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Based on 2015 Tax Calculation Assumptions
Income Husband Wife
Farming Income 50,000 50,000
Inventory/Breeding Stock Less: Opt Inventory Adjustment 0 0
Capital Recapture Capital Gain 175,000 175,000
Taxable Capital Gains 50% 87,500 50% 87,500
Total Income 137,500 137,500
Less: RRSP contributions
Less: CPP contributions on self-employed earnings 2,302 2,302
Net Income 135,198 135,198
Less: Capital Gains Deduction on Qualified Farm or Fishing Property 87,500 87,500
Taxable Income 47,698 47,698
Tax Planning Worksheet
The tax planning worksheet shows the information given in the Capital Gains Exemption fact sheet. Capital Gains Exemption talks about the tax liabilities that can happen under capital gains and how this must be considered when transferring or selling property. The process can be complicated, so it is best to consult professional lawyers and accountants for help. Tax calculation examples detailed in the fact sheet are illustrated below.
July, 2015
Federal Tax
Personal Amounts Husband Wife
Basic Amount 11,327 11,327
CPP Contributions (Self employed deduction) 2,302 2,302
Total Personal Amounts 13,629 13,629
Non-Refundable Credits @ 15% 2,044 2,044
Calculation of Federal Tax
15% on the first $44,701 6,705 6,705
22% on the next $44,700 659 659
26% on the next $49,185 0 0
29% over $138,586 0 0
Total Federal Tax 7,364 7,364
Less: Non-Refundable Tax Credits 2,044 2,044
Basic Tax (before Alternative Minimum Tax (AMT)) 5,320 5,320
Add: Federal Minimum Tax Payable 1,665 1,665
BASIC FEDERAL TAX 6,985 6,985
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Provincial and Total Tax
Personal Amounts Husband Wife
Basic Amount 9,134 9,134
CPP Contributions (Self employed deduction) 2,302 2,302
Total Personal Amounts 11,436 11,436
Non-Refundable Credits @ 10.8% 1,235 1,235
Calculation of Manitoba Tax
10.8% on the first $31,000 3,348 3,348
12.75% on the next $36,000 2,129 2,129
17.4% over $67,000 0 0
Total Provincial Tax 5,477 5,477
Less: Non-Refundable Tax Credits 1,235 1,235
Basic Tax (before Alternative Minimum Tax (AMT)) 4,242 4,242
Add: Manitoba Minimum Tax 833 833
Provincial Tax Payable 5,075 5,075
Total Federal Tax Payable 6,985 6,985
Provincial Tax Payable 5,075 5,075
Add: Total CPP Contributions 4,604 4,604
Total Taxes Payable 16,664 16,664
Disclaimer: This worksheet has been designed as an extension tool. It is to be used only as a general guide and will not cover all individual tax circumstances. The user of this worksheet does so at their own risk and is strongly advised to consult a professional before implementing their own individual tax strategies.
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Alternative Minimum Tax Calculation Based on 2015 Tax Calculation Assumptions
Federal Husband Wife
Taxable Income 47,698 47,698
Net Total Capital Gains 175,000 175,000
ADD: 30% of Net Total Capital Gains 52,500 52,500
Adjusted Taxable Income (Taxable Income 100,198 100,198 plus 30% of Net Total Capital Gains)
Less: Basic Exemption 40,000 40,000
Net Adjusted Taxable Income 60,198 60,198
Federal Tax 15% 9,029 15% 9,029 Less: Non-refundable Tax Credits 2,044 2,044
Minimum Amount 6,985 6,985 Less: Basic Federal Tax (before AMT) 5,320 5,320
Federal Minimum Tax 1,665 1,665
Manitoba Husband Wife
Minimum Amount (from above) 6,985 6,985 Less: Basic Federal Tax 5,320 5,320
Federal Minimum Tax 1,665 1,665
Manitoba Minimum Tax (50% of Fed. Min. Tax) 833 833
Disclaimer: This worksheet has been designed as an extension tool. It is to be used only as a general guide and will not cover all individual tax circumstances. The user of this worksheet does so at their own risk and is strongly advised to consult a professional before implementing their own individual tax strategies.
Note: The example provided on this and the preceding page assumes that a total Capital Gain of $350,000 is split between a farmer and his/her spouse.
For more information• Go to
manitoba.ca/agriculture and click on Business and Economics
• Email us at [email protected]
• Visit your local Manitoba Agriculture, Food and Rural Development GO Office
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