Year End Planning
We can minimize the current year tax bill through strategic use of the cash method of accounting
What You Should Know
Farmers and fishermen have one of the most powerful tools in planning at their disposal - the cash method of reporting income and expenses. This unique feature of the agriculture sector allows the use of pre-buying, deferring income and holding inventory to manage the tax exposure of the entity. While most businesses pay tax on their inventory when it is available for sale, farmers do not pay tax on the inventory until the cash is realized. This makes year end planning essential to manage cash flows and prevent any unexpected surprises.
Additional Information
We can analyze the farm financial situation at any point in the year to determine whether you need to defer, hold the inventory, purchase inputs or a combination of all. Purchase of capital assets to obtain accelerated capital cost allowance continues to be a useful tool to inimize taxes. Properly timing your capital purchases assists on both the production and taxation parts of the business. Personal/corporate income is looked at on an operation wide basis to ensure that we have not just moved the tax liability from one to the other.
More Agriculture Services
Agricultural Succession Planning
What do you want you legacy to be?
Taxation
We can prepare and file your tax return
Lifetime Capital Gains Exemption (LCGE)
The farmland, qualifying shares or partnership may qualify for the LCGE
Ready to streamline your accounting process?
Contact us now to schedule a consultation and explore how our expert services can benefit you.
