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
Tag Archives Taking Care of Business
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
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
Passing on farm to next generation comes with tax issues
As you bring in your harvest, you may be reminiscing of the hopes and dreams it has inspired, the valuable lessons you have learned, and the pride that it has brought you. You may be considering passing on the legacy to the next generation. There is a lot of value in your farmland, which can […] Read more
Spousal trusts can be useful when managing farmland
Spousal trusts seemed more common in the past than they are today. Generally, they were used to ensure your spouse could have adequate income from the farm assets you left behind, but they limited the control of these assets so they would pass to the next generation. We have heard horror stories of re-marriage situations […] Read more
GST not to be ignored when buying or selling farmland
When it comes to buying or selling farmland, it is important to know when the Goods and Services Tax must be charged and whether the buyer or the seller is responsible to send the GST to the government. As a seller, not charging GST on a taxable sale of farmland could mean having to reduce […] Read more
Families can overlook tax planning during a divorce
The breakdown of a marriage is one of the most challenging issues a family can endure. It tends to be very tense, which can cause tax planning to be overlooked. It is important to know the rules so the total farm assets and cash flow being divided is maximized. The farm In most cases, divorce […] Read more
How to successfully income split when selling the farm
Are you considering selling your farm in the future? If you own the majority of the farmland compared to your spouse, if you own the majority of the other family investments and if you have a much higher personal income level than your spouse, you may want to consider implementing a loan at the two […] Read more
Traps to watch for when deferring tax on grain sales
Are you one of many farmers delivering grain to an elevator and delaying tax on the sale until the following year? When using grain deferrals there are a number of tips and traps you should consider. A deferral is when you deliver grain in one year but accept payment for that grain in the following […] Read more
