Manager’s Report
Where has 2022 gone – the year is more than half over. It seems especially surreal for us in the office because we have been working on 2021 personal and corporate tax returns.
This past tax season we were excited to have Evelyn Goetz and Katey Hull back in the office and added Bonnie Englot and Cindy Hoffmann to our tax team. It was a challenging year because of sickness with covid and then the passing of my mom and our coworker Karen Dunn at the end of April. I want to say a tremendous thank you to Kelvin and the Wheatland team for coming together to help out in any way they could while I was away. Thank you to all of you for your patience and the wishes of sympathy, It was truly appreciated!
One of the exciting things that happened is that we were able to meet with more of our clients in this past tax year. It is very important that you understand your tax returns and financial statements so we would encourage you to make an appointment if you have questions or didn’t get an opportunity to review your tax return or financial statements. We can accommodate in person, phone and virtual meetings.
With harvest running a bit later, please be sure you are keeping a close eye on your financial situation, we are happy to do a tax review for you, it could save you thousands of dollars.
Please have all of your data in to us two months prior to your year end, or by November 1st if you are a sole proprietorship.
Have a safe, bountiful harvest!
Danielle Mytopher
Temporary Immediate Expensing of Assets
As of May 16, 2022 the Temporary Immediate Expensing to Canadian Controlled Private Corporations, Partnerships and individuals for eligible property acquired on or after April 19, 2021, and that becomes available for use before January 1, 2024, has been approved up to a maximum amount of $1.5 million per
taxation year.
Associated members of a group of CCPCs could share this $1.5 million limit. The limit would be prorated for taxation years that are shorter than 365 days. Eligible property under this new measure would be capital property that is subject to the CCA rules, other than property included in CCA classes 1 to 6, 14.1, 17, 47, 49 and 51, which are generally long-lived assets.
Taxpayers will be able to choose whether particular eligible assets are immediately expensed under this new measure or subject to regular CCA rates, and other enhanced CCA rates will continue to apply (provided the total CCA deduction does not exceed the capital cost of the property). The accelerated investment incentive continues to apply for property acquired before 2028.
Things to Consider
You’ve worked tirelessly building your family’s farming legacy, and although retirement may still be a distant thought, it is not too early to start thinking aboutsuccession planning.
Many farmers know that succession planning, and farm transfer arrangements, can be an emotional and at times contentious family topic and opt to leave the conversation until the last minute to maintain household peace and order.
However, the solution to family tension is often a well-thought-out plan that is conceived early on and includes the following considerations:
- Ownership
- Control
- Security
- On Farm Living
- Equal vs. Equitable
- Treatment of Children
When devising your succession plan, it is important to understand that there are many ways to approach a family farm transfer, all with varying tax implications to you and to the next generation. While tax implications shouldn’t be the main driver behind your decision, they are an important consideration when deciding the best route for you and your family.
Wheatland Accounting is here to help, we are familiar with your situation and can help you take control of this transition. We also have a partnership with Harvest Financial & Estate Planning Services to offer a holistic approach to the family farm transfer.
If you would like to arrange an appointment to start a conversation about your farmand its future, please call or Danielle at 306-722-3884 or email: dmytopher@wheatlandaccounting.com.
Congratulations 2022 Scholarship Recipients
Each year Wheatland Accounting Services awards 3 – $500 scholarships to grade 12 graduates entering agriculture-related post-secondary studies in the fall. Candidates must submit a creative short essay or video expressing why they are Passionate About Ag and are pursuing this as their career choice. Join us in congratulating this year’s recipients of our “I’m Passionate About Ag” Scholarships.
Hunter Johnson of Frontier, SK
Madeline Christensen of Lampman, SK
Erica Ward of Broadview, SK
Pictures & essays can be found on the scholarships page.