Tax agency reviews Class 10 eligibility on farm vehicles

Many farmers and ranchers have received a letter from the Canada Revenue Agency reviewing their class 10 additions from 2015. Class 10 is a tax asset pool that allows you to write off your self-propelled equipment, such as trucks, SUVs, tractors, combines, at 30 percent per year. The CRA is reviewing the additions to ensure […] Read more

It’s important to plan ahead when paying tax instalments

With the end of the year approaching, the time is coming to plan for your income tax instalments. This article concentrates on tax instalments for farms operating as sole proprietorships. Instalments are a common hit to a farm’s cash flows, and these payments can sometimes come as a surprise. The government requires instalments if your […] Read more

Board of advisers can help enhance farm performance

Would new insights, ideas and viewpoints, which enhance the performance of your farm be valuable to you? Many farmers would answer “yes” to this question. A board of advisers could offer producers a method to tap into this source of information. A board of advisers is a group of individuals engaged by the farm to […] Read more

There are ways to get the most out of a farm sale

After putting years of hard work into your farm, it is understandable that you want to get the highest value out of it on a sale. One key to receiving top dollar is planning and ensuring essential items are properly looked after. Planning your corporate structure Having a tangled web of corporations is typically going […] Read more

Younger generation has much at stake in succession plan

There tends to be a large focus on the parents of a family farm when it comes to succession and estate planning. This includes what their exit strategy is and how they plan to fund retirement. But for a successful transition, it is important that the next generation also understands the current decisions and the […] Read more

How self-employed farmers can prepare for retirement

As a farmer, you do not have a funded pension plan waiting for you upon retirement. It’s likely that you will rely on the value and potential future earnings of your largest asset, your land. If your plan involves passing the farm to the next generation, this can add complications. It is unlikely you can […] Read more

Capital gains can be saved when moving the family farm

Most producers are aware that farm property can be passed to the next generation without tax consequences if certain conditions are met. However, what if you want to relocate your operation? What if an opportunity arises to sell farmland at a premium but you wish to purchase other land in another area? What if you […] Read more

What to consider when planning retirement income

Retirement results in major changes to lifestyle and income. People planning for retirement should consider all income sources that they will have. These range from renting out land, selling land or assets (like inventory) over a period of time, or potentially payments from succession agreements to pass along the farm to the next generation. Other […] Read more

Expense or capital: it’s not always easy to determine

Whether an expenditure should be classified as a repair or a capital asset for tax purposes is a common question. The classification of large expenditures on your buildings, machinery and other farm property can significantly change your tax situation. Some expenditures such as oil filters or belts are easy to classify as repairs, while others […] Read more

New exclusions made to proposed income sprinkling rules

The federal finance department recently announced simplification to the new proposed income sprinkling rules that begin to apply in 2018. It has provided clear guidelines (“bright line tests”) for when these rules will no longer apply to a taxpayer. The changes appear to provide relief for a majority of structures that farms may have in […] Read more