Maintaining good relationships should be a priority in any succession plan, but sometimes it’s hard to get past the financial and legal jargon associated with the process. For both reasons, a farm business should consider appointing a third party to mediate discussions. And, in the meantime, it doesn’t hurt to learn about some of your options.
In addition to the $750,000 Capital Gains Exemption, one of the many financial options worthy of consideration is a farm business’s eligibility for a “rollover.” A rollover occurs when farming assets are transferred to a spouse or child with a defer on taxes owed.
Watch more: Three Steps to Rolling Out a Succession Plan
In this video, Mike Pylypchuk, business management specialist with the Saskatchewan ministry of agriculture, explains the basics of rollovers, including the eligibility requirements for a farm business to take advantage of a rollover, the importance of consulting a third party and some of the resources available to farmers looking to learn more.