Using Your Children’s CGE for Tax-Free Withdrawals from Your Corporation
This week we’re going step by step into a strategy that allows you to withdraw cash from your corporation essentially tax-free by using your children’s capital gains exemption. All right, so here’s what you’ll need to pull this strategy off: Number 1 - a farm corporation. You know what scratch that – a successful [...] Bill C-208 Part 2: Using Your Capital Gains Exemption
In part 2, we'll be going over a strategy that you can now use due to Bill C – 208. Using your capital gains exemption This strategy allows you to use your capital gains exemption while you're alive while also withdrawing cash from a corporation tax preferred. Watch the video above for a farm [...] Bill C-208 Explained
Bill C-208 Bill C-208 was created to alleviate the financial disadvantage that typically arose for taxpayers who sold their business or family farm corporation to their children or grandchildren, as compared to selling to an arm’s length third party. This disadvantage was caused by certain tax rules. Specifically an anti-avoidance rule in section 84.1 of [...] Using a Margin Account
Video Transcript Today I’m going to talk about a Margin Account and how it recently helped one of my clients who was in a tough spot. Before we get started, this strategy is not suitable for everyone, please talk to a professional before implementing. Last week, a client needed $200,000 immediately because he was buying [...] AgriInvest
Today I want to talk to you about AgriInvest and why you should be withdrawing it. Leaving it in your AgriInvest Account When you put money in AgriInvest, let us say $5,000 in this scenario. The government will match your $5,000, for a total of $10,000 in your account. It is not always this [...] Make $146,000 Tax-Free in Retirement
Today we're looking at a strategy that can earn you $146,000 tax-free in retirement. Reduce your income to zero In our scenario, we have a 65-year-old, who has a spouse, and both are receiving O.A.S. You would be receiving $642 per month. If your income is $0 for the year, disregarding the O.A.S, you [...] Donation Strategies for Farmers
Here are some advanced tax planning strategies when it comes to donations. We discuss how you can donate your farm corporate shares and investments to save taxes and support your favourite causes. Capital Dividend Account
What is it? A capital dividend account is a notional account that increases or decreases when you create capital gains or losses. You aren't going to see a capital dividend account on any of your bank records or investment records. Before watching this video, be sure to watch my previous video for a more in-depth [...] When to Incorporate
When does it make sense to incorporate? Farmers, of all ages, are asking this question more and more as farm revenue steadily increases with rising commodity prices. But when is the right time? In this video, Colin compares the differences between being incorporating versus claiming farm revenue as personal income, from a cash flow and [...] What is fair?
In this video, Colin reviews the 2 extremes when it comes to taking care of your non-farming children. Option 1, leave the farm to your farm child, and whatever is left to your non-farming children. Option 2, split everything up evenly. The solutions to "What is Fair" usually lies somewhere in between. Don’t Lose Your O.A.S When Selling
In this video, I go over what Old Age Security is when the clawback starts, and a scenario where you sell your farm and the clawback will likely occur. The Farm Transfer Tax Bill
The Farm Transfer Tax Bill C-208 Explained As you may have recently heard, Bill C-208 is proposing to amend the federal income tax act so farm sales to children aren’t taxed at a higher rate when compared to selling the farm to a third party. Many articles explain that farm sales to third parties qualify [...] Farm Corporations & RRSPs
In this week's video we review at what income levels it makes sense to make RRSP contributions if you're incorporated. CLICK HERE for my previous RRSP video: Farmers & RRSPs Starting Your Farm Transition
Our video this week is an interview with "Canada's Farm Whisperer" Elaine Froese. Get in touch with Elaine by visiting these links: https://elainefroese.com/ https://elainefroese.com/virtual-kitchen-table/ Background Image by Anna Workman, Life in Bloom Photography. Farmers and RRSPs
In this week's video, we go over how to properly use RRSPs as a farmer. A Capital Gains Exemption Quirk
If you're not a farmer, but you own farmland that qualifies for the capital gain exemption, make sure you don't pass away before using the exemption! Gifting the Farmland
Gifting the Farmland In this week’s video we review the different ways you can gift farmland to your children along with the pros and cons of both methods. Beware of AMT
Beware of AMT Here is a quick video on what alternative minimum tax is and how it works. Enjoy! Does Your Spouse Qualify?
Does your spouse qualify? This week we interviewed Julien Grenier, accountant, and partner at Talbot & Associates. We discuss what CRA looks at when determining whether your spouse can or can’t use their capital gains exemption on the sale of your farmland. Julien can be reached at julien.grenier@talbotcpa.ca or 204-269-7460 Too Much Cash in Your Corp!
Too much cash in your corp See my latest video going over a case study where one farmer thought his farm corporation qualified for the lifetime capital gains exemption but didn’t due to having too much cash. Let’s Multiply Your Capital Gains Exemption
Let's Multiply Your Capital Gains Exemption As a farmer, you have a lifetime exemption of one million dollar on the sale of farmland. If you exceed that amount, you could be looking at a large tax bill. Here is an option to increase your capital gains exemption. In this video, we will show two things. First, when no plan is in place and the ensuing tax bill. Second, how your tax bill may be substantially decreased with the aid of using this approach. [...] Trusts – How to keep your farmland in the family and save taxes
This quick video on trusts explains how to keep farmland within the family while being as tax-efficient as possible! Farm Retirement Planning – Option 1: Don’t Sell the Farm
Farmland has been one of the best investments in Canada for the past 25 years.This is clearly shown by an annual growth rate averaging over 5% (as per FCC). If looked at as potential rental income, farmland generates around 7% in annual returns without the wild ride of investing in alternative asset classes. To make [...] Investment Ideas After You’ve Sold the Farm
I often receive these types of calls after a farm is sold: What can I invest in that’s going to give me a reasonable rate of return? What can I invest in that is safe? What can I invest in that’s going to match the farm rent I was receiving? There are unlimited options to […]
Private Health Care Spending Accounts: How Can They Help Your Business?
An Educational Webinar presented by Colin Sabourin CFP, CIM, CAFA, and Pierre Normandeau CPA, CGA, IMPORTANT: This webinar is for business owners who are incorporated. In the presentation, Colin and Pierre go step by step through: ➡️How Private Health Care Spending Accounts work ➡️What qualifies as a medical expense ➡️Tax benefits for the corporation ➡️What [...] Selling The Farm? Keep an Eye on Your Tax Bracket
How to convert your health expenses into corporate expenses
Today, I’ll be showing you how to tax-efficiently convert your family’s healthcare costs, into a corporate expense with the use of Private Health Service Plans. The scenario Here’s our scenario. You go to the dentist for your annual checkup, and lo and behold they’ve got bad news for you. You’re going to need some dental [...] 
