Brooks (Rural Roots Canada) – Are you aware of all the tax deductions that are available to your farm?
Tony Benevides is with Farm Business Consultants.
He says it starts by looking at things you are doing in terms of upkeep for your property.
“So things like fencing expenses all of those items that all of those deductions that take place in the farm operation are often things that are missed sometimes because they are part of the daily operations and it is kind of second nature to do,” Benevides said.
“Sometimes you fail to keep the invoices to keep track of those expenses.”
READ MORE: FBC’s top 12 tax tips for farmers
He says there are also tax deductions related to farm machinery.
“So, whether it be the repairs to the machinery or fuel or insurance all of those things are part of your tax deductions and when you start to add up all of the HST, PST, GST that’s involved with those expenses it’s extremely important that all them are captured.”
And don’t forget about supplies, Benevides says it’s imperative you keep a sharp eye on supply costs.
“There are also deductions related to bank, insurance, and accounting fees that when we get our bank statement we don’t tend to track the expense on bank fees. For those of us who have got insurance those expenses will come through your bank statement.”
Benevides says the interest on your line of credit is also a deductible, one that is commonly missed.
He spoke at the Rural Roots Canada Virtual Ag Days in July.