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Farm Taxes

Salary or dividends: Which one is right for me?

salary or dividends man in shop looking at tablet

Last updated: Nov. 22, 2023 
As a business owner in Canada, you’ve likely faced the decision of how to pay yourself from your incorporated business. Two common options are paying yourself a salary or taking dividends, though some business owners choose a mix of both. The method you use to pay yourself personally from your corporation … Read more

What You Should Know About Non-Capital Losses

Canada accountant working at desk with laptop and caclulator

Last updated: Nov. 17, 2023 
What is a Non-Capital Loss? One of the realities of being a small business owner or farmer is that there are times when you will experience financial losses. Losses occur for a variety of reasons, including economic downturns, poor investments, and unforeseen weather or climate events. When they do, it’s important … Read more

Are You Negating Your Farm’s Capital Gains Exemption?

Round bales of hay in field Canada farm

Last updated: Oct. 26, 2023 
If you are renting out your farmland, you could unexpectedly negate your ability for an intergenerational farm rollover, the $1,000,000 lifetime capital gains exemption or both. The following advice will help protect your tax savings when the time comes to sell your farmland or roll it over to the next generation. … Read more

Facts About Running a Canadian Family Business

Farming Family sitting in field with bales

Last updated: Oct. 10, 2023 
Like any business, running a family business in Canada has its rewards and challenges. But a lot of Canadians make it work. According to a study by the Family Enterprise Xchange Foundation, families own about 65% of Canadian businesses and they contribute 48.9% to Canada’s Gross Domestic Product (GDP), which amounts … Read more

Tools to Manage Farm Risk and Finance

Farmer standing in field using tools to manage farm risk and finance

Last updated: Oct. 10, 2023 
Producers and agribusiness owners face unique challenges, especially when it comes to operating their businesses. It can be difficult to know where to look for assistance programs that focus on risk management and protecting agricultural producers from income and production losses.  The following initiatives were designed to help Canadian farmers manage … Read more

3 Ways Gifting Money in Canada Can Benefit Your Small Business

Smiling farmer in a field

Last updated: Oct. 7, 2023 
Gifting money and transferring property from one family member to another are common, and although Canada doesn’t impose a gift tax, gifting of certain assets may trigger certain tax rules that could increase your income taxes – which can catch people by surprise.  However, in some situations, gifting money and property … Read more

Capital Cost Allowance for Farmers

Canadian farmer considering capital cost allowance by a tractor.

Last updated: Oct. 5, 2023 
If you need to purchase a major capital asset, such as a building, machinery, or equipment to use in your farming business, consider buying it before the end of the fiscal year. Doing so can help you claim tax depreciation, or capital cost allowance (CCA), which reduces your taxable income.  What … Read more

Facts About Full-Time, Part-Time & Hobby Farming Taxes

Two farmers standing among their goats

Last updated: Jul. 6, 2023 
There are many different tax breaks, grants, and income support programs available to farmers in Canada. The tax deductions and programs available differ depending on the type of farm you run, and since agribusinesses are often unique, it can be somewhat challenging to understand what deductions you can claim against your … Read more

Consider an Inventory Adjustment for Low Farm Income Years

Cash Accounting Farmers. Consider inventory adjustments for low income years

Last updated: Jun. 9, 2023 
Inventory adjustments can stabilize farm income and help you pay less tax over time One of the biggest tax planning challenges a farmer can face is income fluctuations. The good news is, if your farm uses cash accounting, you can average out these income swings by using two inventory adjustment tools: … Read more