Here is the latest on Ottawa’s tax change proposals

The federal government has made several amendments in the past month to its proposed tax changes for private corporations. Since July 18, when the initial proposal was released, there have been many areas of concern on how the proposal would affect family farm corporations. Some of the most worrisome parts of the proposal have been […] Read more

Which GST remittance method is right for you?

The Goods and Services Tax affects all farmers in the Western provinces. The basic rule is that you must be registered for the GST if you have GST-taxable sales (either five percent taxable or zero-rated) over $30,000 in the last four quarters. In most cases, the agricultural goods that you sell are considered zero-rated, that […] Read more

Ottawa proposes stricter rules on income sprinkling

The federal finance department recently released a consultation paper focusing on owners of private companies in Canada. The proposed rules are aimed at eliminating tax planning strategies that the finance department believes “inappropriately reduce personal taxes.” Because most farming corporations in Canada are private companies, these new rules could be applicable. Under the current rules, […] Read more

Can I deduct that: ‘reasonable expenses’ to earn income

A common question I receive is whether a certain expense is deductible for tax purposes on a farm. A common mistake people make is claiming personal expenses as farm expenses. When this issue is uncovered, it generally results in all unreasonable business expenses to be denied. On top of this, penalties can be charged, and […] Read more

Insurance coverage among things to consider when hiring employees

Many family farms have grown larger, acquiring and seeding additional acres. As the family farm expands, so does the demand for skilled labour. There are a number of things to consider when hiring employees to work with you on your farm, such as government filing requirements, employee retention and having adequate insurance coverage. Payroll filing […] Read more

How to determine if youare an active farmer

Quick, check your heart rate. No, not to see if you are living an active lifestyle but to see how nervous this subject makes you. I recently received a question on the consequences of being an active versus inactive farmer. We notice many clients coming in with a different perspective of how these rules apply, […] Read more

Small business deduction changes may affect your farm

Farmers may be left wondering as they prepare for the coming production year why they have less cash in the bank. One factor could be the result of new tax rules that came into effect March 21, 2016. A number of farm corporations and partnerships have lost access to the small business deduction, resulting in […] Read more

Possible end to grain payment deferrals big budget item

Farmers could face the loss of grain payment deferrals in the next few years. The 2017 federal budget announced a consultation on possibly ending this tax mechanism for grain farmers. The history behind this tax deferral on listed grains was linked to the Canadian Wheat Board’s quota delivery system. When the listed grains, which include […] Read more

Tax changes you need to know for maximum deductions

It is that time of year again when most people are getting close to taking their personal tax information to their accountant. It is important to know the changes that have taken place in 2016 with personal taxes to ensure you provide the appropriate information and ask the right questions. Let’s start with the changes […] Read more

Add tools to your belt; capital gains reserves

You need to consider all available tax tools when selling land to a neighbour or family member. These tools include the lifetime capital gains exemption, family farm roll-over rules, replacement property and capital gain reserves. A capital gain reserve is a useful tool that producers sometimes overlook. It allows you to defer taxes on capital […] Read more