The rules surrounding the taxation of private corporations are changing—and these changes could dramatically impact your farm or agribusiness. If you’ve traditionally relied on income splitting as a key component of your tax planning strategy, it’s important to familiarize yourself with the Department of Finance’s latest changes, so you can take the necessary steps to minimize your tax burden.
In this article, we outline the government’s proposed tax rules and provide an overview of changes to the income splitting/sprinkling rule, including its related exceptions and exclusions. We also walk you through a tangible example of how the change could potentially affect a family farm, and explain what the “transitional provisions” really mean.
A rising number of Canadian farms are starting to use forward grain contracts to minimize risk, increase returns and bring some stability to an often-volatile market. But while these contracts can deliver considerable benefits, they also come with some drawbacks as well. This article explores how a forward grain contract works and outlines both its risks and rewards, allowing you to approach it with your eyes open.
