Click picture to learn about becoming a Community Leader in Agriculture.Read More
APAS is pleased to offer the Youth Leadership & Mentorship Program (YLMP) for 2016-17. During the 10 months YLMP mentees will have the opportunity to work with a mentor, to attend the APAS District, Committee and Annual General Meetings, participate in the CFA AGM in Ottawa in February, expand your network, interact with farm, provincial and federal leaders and be involved in professional development.
The objective – to improve their understanding of the skills, competencies and processes involved in being a farm leader and how to advance grassroots policies to improve the agricultural environment. If you want more information see APAS website @ www.apas.ca/youth-leadership-program
Young women and men, under the age of 39 years as of November 1, 2016 are welcome to apply to become an APAS Youth candidate for the 2016-17 program. Application deadline is November 1, 2016Read More
Welcome to APAS IN ACTION, bringing you the latest news on how your general farm organization is working on behalf of Saskatchewan farmers and ranchers. If you are receiving this as an APAS Member RM Rep, RM Administrator or Reeve (Member or Non-Member), we encourage you to share this information with your Council at your next scheduled meeting and with ratepayers in your RM whenever possible.Read More
Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of the Agricultural Producers Association of Saskatchewan.
Article provided by the Farm Business Consultants www.fbc.ca
For many, tax planning means the once-a-year mad scramble to organize the necessary paperwork before the tax filing deadline.
In reality, this is not tax planning. Real tax planning requires a comprehensive approach to finances and should be tackled year-round.
Careful planning for your tax obligations should be an integral element of a well-crafted financial planning strategy. Essentially, tax planning involves trying to accomplish all of the other elements of your financial plan in the most tax-efficient manner possible.
All financial transactions have tax consequences. Although the tax consequences of some financial actions might not always take precedence, knowing the options will lead to better decision making.
Decisions that tax planning can help with include:
- Timing of income and expenses.
- Selection of which investments to put in registered versus unregistered plans.
- Filing of common available deductions.
Your tax plan should focus on four specific elements: tax deferral, income splitting, income conversion and optimization of tax credits, incentives and deductions.
The basic concept in tax deferral is the idea that it is better to pay tax later than sooner.
This is related to the time value of money and may also result in paying a lower marginal income tax rate when the amounts are brought into income in the future. This may involve the delayed recognition of income or the accelerated recognition of expenses.
An example of delayed recognition of income can be a Registered Retirement Savings Plan. An example of accelerated expenses is capital cost allowance on farm equipment or rental property.
Canadian federal income tax legislation is based on the application of progressive tax rates. Essentially, this means that taxes payable on a given amount of taxable income will be greater for a single taxpayer than if the amount is split between two or more family members.
You can receive tax-advantaged rates in a non-registered portfolio.
Different types of income are taxed at different rates, which means you want to ensure that your investments are getting the best returns and cash flow on an after-tax basis.
Be aware of how the government treats the taxation of different investment vehicles. Interest income is fully taxable in your non-registered accounts, just like any salary, net business income and other regular income. However, Canadian dividends and capital gains receive preferential tax treatment.
Optimize tax credits, incentives and deductions
To take advantage of existing tax laws requires a certain amount of knowledge. It’s not always easy to stay on top of such things, which is why I recommend that you involve the help of a tax specialist.
Keep all tax-related documents in one accessible location. Also, be sure to keep on top of your bookkeeping and keep your records up to date throughout the year.
There are many more things you can do, but a good tax planner can help manage the process and keep more money in your pocket.
For more information, visit us at www.fbc.ca or call 1-800-265-1002 to book your free in-person tax consultation.Read More
Access and Download the most recent APAS in Action. During the course of the year, APAS in Action summarizes the meetings APAS led or was involved in, APAS policy discussions, work undertaken to advance farmers and ranchers.Read More