Farmers may be left wondering as they prepare for the coming production year why they have less cash in the bank. One factor could be the result of new tax rules that came into effect March 21, 2016. A number of farm corporations and partnerships have lost access to the small business deduction, resulting in […] Read more
Tag Archives Taking Care of Business
Small business deduction changes may affect your farm
Possible end to grain payment deferrals big budget item
Farmers could face the loss of grain payment deferrals in the next few years. The 2017 federal budget announced a consultation on possibly ending this tax mechanism for grain farmers. The history behind this tax deferral on listed grains was linked to the Canadian Wheat Board’s quota delivery system. When the listed grains, which include […] Read more
Tax changes you need to know for maximum deductions
It is that time of year again when most people are getting close to taking their personal tax information to their accountant. It is important to know the changes that have taken place in 2016 with personal taxes to ensure you provide the appropriate information and ask the right questions. Let’s start with the changes […] Read more
Add tools to your belt; capital gains reserves
You need to consider all available tax tools when selling land to a neighbour or family member. These tools include the lifetime capital gains exemption, family farm roll-over rules, replacement property and capital gain reserves. A capital gain reserve is a useful tool that producers sometimes overlook. It allows you to defer taxes on capital […] Read more
Best to sell corporation shares, not land, when retiring
The Art of the Deal by U.S. President-elect Donald Trump comes to mind when looking at selling the farm. There can be some “huge” (or “yuge”) tax savings by structuring this deal properly. For those who are incorporated, structuring the deal includes deciding whether to sell the shares of the farm corporation or sell the […] Read more
Land rental structure affects future tax qualifications
There are important tax considerations landowners should consider when deciding whether to rent out farmland. The structure could affect the ability to use the lifetime capital gains exemption (ability to save tax on $1 million in gains) and tax-deferred rollover to the next generation. Maintaining the land as qualified farm property according to the Income […] Read more
Expenses generated by home office are tax deductible
The end of another year is upon us, and personal tax season is right around the corner. As a farmer, it is important to know what deductions you can claim. Home office expenses tend to raise a lot of questions. A lot of farms use an office in their home for paperwork and storing records. […] Read more
Protecting yourself from a lawsuit
You would never wish a lawsuit upon any business. The chance of being sued is likely rare, but the thought of it is stressful. I recently sat down with a farming couple to go over the risks they face outside of their operations. The conversation quickly turned to the farm facing a lawsuit. The question […] Read more
Assessing merits of corporate vs. personal land ownership
Producers who buy land often ask me whether they should purchase it personally or in a company. Professionals used to advise farmers to own their land personally, which made good sense. Owning land personally provides great flexibility when it comes to estate and succession planning and allows producers to use special tax rules such as […] Read more
Executor has important job when administering a will
The will is at the centre of estate planning. It determines how your estate will be carried out. But what happens after you die? What should an executor of an estate watch for? When you plan your estate, think about the role your executor will play to ensure the process is as smooth as possible. […] Read more
