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

Ottawa changing tax rules for intangible property

A farm has many assets. Some are tangible, such as buildings and equipment, while others are intangible, such as milk quota and goodwill. For a long time, it was thought that the tax rules relating to intangible property, also known as Eligible Capital Property, were too complicated. The most recent budget finally addressed the matter. […] Read more

Current or capital expense? Knowing the difference is key

Who doesn’t want an immediate writeoff? Unfortunately, Canada Revenue Agency classifies business expenses into two categories: current and capital expenses. Current expenses give rise to an immediate writeoff while capital expenses do not. Capital expenses are for depreciable assets and are written off over a period of years. The number of years depends on the […] Read more

Revenue received from oil company leases is taxable

Despite the precipitous decline in oil prices, or maybe because of it, farmers are increasingly being approached by oil companies for access to their properties for exploration of oil and natural gas resources. Although Alberta and Saskatchewan farmers have had longtime experience with this issue, Manitoba farmers are seeing a significant increase in approaches from […] Read more