Tax Planning Opportunities
There are several tax planning opportunities available to farmers in Saskatchewan with respect to the land they’ve owned and worked over the years. Many of these opportunities become available upon death and relate to Income Tax Act provisions allowing for the transfer of property to a family member. To be prepared to take advantage of any tax benefits available, it would be prudent to have available the following information to your tax professional in preparing the final return and subsequent estate filings.
Farm Land Checklist
- History of each parcel of land owned including:
- Year of acquisition and cost of acquisition.
- If acquired via inheritance on death, copy of final return from the date of death of the bequestor or value at bequestors date of death.
- If acquired before 1971, fair value of each property on December 31, 1971. If available, formal 1971 valuation report.
- Details on whether 1994 Capital Gains Election was utilized. If available, copy of 1994 personal tax return including form T664.
- Name and relation (if any) of any previous owners.
- Years actively farmed on each parcel vs. rented out
The more of these documents that can be accumulated before your passing, the easier it will be for those administering your estate. It will also offer better protection against further CRA audit or review, and ensure the maximum value transfers to future generations.
Further agriculture resources:
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Who we are
Virtus Group proudly supports the agriculture industry in Saskatchewan. We are the province’s largest independent accounting firm, enabling us to meet the unique needs of farmers in our province. With offices in Saskatoon, Regina and Estevan, Virtus Group has the resources and expertise to ensure your business thrives in the long term. Ask our advisors about how a tailored accounting solution can improve your business’ operations. Fill in the form above to get in touch.