Income tax Archives - Page 3 of 4

CN’s Q4 grain handle down in ‘challenging conditions’

By Grainews Staff, GFM Network News January 23, 2018

U.S. income tax reform more than offset “challenging” conditions, including reduced grain handle, in Canadian National Railway’s fourth fiscal quarter. Montreal-based CN on Tuesday reported net income of $2.611 billion on total revenues of $3.285 billion for its fourth quarter ending Dec. 31, up from $1.018 billion on $3.217 billion in the year-earlier Q4. The […] Read more

Columns

Farm Financial Planner: Grandchild will inherit widow’s farm

Managing taxes across the generations takes extra effort and a careful approach

By Andrew Allentuck November 9, 2017

Celeste, as we’ll call her, is 75. She lives in south central Manitoba and owns a 320-acre farm. Her husband, who we’ll call Edward, passed away earlier this year. The farm, a mixed grain and grazing operation, was profitable for many years. The couple put about $382,300 into off-farm investments over the years. Celeste’s problem […] Read more

Tax return storage at the Canada Revenue Agency. (Canada.ca)

General

Ottawa scraps plans for new limits on capital gains

By Grainews Staff, GFM Network News October 19, 2017

The federal finance ministry has backed away from proposed plans for new limits on capital gains exemptions, over concerns of “unintended consequences” for businesses such as farms. Finance Minister Bill Morneau on Thursday announced the federal government “will not be moving forward with measures that would limit access to the LCGE (lifetime capital gains exemption),” […] Read more

Columns

Farm Financial Planner: Lessening the sting of the AMT after land sales

With planning, retiring farmers can reduce the burden of the Alternative Minimum Tax

By Andrew Allentuck September 15, 2017

A couple we’ll call Herb, who is 67, and his wife, Mary, 60, farm 600 acres of grain and hay and another 500 acres of pasture in central Manitoba. They have put much of their effort into a 100 head cow-calf operation. Their two children, Suzy, 32, and Astrid, 29, are married and have no […] Read more

Forages, Livestock, Weather

Drought-related livestock tax deferral zones widen again

By Grainews Staff, GFM Network News August 14, 2017

More ranchers in five provinces may now be able to defer some of their taxable income from their livestock sales in 2016 due to drought. The federal government on Aug. 4 announced its final list of drought-designated regions where the livestock tax deferral provision will be allowed for the 2016 tax year, and has included […] Read more

Crops

Deadline extended for comment on cash ticket deferral

By Grainews Staff, GFM Network News May 24, 2017

Public consultations on the income tax treatment of deferred grain cash tickets, with an eye toward “potential elimination” of farmers’ option to defer grain income, have been extended by two months. The federal government on Tuesday said the consultation, first announced in Finance Minister Bill Morneau’s March budget and due to end Wednesday, will instead […] Read more

General

Farm sales to co-ops to count for small business deduction

By Grainews Staff, GFM Network News May 8, 2017

Changes to federal tax law that were meant to block “multiplication” of the small business deduction for corporations won’t apply to farmers’ sales to co-operatives. The federal government on Friday released draft amendments to the Income Tax Act, which would allow qualifying farmers and fishers selling to agricultural and fisheries co-operatives to be eligible for […] Read more

If your farming is considered a hobby (for example, you only raise a few  farm animals or have a plot to grow food for your own table), you can’t  deduct any expenses or losses.

Features, News

Save your 2016 seed money

Farm Management: Let the CRA tax experts help you reap the most from what you sow

By Heidi Hofstad March 17, 2017

Farmers of all types, from dairy to fruit to livestock, contribute to the economy and to the healthy lives of Canadians. The Canada Revenue Agency (CRA) wants to help make filing your income tax and benefit return easier so you can save your time and energy for the harvest. If your farming is considered a […] Read more

Columns, Guarding Wealth

Guarding Wealth: The alternative minimum tax

Passing on the farm can trigger an unpleasant surprise:  an unexpected tax alternative minimum tax 

By Andrew Allentuck February 13, 2017

The Alternative Minimum Tax is yet another wrinkle in preparing and paying income taxes. It’s particularly relevant to farmers going through succession planning where capital gains of six figures or more may be realized. The Alternative Minimum Tax (AMT) may apply to you even if you have not reached the limit of your Lifetime Capital […] Read more

Livestock, Weather

Drought-hit tax deferral zones named

By Grainews Staff, GFM Network News November 22, 2016

Ottawa has seen enough drought in parts of southwestern Alberta, southern and eastern Ontario and southwestern Quebec to offer deferrals on their ranchers’ 2016 income tax from breeding livestock sales. Agriculture Minister Lawrence MacAulay on Tuesday released the federal government’s initial list of municipalities designated for the 2016 deferral. In Alberta, those areas include Clearwater, […] Read more

Alberta crop conditions improve: report

U.S. grains: Corn sets contract lows on expectations for big US crop

U.S. livestock: Cattle strength continues

GFM Network News