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

Renting out a vacation home when you’re not using it can have tax consequences.  |  Getty Images

Vacation properties promise sun, sand — and tax considerations

Everyone needs a vacation, especially in this winter climate. Whether it’s a cabin, a condo or an additional house, vacation properties are a great way to spend time away from the farm for much deserved relaxation. Unfortunately, there are tax considerations to keep in mind with your home-away-from-home. Specifically, tax consequences may arise if you […] Read more

How to calculate home office expenses on your tax return

Tax season is sneaking up on us as we move toward the end of another year. When preparing for this tax season, one question we ask ourselves is, “how can we pay less tax?” It is important to consider what deductions you can claim against farming income in your tax return. A deduction you should […] Read more

Variety of options available when saving for the future

Saving for the future is difficult. It is especially tricky when running cash-intensive operations such as farming or ranching. A lot of the cash flow may need to be invested in the farm to cover debt or to continue to grow. However, having diversity in savings and investments can be crucial for those tough times. […] Read more

Advantages of a single farm corporation include its simplicity, while disadvantages include everyone being tied together, which can complicate decision making.  |  File photo

Weighing pros and cons of single family farm corporation

There are many options on how to structure your farm with family. A one-size-fits-all solution does not exist and there are many advantages and disadvantages of each potential structure. This article takes a deeper look into using a single family farm corporation for the succession of your operation. Family background Darren and Marilyn are each […] Read more