Tax services for the agriculture industry

Deductions and credits such as the optional inventory adjustment, capital cost allowance (CCA), the lifetime capital gains exemption, the scientific research and experimental development (SR&ED) credit, and depending on your farm structure, the small business deduction are just a few of the options available. Our team of 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 based on planning solutions that are right for you. We will assist in analyzing your financial situation, exploring tax-saving opportunities including income splitting, timing of inventory and asset purchases, purchasing vs. leasing of assets, and accessing the small business deduction to determine the optimal tax approach for you.

Farm income can be managed through income deferral, prepurchase of next year’s inputs, income splitting with family, utilizing the farm’s fiscal year-end effectively, the use of optional inventory adjustments, and ensuring that your farm operations is in the optimal business structure based on the side and unique circumstances of your farm. Our advisors can help guide you on the best ways to for you to reduce your overall tax burden.

Yes, there can be tax implications and planning opportunities that come with family succession. Our tax advisors 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/transfers of assets, utilizing the lifetime capital gains exemption, and implementing estate freeze strategies to minimize your tax liability during the transition process.

Selling your farm can trigger the capital gains tax but you may be able to utilize the lifetime capital gains exemption to offset all or a portion of the capital gain. The determination of whether a specific parcel of farmland will qualify for the lifetime capital gains exemption requires an in-depth analysis of the farming and ownership history of the land. An MNP advisor can help you with this analysis, 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 help meet your compliance obligations. 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.