SFC Conseils professionals and partners specialize in agriculture and are intimately aware of the issues affecting the industry. This makes them more effective and better positioned to meet farmers’ needs.
SCF Conseils partners are located all across Quebec. Visit the service hub for your administrative region.
Because SFC Conseils professionals and partners specialize in agriculture and know the industry inside out, they work more efficiently on their cases. The time saved is reflected in our clients’ bills.
Certain provisions in the federal Income Tax Act and Quebec’s Taxation Act allow a person who has used farm assets in the course of operating a farm business to transfer them to a child or even a grandchild, tax-free. Highly specific conditions do apply, however.
Exemptions are possible for capital gain arising from the sale of land used for a farm business. However, very strict conditions apply. For example, renting land to a farmer does not make it an eligible asset. Also, if the income derived from the agricultural operation is too low, the gain from the sale of land may be taxable.
For tax purposes, the revenue of a farm business can be calculated on a cash basis. In this calculation, the revenue generated during the fiscal year is added and the expenses paid that same year are subtracted. This means that if a farmer purchases inputs at the end of the current year but plans to use them next year, the farmer could still subtract that expense in the current year, which would reduce the taxable income accordingly.
The Agri programs were developed to allow farmers to manage the risks that come with income fluctuations. For example, AgriInvest is an individual program based on savings. A farm business can make an annual deposit into an account and in turn receive matching government contributions (up to $10,000).