Reading Time: 2 minutes Was your farm profitable in 2017? Now is the time to find out by converting cash statements to accrual income and expenses statements, says a provincial farm financial specialist. “The majority of farms still report their incomes and expenses on a cash basis via their annual income tax returns with the goal of avoiding or […] Read more
What was the real bottom line on your farm in 2017?
Cash accounting can save you taxes, but it doesn’t give you a true picture of profitability
Are you keeping your accountant awake at night?
The thought of farms getting hit with a huge — and unnecessary — tax bill is a scary one, say two tax experts
Reading Time: 3 minutes What keeps you up at night? Up and down commodity prices? Weather? Finding (or keeping) rental land? For accountants Ryan Stevenson and Dean Gallimore, it’s the thought of farmers getting whacked with a tax bill they could easily avoid. “One of the best things about farming is that farming companies can transfer from one generation […] Read more
Feds backpedal on plans to scrap cash ticket deferral system
The federal government has changed its tune on cash ticket deferrals
Reading Time: 4 minutes Dean Gallimore breathed a big sigh of relief when he learned that the federal government had scrapped its plans to eliminate the cash ticket deferral system. “This is a relief in a big way,” said the chartered accountant. “I was very concerned that they were going to scrap the system. Farmers could deal with that, […] Read more
Worried about federal tax changes? There’s an alternative, say experts
Federal Liberal bid to close ‘loopholes’ will increase taxes on most farm corporations, but there’s a way to avoid that hit
Reading Time: 3 minutes Proposed federal tax changes aimed at ‘income sprinkling’ and other tax reduction measures used by corporations — including those owned by farmers — have ignited a storm of controversy. But there are “a lot of other tax strategies” that farmers can use, say financial planning experts. In July, federal finance officials announced proposed changes to […] Read more
Proposed tax changes could hit farmers hard
Ottawa’s plan to make wealthy Canadians pay their fair share of taxes could cripple your retirement or succession plans
Reading Time: 4 minutes Proposed changes to the federal income tax act could have far-reaching consequences for Canadian farmers. “The proposals that came out in July are so wide reaching and so complicated that they could significantly impact all farms across Canada,” said Allan Sawiak, a taxation partner at accounting firm Kingston Ross Pasnak in Edmonton. “This will affect […] Read more
Ottawa still considering eliminating deferred grain cash tickets
Alberta crop commissions say federal finance officials don’t understand the serious impact of eliminating the tax break
Reading Time: 2 minutes Ottawa is extending the public consultations on the “potential elimination” of deferred grain cash tickets by two months. But Alberta farm leaders say federal finance officials have “little understanding” of the importance of the income tax break and “the far-reaching implications if farmers were to lose access to this tool.” “We believe that the government […] Read more
Seven ways incorporating your farm can improve your operation
Successful farms depend on having smart, strategic people, no matter what structure. However, being incorporated has forced farms to create accrual financial statements and operate under certain rules of engagement, which has jumpstarted more professional behaviour, such as having farm meetings.
Lethbridge County ‘head tax’ ruled legal
Feeders challenged the $3-per-head business tax on feedlots as unfair, but a judge said the municipal act allows it
Reading Time: 2 minutes Lethbridge County’s controversial ‘head tax’ will be staying put after a judge ruled the tax is legal. “We’re happy that the judge upheld the business tax,” said Lethbridge County Reeve Lorne Hickey. “He felt that under the Municipal Government Act, we were fully capable of putting that tax in place.” The $3-per-head business tax —[...]
Read more
Read more
Farmers can grow the Canadian economy — if they’re not shackled
Removing a tool that allows grain farmers to even out their income would hamper their ability to invest in and expand their operations
Reading Time: 3 minutes As we enter another growing season, farmers are raising concerns over the federal government’s intention to review the option to defer cash purchase tickets — something that came with no warning prior to its mention in the federal budget. From where I sit, a mid-size incorporated family grain farm, we know that the reversal of[...]
Read more
Read more
Keystone Agricultural Producers defends cash ticket deferrals
Manitoba’s Keystone Agricultural Producers has joined other farm groups in calling on the federal government to keep a regulation that allows farmers to defer grain sales into the following year for tax purposes. The government announced in its recent budget that it is considering eliminating grain ticket deferrals because it is a left over from[...]
Read more
Read more
Cyber-Savvy Farmer
