Joint venture can help producers leverage relationships

It has been my experience that a great way to improve myself is by leveraging the knowledge and expertise of the people around me. One way a farm might do this is by using a joint venture arrangement. Unlike a partnership, where “partners” can contractually bind other partners and partnership assets are jointly owned, a […] Read more

Needing additional bin space is generally a good problem to have. It is also a sign that likely you will be facing another “problem” soon — too much taxable income.
 | File photo

Leasing bins can provide farmers a quicker tax write-off

Needing additional bin space is generally a good problem to have. It is also a sign that likely you will be facing another “problem” soon — too much taxable income. One strategy to consider to mitigate your taxable income is to lease new bins instead of buying them. Generally, from a tax perspective, a lease […] Read more

If you have frozen shares in your farm's financial plan you might need to start sharing this as a liability with your lenders and that could create some borrowing issues.  |  Mike Raine photo

Big changes may impact your balance sheet

Has your farm corporation undergone any special tax planning arrangements in the past? Potentially, an estate freeze or rolling in assets from frozen redeemable shares? If so, your farm corporation might be impacted by recent accounting changes to how preferred shares (commonly referred to as “frozen shares”) are reported in your financial statements. Recently, the […] Read more

Feds’ emergency COVID programs continue to evolve

The government programs for COVID-19 and their acronyms continue to evolve as we move through this pandemic. Canada Emergency Bank Account This is the $40,000 interest-free loan that many producers have been talking about. Repaying this loan by Dec. 31, 2022, will result in forgiveness of up to $10,000 of the loan. It has continued […] Read more

Steps can be taken to plan for COVID-related tax hikes

Some are projecting the Canadian government’s debt to potentially reach $1 trillion by this time next year. I do not have a crystal ball but it is a safe bet that the government will need to recover some of this spending. One of the easiest ways for the government to collect more money is by […] Read more

U.S. property owners may face tax bill

Has the thought ever crossed your mind to buy that beautiful property south of the border? Do you already own property in the United States? There are many factors that come into play when owning U.S. property. Specifically, the U.S. tax system has many different rules than Canada. One huge difference you must consider is […] Read more

The federal government has introduced a number of programs to help businesses deal with the COVID-19 crisis that farms might be able to use.  |  File photo

What to know about federal COVID-19 response benefits

The COVID-19 pandemic has resulted in many programs and subsidies that can be used to help farms survive through these testing times. All farms have been affected differently, whether they have seen changes in commodity prices or decreased demand for products. It is important to have a quick summary of the changes in deadlines and […] Read more

Dividends and salaries: a tale of two options

Managing corporate farm operations requires many decisions regarding cash flow and financial management. What to grow, how to grow it, and when to harvest are key drivers of success. During winter, your thoughts may turn to another consideration. How will you pay yourself or your family? Generally, if your farm is a corporation, you have […] Read more

Replacement property rules can alleviate tax burden

Are you contemplating swapping land with a neighbour? What about relocating your farm entirely? Maybe there is land in your farming company that you want to swap with personal farmland for your estate plan? You may get heartburn when you think about the tax consequences of selling or transferring land. However, the replacement property rules […] Read more

It’s important to get paperwork in order this tax season

Here are some highlights of important deadlines for tax returns, including documentation and planning to use common tax credits. The deadline for Registered Retirement Savings Plan contributions is March 2 for them to be deducted on your 2019 tax return. This allows you to lower your taxable income for 2019 and save for the future. […] Read more