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Tax tips for farmers in 2017

10 tips to help farmers get the largest return possible

By Diego Flammini
Assistant Editor, North American Content
Farms.com

As the old adage goes, “the taxman cometh.”

And like everyone else, farmers want to get the largest return possible.

Here are 10 tips to help you maximize your chances of having a stress-free tax season.

1. Keep good records – Keep all records up to date because disorganized books can be a reason to get audited.

2. Always file a tax return and file on time

3. Time capital gains and losses to reduce your overall tax burden – If farmers earn a capital gain early in the tax year, they can choose to recognize capital losses near the end of the year to offset the gains.

4. Plan borrowing to avoid losing tax deductions – Separating loans between personal and business can help tax preparers and CRA identify tax deduction opportunities.

5. Make mortgage interest tax deductible – Farmers could consider refinancing and investing the equity into their business.


Getty/MattZ90

6. Know your capital gain reserve benefits for property to a child  The reserve can be claimed up to a maximum of nine years, which spreads out the capital gain over 10 years. The maximum reserve is calculated as a percentage of the capital gain and can be claimed each year.

7. Use spousal Registered Retirement Savings Plans (RRSP) to split income – Moving reportable income to the spouse in a lower tax bracket can help ensure less tax is paid on the same income upon retirement.

8. Plan RRSP contributions – Tax deductions of RRSPs may be better used in years when you can anticipate a higher net income, whereas Tax-Free Savings Accounts (TFSAs) could be an option for years with lower incomes.

9. Invest in a TFSA – Earned interest or capital appreciation is not included as income.

10. Have a risk management plan – Farm risk management plans at the provincial and federal levels can help farmers protect their farm income and investments from unforeseen market circumstances.


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In this episode of The Swine Nutrition Blackbelt Podcast, Dr. David Rosero from Iowa State University explores the critical aspects of fat quality and oxidation in swine diets. He discusses how different types of lipids affect pig performance and provides actionable insights on managing lipid oxidation in feed mills. Don’t miss this episode—available on all major platforms.

Highlight quote: "Increasing levels of oxidized fats in swine diets reduced the efficiency of feed utilization, increased mortality, and led to more pigs being classified as culls, reducing the number of full-value pigs entering the finishing barns."

Meet the guest: Dr. David Rosero / davidrosero is an assistant professor of animal science at Iowa State University. His research program focuses on conducting applied research on swine nutrition and the practical application of smart farming. He previously served as the technical officer for The Hanor Company, overseeing nutrition, research, and innovation efforts.