The federal government maintains that the intent of its restricted farm loss (RFL) rules was to limit the ability to deduct farm losses from total income if farming is not the major source of income. This is a major issue to most farmers because more than 75 percent of them depend on non-farm income. Subsection […] Read more
Stories by Grant Diamond
To lease or not to lease
Spring time and planting season are just around the corner and it’s a time when many farmers consider buying new equipment. How to finance the purchase is a major issue. The two most common options are borrowing funds to buy the equipment or leasing equipment from the supplier or through a third party. The terms […] Read more
Know the tax rules when earning money from a hobby
In my last article, I described the limitations that the Canada Revenue Agency places on personal services businesses and the ability to claim the small business deduction for work done by a spouse for the incorporated farm business. These limitations extend far beyond a personal services business to any line of activity done on the […] Read more
Small business deductions complex
Governments have consistently lowered taxes over the last several years for business in general but especially for small business. It was intended to provide a stimulus for business and employment growth in this important sector of the economy. However, to a certain degree, the Small Business Deduction (SBD) also worked to stimulate a large increase […] Read more
Farm innovations qualify for credits
It is not a stretch to see farmers as scientists involved in combining natural elements to create new ones. Farmers provide the base ingredients for many mixtures, including cooking oils, sweetening agents, spirits and a portion of the fuels that power our vehicles. It is equally natural to think that some of your farming activities […] Read more
New CPP rules for employers
MONEY IN YOUR POCKET As of Jan. 1, employers, including incorporated farm opera-t ions, will be required to deduct Canada Pension Plan contributions from the pensionable earnings of workers who are: • 60 to 65 years old, even if they have begun to receive CPP benefits • 65 to 70 years old unless the employee […] Read more
