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Farm Taxes

How to use income splitting to reduce your tax bill

how to use income splitting to reduce your tax bill working at desk

Last updated: Jan. 9, 2023 
What is income splitting? Within Canada’s graduated tax system, the more income you earn, the more tax you pay. Income splitting is the strategy of redistributing income within a family – usually from a spouse in a higher tax bracket to a spouse in a lower tax bracket – to reduce … Read more

Automobile deduction limits rates announced for 2023

FBC automobile deduction limits announced for 2023 man driving car

Last updated: Jan. 5, 2023 
The Department of Finance Canada recently announced that automobile leasing and mileage reimbursement and Capital Cost Allowance (CCA) limits have increased, as of January 1 2023. The changes announced are summarized as follows. Capital Cost Allowance (CCA) for Passenger Vehicles The before-tax CCA deduction limits for passenger vehicles (new and used) … Read more

Do I have to make tax instalment payments?

woman at desk with calculator

Last updated: Dec. 29, 2022 
Unfortunately, when it comes to instalment payments, the answer to this question is not so cut and dry. Installment payments are typically calculated using your previous years’ net taxing owing. If your net tax owing was more than $3,000 ($1,800 for Quebec) for 2022, and in either 2021 or 2020, then … Read more

Tax Credits for Farmers and Agricultural Producers

tax credits for farmers

Last updated: Dec. 7, 2022 
There is no dollar that isn’t hard-earned when you work in agriculture. That’s why it’s critical to use every tool available to lower your tax burden, including tax credits. Below, we outline tax credits that may help farmers, livestock producers, and agri-businesses pay less tax, but first, let’s explore the differences … Read more

Converting an RRSP to an RRIF

older couple walking arm in arm

Last updated: Nov. 25, 2022 
You’ve been saving money for years in your registered retirement savings plan (RRSP) and now it’s time to cash in. You could take out all the money at once if you wanted, but it’s a better idea to convert the RRSP to a registered retirement investment fund (RRIF). The RRIF will … Read more

How to keep audit-proof mileage logs that lower your taxes

man driving vehicle grey jacket

Last updated: Nov. 20, 2022 
A big perk of using your personal vehicle for business when you’re self-employed is writing off your motor vehicle expenses. But if you’re doing this without keeping a mileage log, the CRA could reject your claims for these expenses. The good news is that by following our advice, you can avoid … Read more

Do corporate loans count as taxable income?

Last updated: Nov. 4, 2022 
*UPDATED FOR 2022* When shareholders or employees borrow money from a corporation, that money is generally considered taxable income. But this rule, like many tax rules, has exceptions. Shareholders and employees can borrow funds from their corporations for many different reasons. Unfortunately, they may end up with significant taxes owing because … Read more

Transition Planning for Farmers: Multi-year Planning Case Study

Multi-year planning case study

Last updated: Apr. 27, 2022 
This case-study is a follow-up to the Transition Planning for Farmers: Multi-year Planning article. Little by little, one farm successfully changes hands It’s not often you hear someone describe their farm transition as “flawless,” but that’s just how Denis Boucher labeled the experience. For as long as Denis can remember he … Read more

Transition Planning for Farmers: Multi-year Planning

Multi-year planning

Last updated: Apr. 27, 2022 
Transitions should not occur over night Most transition plans last multiple years and often require substantial amounts of planning, conversations, thinking, restructuring and focus. Often the transition begins long before it truly begins with informal conversations in the barn or on a drive into town. Other times the transition may be … Read more