Volume 7

Selling Farmland That Includes Your Principal Residencendash Donavon K Tofin BComm CA CFP Assante Financial Management Ltd

With the right advice you can minimize taxes on the sale of your farmland

Selling farmland can be complicated For Gordon and Helen who recently sold their farm including their principal residence the tax implications were even greater Although Gordon and Helen have joint ownership of the farmland Gordon held ldquobeneficial ownershiprdquo for income tax purposes This meant that the entire capital gain would be included in Gordonrsquos income Since Gordon had previously used his $750000 capital gains exemption on the transfer of his farm partnership interest to the couplersquos farm corporation the entire capital gain realized on the sale of their farmland would be subject to income tax

With taxation representing the largest financial loss that many farm families experience Gordon and Helen were in need of guidance They decided to take the advice of their neighbours who enjoyed significant tax savings on the sale of their property with the help of The Assante Ag Group and came to me for assistance

Since Gordon had previously benefited from using the capital gains exemption the couple assumed that they would have to pay some tax on the sale of the land They were surprised however when I told them there was something they could do to minimize the amount I explained to them that Canada Revenue Agency (CRA) provided options for reducing capital gains resulting from the sale of a principal residence on land used in a farming business

For example CRA will exempt from taxation any increase in value on up to half a hectare (1235 acres) of farmland that includes the principal residence assuming the property was a principal residence for all years of ownership Where there is more than a half hectare of land you must demonstrate that the extra land was necessary for use and enjoyment of the home in order to receive the taxation benefits

In addition farmers have the option to reduce income tax on a half-hectare by valuing the land not as agricultural but at one of the following amounts whichever is greater

Paid for in part by

Your Farm Your Family Your FutureTax and Succession Expertise for Generations

The Assante Ag Group wwwassantecom

1 The fair market value of the land as agricultural property

2 The fair market value of a comparable residential building site in the area

Gordon and Helenrsquos case by the numbers

Gordon and Helen purchased their land in 1978 for $250 per acre In 2011 it sold for $1250 per acre This resulted in a capital gain of $160000 ($1250 - $250 x 160 acres)

Option 1 ndash using fair market value of the land as agricultural property

To simplify the discussion letrsquos consider the value of a half-hectare to be the same as one acre By valuing the land that the CRA considers part of the principal residence as agricultural property Gordon could save income tax on the $1000 capital gain ($1250 - $250) This would provide a tax savings of $200 as Gordonrsquos marginal tax rate of tax in 2011 will be 40 (and therefore 20 on capital gains)

Option 2 ndash using fair market value of a comparable residential building site in the area

For tax purposes the fair market value of the land where Gordon and Helenrsquos residence is located may be more than they assume because of an increased demand from city dwellers looking for a rural home A residential development close to Gordon and Helenrsquos farmland was selling one acre of land for $125000 Using this value as a comparable residential building site will save income tax on $124750 ($125000 - $250) rather than on $1000 thereby reducing income tax by $24950

Principal Residence

Farm Property

Total

Allocation of Sale Proceeds

House1 120000 120000

Land2 125000 75000 200000

245000 75000 320000

Minus Adjusted Cost Base

House1 60000 60000

Land2 6000 34000 40000

66000 34000 100000

Gain on Sale 179000 41000 220000

Minus Gain on Principal Residence3

179000 179000

Capital Gain 0 41000 41000

1 The house was built in 1978 for $60000 The same house would cost approximately $120000 to build today

2 The FMV of a typical residential building site for the land that is part of his principal residence is used because it is more than the FMV of a half-hectare of farmland As such the cost of the land is equivalent to the cost of a half-hectare of residential land in 1978

3 This was his principal residence during all years of ownership and therefore the capital gain is not taxable

By working closely with Gordon and Helen to explain the options available to them I was able to show them how they could save over $24000 in income taxes on the sale of their farmland and principal residence

Gordon and Helen now know the importance of a comprehensive plan that includes tax estate and retirement planning and the specialized expertise that The Assante Ag Group can provide to them and other Canadian farm families n

Albert and Dorothy have farmed together in Manitoba for many years Theyrsquove lived comfortably and the usual income deferral methods have kept their tax burden low As a result they never found a reason to get themselves into a complex business structure But Albert and Dorothy know their tax situation is changing especially with a farm sale and retirement now visible on the horizon They can see something else on the horizon that theyrsquod rather avoid ndash a gigantic tax bill

Albert and Dorothy stopped by The Assante Ag Group booth at a recent farm trade show and came across an article called Tax Efficient Farm Retirement Strategies It dealt with a farming couple who used a Family Farm Partnership and a corporation to turn assets like inventory and equipment which normally produce 100 taxable income when sold into largely tax-free cash Albert and Dorothy know that within a few years they will be selling close to $1 million worth of these farm assets and this could push both of them into Manitobarsquos highest income tax bracket at 464 They asked an Assante Ag Group advisor for more information about the Partnership Transfer Strategy The advisor confirmed that in Manitoba this strategy could ideally bring the tax rate down to 11

The Assante Ag Group wwwassantecomwwwassantecom

Your Farm Your Family Your Future

What Does it Take to Establish a Farm Partnershipndash Sean Rheubottom BA LLB TEP Regional Vice-President Wealth Planning

Prove the value of your property

To help prove the value of your property it is important to keep documents on hand that include the following information

bull description of the farm including the size and type of buildings

bull cost of the property and the date of purchase

bull cost of any additions or improvements made to the property

bull assessment for property tax purposes

bull insurance coverage

bull type of land (arable bush or scrub)

bull type of farm operation

The Assante Ag Group wwwassantecomwwwassantecom

However they first have to be certain about whether they are actually operating as partners of a partnership This is a legal question

Legal Aspects What is a Partnership

Partnerships are a bit strange Theyrsquore not formed the way corporations are formed Unlike a corporation a partnership may be found legally to exist or not exist based on many factors despite the existence or absence of any documentation or stated intention or agreement of the parties

Provincial legislation defines a partnership as a relationship between two or more persons carrying on business in common with a view to making a profit Canadian courts have commented extensively on circumstances under which this definition would be satisfied The courts have noted many factors that may indicate that a partnership exists including

bull the contribution by the parties of money property effort knowledge skill or other assets to a common undertaking

bull a joint property interest in the subject matter of the adventure

bull the sharing of profits and losses

bull a mutual right of control or management of the enterprise

bull the filing of income tax returns as a partnership and

bull joint bank accounts

After a careful review of the situation Albert and Dorothy learned that the law regards them as partners

Tax Aspects The Partnership Transfer Strategy

For Albert and Dorothy the strategy will involve transferring $1 million worth of equipment and inventory which they happen to own about 5050 to a partnership and then later to a corporation They will use their capital gains exemptions in the process The steps required are somewhat complex The order timing and manner in which the assets are transferred to the partnership and the corporation are crucial in determining whether the planning will work to create tax efficiency

In the next volume of this newsletter wersquoll discuss the steps involved in the strategy and show how it will save tax for Albert and Dorothy while making cash available to fund lifestyle expenses during retirement

For Albert and Dorothy a ldquoPartnership Transfer Strategyrdquo will save several hundred thousand dollars in tax Find out how this strategy could work for you Contact your Assante Ag Group Advisor today n

Financial Matters for Farmers ndash An invitation from The Assante Ag Group

Initial Introduction

We provide a free initial consultation to introduce our Wealth Management Program and to review your investment portfolio and financial situation for opportunities and income tax strategies

What Our Clients Can Expect

bull Comprehensive financial planning encompassing tax insurance estate and succession planning based on your long-term goals while still providing for the short-term needs of you and your family

bull A personal investment plan based on your goals tax situation income requirements and risk tolerance

bull Access to tax lawyers accountants and insurance estate and investment specialists

bull Identification explanation and coordination of tax and estate planning strategies to be implemented by your professional advisors

bull Ongoing monitoring of your investments and regular reviews of your financial tax and estate plans

Your Farm Your Family Your Future

A partnership may be found legally to exist or not exist despite the existence or absence of any documentation or intentions of the parties

The Assante Ag Group wwwassantecomwwwassantecom

Your Farm Your Family Your Future

The Assante Ag Group is a national farm advisory group that assists Canadian farm families in the areas of tax planning retirement planning and wealth transfer The Ag Group consists of highly experienced and trusted Wealth Advisors as well as lawyers and accountants with knowledge and experience in the tax and estate planning issues that affect farmers

Taxation represents the single largest expense and loss of capital in the lives of many farm families particularly in the retirement phase Members of the Assante Ag Group work directly with the farm family to help them understand the complex tax and financial issues that need to be addressed in order to minimize loss of farm wealth when important transitions or transactions occur

Tax Financial and Estate PlanningThe Ag Grouprsquos main focus and strengths are tax minimization wealth planning and estate planning including

bull Planning for the tax efficient transfer of the family farm to the next generation

bull Pre-retirement planning for the tax efficient sale of farm equipment inventory and other assets

bull Planning tax efficient business structures for the family farm and other ventures

bull Personal tax and estate planningbull Financial and retirement planning

The Ag Group brings together not only tax estate and financial planning but also tax efficient managed wealth solutions and insurance strategies all personalized to meet the unique needs and values of each client family

Coordinating Professional Advice The busy lives of farm families can seem further complicated by the necessary involvement of professionals from various disciplines such as accountants and lawyers The Ag Group provides a comprehensive plan that coordinates the services of these professionals The Ag Group creates the plan helps coordinate its implementation by the client familyrsquos accountant and lawyer and continues to monitor the client familyrsquos tax and financial affairs thereafter and through the retirement years

Our Commitment to Farm Families The Assante Ag Group is committed to maintaining the high levels of proficiency and expertise required to provide professional advice throughout our long-term relationships with Canadian farm families n

The Assante Ag Group is comprised of Assante Financial Management Ltd (ldquoAFMrdquo) advisors and Assante Capital Management Ltd (ldquoACMrdquo) advisors This material is provided for general information and should not be construed as investment recommendations and is subject to change without notice Every effort has been made to compile this material from reliable sources however no warranty can be made as to its accuracy or completeness Before acting on any of the above please make sure to see your Assante Advisor for individual financial advice based on your personal circumstances Insurance products and services are provided through Assante Estate and Insurance Services Inc unless otherwise indicated by your advisor Services and products may be provided by your Assante Advisor or through affiliated or non-affiliated third parties The opinions expressed are those of the authors and not necessarily those of ACMAFM Private Client Managed portfolios are managed by United Financial a division of CI Private Counsel LP indicates AFM advisor indicates ACM advisor ndash please also see Legal section at our website wwwassantecom

Western CanadaDonavon K Tofin BComm CA CFP Saskatoon Saskatchewan 306-867-8696 1113088 1-877-996-8696Darrell Nordstrom CLU ChFC CFP RFP Saskatoon Saskatchewan 306-655-3377 1113088 1-877-837-3377Bruce McQueen BA (Econ) Brandon Manitoba 204-725-2300 Michele Yergens BAdmin CFP Estevan Saskatchewan 306-634-9008Shannon Briske BComm CFP Byron T Briske BComm Saskatoon Saskatchewan 306-665-3244Dustin M Regehr CFP Edmonton Alberta 780-450-3311

Western Canada (contrsquod)James Reimer CFP Winnipeg Manitoba 204-982-1906Mark Driediger CFP Abbotsford British Columbia 604-859-4890Gerrit VandewalLethbridge Alberta403-320-7777

OntarioPatrick Gilmour BA (Econ) CFP Kingston Ontario 613-549-8602 1113088 1-800-990-7893Brock Martin CFP Guelph Ontario 519-824-8780 Ted Vanos CFP Sarnia Ontario 519-332-4100

Ontario (contrsquod)Mike Andrews CFP RFP FCSI CIM London Ontario 519-438-0338 1113088 1-800-547-9669

Eastern CanadaPeter Pomponio CFP RFP CAdm St Laurent Queacutebec 514-832-5210 Chris Ball CFP FCSI CIM Halifax Nova Scotia 902-431-3850 1113088 1-888-305-7526Suzanne Mignault CA PI Fin FMA Ottawa Ontario (Eastern Ontario and Quebec) 613-567-8266 1113088 1-800-567-5504

The Assante Ag Group

1107-0853_E (0711)

1 The fair market value of the land as agricultural property

2 The fair market value of a comparable residential building site in the area

Gordon and Helenrsquos case by the numbers

Gordon and Helen purchased their land in 1978 for $250 per acre In 2011 it sold for $1250 per acre This resulted in a capital gain of $160000 ($1250 - $250 x 160 acres)

Option 1 ndash using fair market value of the land as agricultural property

To simplify the discussion letrsquos consider the value of a half-hectare to be the same as one acre By valuing the land that the CRA considers part of the principal residence as agricultural property Gordon could save income tax on the $1000 capital gain ($1250 - $250) This would provide a tax savings of $200 as Gordonrsquos marginal tax rate of tax in 2011 will be 40 (and therefore 20 on capital gains)

Option 2 ndash using fair market value of a comparable residential building site in the area

For tax purposes the fair market value of the land where Gordon and Helenrsquos residence is located may be more than they assume because of an increased demand from city dwellers looking for a rural home A residential development close to Gordon and Helenrsquos farmland was selling one acre of land for $125000 Using this value as a comparable residential building site will save income tax on $124750 ($125000 - $250) rather than on $1000 thereby reducing income tax by $24950

Principal Residence

Farm Property

Total

Allocation of Sale Proceeds

House1 120000 120000

Land2 125000 75000 200000

245000 75000 320000

Minus Adjusted Cost Base

House1 60000 60000

Land2 6000 34000 40000

66000 34000 100000

Gain on Sale 179000 41000 220000

Minus Gain on Principal Residence3

179000 179000

Capital Gain 0 41000 41000

1 The house was built in 1978 for $60000 The same house would cost approximately $120000 to build today

2 The FMV of a typical residential building site for the land that is part of his principal residence is used because it is more than the FMV of a half-hectare of farmland As such the cost of the land is equivalent to the cost of a half-hectare of residential land in 1978

3 This was his principal residence during all years of ownership and therefore the capital gain is not taxable

By working closely with Gordon and Helen to explain the options available to them I was able to show them how they could save over $24000 in income taxes on the sale of their farmland and principal residence

Gordon and Helen now know the importance of a comprehensive plan that includes tax estate and retirement planning and the specialized expertise that The Assante Ag Group can provide to them and other Canadian farm families n

Albert and Dorothy have farmed together in Manitoba for many years Theyrsquove lived comfortably and the usual income deferral methods have kept their tax burden low As a result they never found a reason to get themselves into a complex business structure But Albert and Dorothy know their tax situation is changing especially with a farm sale and retirement now visible on the horizon They can see something else on the horizon that theyrsquod rather avoid ndash a gigantic tax bill

Albert and Dorothy stopped by The Assante Ag Group booth at a recent farm trade show and came across an article called Tax Efficient Farm Retirement Strategies It dealt with a farming couple who used a Family Farm Partnership and a corporation to turn assets like inventory and equipment which normally produce 100 taxable income when sold into largely tax-free cash Albert and Dorothy know that within a few years they will be selling close to $1 million worth of these farm assets and this could push both of them into Manitobarsquos highest income tax bracket at 464 They asked an Assante Ag Group advisor for more information about the Partnership Transfer Strategy The advisor confirmed that in Manitoba this strategy could ideally bring the tax rate down to 11

The Assante Ag Group wwwassantecomwwwassantecom

Your Farm Your Family Your Future

What Does it Take to Establish a Farm Partnershipndash Sean Rheubottom BA LLB TEP Regional Vice-President Wealth Planning

Prove the value of your property

To help prove the value of your property it is important to keep documents on hand that include the following information

bull description of the farm including the size and type of buildings

bull cost of the property and the date of purchase

bull cost of any additions or improvements made to the property

bull assessment for property tax purposes

bull insurance coverage

bull type of land (arable bush or scrub)

bull type of farm operation

The Assante Ag Group wwwassantecomwwwassantecom

However they first have to be certain about whether they are actually operating as partners of a partnership This is a legal question

Legal Aspects What is a Partnership

Partnerships are a bit strange Theyrsquore not formed the way corporations are formed Unlike a corporation a partnership may be found legally to exist or not exist based on many factors despite the existence or absence of any documentation or stated intention or agreement of the parties

Provincial legislation defines a partnership as a relationship between two or more persons carrying on business in common with a view to making a profit Canadian courts have commented extensively on circumstances under which this definition would be satisfied The courts have noted many factors that may indicate that a partnership exists including

bull the contribution by the parties of money property effort knowledge skill or other assets to a common undertaking

bull a joint property interest in the subject matter of the adventure

bull the sharing of profits and losses

bull a mutual right of control or management of the enterprise

bull the filing of income tax returns as a partnership and

bull joint bank accounts

After a careful review of the situation Albert and Dorothy learned that the law regards them as partners

Tax Aspects The Partnership Transfer Strategy

For Albert and Dorothy the strategy will involve transferring $1 million worth of equipment and inventory which they happen to own about 5050 to a partnership and then later to a corporation They will use their capital gains exemptions in the process The steps required are somewhat complex The order timing and manner in which the assets are transferred to the partnership and the corporation are crucial in determining whether the planning will work to create tax efficiency

In the next volume of this newsletter wersquoll discuss the steps involved in the strategy and show how it will save tax for Albert and Dorothy while making cash available to fund lifestyle expenses during retirement

For Albert and Dorothy a ldquoPartnership Transfer Strategyrdquo will save several hundred thousand dollars in tax Find out how this strategy could work for you Contact your Assante Ag Group Advisor today n

Financial Matters for Farmers ndash An invitation from The Assante Ag Group

Initial Introduction

We provide a free initial consultation to introduce our Wealth Management Program and to review your investment portfolio and financial situation for opportunities and income tax strategies

What Our Clients Can Expect

bull Comprehensive financial planning encompassing tax insurance estate and succession planning based on your long-term goals while still providing for the short-term needs of you and your family

bull A personal investment plan based on your goals tax situation income requirements and risk tolerance

bull Access to tax lawyers accountants and insurance estate and investment specialists

bull Identification explanation and coordination of tax and estate planning strategies to be implemented by your professional advisors

bull Ongoing monitoring of your investments and regular reviews of your financial tax and estate plans

Your Farm Your Family Your Future

A partnership may be found legally to exist or not exist despite the existence or absence of any documentation or intentions of the parties

The Assante Ag Group wwwassantecomwwwassantecom

Your Farm Your Family Your Future

The Assante Ag Group is a national farm advisory group that assists Canadian farm families in the areas of tax planning retirement planning and wealth transfer The Ag Group consists of highly experienced and trusted Wealth Advisors as well as lawyers and accountants with knowledge and experience in the tax and estate planning issues that affect farmers

Taxation represents the single largest expense and loss of capital in the lives of many farm families particularly in the retirement phase Members of the Assante Ag Group work directly with the farm family to help them understand the complex tax and financial issues that need to be addressed in order to minimize loss of farm wealth when important transitions or transactions occur

Tax Financial and Estate PlanningThe Ag Grouprsquos main focus and strengths are tax minimization wealth planning and estate planning including

bull Planning for the tax efficient transfer of the family farm to the next generation

bull Pre-retirement planning for the tax efficient sale of farm equipment inventory and other assets

bull Planning tax efficient business structures for the family farm and other ventures

bull Personal tax and estate planningbull Financial and retirement planning

The Ag Group brings together not only tax estate and financial planning but also tax efficient managed wealth solutions and insurance strategies all personalized to meet the unique needs and values of each client family

Coordinating Professional Advice The busy lives of farm families can seem further complicated by the necessary involvement of professionals from various disciplines such as accountants and lawyers The Ag Group provides a comprehensive plan that coordinates the services of these professionals The Ag Group creates the plan helps coordinate its implementation by the client familyrsquos accountant and lawyer and continues to monitor the client familyrsquos tax and financial affairs thereafter and through the retirement years

Our Commitment to Farm Families The Assante Ag Group is committed to maintaining the high levels of proficiency and expertise required to provide professional advice throughout our long-term relationships with Canadian farm families n

The Assante Ag Group is comprised of Assante Financial Management Ltd (ldquoAFMrdquo) advisors and Assante Capital Management Ltd (ldquoACMrdquo) advisors This material is provided for general information and should not be construed as investment recommendations and is subject to change without notice Every effort has been made to compile this material from reliable sources however no warranty can be made as to its accuracy or completeness Before acting on any of the above please make sure to see your Assante Advisor for individual financial advice based on your personal circumstances Insurance products and services are provided through Assante Estate and Insurance Services Inc unless otherwise indicated by your advisor Services and products may be provided by your Assante Advisor or through affiliated or non-affiliated third parties The opinions expressed are those of the authors and not necessarily those of ACMAFM Private Client Managed portfolios are managed by United Financial a division of CI Private Counsel LP indicates AFM advisor indicates ACM advisor ndash please also see Legal section at our website wwwassantecom

Western CanadaDonavon K Tofin BComm CA CFP Saskatoon Saskatchewan 306-867-8696 1113088 1-877-996-8696Darrell Nordstrom CLU ChFC CFP RFP Saskatoon Saskatchewan 306-655-3377 1113088 1-877-837-3377Bruce McQueen BA (Econ) Brandon Manitoba 204-725-2300 Michele Yergens BAdmin CFP Estevan Saskatchewan 306-634-9008Shannon Briske BComm CFP Byron T Briske BComm Saskatoon Saskatchewan 306-665-3244Dustin M Regehr CFP Edmonton Alberta 780-450-3311

Western Canada (contrsquod)James Reimer CFP Winnipeg Manitoba 204-982-1906Mark Driediger CFP Abbotsford British Columbia 604-859-4890Gerrit VandewalLethbridge Alberta403-320-7777

OntarioPatrick Gilmour BA (Econ) CFP Kingston Ontario 613-549-8602 1113088 1-800-990-7893Brock Martin CFP Guelph Ontario 519-824-8780 Ted Vanos CFP Sarnia Ontario 519-332-4100

Ontario (contrsquod)Mike Andrews CFP RFP FCSI CIM London Ontario 519-438-0338 1113088 1-800-547-9669

Eastern CanadaPeter Pomponio CFP RFP CAdm St Laurent Queacutebec 514-832-5210 Chris Ball CFP FCSI CIM Halifax Nova Scotia 902-431-3850 1113088 1-888-305-7526Suzanne Mignault CA PI Fin FMA Ottawa Ontario (Eastern Ontario and Quebec) 613-567-8266 1113088 1-800-567-5504

The Assante Ag Group

1107-0853_E (0711)

The Assante Ag Group wwwassantecomwwwassantecom

However they first have to be certain about whether they are actually operating as partners of a partnership This is a legal question

Legal Aspects What is a Partnership

Partnerships are a bit strange Theyrsquore not formed the way corporations are formed Unlike a corporation a partnership may be found legally to exist or not exist based on many factors despite the existence or absence of any documentation or stated intention or agreement of the parties

Provincial legislation defines a partnership as a relationship between two or more persons carrying on business in common with a view to making a profit Canadian courts have commented extensively on circumstances under which this definition would be satisfied The courts have noted many factors that may indicate that a partnership exists including

bull the contribution by the parties of money property effort knowledge skill or other assets to a common undertaking

bull a joint property interest in the subject matter of the adventure

bull the sharing of profits and losses

bull a mutual right of control or management of the enterprise

bull the filing of income tax returns as a partnership and

bull joint bank accounts

After a careful review of the situation Albert and Dorothy learned that the law regards them as partners

Tax Aspects The Partnership Transfer Strategy

For Albert and Dorothy the strategy will involve transferring $1 million worth of equipment and inventory which they happen to own about 5050 to a partnership and then later to a corporation They will use their capital gains exemptions in the process The steps required are somewhat complex The order timing and manner in which the assets are transferred to the partnership and the corporation are crucial in determining whether the planning will work to create tax efficiency

In the next volume of this newsletter wersquoll discuss the steps involved in the strategy and show how it will save tax for Albert and Dorothy while making cash available to fund lifestyle expenses during retirement

For Albert and Dorothy a ldquoPartnership Transfer Strategyrdquo will save several hundred thousand dollars in tax Find out how this strategy could work for you Contact your Assante Ag Group Advisor today n

Financial Matters for Farmers ndash An invitation from The Assante Ag Group

Initial Introduction

We provide a free initial consultation to introduce our Wealth Management Program and to review your investment portfolio and financial situation for opportunities and income tax strategies

What Our Clients Can Expect

bull Comprehensive financial planning encompassing tax insurance estate and succession planning based on your long-term goals while still providing for the short-term needs of you and your family

bull A personal investment plan based on your goals tax situation income requirements and risk tolerance

bull Access to tax lawyers accountants and insurance estate and investment specialists

bull Identification explanation and coordination of tax and estate planning strategies to be implemented by your professional advisors

bull Ongoing monitoring of your investments and regular reviews of your financial tax and estate plans

Your Farm Your Family Your Future

A partnership may be found legally to exist or not exist despite the existence or absence of any documentation or intentions of the parties

The Assante Ag Group wwwassantecomwwwassantecom

Your Farm Your Family Your Future

The Assante Ag Group is a national farm advisory group that assists Canadian farm families in the areas of tax planning retirement planning and wealth transfer The Ag Group consists of highly experienced and trusted Wealth Advisors as well as lawyers and accountants with knowledge and experience in the tax and estate planning issues that affect farmers

Taxation represents the single largest expense and loss of capital in the lives of many farm families particularly in the retirement phase Members of the Assante Ag Group work directly with the farm family to help them understand the complex tax and financial issues that need to be addressed in order to minimize loss of farm wealth when important transitions or transactions occur

Tax Financial and Estate PlanningThe Ag Grouprsquos main focus and strengths are tax minimization wealth planning and estate planning including

bull Planning for the tax efficient transfer of the family farm to the next generation

bull Pre-retirement planning for the tax efficient sale of farm equipment inventory and other assets

bull Planning tax efficient business structures for the family farm and other ventures

bull Personal tax and estate planningbull Financial and retirement planning

The Ag Group brings together not only tax estate and financial planning but also tax efficient managed wealth solutions and insurance strategies all personalized to meet the unique needs and values of each client family

Coordinating Professional Advice The busy lives of farm families can seem further complicated by the necessary involvement of professionals from various disciplines such as accountants and lawyers The Ag Group provides a comprehensive plan that coordinates the services of these professionals The Ag Group creates the plan helps coordinate its implementation by the client familyrsquos accountant and lawyer and continues to monitor the client familyrsquos tax and financial affairs thereafter and through the retirement years

Our Commitment to Farm Families The Assante Ag Group is committed to maintaining the high levels of proficiency and expertise required to provide professional advice throughout our long-term relationships with Canadian farm families n

The Assante Ag Group is comprised of Assante Financial Management Ltd (ldquoAFMrdquo) advisors and Assante Capital Management Ltd (ldquoACMrdquo) advisors This material is provided for general information and should not be construed as investment recommendations and is subject to change without notice Every effort has been made to compile this material from reliable sources however no warranty can be made as to its accuracy or completeness Before acting on any of the above please make sure to see your Assante Advisor for individual financial advice based on your personal circumstances Insurance products and services are provided through Assante Estate and Insurance Services Inc unless otherwise indicated by your advisor Services and products may be provided by your Assante Advisor or through affiliated or non-affiliated third parties The opinions expressed are those of the authors and not necessarily those of ACMAFM Private Client Managed portfolios are managed by United Financial a division of CI Private Counsel LP indicates AFM advisor indicates ACM advisor ndash please also see Legal section at our website wwwassantecom

Western CanadaDonavon K Tofin BComm CA CFP Saskatoon Saskatchewan 306-867-8696 1113088 1-877-996-8696Darrell Nordstrom CLU ChFC CFP RFP Saskatoon Saskatchewan 306-655-3377 1113088 1-877-837-3377Bruce McQueen BA (Econ) Brandon Manitoba 204-725-2300 Michele Yergens BAdmin CFP Estevan Saskatchewan 306-634-9008Shannon Briske BComm CFP Byron T Briske BComm Saskatoon Saskatchewan 306-665-3244Dustin M Regehr CFP Edmonton Alberta 780-450-3311

Western Canada (contrsquod)James Reimer CFP Winnipeg Manitoba 204-982-1906Mark Driediger CFP Abbotsford British Columbia 604-859-4890Gerrit VandewalLethbridge Alberta403-320-7777

OntarioPatrick Gilmour BA (Econ) CFP Kingston Ontario 613-549-8602 1113088 1-800-990-7893Brock Martin CFP Guelph Ontario 519-824-8780 Ted Vanos CFP Sarnia Ontario 519-332-4100

Ontario (contrsquod)Mike Andrews CFP RFP FCSI CIM London Ontario 519-438-0338 1113088 1-800-547-9669

Eastern CanadaPeter Pomponio CFP RFP CAdm St Laurent Queacutebec 514-832-5210 Chris Ball CFP FCSI CIM Halifax Nova Scotia 902-431-3850 1113088 1-888-305-7526Suzanne Mignault CA PI Fin FMA Ottawa Ontario (Eastern Ontario and Quebec) 613-567-8266 1113088 1-800-567-5504

The Assante Ag Group

1107-0853_E (0711)

The Assante Ag Group wwwassantecomwwwassantecom

Your Farm Your Family Your Future

The Assante Ag Group is a national farm advisory group that assists Canadian farm families in the areas of tax planning retirement planning and wealth transfer The Ag Group consists of highly experienced and trusted Wealth Advisors as well as lawyers and accountants with knowledge and experience in the tax and estate planning issues that affect farmers

Taxation represents the single largest expense and loss of capital in the lives of many farm families particularly in the retirement phase Members of the Assante Ag Group work directly with the farm family to help them understand the complex tax and financial issues that need to be addressed in order to minimize loss of farm wealth when important transitions or transactions occur

Tax Financial and Estate PlanningThe Ag Grouprsquos main focus and strengths are tax minimization wealth planning and estate planning including

bull Planning for the tax efficient transfer of the family farm to the next generation

bull Pre-retirement planning for the tax efficient sale of farm equipment inventory and other assets

bull Planning tax efficient business structures for the family farm and other ventures

bull Personal tax and estate planningbull Financial and retirement planning

The Ag Group brings together not only tax estate and financial planning but also tax efficient managed wealth solutions and insurance strategies all personalized to meet the unique needs and values of each client family

Coordinating Professional Advice The busy lives of farm families can seem further complicated by the necessary involvement of professionals from various disciplines such as accountants and lawyers The Ag Group provides a comprehensive plan that coordinates the services of these professionals The Ag Group creates the plan helps coordinate its implementation by the client familyrsquos accountant and lawyer and continues to monitor the client familyrsquos tax and financial affairs thereafter and through the retirement years

Our Commitment to Farm Families The Assante Ag Group is committed to maintaining the high levels of proficiency and expertise required to provide professional advice throughout our long-term relationships with Canadian farm families n

The Assante Ag Group is comprised of Assante Financial Management Ltd (ldquoAFMrdquo) advisors and Assante Capital Management Ltd (ldquoACMrdquo) advisors This material is provided for general information and should not be construed as investment recommendations and is subject to change without notice Every effort has been made to compile this material from reliable sources however no warranty can be made as to its accuracy or completeness Before acting on any of the above please make sure to see your Assante Advisor for individual financial advice based on your personal circumstances Insurance products and services are provided through Assante Estate and Insurance Services Inc unless otherwise indicated by your advisor Services and products may be provided by your Assante Advisor or through affiliated or non-affiliated third parties The opinions expressed are those of the authors and not necessarily those of ACMAFM Private Client Managed portfolios are managed by United Financial a division of CI Private Counsel LP indicates AFM advisor indicates ACM advisor ndash please also see Legal section at our website wwwassantecom

Western CanadaDonavon K Tofin BComm CA CFP Saskatoon Saskatchewan 306-867-8696 1113088 1-877-996-8696Darrell Nordstrom CLU ChFC CFP RFP Saskatoon Saskatchewan 306-655-3377 1113088 1-877-837-3377Bruce McQueen BA (Econ) Brandon Manitoba 204-725-2300 Michele Yergens BAdmin CFP Estevan Saskatchewan 306-634-9008Shannon Briske BComm CFP Byron T Briske BComm Saskatoon Saskatchewan 306-665-3244Dustin M Regehr CFP Edmonton Alberta 780-450-3311

Western Canada (contrsquod)James Reimer CFP Winnipeg Manitoba 204-982-1906Mark Driediger CFP Abbotsford British Columbia 604-859-4890Gerrit VandewalLethbridge Alberta403-320-7777

OntarioPatrick Gilmour BA (Econ) CFP Kingston Ontario 613-549-8602 1113088 1-800-990-7893Brock Martin CFP Guelph Ontario 519-824-8780 Ted Vanos CFP Sarnia Ontario 519-332-4100

Ontario (contrsquod)Mike Andrews CFP RFP FCSI CIM London Ontario 519-438-0338 1113088 1-800-547-9669

Eastern CanadaPeter Pomponio CFP RFP CAdm St Laurent Queacutebec 514-832-5210 Chris Ball CFP FCSI CIM Halifax Nova Scotia 902-431-3850 1113088 1-888-305-7526Suzanne Mignault CA PI Fin FMA Ottawa Ontario (Eastern Ontario and Quebec) 613-567-8266 1113088 1-800-567-5504

The Assante Ag Group

1107-0853_E (0711)