Professional Documents
Culture Documents
FARMERS
TM
2014 2015
A tax planning checklist
for farmers
Please review the checklist, and if any of the items seem to relate to your situation, please do
not hesitate to call.
Copyright 2015 Rossworn Henderson LLP
$12.95 + GST (complimentary for clients)
All rights reserved.
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General information
Deductible expenditures
Using your vehicle for farming
Capital expenditures
Farming in a corporation
Selling a farm & transfers to children
Government programs
There are very specific tax laws that relate only to farmers. It is very important that you are
aware of how to use these rules to your advantage. If a tax rule is missed or misused, this
error could easily cost you hundreds of thousands of dollars. This is especially true when you are
selling your farm or transferring it to children.
1. Read each section that applies to you. Check the
your circumstance.
2. BE SURE TO TAKE NOTE OF THE NEW TAX RULES FOR THIS YEAR, WHICH
HAVE BEEN HIGHLIGHTED IN BOLD.
3. Bring this booklet with you when we are doing tax planning for you or preparing your income tax
return and we will show you how to get maximum benefit from those planning points.
4. These loopholes are simply the most common methods to use existing tax laws to your greatest
advantage. As a taxpayer, you should always look at the tax rules from different angles and
structure your tax planning in a way that will result in a benefit for you and your family.
5. For further information regarding your tax issues, please contact our offices at:
Armstrong:
Lumby:
Sorrento:
Email:
250-546-8665
250-547-2118
250-675-3440
Enderby:
Chris Henderson
Dustin Stadnyk
Nathalie Merrill
250-838-7337
Salmon Arm:
250-832-5129
Out of town (toll free): 1-888-818-FARM
ch@rhllp.ca
ds@rhllp.ca
nm@rhllp.ca
GENERAL INFORMATION
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Full-time farmers
Full-time farmers are not subject to a
limit on the amount of losses that are
deductible.
Part-time farmers
Part-time farmers are defined as
those whose gross farming revenues
do not exceed their other sources of
income (i.e. Pension, employment
income, investments, etc.). The
maximum loss that may be claimed
in one year is $17,500.
Hobby farmers
Hobby farmers cannot deduct any
farming expenses as CRA views
them as being entirely for personal
benefit.
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DEDUCTIBLE EXPENDITURES
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prior to the end of the year and ensure it
meets the test for this short period,
thereby guaranteeing full expense
deductions for all future years.
CAPITAL EXPENDITURES
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FARMING IN A CORPORATION
Income splitting
Simplicity
Succession planning
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should be considered to avoid
possible probate if one of the spouses
dies. This may reduce the ability to
dividend sprinkle.
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The sale of a farm (or quota) may be taxfree if your farm qualifies for the lifetime
$813,600 capital gains exemption.
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GOVERNMENT PROGRAMS
AgriInsurance is an aggregation of
all existing production insurance for
particular industries.
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NOTICE TO USERS: This information is of a general nature. We try to ensure its accuracy and
timeliness. No one should act on it without appropriate professional advice after a thorough examination
of the facts of a particular situation. Information in this booklet is current to January 31, 2015. Changes
after that date are NOT INCLUDED.