Feds keep eye on how farms manage leasing expenses

The federal finance department has already indicated that it is taking aim at family farm businesses structured as corporations and the way income removed from the corporations is treated for tax purposes. Payouts to family members are usually most heavily taxed as straight income but to a lesser degree as dividends. The intent of the […] Read more

Watch alternative minimum tax trap when selling farm

Government is a strange beast when it comes to taxes. It provides preferential rates on income from dividends, capital gains or even a qualified farm property lifetime capital gains exemption but if you take advantage of these routes to calculating your taxes, government reserves the right to charge you more taxes just because it can. […] Read more

What category temporary migrant farm workers find themselves in will determine how their income is treated by the Canada Revenue Agency.  |  Michael Raine photo

Work on a Canadian farm, meet the CRA

Eighty percent of seasonal agriculture workers in Canada are Canadian residents, but there is still a demand for additional workers, many of whom come from Mexico and the Caribbean. In 2014, for instance, more than 45,000 visas were issued for such workers, although only 40,000 took advantage of the access to work in Canada. Of […] Read more

NAFTA isn’t the only game in town; CPTPP also important

Although the North American Free Trade Agreement is all over the news and the somewhat rocky nature of our relationship with our largest trading partner receives much attention, Canada’s relationship with Pacific Rim countries has opened new doors for the Canadian agriculture sector. With the somewhat awkward title of the Comprehensive and Progressive Agreement for […] Read more

Tax deferral program helps when drought forces herd sale

Farming is frequently exposed to unpredictable acts of nature, which will often affect your financial income in the current year and future ones. Drought and flooding are two such conditions that might force you to sell part of your breeding herd, sometimes at less-than-ideal prices. To help mitigate those losses, the federal government offers a […] Read more

Year-end deadlines are quickly closing in for your RRSP

Certain Canadians may be in for a very expensive tax bill if they don’t act before the Dec. 31 deadline. If you reached the wonderful age of 71 in 2018 and still have funds on deposit in an RRSP, the federal government requires you to wind it up by the end of your 71st year. […] Read more

The federal government will tax cannabis as an excise duty, much the same as duties on tobacco and alcohol.  |  Getty Images

The new crop on the block — well, legal crop

Recreational cannabis is scheduled to become legal this Canada Day if the prime minister has his way. If that date cannot be met, the federal government has definitely committed to a July implementation. Growing illegal marijuana has a long tradition in Canada, whether as a massive grow op in an abandoned Molson brewery plant outside […] Read more

Continent is on the slow boat to a renegotiated NAFTA

The North American Free Trade Agreement negotiations appear to be moving at a snail’s pace and protection of Canada’s supply-management system for dairy and poultry, which is particularly important to many in the farming community, hasn’t yet played a major part in the talks. Foreign Affairs Minister Chrystia Freeland has consistently said Canada will continue […] Read more

Tax increases in new budget will affect many farmers

The Canadian Income Tax Act turned 100 last year and Canadians can be excused if they didn’t celebrate. Since its introduction in Canada in 1917, it has become a much more complex document and has grown to more than 2,000 pages in length. In 2017, the government signaled its intention to change the tax rules […] Read more

Changes to keep in mind for 2017 tax filing

Tax season may be galloping toward us but the Fraser Institute’s Tax Freedom Day in Canada is being pushed further and further out. In 2016, it was pegged at June 7. In 2017, it was June 9 and we wouldn’t bet against an even later date in 2018. In fact, if federal deficits were funded […] Read more