At last month’s Outdoor Farm Show in Woodstock, two thirds of all people I spoke to were asking about the impact of the proposed tax changes by the federal government and what it would mean for their farm. People are confused. It is a lot of information to digest. And it is also unclear what the exact changes will be as it is just wrapping up its consultation period. We have joined our strong opposition to these proposals, both locally with our MP and through the CAFA network, who is amongst more than 60 organizations nationwide strongly opposing these changes and educating MP’s of the detrimental impacts.
The important areas for you to be aware of include proposed capital gains deductions with respect to succession planning, income splitting and passive investments inside your farm corporation.
I am including a link to a valuable article drafted by a CAFA colleague that outlines the proposed changes and how they will impact Canadian Farmers. I encourage you all to look and contact your accountant to discuss any specific questions you may have.
Here is the article:
Proposed Tax Changes May Hit Your Farm Hard