Older farmers should not assume that their children are interested in taking over the enterprise, even when they are engaged in its operation. The topic of who will carry on the farm is complicated and full of family dynamics, and for that reason family members often do not make their true wishes clear. The sooner […] Read more
Stories by Grant Diamond
What has the latest budget season done for you?
The season for provincial and federal budgets is over and the good news is that most jurisdictions did not raise taxes. The bad news is that most governments, aside from a few provinces, are financing increased deficits that will not disappear soon. A deficit will add to the interest expense line, removing dollars from new […] Read more
Ratios can help determine where you stand financially
Intense competition has made the process of financial and strategic planning on the farm much more complicated. There are basic indicators that might help you better understand how well you are performing compared to local and national levels. Statistics Canada’s most recent farm financial data shows that in 2015 record net farm income and strong […] Read more
GST details are tricky; when should it be collected?
Most sales are subject to GST/HST in Canada. However, the sale of most farm products are considered zero-rated. Is this a pass? The challenge is that not all farm products are zero-rated, and the list is huge. Items that might not be zero-rated are things such as fresh-cut flowers or foliage, bedding plants, sod, living […] Read more
Good recordkeeping key to worry-free tax preparation
Every farm business should resolve to maintain and improve its recordkeeping disciplines. Virtually every transaction the farmer makes can have a significant tax consequence. In our business, we regularly see income and deductions that are overlooked. Misreporting income that was previously filed can land you in an unpleasant auditing process. Overlooking valid deductible expenses will […] Read more
Will carbon tax reduce fossil fuel use and greenhouse gas emissions?
Canada is in the early stages of embarking on the grand experiment of carbon taxation. Such a tax would be levied on the carbon content of fuel. It is a form of carbon pricing. Carbon is present in every hydrocarbon fuel (coal, petroleum and natural gas) and is released as carbon dioxide when they are […] Read more
Tax or no tax: the GST pain that just won’t go away
The Goods and Services Tax is a pain to administer, but at least it is easy to calculate. The GST/HST law went into effect Jan. 1, 1991, and ever since then all sales have been subject to GST unless specifically exempted. However, the process gets far more complicated when we start working with exceptions to […] Read more
Turning 71 in 2016: what does it mean for your registered retirement savings plan?
Financial institutions dominate newspaper and television advertising every January and February as they explain how you can minimize your taxes by contributing to a Registered Retirement Savings Plan. Rarely communicated is that the government eventually expects the taxes that were deferred to be paid back. For most Canadians, that occurs by Dec. 31 of the […] Read more
Taxes for part-time farmers depends on profit expectations
Several sections of the Income Tax Act refer to permitted business deductions but only if the taxpayer can show the business has a “reasonable expectation of profit.” However, the act does not define reasonable expectation of profit, so how is it applied for tax purposes? Farm losses and restricted farm losses are a prime example […] Read more
Address audit fears through pro-active accounting
Audit — it’s a small word but one guaranteed to generate worry, if not outright fear, in the minds of taxpayers everywhere. This is Canada Revenue Agency’s prime period for verifying your 2015 filing and comparing it to those filed in earlier years. The comparison between filings is a key device used by the CRA […] Read more
