Are you going to sell your farm or your assets anytime soon?
Is retirement something you need to start planning for?
Perhaps you're considering selling some of your assets or equipment?
If any of those situations apply to you, you have to make sure you're completely aware of the effects that selling your farm - or simply any of the assets that are located on it - will have on your tax payments.
If you're not careful, you may find yourself paying far too much as part of the tax implications of the sale.
For instance, tax payments for those who received a large amount of money selling their farm can be massive at the end of the year. But if you're able to transfer some assets - such as your livestock, for instance - to a corporation before making the sale, you can protect yourself against these costs.
Incorporating your farm or business can be an incredibly complicated process - and if not done properly, it could potentially lead to an audit from the CRA. For obvious reasons, that's something that you want to avoid - and that's why you should employ the help of an accounting or bookkeeping firm before you make such a sale.
What Are The Risks of Selling Your Farm on Your Own?
The taxation on the sale of farm business assets can occasionally be exorbitant. In some cases, you may even regret the sale of assets, equipment or the farm itself once you realize how much of the proceeds will have to be rerouted back to the government at the end of the year.
It's easy to avoid the costs associated with selling your farm - and you can save big money on your tax payments in the process.
By partnering with a firm such as FBC that specializes in farm and small business taxes you're putting your best foot forward toward saving as much money as possible when it comes time to make your payments at the end of the year.
Actions like selling your farm can have a hugely negative effect on the amount of taxes you'll end up paying, but not if you have professional expertise regarding tax laws on your side. If you want as many deductions and savings as possible, you're going to need some help.