When passing on your farm operation to the next generation, key questions will often arise concerning control of the farm assets. There are several ways to transfer farm assets, each with its advantages and disadvantages. The following are simple examples of how qualified farmland can be transferred to the next generation, with a focus on […] Read more
Tag Archives Taking Care of Business — page 6
Tax decisions must be made following a death
The death of a family member or loved one is not something anyone likes to think about or prepare for. However, it is important to know the steps that must be taken regarding taxes when it occurs. Being prepared for these difficult times can ease the burden on you and your family when it comes […] Read more
Share rollover option can defer capital gain on farm sale
Are you considering selling the shares of your farm and buying shares of a new farm, or maybe shares of an entirely different business? Maybe you have been approached with an offer that is too good to pass up, so why not take the opportunity to sell and buy new? Unfortunately, such a sale and […] Read more
Updates to watch for with COVID-19 programs, subsidies
With the unpredictability of the economy due to the COVID-19 pandemic, the federal government has come out with many changing programs and subsidies to help. It is important you are aware of these programs and their updates to determine if they are right for your farm. Canada Emergency Business Account The CEBA program is aimed […] Read more
Changes to marital status can have an impact on taxes
If you’re getting married or moving in with your partner, it may have tax implications. Here is a quick introduction on how these decisions might affect your tax return. Common law vs. married Do you have to be legally married for the government to consider you a couple when filing your tax return? The answer […] Read more
Producers urged to embrace performance management
A key factor to success in agribusiness is a keen understanding of your farm’s financial position. This includes knowing what assets the farm owns, who is owed what, and most importantly, how much cash is in the bank. This information is crucial for making sound financial decisions. As a producer, you are subject to challenges […] Read more
Capital gains exemption can be used in variety of ways
We have been receiving numerous calls from farmers asking about their lifetime capital gains exemption. Obviously, people are worried that the government will need new tax revenue streams soon. At a high level, we always want decisions that make business sense first. We then work in the appropriate tax planning. If a farm has been […] Read more
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
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
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
