December 1, 2023 by Bud Arnold
The simplest part of tax compliance and planning for a farm should be the family home. However, tax issues related to farmhouses abound! Let’s unpack a few of the more common concerns.
October 26, 2023 by Thomas Blonde
One of the most common questions we get from our farm clients is how their business should be structured.
August 4, 2023 by John F. Oakey
Among its wide‑ranging tax measures and initiatives, Budget 2023 provides long‑awaited clarity on the issue of intergenerational transfers.
June 19, 2023 by Ryan Minor
Budget 2023 proposes to introduce “employee ownership trusts” (EOTs) to encourage employee ownership of a business and facilitate the transition of privately owned businesses to employees. The EOT structure was influenced by similar approaches in the United Kingdom and the United States. The proposed amendments have an effective date of Jan. 1, 2024.
January 20, 2023 by Bud Arnold
Family business succession planning involves many components, including family dynamics, leadership training, financial planning, management transition, legal agreements and – you guessed it – taxes.
December 20, 2022 by Kale Donald
When a farmer who operates a farm through a proprietorship – that reports income for tax purposes under the cash method – passes away, there are a number of options available for how the farm inventory left behind will be treated for tax purposes. It is very important that executors of the estate understand the options available to them. This alert addresses tax planning options that are often overlooked when dealing with the estate of a farmer.
July 20, 2021 by John F. Oakey
Many family-owned businesses have faced higher tax burdens when transitioning their business within their family. This effect has been due, in part, to two anti-avoidance provisions in the Income Tax Act (ITA) that are designed to prevent unapproved transactions deemed abusive by the Department of Finance. Section 55 prevents unapproved, tax-deferred capital gains stripping; section 84.1 prevents unapproved, tax-free surplus stripping. In a nutshell—an oversimplified nutshell—these two complex anti-avoidance provisions recharacterize what should be tax-free transactions into taxable ones.
June 22, 2021 by Leigh-Anne Finch
As society advances through the pandemic, 2021 could see the highest number of people (re)entering the workforce and changing jobs in recorded history.
June 7, 2021 by Eric Gagnon
Most Canadians know that selling their home normally will not result in income tax thanks to the principal residence exemption (PRE). Unfortunately, people tend to extend this "knowledge" into a feeling that they need never worry about tax when dealing with their principal residence.
May 28, 2021 by Todd King, Martha MacRae, Connor MacKenzie
The Biden administration’s “Made in America Tax Plan” and what it could mean for U.S. citizens residing in Canada
March 30, 2021 by John F. Oakey
On March 25, 2021, the Québec government released its 2021 budget. The following are highlights of the key tax measures.
A growing number of farm clients come to my office to discuss succession planning. In many cases, there is a single farming child that has stayed behind to help run the operation, and this child will be the successor. Often, there are other children in the family who have left the farm and have blazed their own paths in life.
May 31, 2019 by Thomas Blonde
For family farm operations to prosper into the future, it is important to have successful transfers from one generation to the next. Many tax and non-tax issues must be considered to implement a successful farm succession plan.
December 4, 2018 by Sarah Netley
The Tax on Split Income (TOSI) regime has had significant impact on tax planning strategies for owner-managed businesses.
August 30, 2018 by Bill Crowther
Discretionary family trusts are used extensively for tax, family and succession planning, as they afford enormous flexibility. In most cases, when such trusts are created, beneficiaries do not pay for their interest, and this assumption is made herein. Once a trust is settled, it will exist until all the assets are distributed to the beneficiaries and the trust is wound up.
June 15, 2018 by Peter Hobb
When planning for the succession of your farm operation to the next generation, several important issues can arise. Some of the key issues include how the goals and objectives of key stakeholders align with your goals, how you will be spending your time in retirement, ensuring you have adequate financial resources in retirement and how to divide assets among your children, some of whom may not wish to be involved in the farm operation. There are many issues, and they will vary depending on your particular circumstances.
December 19, 2017 by Guy Desmarais
The Department of Finance released its long-awaited proposed amendments to the tax on split income (TOSI) rules on December 13. The release completes a tumultuous year for small business owners, tax professionals, Department of Finance officials, Members of Parliament and the Minister of Finance. The initial July 18 proposals and the short consultation period precipitated a groundswell of consternation and frustration.
October 31, 2017 by Peter Savoni
We have been hearing it for decades: 30 per cent of family firms survive to the second generation and only 10 per cent survive to the third generation. This statistic is generally cited without context, implying that family firms are the business organizations that are most likely to fail, but that assumption is incorrect. We know that family businesses facing succession are successful to begin with. Otherwise, they would not have been in business for so long, waiting for the next generation to take over.
October 19, 2017 by Salome Victor, Sankalp (Sunny) Jaggi
On October 19, 2017, the Department of Finance (“Finance”) announced that it will abandon the proposed tax measures aimed at restricting the conversion of income into capital gains (“anti-surplus stripping rules”).
October 18, 2017 by Salome Victor, Sankalp (Sunny) Jaggi
On October 18, 2017, the Department of Finance (“Finance”) provided more details on its proposals (see CBT’s summary here) to target the deferral of tax benefits of passive investments within a private corporation. .