*** Transcriber's Note: Please set your voice synthesizer to read most punctuation. When you encounter the caret sign at the end of a line, please enter the applicable information, if necessary. *** Canada Revenue Agency T2042 E (11) (Page 1 of 5) Statement of Farming Activities - For more information on how to complete this form, see Guide T4003, Farming Income. Identification Your name ^ Your social insurance number ^ Farm name ^ Account number (15 characters) ^ Farm address ^ City, province, or territory ^ Postal code ^ Fiscal period From: (Year/Month/Day) ^ To: (Year/Month/Day) ^ Was 2011 your last year of farming? Yes or No ^ Main product or service ^ Industry code (see Chapter 2 of Guide T4003, Farming Income) ^ Accounting method Cash ^ Accrual ^ Tax shelter identification number ^ Partnership business number (9 digits) ^ Your percentage of the partnership% ^ Name and address of person or firm preparing this form ^ Income Line 9371: Wheat ^ Line 9372: Oats ^ Line 9373: Barley ^ Line 9374: Mixed grains ^ Line 9375: Corn ^ Line 9376: Canola ^ Line 9377: Flaxseed ^ Line 9378: Soybeans ^ Line 9370: Other grains and oilseeds ^ Line 9421: Fruit ^ Line 9422: Potatoes ^ Line 9423: Vegetables (not including potatoes) ^ Line 9424: Tobacco ^ Line 9420: Other crops ^ Line 9425: Greenhouse and nursery products ^ Line 9426: Forage crops or seeds ^ Livestock sold Line 9471: Cattle ^ Line 9472: Swine ^ Line 9473: Poultry ^ Line 9474: Sheep and lambs ^ Line 9470: Other animal specialties ^ Line 9476: Milk and cream (not including dairy subsidies) ^ Line 9477: Eggs ^ Line 9520: Other commodities ^ Program payments Line 9541: Dairy subsidies ^ Line 9542: Crop insurance ^ Line 9540: Other payments ^ Line 9570: Rebates ^ Line 9601: Custom or contract work, and machine rentals ^ Line 9604: Insurance proceeds ^ Line 9605: Patronage dividends ^ Line 9600: Other income ^ (specify) ^ Line 9659: Gross income - Total of above lines (enter this amount on line 168 of your income tax and benefit return) ^ T2042 E (11) (Page 2 of 5) Net income (loss) before adjustments Line a: Gross income (from line 9659 on page 1) ^ Expenses (enter business part only) Line 9661: Containers and twine ^ Line 9662: Fertilizers and lime ^ Line 9663: Pesticides (herbicides, insecticides, fungicides) ^ Line 9664: Seeds and plants ^ Line 9711: Feed, supplements, straw, and bedding ^ Line 9712: Livestock bought ^ Line 9713: Veterinary fees, medicine, and breeding fees ^ Machinery expenses Line 9760: Repairs, licences, and insurance ^ Line 9764: Gasoline, diesel fuel, and oil ^ Line 9795: Building and fence repairs ^ Line 9796: Clearing, levelling, and draining land ^ Line 9797: Crop insurance ^ Line 9798: Custom or contract work, and machinery rental ^ Line 9799: Electricity ^ Line 9802: Heating fuel ^ Line 9803: Insurance program overpayment recapture ^ Line 9804: Insurance ^ Line 9805: Interest ^ Line 9808: Office expenses ^ Line 9809: Legal and accounting fees ^ Line 9810: Property taxes ^ Line 9811: Rent (land, buildings, and pasture) ^ Line 9814: Salaries, wages, and benefits (including employer's contributions) ^ Line 9819: Motor vehicle expenses (not including CCA) ^ Line 9820: Small tools ^ Line 9937: Mandatory inventory adjustment included in 2010 ^ Line 9938: Optional inventory adjustment included in 2010 ^ Other expenses ^ Line 9790: Total other expenses ^ Subtotal ^ Line 9935: Allowance on eligible capital property ^ Line 9936: Capital cost allowance (from Area A on page 4) ^ Line b and line 9898: Total farm expenses (total of the above three lines) ^ Line 9899: Net income (loss) before adjustments (line a minus line b) ^ Line 9941: Optional inventory adjustment included in 2011 ^ Line 9942: Mandatory inventory adjustment included in 2011 ^ Line c: Total of the above three lines ^ Your net income (loss) Line d: Your share of the amount on line c ^ Line 9974: Plus: GST/HST rebate for partners received in the year ^ Line e: Total (line d plus line 9974) ^ Line f and line 9943: Minus: Other amounts deductible from your share of net partnership income (loss) (from the chart on page 3) ^ Line g: Net income (loss) after adjustments (line e minus line f) ^ Line 9945: Minus: Business-use-of-home expenses (your share of line 3 from the chart on page 3) ^ Line 9946: Your net income (loss) (line g minus line 9945) (enter this amount on line 141 of your income tax and benefit return) ^ T2042 E (11) (Page 3 of 5) Other amounts deductible from your share of net partnership income (loss) Claim expenses you incurred that were not included in the partnership statement of income and expenses, and for which the partnership did not reimburse you. *** Transcriber's note: There is space for three entries. *** Total (enter this amount on line f on page 2) ^ Calculating business-use-of-home expenses Heat ^ Electricity ^ Insurance ^ Maintenance ^ Mortgage interest ^ Property taxes ^ Other expenses ^ (specify) ^ Subtotal ^ Minus: Personal-use part ^ Subtotal ^ Plus: Capital cost allowance (business part only) ^ Amount carried forward from previous year ^ Line 1: Subtotal ^ Line 2: Minus: Net income (loss) after adjustments (from line g on page 2) (if negative, enter "0") ^ Business-use-of-home expenses available to carry forward (line 1 minus line 2) (if negative, enter "0") ^ Line 3: Allowable claim (the lesser of amount 1 and 2 above) (enter your share of this amount on line 9945 on page 2) ^ Details of other partners Name and address ^ Share of net income or (loss) $^ Percentage of partnership % ^ Name and address ^ Share of net income or (loss) $^ Percentage of partnership % ^ Name and address ^ Share of net income or (loss) $^ Percentage of partnership % ^ Name and address ^ Share of net income or (loss) $^ Percentage of partnership % ^ Name and address Details of equity Line 9931: Total business liabilities ^ Line 9932: Drawings in 2011 ^ Line 9933: Capital contributions in 2011 ^ T2042 E (10) (Page 4 of 5) Area A - Calculating capital cost allowance (CCA) *** Transcriber's Note: In print, Area A is set-up as 10 columns with the possibility of 3 entry lines. Enter as many lines as necessary. *** Column 1: Class number ^ Column 2: Undepreciated capital cost (UCC) at the start of the year ^ Column 3: Cost of additions in the year (see areas B and C below) ^ Column 4: Proceeds of dispositions in the year (see areas D and E below) Column 5*: UCC after additions and dispositions (column 2 plus column 3 minus column 4) ^ Column 6: Adjustment for current-year additions on-half multiplied by (column 3 minus column 4) If negative, enter "0." ^ Column 7: Base amount for CCA (column 5 minus column 6) ^ Column 8: Rate % ^ Column 9: CCA for the year (column 7 multiplied by column 8 or an adjusted amount) ^ Column 10: UCC at the end of the year (column 5 minus column 9) ^ Line i: Total CCA on Part XI properties. Enter this amount, minus any CCA for business-use-of-home expenses, on line 9936 on page 2 of this form.** (add all the amounts in column 9) ^ * If you have a negative amount in this column, add it to income as a recapture on line 9600 "Other income" on page 1. If there is no property left in the class and there is a positive amount in the column, deduct the amount from income as a terminal loss on line 9790, "Total other expenses," on page 2. Recapture and terminal loss do not apply to a Class 10.1 property. For more information, read Chapter 3 of Guide T4003, Farming Income. ** For information on CCA for business-use-of-home expenses, see "Special situations", Chapter 3 of Guide T4003, Farming Income. Part XVII properties (acquired before 1972) *** Transcriber's Note In print, Part XVII is set-up as 7 columns with the possibility of 2 entry lines. Enter as many lines as necessary. *** Column 1: Year acquired ^ Column 2: Kind of property ^ Column 3: Month of disposition ^ Column 4: Cost (business part) ^ Column 5: Rate (%) ^ Column 6: CCA for this year ^ Column 7: Total CCA for this and previous years ^ Line ii: Total CCA on Part XVII properties (add all the amounts in column 6) ^ Enter the total of lines i and ii on line 9936, on page 2. *** Transcriber's Note: In print, Areas B, C and E are set-up as 5 columns with the possibility of 2 or 3 entry lines. Enter as many lines as necessary. *** Area B - Details of equipment additions in the year Column 1 Class number ^ Column 2 Property description ^ Column 3 Total cost ^ Column 4 Personal part (if applicable) ^ Column 5 Business part (column 3 minus column 4) ^ Line 9925: Total equipment additions in the year (add all the amounts in column 5) ^ Area C - Details of building additions in the year Column 1: Class number ^ Column 2: Property description ^ Column 3: Total cost ^ Column 4: Personal part (if applicable) ^ Column 5: Business part (column 3 minus column 4) ^ Line 9927: Total building additions in the year (add all the amounts in column 5) ^ Area D - Details of equipment dispositions in the year Column 1 Class number ^ Column 2 Property description ^ Column 3 Proceeds of disposition (should not be more than the capital cost) ^ Column 4 Personal part (if applicable) ^ Column 5 Business part (column 3 minus column 4) ^ Line 9926: Total equipment dispositions in the year (add all the amounts in column 5) ^ Note: If you disposed of property from your farming business in the year, see Chapter 3 of Guide T4003, Farming Income, for information about your proceeds of disposition. Area E - Details of building dispositions in the year Column 1: Class number ^ Column 2: Property description ^ Column 3: Proceeds of disposition (should not be more than the capital cost) ^ Column 4: Personal part (if applicable) ^ Column 5: Business part (column 3 minus column 4) ^ Line 9928: Total building dispositions in the year (add all the amounts in column 5) ^ Note: If you disposed of property from your farming business in the year, see Chapter 3 of Guide T4003, Farming Income, for information about your proceeds of disposition. T2042 E (11) (Page 5 of 5) Area F - Details of land additions and dispositions in the year Line 9923: Total cost of all land additions in the year ^ Line 9924: Total proceeds from all land dispositions in the year ^ Note: You cannot claim capital cost allowance on land. Area G - Details of quota additions and dispositions in the year Line 9929: Total cost of all quota additions in the year ^ Line 9930: Total proceeds from all quota dispositions in the year ^ Note: All quotas are eligible capital property. For more information, see Chapter 4 of Guide T4003, Farming Income. Chart A - Motor vehicle expenses Line 1: Enter the kilometres you drove in the tax year to earn farming income ^ Line 2: Enter the total kilometres you drove in the tax year ^ Line 3: Fuel and oil ^ Line 4: Interest (see Chart B below) ^ Line 5: Insurance ^ Line 6: Licence and registration ^ Line 7: Maintenance and repairs ^ Line 8: Leasing (see Chart C below) ^ Line 9: Other expenses ^ (specify) ^ Line 10: ^ Line 11: Total motor vehicle expenses (add lines 3 to 10) ^ Line 12: Business use part: (line 1: ^ Divided by line 2: ^ ) multiplied by line 11: ^ = ^ Line 13: Business parking fees ^ Line 14: Supplementary business insurance ^ Allowable motor vehicle expenses: (add lines 12 to 14) (enter this amount on line 9819 on page 2) ^ Note: You can claim CCA on motor vehicles in Area A on page 4. Chart B - Available interest expense for passenger vehicles Line A: Total interest payable (accrual method) or paid (cash method) in the fiscal period ^ Line B: $10* multiplied by the number of days in the fiscal period for which interest was payable (accrual method) or paid (cash method) ^ = ^ Available interest expense: (amount A or B, whichever is less) (enter this amount on line 4 of Chart A above) ^ * For passenger vehicles bought after 2000. Chart C - Eligible leasing cost for passenger vehicles Line 1: Total lease charges incurred in your 2011 fiscal period for the vehicle ^ Line 2: Total lease payments deducted before your 2011 fiscal period for the vehicle ^ Line 3: Total number of days the vehicle was leased in your 2011 fiscal period and previous fiscal periods ^ Line 4: Manufacturer's list price ^ Line 5: The amount on line 4 or ($35,294 R GST and PST, or $35,294 + HST), ^ Multiplied by 85% whichever is more = ^ Line 6: [($800 R GST and PST, or $800 + HST) multiplied by line 3] divided by 30 ^ Minus line 2: ^ = ^ Line 7: [($30,000R GST and PST, or $30,000 + HST) multiplied by line 1] divided by line 5 = ^ Eligible leasing cost: (line 6 or 7, whichever is less) (enter this amount on line 8 of Chart A above) ^ * Use a GST rate of 5% or HST rate applicable to your province. Privacy Act, Personal Information Bank number CRA PPU 005