• Deduction of land improvement costs (e.g., tile drainage) may be partially or completely deferred to a subsequent taxation year by Tax Accountant in Brampton.
• If you are a farmer using the cash method of accounting, note that when an expense is paid using a credit card, the tax deduction is available when the expense is charged to the credit card, not when the credit card is paid.
• A child beneficiary of a trust who has never farmed could still possess qualified farm property, provided a relative—i.e. parent, grandparent or great-grandparent—satisfied the gross revenue test in previous generations when they owned and operated the farm on a regular, continuous basis according to TAX ACCOUNTANT at Brampton.

• A NISA participant can use the accrual method of accounting and the cash method for tax purposes in order to more properly align the crop year with the calendar year or filing period.

• Within the NISA program, enhanced matchable deposits are available through the Self-Directed Risk Management (SDRM) program. To qualify, crop insurance must not be available to the producer, or else the producer must have declined to purchase crop insurance. Under SDRM, the  producer can add an additional six per cent of ENS to his contributions, which will, in turn, be matched by federal and provincial funds.

• Because CRA considers crop advances to be loans, in a better than average year, consider storing all or part of the crop and then taking an advance against it. This advance, which must be applied for early in the year, serves as an effective planning technique for farmers using the cash basis of accounting in Peel Region.

• A financial management counseling program, named the Farm Consultation Service, is available for Canadian farmers who are experiencing agriculture-related financial problems. For a nominal fee, farmers can receive confidential counseling services to deal with problems  such as decreased margins or cash flow difficulties.

• Farmers in drought-stricken regions of Canada, which  have been particularly prevalent over the past couple of summers in various venues, may also qualify for income tax relief. Consult Agriculture and Agri-Food Canada for details.

• If your spouse or common-law partner does not pay enough tax to use their dividend tax credit, consider transferring their taxable Canadian dividends to your income. To be eligible, this transfer must increase the spousal credit. The dividend tax credit should have a greater impact in reducing tax payable the lower your taxable income by Tax Accountant Brampton.

• The proceeds of disposition from capital property have sometimes been ruled by the courts to be income rather than capital gains if there is strong evidence that the nature of such transactions was purely speculative, i.e., the property was purchased with the short-term intent to sell according to Tax Accountant Brampton.

• Consider transferring non-active assets to a separate company to maintain qualified SBC status.

• If you transfer a qualified SBC share into a self-directed RRSP, the amount of time such shares are held inside the RRSP count towards the 24-month holding period restriction.

• A principal residence can include a house, apartment, condominium, duplex unit, cottage, mobile home trailer or houseboat by Accountant at Brampton.

• In some instances, certain individuals who are involved in the business of selling homes may be denied the principal residence exemption if the CRA deems that resale was a motive in the acquisition of a particular property in Brampton.
• For information please call your Tax Accountant in Brampton at 905-794-8283.