Tax services for the agriculture industry
Benjamin Franklin said that “nothing can be said to be certain, except death and taxes.” We all have to pay taxes, but how much you pay isn’t set in stone.
Our tax team, specializing in agricultural tax advice, is committed to helping you understand and optimize your farm’s unique tax situation. Whether it’s ensuring you’re aware of deadlines and regulatory requirements or giving advice on how to plan for your farm’s future, MNP can support you at all stages in the process.
What’s your challenge?
Lifetime capital gains
If your future involves the sale, transition, or restructuring of your farm, optimizing your lifetime capital gains deduction is vital. Our team of agribusiness specialist tax advisors will work with you to maximize this deduction and avoid any potential traps or anti-avoidance rules that could increase your tax liability.
Future tax policy
While there is uncertainty around what farming and agriculture taxes may look like in the future, understanding your farm’s current and future tax liability could impact the decisions you make today. Speaking with an agricultural tax advisor will help you structure your farm to adapt to changes down the road.
Transitioning or selling
An effective tax strategy is part of every succession plan. MNP advisors can help you plan for your future, and that of your farm, from distributing assets between children to developing a strategy to maximize your retirement income.
How we can help
Tax law compliance
Our team will help you understand and stay compliant with the ever-changing tax regulations specific to the agriculture industry. Increasing your deductions, minimizing your tax liabilities, and ensuring accurate and on-time filings are just a few of the ways an advisor can help you avoid penalties and boost your financial efficiency.
Transition planning
With our team’s expertise, you can rest assured that we’ll disseminate the complicated legislation, tax deferral opportunities, and future policy potential into palatable terms to help you make informed decisions about your future. If you're thinking about transitioning or seeking advice from agribusiness specialist tax advisors, we are here to guide you.
Farm business structure
There are many benefits to having your farm business structure include the use of a holding or investment corporation. Our agricultural tax advisors can assist making improvements to your structure that will enable you to remain eligible for the capital gain exemption and tax deferred intergenerational transfers.
Valuations
MNP’s team of Chartered Business Valuators (CBVs) can be vital to help determine the value of shares in certain tax situations (i.e., succession planning, litigation support) to maximize accuracy and optimize proceedings. Whether it's valuing farm assets or understanding the implications of agriculture taxes, our team has the expertise you need.
Choosing the right business structure for you
The taxation of your farm operation will vary according to your organizational structure. When choosing an appropriate structure for your farm business, it is important to consider your tax situation, level of management control, costs associated with the particular business structure and your farm succession options. Since each business structure comes with advantages and limitations, your optimal business structure depends on your personal business circumstances. We’ll work closely with you, to determine the structure that best meets your current and future needs.
After gaining a comprehensive understanding of your operation and your business goals, your MNP advisor will discuss the various options and help you determine which is the best one for you.
Frequently asked questions
Deductions and credits such as the farming expense deduction, the capital cost allowance (CCA) for equipment and buildings, the small business deduction, the lifetime capital gains exemption, and the scientific research and experimental development (SR&ED) credit are just a few of the options available. Our team of agricultural tax advisors can help you determine what you’re eligible for and support you throughout the application process.
Strategically organizing your farm’s affairs with one of our advisors will ensure you minimize your tax liability legally. We will assist in analyzing your financial situation, exploring tax-saving opportunities like income splitting, timing of purchased, and determine the best tax incentives for you. Engage with our tax consultants to get personalized advice.
Farm income can be managed through income deferral, income splitting with family, utilizing the farm’s fiscal year-end effectively, and exploring income averaging provisions. Our tax advisors can help guide you on the best strategies for you to optimize your taxable income and reduce your overall tax burden.
Yes, there can be tax implications the come with family succession. Our tax consultants will ensure you understand what your plan entails and help you navigate the overall succession planning, as well as issues such as tax-efficient gifting of assets, utilizing the lifetime capital gains exemption, and implementing estate freeze strategies to minimize liability during the transition.
Selling your farm can trigger the capital gains tax but certain exemptions may apply. An MNP tax advisor can help determine the tax consequences from a sale and develop a tax-efficient plan for selling.
Yes, the federal government provides tax incentives for farmers who adopt environmentally friendly practices including deductions for energy-efficient equipment, eco-energy grants, and tax credits for certain green initiatives. Our tax team will help you determine eligibility and walk you through the process every step of the way.
Our team will assess your financial and tax situation to help you understand specific tax laws and regulations that relate to your farm to ensure compliance and minimize the risk of an audit. By reviewing your financial records, providing guidance on reporting requirements, and offering advice on maintaining proper documentation to support tax filings, you’ll be able to focus on running your farm without having to worry about all of the tax law specifics.
Contact Our Agriculture Team
Ryan Kehrig CPA, CA
Partner
Based in Saskatoon, Ryan works closely with owner-managers of small businesses and agriculture operations, delivering customized tax advice and solutions to help clients achieve both their business and personal goals.
Ryan helps farmers, farm partnerships, farm corporations and small businesses with tax planning and structuring designed to maximize profitability and minimize their tax burden. He helps his clients with everything from restructuring operations to minimizing personal and corporate tax planning for succession. A trusted advisor, Ryan takes the time to understand his clients and their businesses, allowing him to provide unique solutions that will best meet their needs. He ensures his clients have a good understanding of the tax issues that may impact them and delivers clear solutions. Ultimately, his goal is to establish and execute a comprehensive tax plan that will help each client’s business grow and achieve financial success.
Ryan is a Chartered Professional Accountant (CPA), qualifying as a Chartered Accountant (CA). He earned a Bachelor of Commerce (BComm) and Master of Professional Accounting (MPAcc) from the University of Saskatchewan.
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