanity
Profit is sanity
But cash is reality
Changing values/trimming liabilities will change the numbers in the accounts cash profit is the King
tommyurray
Member
Only if it is a positive cashflow!
Profit isn’t always the target - sometimes growth, diversification or disruption can be ultimately very rewarding targets that may short term reduce profit but lead to longer term much greater ones - sometimes businesss need to invest in themselves
Facebook / Twitter if you need examples
But agree 100% cashflow is critical and number 1 piority
tommyurray
Member
About as possible as getting a farm for a peppercorn rent
If you drop one interest payment from the calculation you drop rent
There is ALWAYS a capital cost it could be invested elsewhere earning a income instead of buying land so it must be factored into the costs
- Location
- Owaka, New Zealand
That's how I work it here, I charge my farmingyes according to this lot you even have to charge yourself rent if you own the land and farm it [I wonder if they get on with their landlord]
funny enough I know someone that does charge themselves rent for a farm all official with a written up FBT
company rent for farming operations carried out on our land, it's purely for taxation purposes but it still happens.
It's =£180/acre, I could charge more and claim more GST back (but I don't mind paying a bit of tax)
I also have a mate who charges his partner rent as she works in town and has a spending habit - as no money makes it back he charges her rent and board (bet that was an interesting discussion too)
caveman
Member
- Location
- East Sussex.
Was there nothing she could have charged him for?
Probably.
But I'm guessing his charges were deducted from the house keeping allowance.
Grassman
Member
- Location
- Derbyshire
Lots of businesses do it. The buildings are owned by one company but rent them to another owned by the same company.
I guess it safeguards the property in the event of financial problems.
glasshouse
Member
- Location
- lothians
He probably charged her , the tight git!Was there nothing she could have charged him for?
glasshouse
Member
- Location
- lothians
Farmers used to rent farms out in later life on aha as it halfed the value for tax
- Location
- Lincolnshire.
I suppose my view is that whether you buy or rent, you end up competing with people for whom the short term cost of capital is immaterial. So in effect they behave as though capital has no cost to them.
- Location
- Owaka, New Zealand
In NZ employees are enrolled in a scheme called 'Kiwisaver' which is either for retirement or "first-home" purchase. We are automatically enrolled but may opt out, deductions from wages are matched by gov't up to a threshold.
So we figured that our other investments would suffice for a retirement, but we bought the land ourselves and withdrew our Kiwisaver funds (my investment properties are in a separate company, so they weren't to know about them)
Now our farm is owned by a trust, there is a trading company, and two investment companies (one with property and one with offshore investments) and it is a an easy way of keeping things separate and above board.
When I work out my ROI/ROCE for the farm I obviously include the land in that figure, but in reality land ownership and the ranch operations/ livestock trading/ contracting are all quite separate and defined in the accounts.
It would be a nightmare otherwise, farming could be losing money and I'd not even know!
It's still just a hobby really, but very recreational and good for the family (and mind) .
I can see why @Henarar posted the original question of the thread though, as you say when financial difficulties occur (not if) then it is crazy not to have that protection of our assets, especially if these assets are all we have!
Grassman
Member
- Location
- Derbyshire
@Henarar posts lots of awkward and interesting questions. Quite often makes me think about things more!