February 23, 2022 by Curtis van Son
Five in five: Curtis van Son
“The benefit of the public practice world is that your career will take you wherever you are suited to be, which tends to be where your passions and interests lie.”
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Blog
January 26, 2022 by Scott Dupuis
Five in five: Scott Dupuis
“I enjoy seeing other members of our team grow… it’s a kind of mutual satisfaction, seeing our firm grow and our people grow.”
October 19, 2021 by Ryan Kitchen
Changing CCA rates for farm businesses
When the most recent federal budget was released on April 19, 2021, it was announced that CCA rates will change for farm businesses that are Canadian-controlled private corporations (CCPC). Under this announcement, CCPCs would be entitled to immediately expense their capital purchases when they calculate their income for tax purposes.
September 3, 2021 by Denise Jones
Five in five: Denise Jones
“The pandemic has only highlighted what we can do with technology and collaboration.”
August 23, 2021 by Bud Arnold
The rules of family farm transitions are changing
When selling a farm corporation, there are tax advantages to selling to a stranger than to someone in your own family. It has always been difficult to transition corporate-owned farms to the next generation, because the sale of a corporation within a family is taxed at a punitive rate – one that would be lower if the buyer was an unrelated person.
July 14, 2021 by Thomas Blonde
Four reasons to consider renting farmland
The advantages of buying property are well known to most farmers. It is a great way to build equity in your business and it usually grows in value over time. In addition, owning farmland offers more tax planning options down the road, allows you to avoid rent increases, gives you more freedom in the way you use the land and protects you from losing access to the land, in the event your landlord decides to sell the land or rent to someone else. However, in spite of all these advantages, there are also several reasons it might be preferable to rent farmland.
June 28, 2021 by Luther VanGilst
New tax savings for farmers buying capital assets
Farmers who are thinking of buying a major capital asset like machinery or equipment may soon see significant tax savings. In the 2021 federal budget, important changes were proposed to the capital cost allowance rules. Before these changes were introduced, capital assets were depreciated according to their class. For example, if a farmer purchased a Class 10 tractor or combine, the capital cost allowance on that asset in the year of purchase was 45 per cent. However, the new rules no longer organize assets by class, instead allowing farmers to fully expense capital assets up to $1.5 million in the year of purchase.
June 17, 2021 by Luc Joye
The drawbacks of deferring taxes
Most businesses must pay taxes on all income, including accounts receivable and inventory in the year they are created. However, farm businesses are one of the few exceptions, as they are permitted to pay taxes on a cash basis. As a result, they have the unique ability to deduct prepaid expenses and push income into future years. Rather than pay tax on inventory, they can wait until this inventory has been sold. While most farmers prefer to take advantage of this deferral opportunity, this is not always the best option.
June 15, 2021 by Mike McIsaac
Five in five with: Mike McIsaac
“We believe in continual education and improvement of our processes. This ensures we are prepared to deliver the best results for our clients every time.”
May 26, 2021 by Deepak Upadhyaya
Five in five with: Deepak Upadhyaya
“In all my work, I apply cross-functional knowledge from a technology, business and risk point of view.”
May 26, 2021 by Janet Currie
Five in five with: Janet Currie
“Accountants are human and we will make mistakes. It’s how we handle the mistakes that counts.”
April 21, 2021 by Thomas Blonde
Five in five with: Thomas Blonde
“Every firm in the network has complete autonomy. This includes decisions related to choosing clients, hiring employees and the size of each practice.”
April 21, 2021 by Chris Button
Five in five with: Chris Button
“With hundreds of partners and thousands of team members, Baker Tilly Canada has all the experience a client could ask for.”
April 21, 2021 by John F. Oakey
Five in five with: John Oakey
“It is impossible to keep up to date on everything. That is why it’s extremely important to develop… a solid network of skilled, knowledgeable tax professionals.”
March 23, 2021 by Rosa Maria Iuliano
Five in five with: Rosa Maria Iuliano
“I am very much a people person. I like helping people… and I like the technical aspect of what we do.”
March 23, 2021 by Kenton Strachan
Five in five with: Kenton Strachan
“My role allows me to participate in and influence every facet of the organization, which is an amazing opportunity.”
February 18, 2021 by Thomas Blonde
How to maximize tax benefits for farm vehicles
While many of the vehicles purchased by farm businesses – such as tractors and other farm machinery – are used exclusively for business purposes, some road-going vehicles (i.e., pick-up trucks, vans) can also be used outside the farm business, which causes complications from a tax perspective.
December 17, 2020 by Denver Nicklas
Four steps farm businesses can take to minimize the impact of COVID-19
Over the course of the COVID-19 pandemic, farmers have faced a number of significant challenges. With most restaurants operating at diminished capacity or closed outright, the demand for many farm products has decreased. This leaves producers with excess inventory, some of which they have been forced to destroy. Meanwhile, farm businesses in the fruit and vegetable sector have incurred new costs as they modify equipment to keep employees separated by at least two metres, the distance now recommended by Health Canada. Furthermore, many processing plants have invested in barriers and additional space on the line to keep employees separated.
November 4, 2020 by Thomas Blonde
Introducing the Emergency On-Farm Support Fund
Margins are relatively tight in the farming industry and some farmers do not have the financial wherewithal to fully protect their employees from COVID-19. This is a major concern, as farm workers often find themselves living in close quarters, which makes social distancing extremely difficult.
October 21, 2020 by Helen Orok
Are new capital assets really a wise investment?
Many farmers purchase capital assets in an effort to keep their tax bill to a minimum, as they believe the purchase of a new tractor or other piece of equipment is a good way to reduce their tax liability. However, in some cases, the immediate tax benefits are relatively minor – and purchasing the asset can result in other issues such as cash flow problems. If your corporation purchases a capital asset, the prescribed capital cost deduction available will reduce your tax liability by the corporate tax rate (11 to 31 per cent, depending on your province). While it’s tempting to try to minimize tax, there are several other questions you should ask before investing in a capital asset.