How to Use Your Children’s Capital Gains Exemption to Move Millions Tax-Free
If you own a successful farm corporation and have adult children you trust, there is a unique strategy that allows you to move farmland into your company and access millions of dollars tax efficiently. It all comes down to using your children’s lifetime capital gains exemptions. Prefer to watch the video? What You Need To […]
How to Use Bill C-208 to Transfer Farm Assets Tax-Free
Bill C208 has introduced new flexibility for Canadian family business owners, especially those in agriculture. One powerful result is the ability to use a parent’s capital gains exemption while they are still alive, while also withdrawing cash from a corporation in a tax-efficient way. Let’s walk through a simplified example to show how this works […]
Unlock Big Tax Savings When Selling Your Business to Family
When it comes time to sell your business or family farm, the structure of the sale can have a major impact on your taxes. A recent change in Canadian tax law, known as Bill C-208, has opened new doors for family business owners looking to transfer ownership to the next generation. Here’s what you need […]
How to Trigger Investment Losses in a Corporation the Right Way
Many business owners and incorporated professionals use tax loss harvesting to manage their capital gains. However, when triggering losses in a corporate investment account, there is an important step you do not want to miss. Failing to check your Capital Dividend Account (CDA) balance first could cost you the ability to withdraw money from your […]
How to Transfer Your Business to Your Children
An estate freeze is often recommended as an effective strategy for transitioning your business to the next generation. It offers tax efficiency and allows the business owner to maintain control. Let us walk through how an estate freeze works and what to consider before moving forward. Prefer to watch the video? What Is an Estate […]
Invest Large Lump Sum of Money Tax-Efficiently By Using Your Children
If you’ve recently come into a large sum of money and you’re in a high tax bracket, taxes can take a serious bite out of your investment income. But there’s a little-known strategy that can reduce your tax bill, with the help of your children. In this post, we’ll walk through a family trust strategy […]
2 Things That Should Be In Your Corporation
If you’re a business owner, chances are you’re already thinking about tax efficiency. But there are two common items that many entrepreneurs still hold personally, when it may make far more sense to own them corporately. In this post, we’ll cover how shifting personal debt and life insurance into your corporation can lead to significant […]
The Bear Market Playbook
[vc_row][vc_column][vc_column_text css=”.vc_custom_1655224320509{padding-top: 20px !important;padding-bottom: 20px !important;}”]As we find ourselves in a new bear market, let’s review three different strategies for making the most of this market condition. The Bear Market Playbook bases each strategy on a different risk tolerance level. Option 1: Poke the Bear Rebalance Your Portfolio Rebalancing your portfolio is the process […]
Capital Gains Exemption for Business Owners
Today I want to talk about a rule that catches many Canadian business owners off guard: how having too much cash inside your corporation can prevent you from using the Lifetime Capital Gains Exemption (LCGE) when you sell your business. Prefer to Watch the Video? The Value of the Capital Gains Exemption As of 2022, […]
Getting Ready for a Bear Market
[vc_row][vc_column][vc_video link=”https://youtu.be/Pmr4cslrJFI” css=”.vc_custom_1652372880628{padding-top: 20px !important;padding-bottom: 20px !important;}”][vc_column_text css=”.vc_custom_1652373623421{padding-top: 20px !important;padding-bottom: 20px !important;}”] Where are we today? When it comes to the markets, as of today May 10th, 2022, the market is down 15% from its high back on January 3rd of 2022. We are trending downwards so I want to talk to you about what […]
Sell Now And Buy Back Later?
[vc_row][vc_column][vc_column_text css=”.vc_custom_1651241898357{padding-top: 20px !important;padding-bottom: 20px !important;}”] Why don’t we sell and get back in once it’s better? Trust me, I would love to do that for you, but the risk isn’t worth the reward. To begin this analysis, let’s go over your two options Ride the wave Get out and then get back in […]
Using a Margin Account
[vc_row][vc_column][vc_video link=”https://youtu.be/nZNMGRdvkVM” css=”.vc_custom_1650377283130{padding-top: 20px !important;padding-bottom: 20px !important;}”][vc_column_text css=”.vc_custom_1651074583935{padding-top: 20px !important;padding-bottom: 20px !important;}”] 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 […]
AgriInvest
[vc_row][vc_column][vc_video link=”https://youtu.be/nm7u0FkgFlY” css=”.vc_custom_1646755023570{padding-top: 20px !important;padding-bottom: 20px !important;}”][vc_column_text css=”.vc_custom_1646760679141{padding-top: 20px !important;padding-bottom: 20px !important;}”]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 […]
What should you do?
[vc_row][vc_column][vc_column_text css=”.vc_custom_1645643256609{padding-top: 20px !important;padding-bottom: 20px !important;}”]As the US stock market (S&P 500 index) has officially closed in correction territory (down 10% from its previous high, bear markets are 20% declines), the question is, “What should you do”? To answer this question, we first need to consider – how common are market corrections? How often do […]
Make $146,000 Tax-Free in Retirement
[vc_row][vc_column][vc_video link=”https://youtu.be/iH8dSI4FPzU” css=”.vc_custom_1644860757290{padding-top: 20px !important;padding-bottom: 20px !important;}”][vc_column_text css=”.vc_custom_1644959421246{padding-top: 20px !important;padding-bottom: 20px !important;}”]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 […]
Did Your Portfolio Make 21% in ’21?
[vc_row][vc_column][vc_column_text css=”.vc_custom_1643126192582{padding-top: 20px !important;padding-bottom: 20px !important;}”] Did your portfolio make 21% in ‘21? As you begin to receive your 2021 annual reports & statements, one of the questions you should be asking yourself is, “how did I perform in 2021?” Understanding your rate of return is important so up can compare how you stacked up […]
Donation Strategies for Farmers
[vc_row][vc_column][vc_video link=”https://youtu.be/zWA0wKorp3k” css=”.vc_custom_1640709640403{padding-top: 20px !important;padding-bottom: 20px !important;}”][vc_column_text css=”.vc_custom_1640709664781{padding-top: 20px !important;padding-bottom: 20px !important;}”]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.[/vc_column_text][/vc_column][/vc_row]
When to Incorporate
[vc_row][vc_column][vc_video link=”https://youtu.be/VoKHTHv4HU8″ css=”.vc_custom_1634577945807{padding-top: 20px !important;padding-bottom: 20px !important;}”][vc_column_text css=”.vc_custom_1634578166776{padding-top: 20px !important;padding-bottom: 20px !important;}”]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 […]
Why Inflation is Killing Your Investment Returns
[vc_row][vc_column][vc_video link=”https://youtu.be/exToZCcxybc” css=”.vc_custom_1632161361839{padding-top: 20px !important;padding-bottom: 20px !important;}”][vc_column_text css=”.vc_custom_1632161933042{padding-top: 20px !important;padding-bottom: 20px !important;}”]Inflation is continuing to be a hot topic these days, hitting 4.1% in Canada. In this video, Colin goes through an example showing how inflation is reducing your buying power, and what can you do with your portfolio to counteract inflation. To read more […]
What is fair?
[vc_row][vc_column][vc_video link=”https://youtu.be/hYt3-AKvefQ” css=”.vc_custom_1631030121078{padding-top: 20px !important;padding-bottom: 20px !important;}”][vc_column_text css=”.vc_custom_1631030201283{padding-top: 20px !important;padding-bottom: 20px !important;}”] 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 […]
Don’t Lose Your O.A.S When Selling
[vc_row][vc_column][vc_video link=”https://youtu.be/DiEBoSqCAvE” css=”.vc_custom_1630363492987{padding-top: 20px !important;padding-bottom: 20px !important;}”][vc_column_text css=”.vc_custom_1648655591004{padding-top: 20px !important;padding-bottom: 20px !important;}”]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.[/vc_column_text][/vc_column][/vc_row]
The Farm Transfer Tax Bill
[vc_row][vc_column][vc_column_text css=”.vc_custom_1623123600917{padding-top: 20px !important;padding-bottom: 20px !important;}”] 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 […]
Cancel Your Loan Insurance?
[vc_row][vc_column][vc_video link=”https://youtu.be/gugJq5eMFag” css=”.vc_custom_1621352907103{padding-top: 20px !important;padding-bottom: 20px !important;}”][vc_column_text css=”.vc_custom_1621352930446{padding-top: 20px !important;padding-bottom: 20px !important;}”]In this weeks video I go over creditor insurance and how it can be replaced with more cost-effective personal insurance.[/vc_column_text][dt_fancy_image image_id=”5919″ width=”700″ css=”.vc_custom_1621353575577{padding-top: 20px !important;padding-bottom: 20px !important;}”][/vc_column][/vc_row]
Bitcoin
[vc_row][vc_column][vc_video link=”https://youtu.be/CxEyGmBtZas” css=”.vc_custom_1619501881071{padding-top: 20px !important;padding-bottom: 20px !important;}”][vc_column_text css=”.vc_custom_1619502231933{padding-top: 20px !important;padding-bottom: 20px !important;}”]Our quick thoughts on whether or not you should be adding Bitcoin to your investment portfolio. Here are a couple of links if you are looking for more information on Bitcoin and Cryptocurrencies What are Cryptocurrencies Bitcoin Chart [/vc_column_text][/vc_column][/vc_row]
Farm Corporations & RRSPs
[vc_row][vc_column][vc_video link=”https://youtu.be/E13JbAW0gvw” css=”.vc_custom_1617129005089{padding-top: 20px !important;padding-bottom: 20px !important;}”][vc_column_text css=”.vc_custom_1616981501445{padding-top: 20px !important;padding-bottom: 20px !important;}”]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 [/vc_column_text][/vc_column][/vc_row]
Starting Your Farm Transition
[vc_row][vc_column][vc_video link=”https://youtu.be/gJfTuO-6b2Y” css=”.vc_custom_1615866353860{border-radius: 2px !important;}”][vc_column_text css=”.vc_custom_1616085713206{padding-top: 20px !important;padding-bottom: 20px !important;}”]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. [/vc_column_text][/vc_column][/vc_row]
Farmers and RRSPs
[vc_row][vc_column][vc_video link=”https://youtu.be/3jWpwJTQZZI”][vc_column_text css=”.vc_custom_1615307723455{padding-top: 20px !important;padding-bottom: 20px !important;}”]In this week’s video, we go over how to properly use RRSPs as a farmer.[/vc_column_text][/vc_column][/vc_row]
A Capital Gains Exemption Quirk
[vc_row][vc_column][vc_video link=”https://youtu.be/CqypqnZB0FA”][vc_column_text css=”.vc_custom_1613672399507{padding-top: 20px !important;padding-bottom: 20px !important;}”]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![/vc_column_text][/vc_column][/vc_row]
Gamestop: Explained
[vc_row][vc_column][vc_video link=”https://youtu.be/zUlGeTVEc2g”][vc_column_text css=”.vc_custom_1612542540465{padding-top: 20px !important;padding-bottom: 20px !important;}”]See my latest video on the craze that is Gamestop’s stock. I try to keep it simple so you can understand what’s going on and why this is so interesting to watch.[/vc_column_text][/vc_column][/vc_row]
Gifting the Farmland
[vc_row][vc_column][vc_video link=”https://youtu.be/BY5NKn3F2Sc” css=”.vc_custom_1630350208840{padding-top: 20px !important;padding-bottom: 20px !important;border-radius: 10px !important;}”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text] 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.[/vc_column_text][/vc_column][/vc_row]
Beware of AMT
[vc_row][vc_column][vc_video link=”https://youtu.be/NOzkZQx7Fjw” css=”.vc_custom_1630350334573{padding-top: 20px !important;padding-bottom: 20px !important;border-radius: 10px !important;}”][vc_column_text css=”.vc_custom_1630350311731{padding-top: 20px !important;padding-bottom: 20px !important;}”] Beware of AMT Here is a quick video on what alternative minimum tax is and how it works. Enjoy![/vc_column_text][/vc_column][/vc_row]
Does Your Spouse Qualify?
[vc_row][vc_column][vc_video link=”https://youtu.be/hQK8bFO2JU8″ css=”.vc_custom_1630350476200{padding-top: 20px !important;padding-bottom: 20px !important;}”][vc_column_text] 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[/vc_column_text][/vc_column][/vc_row]
Too Much Cash in Your Corp!
[vc_row][vc_column][vc_video link=”https://youtu.be/exR8blXVnOA” css=”.vc_custom_1630350554688{padding-top: 20px !important;padding-bottom: 20px !important;}”][vc_column_text] 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.[/vc_column_text][/vc_column][/vc_row]
Let’s Multiply Your Capital Gains Exemption
[vc_row][vc_column][vc_video link=”https://youtu.be/VqzR8GWy8mY” css=”.vc_custom_1630352006724{padding-top: 20px !important;padding-bottom: 20px !important;}”][vc_column_text] 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, […]
Trusts – How to keep your farmland in the family and save taxes
[vc_row][vc_column][vc_video link=”https://youtu.be/lbl7iwupODM” css=”.vc_custom_1630352063314{padding-top: 20px !important;padding-bottom: 20px !important;}”][vc_column_text]This quick video on trusts explains how to keep farmland within the family while being as tax-efficient as possible![/vc_column_text][/vc_column][/vc_row]
Farm Retirement Planning – Option 1: Don’t Sell the Farm
[vc_row][vc_column][vc_column_text]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 […]
US Elections – Should you make moves in your portfolio?
[vc_row][vc_column][vc_column_text]The US election is weeks away and there is no shortage of predictions on how the winner will impact the markets and economy as a whole. Although our natural reaction is to guess how the outcome of the election will impact your wealth, it becomes a futile exercise when we realize how much there is […]
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?
[vc_row][vc_column][vc_video link=”https://youtu.be/yU88uL6JvAQ” css=”.vc_custom_1630352425942{padding-top: 20px !important;padding-bottom: 20px !important;}”][vc_column_text]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 […]
The Market Has Never Taken a Dollar from Anyone
[vc_row][vc_column][vc_column_text] The S&P 500 rises to a record close, fully wiping out its coronavirus losses With the US market hitting a new all-time high yesterday, I wanted to review one of my favorite sayings when it comes to investing: “The Market Has Never Taken a Dollar from Anyone” Whenever I mention this to new investors […]
Selling The Farm? Keep an Eye on Your Tax Bracket
[vc_row][vc_column][vc_column_text]In Canada, we have a progressive tax system, which means lower-income earners will pay less tax on a percentage basis compared to higher-income earners. Tax Brackets Explained Here are the combined Manitoba and Federal tax brackets for 2020: Provincial and Federal Tax Rates (Combined) Taxable Income Tax Rate $0 to $33,389 25.80% $33,389-$48,535 27.75% $48,535-$72,164 […]
A Simple Formula to Calculate What Is Fair
Figuring out how much your non-farming children should receive when you pass away compared to your farming child is tough. As I’m sure you’ve heard, fair doesn’t always mean equal when it comes to farm transition planning. To help you get started on coming up with a “fair amount,” here’s a formula you can use. […]
Is Farmland a Good Investment? Part 2
Last week we looked at the cash flow farmland generates (See Part 1). We assumed one acre was worth $6,000 and the rental income was $130/acre. This gave us a rate of return of approximately 2.17% on the rental income. We concluded there were alternative investments with better rates of return (GICs and dividend-paying stocks […]
Is Farmland a Good Investment?
My immediate response would be, who’s asking? An investor or a farmer? Because their goals for the farmland are completely different. Farmers have multiple reasons why farmland would be a good investment beyond simply looking at the rate of return. For this analysis, let’s look at it from the perspective of an investor. This could […]
Investing after you’ve sold the farm
You’ve done your tax and succession planning, you’ve had the big farm auction, and your farm is sold. You’ve given some money to the kids, you’ve paid off your debt, you’ve made a few charitable donations, and you’re left sitting with $2,000,000 in cash. Now you’re left wondering, “Where do I even begin with this […]
How to sell your business tax-free
You started a business from scratch that’s now worth $1.7 million. If you sold today, you’d be able to avoid paying capital gain taxes as both you and your spouse have your $850,000 capital gains exemption room. However, you’re not ready to sell and you’re wondering, “How can I shelter the future gains my business […]
How to convert your health expenses into corporate expenses
[vc_row][vc_column][vc_video link=”https://youtu.be/Oc_FKNvMfLg” css=”.vc_custom_1630360014964{padding-top: 20px !important;padding-bottom: 20px !important;border-radius: 2px !important;}”][vc_column_text css=”.vc_custom_1616520171904{padding-top: 20px !important;padding-bottom: 20px !important;}”]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 […]
Is life insurance an investment or expense?
Are you thinking about purchasing life insurance as a succession planning tool, but having trouble wrapping your head around the annual costs? You might be thinking, “I could be using this cash to buy more land, pay off debt, increase my salary, upgrade my equipment, etc.” I get it, insurance isn’t a very exciting topic, […]
Should I buy life insurance today or tomorrow?
[vc_row][vc_column][vc_column_text] Life insurance is one tool farmers use to help equalize their estate. Below is a comparison of the different costs of buying your life insurance today rather than waiting until you’re older. The scenario You have two children. One would like to farm; the other one isn’t interested. You want to make things […]
Start your succession planning with the basics
Don’t wait until you have all the answers before you start working on a succession plan. As farm advisors, we often get questions like “How much does insurance cost for someone like me? What would the tax consequences be if I transferred land to my children? If I sell my land and invest the proceeds, […]
Can I actually sell my farmland tax-free?
Can I actually sell my farmland tax-free? This week I’ve invited Julien Grenier, Accountant and Agricultural Manager at Talbot & Associates to provide us with insight on qualifying for your capital gains exemptions. As a financial planner, I lean heavily on professionals like Julien to provide my clients with proper tax advice. As you can see […]
Generating retirement income from your farmland
Entering retirement with farmland that you can use to generate rental income is a great way to create a steady income. However, there are a few points to consider to make sure you’re generating enough income and being as tax efficient as possible. Have a plan Unfortunately, land isn’t like a savings account. If you’re […]
Life Insurance – Why Millionaires are Buying as Much of it as Possible
If you’re in your sixties, you’ve most likely had a need for life insurance in the past. Whether it was when you purchased your first home and wanted to protect your spouse and children, or when the bank required it as a condition of lending you money. These were situations when life insurance was a […]
I Just Sold my Farm, Now What?
You’ve put in years of blood, sweat, and tears into your life’s work and you’re finally able to enjoy the fruits of your labour. You no longer have to worry and stress about grain prices, rain, carbon taxes or whatever other phenomena that affected your crops. You’re now sitting at home, looking at your (presumably […]
