Farming Income and the AgriStability and AgriInvest Programs Guide - 2018 - How to calculate the mandatory inventory adjustment (MIA)

From: Canada Revenue Agency

For instructions on how to fill in the following charts, see Chapter 3.

Chart 1 – Cash cost of purchased inventory

Enter the amount you paid by the end of the 2018 fiscal period for the specified animals you bought:

Fiscal period

Cash cost
 

in your 2018 fiscal period

$
Line 1

in your 2017 fiscal period

$
Line 2

in your 2016 fiscal period

$
Line 3

in your 2015 fiscal period

$
Line 4

before your 2015 fiscal period

$
Line 5

Enter the amount you paid by the end of your 2018 fiscal period for all other inventory you bought:

in your 2018 fiscal period

$
Line 6

in your 2017 fiscal period

$
Line 7

in your 2016 fiscal period

$
Line 8

in your 2015 fiscal period

$
Line 9

before your 2015 fiscal period

$
Line 10

Chart 2 – Value of purchased inventory for specified animals

Inventory bought in your 2018 fiscal period
Enter an amount that is not more than the amount on line 1 but not less than 70% of this amount.

$
Line 11

Inventory bought in your 2017 fiscal period
Enter an amount that is not more than the amount on line 2, but not less than 70% of the total of the value at the end of your 2017 fiscal period plus any amounts you paid in your 2018 fiscal period toward the purchase price.

$
Line 12

Inventory bought in your 2016 fiscal period
Enter an amount that is not more than the amount on line 3, but not less than 70% of the total of the value at the end of your 2017 fiscal period plus any amounts you paid in your 2018 fiscal period toward the purchase price.

$
Line 13

Inventory bought in your 2015 fiscal period
Enter an amount that is not more than the amount on line 4, but not less than 70% of the total of the value at the end of your 2017 fiscal period plus any amounts you paid in your 2018 fiscal period toward the purchase price.

$
Line 14

Inventory bought before your 2015 fiscal period
Enter an amount that is not more than the amount on line 5, but not less than 70% of the total of thevalue at the end of your 2017 fiscal period plus any amounts you paid in your 2018 fiscal period toward the purchase price.

$
Line 15

Chart 3 – Value of purchased inventory for all other inventory

Inventory bought in your 2018 fiscal period
Enter the amount on line 6 or the fair market value, whichever is less.

$
Line 16

Inventory bought in your 2017 fiscal period
Enter the amount on line 7 or the fair market value, whichever is less.

$
Line 17

Inventory bought in your 2016 fiscal period
Enter the amount on line 8 or the fair market value, whichever is less.

$
Line 18

Inventory bought in your 2015 fiscal period
Enter the amount on line 9 or the fair market value, whichever is less.

$
Line 19

Inventory bought before your 2015 fiscal period
Enter the amount on line 10 or the fair market value, whichever is less.

$
Line 20

Chart 4 – Calculation of MIA

Enter the amount of your net loss from line 9969 of form T1163 or T1164.

$
Line 21

Enter the value of your inventory from Chart 2 and Chart 3:

the amount on line 11

$

the amount on line 12

$

the amount on line 13

$

the amount on line 14

$

the amount on line 15

$

the amount on line 16

$

the amount on line 17

$

the amount on line 18

$

the amount on line 19

$

the amount on line 20

$

Total value of inventory

$
 
$
Line 22

MIA – enter the amount on line 21 or line 22, whichever is less.

$
Line 23
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