How can I pay less tax this year? Most farm families do it by prepaying expenses or deferring farm income into the next fiscal year. However, there are other tools at your disposal that can help reduce your personal tax liability. This article will summarize various registered accounts so you can determine what is the […] Read more
Tag Archives Taking Care of Business — page 4
Accounting standard changes affect financial statements
The 2022 production season is ending across Western Canada. As you turn your attention from harvest to your financial statements, changes to the Accounting Standards for Private Entities also must be considered. Section 3041 establishes standards for the recognition, measurement, presentation, and disclosure of an agricultural producer’s inventory. Section 3041’s purpose is to ensure accurate […] Read more
GST has nuance that affects farm business operations
The Goods and Services Tax has many nuances that can be confusing. Whether a transaction is part of your farm’s day-to-day operations, or you are selling a quarter section of land, GST is almost always inevitable. So, what could that mean for you? While small suppliers are not required to register for GST, any supplier […] Read more
Tips can make AgriStability and AgriInvest filing easier
It’s that time of year again — harvest. Oh, and don’t forget — AgriInvest and AgriStability applications are due Sept. 30. The AgriStability and AgriInvest programs can be intimidating because of the complexity of records required. Let’s make it easier by breaking down the filing process into two parts and perhaps it can make next […] Read more
Salary or dividend: finding the right blend
You likely take time to look for the right blend of coffee to start your day. You explore different fertilizers to nourish your crops. The same principles apply when deciding how to compensate yourself. Two main ways you can take money out of your farm corporation are salaries and dividends. A dividend is the distribution […] Read more
Step away from active farming and put your assets to work
Not quite ready for retirement but looking to take your foot off the gas a bit? There are a few strategies for transitioning away from an active farming role while still using your land assets to generate revenue. These strategies include land rentals and joint ventures. Below are tax considerations to keep in mind when […] Read more
Proposed carbon tax rebate program could benefit farmers
Natural gas prices have steadily increased since June 2020. This increase has been due to record-breaking heat in the summer of 2021, numerous hurricanes, and other weather issues, as well as a strong demand for natural gas. Farmers in particular are affected by the higher prices because it can be one of their significant expenses. […] Read more
Rules must be followed when classifying farm vehicles
When you buy a vehicle for the farm, you must figure out which class of depreciable property it has to be classified under. There are specific rules as to how to correctly determine the class of your vehicle. Canada Revenue Agency may review your class 10 and 10.1 additions to make sure you are correctly […] Read more
Young producers cannot ignore the financial side of farming
Young farmers are the future of the agriculture industry, and although working the land and tending cattle is the main part of the job, it is also important to educate oneself on the financial side of farming. For a lot of young farmers this can be the hardest part of running an operation. In the […] Read more
Tips to help ensure tax package is accurate and complete
Personal tax season is upon us. Now is the perfect time to offer ways to simplify the process and save money when it comes to your personal tax return. Below are five tips to help ensure your tax package is accurate and complete. Create an annual document checklist This checklist is a simple document that […] Read more
