Farmers may want to consult their tax
advisors for a heads-up about the
potential for additional mandatory
Alberta cattle rancher Ryan Copithorne suspects many cattle producers aren’t accurately measuring their overhead costs. And this likely translates to other types of farming operations as well.
When a farmer who operates a farm through a proprietorship ?–? that reports income for tax purposes under the cash method ?–? passes away, there are a number of options available for how the farm inventory left behind will be treated for tax purposes. It is very important that executors of the estate understand the options available to them. This alert addresses tax planning options that are often overlooked when dealing with the estate of a farmer.
The Excise Tax Act (ETA) outlines specific rules regarding the reporting of GST/HST collected on sales of real property used in commercial activity. The ETA requires self?assessment of GST/HST payable on a transaction by the purchaser, rather than collection and remittance by the vendor. Instead of immediately remitting the GST/HST to the vendor, the buyer is required to declare GST/HST collected and GST/HST paid (if the expense is eligible for an input tax credit) on their own return.
What are some examples of biological assets, agricultural inventories and
assets that result from secondary production?