Meeting advisors early — and often — helps manage year-end sales, particularly since farmers are allowed to report income on a cash basis, says Chris Annis of Allied Associates in London, Ont. True for individuals and corporations, he finds meeting clients before year-end, and interim checkups, allows him to effectively summarize year-to-date numbers, make projections and set targets.
“For corporations, managing remuneration to shareholders with dividends, wages, or a mix of both is completed.”
Tax rules change regularly and are complex, making it a challenge for busy farmers to stay on top.
When doing tax reviews with clients before the calendar year-end, Kelvin Shultz of Wheatland Accounting Services primarily considers the possible need to defer and pre-buy, and family salaries and overall management of the tax brackets farmers are in.
“Whether it’s reasonable to keep them in a low bracket, or, as they move up, trying to keep them within a reasonable taxation range,” Schultz says. “If they get beyond that, then we start looking at incorporation.”
Meanwhile, Kimberly Shipley, an agricultural business advisor with MNP, points out tax rules change regularly and are complex, making it a challenge for busy farmers to stay on top. As a result, farmers should meet with their tax advisors to help them navigate the system and make the best choices for their operations.