July 17, 2024 by Deanna Cregg

The difference between expenses and capital expenditures

The tax implications of expenses and capital assets are quite different, so it’s important farm businesses understand these implications before making a significant investment in new assets or renovations. Unfortunately, the difference is not always clear. When a farm business spends money on a project that is deemed a repair, this can be deducted in the current tax year as an expense. However, if money is spent on a capital improvement, that gets added to the cost of the asset, which is then depreciated over time. In other words, rather than get the full benefit of the deduction in the year the investment is made, businesses see this benefit gradually, over a number of years, depending on the class of the asset and the depreciation rate. That is the fundamental difference between expenses and capital expenditures.

May 30, 2024 by Candice McKay

Data, AI and other tech revolutionizing the farm industry

Today’s farming businesses are facing unique challenges, but there are exciting new tools at their disposal that offer new possibilities. These tools are getting more sophisticated every day. By simply tracking recent trends in the agriculture industry, we can start to get a sense of where the sector is likely to go next. One fact seems undeniable: data and artificial intelligence (AI) are here to stay. Both are essential tools that can transform any farm’s sense of what is possible. In this article, we’ll take a closer look at how high‑tech tools are revolutionizing the farm industry.

March 26, 2024 by Melinda Fleming

Navigating the tax audit process

When most people learn they’re being audited, their immediate reaction is to feel scared and unsettled. As someone who worked as an auditor at the Canada Revenue Agency (CRA) for six years, I have a good sense of what clients are facing in the audit process, why they end up there and how they can steer this process in the best possible direction.

January 26, 2024 by Ryan Kitchen

Crop corporation: A solution for excess inventory

The work of grain producers is very cyclical. You could have a good year, followed by a not‑so‑good year, followed by a really great year, followed by a disaster year. Over time, this might even out, but what happens when you have a number of good years in a row?

January 23, 2024 by Riccardo Zerbino

Filing changes for inactive trusts

Until recently, trusts had to file a tax return within 90 days of the trust’s year end, but there were some exceptions. If you didn’t earn income, dispose of capital property or make distributions of income or capital in a year, you were generally not required to file an annual return.

December 18, 2023 by Bud Arnold

Pick the right structure for your farmhouse

When purchasing a farm, sometimes the property includes a house for the farm family to use as their primary residence. Families in this position often overlook the tax complications of buying a farmhouse that is part of their farm property, but how they decide to hold that farmhouse could significantly impact their tax obligations. This article outlines several farm business structures and the farmhouse tax obligations in each case.

December 6, 2023 by Luther VanGilst

The end of immediate expensing

When the immediate expensing rules were introduced in 2021, they allowed incorporated businesses to start fully expensing purchases, claiming up to $1.5 million in tax depreciation on eligible property acquired annually. This applies to a broad range of purchases, including tractors, combines, planters, cultivators and processing equipment ⁠–⁠ almost everything in a farm context except buildings, paving and quota ⁠–⁠ but corporations will no longer be able to access this opportunity in 2024.

November 29, 2023 by Thomas Blonde

Saving for retirement on the farm

Given the all-consuming complexity of any farm business, it’s not uncommon for farmers to overlook the importance of retirement planning. The constant need to reinvest in these businesses means there’s rarely a good time to think about saving for the future. 

November 15, 2023 by Brenda Scott

Let’s get fit: how to ignite your company’s digital journey

Technology is evolving so fast. Some might say that’s exhilarating, while others might see it as exhausting. With Artificial Intelligence (AI) being integrated into businesses at an unprecedented rate, it’s easy for a company to feel out of shape as it tries to keep up with technology trends, in order to remain current and competitive.