Tax Management Strategies for Farmers

If you are looking for ways to help save tax dollars in your farming operation, then look at this book on tax management strategies. This publication will help farmers examine the effect taxation has on the operation of their farm businesses. Tax planning can fall into two categories: tax savings or tax deferrals. This book can help you plan, so you can take advantage of tax tips in both areas. It can also show you how to avoid tax traps that cost you more than you need to pay. 75 pages. Agdex 837-1 $10.00

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• Straight Line Method (Part XVII)
• Declining Balance (Part XI)
• Dispositions of Depreciable Property
• Flexibility of CCA Claim
• Available for Use Rules
• Half-Year Rule
• Class 1-12 Election
• Year of Death
• Roll Over to Children
• Short Fiscal Period
• Year of Transfer/Rollover
• Reserves

• Deferred Cash Grain Tickets
• Canadian Wheat Board Advances
• Prepaid Supplies
• Inventory

• Mandatory Inventory Adjustment (MIA)
• Optional Inventory Adjustment
• Restricted Farm Losses
• Creating a Loss with Specified Animals

• Transfer to a Child During a Farmer's Lifetime
• Transfer on Death
• Transfer to a Company
• Cattle Lease
• Advantages of Cattle Leasing
• Disadvantages of Cattle Leasing
• Transfer to Child
• Agreement for Sale - Producer Note
• Lease Agreement - Option to
• Purchase
• Transfer to a Partnership or Corporation
• Feeder Association Purchases

• Condominium Interest
• Leasing of Bin Space
• Refundable Deposits

• Hiring Employees vs. Contractors

• Farm Houses
• Tax Treatment Of Farm Family Home
• What Special Alternatives Exist for Farmers?
• Can a Husband and Wife Each have a Principal Residence?
• Can a Farm Corporation or a Farm Partnership Own the Family Home?
• Can a Father and Son Each have a Principal Residence on the Farm?
• Can a Partnership have a Principal Residence?

• Passenger Vehicles
• Leasing

• Capital Gains
• Leasing
• Capital Lease
• Operating Lease
• Prepaid Lease Payments
• Transfer to a Child
• Transfer to Spouse
• Transfer on Death
• Transfer to a Corporation or Partnership

• When to Re-Think the Use of the Election
• Reversing unintended side effects
• Benefit of 20/20 hindsight
• Buying time and more room to maneuver

• Summary of Rules
• Share of a Family Farm Corporation or Interest in a Family Farm Partnership
• Eligible Capital Property
• Sale to Spouse
• Sale to Children
• Sale to a Corporation
• Sale to a Partnership

• Drought Deferral
• Permanent Cover Programs
• Net Income Stabilization Program (NISA)
• Farm Income Disaster Program (FIDP)
• Cash Flow Enhancement Program
• Crow Benefit

• Replacement Property
• Utility Connection
• Road Construction
• Farrners Clearing and Leveling Land or Laying Tile Drainage
• Purchase of Assets

• Farm Property Transferred to Children
• Property Transferred to a Spouse

• Original Proposal - 1995 Federal Budget
• Who Does This Amendment Apply To?
• Transitional Relief
• What Happens in a Year in Which There is a Loss?
• Is the Transitional Reserve Portable?
• Filing Deadline Extended
• Alternative Method
• Joint Venture

• Instant Partnerships
• Allocation of Partnership income
• Computation of Partnership Income
• Transfer of Property to a Partnership
• Subsection 97(2) election
• Is it possible to use a partnership to dispose of an asset to an arrns length party and defer all gains?
• Real Property Transfer to Partnerships
• Incorporation of a Partnership
• Incorporation of partnership assets
• Incorporation of partnership interests
• Land Registration
• Partnership Rollover and Mandatory Inventory Rules
• Problem With Debt in Excess of Cost of Assets on Rollover to a Partnership
• Using a Partnership to Access the Capital Gains Exemption on Farm Assets
• What Will Revenue Canada Think of this Approach?

• Dividends
• Salary
• Salary to Spouse and Children
• Salary dividend Mix

• Advantages of a Corporation
• Tax Rate
• Limited Liability
• Income Splitting
• Continuity
• Disadvantages of a Corporation
• Additional costs
• Additional administration
• Certain tax disadvantages
• Company owned Houses
• Loans

• Key Strategies
• Tax rates
• Land
• Farm houses
• Income Splitting
• Estate Planning and Transfers
• Limited Liability
• Family Involvement

• Retiring Allowance
• Doubie Tax on Sale of Assets
• Capital Dividend Account
• Taxation
• Key Issues in Working with Companies