Community Food Program Donation Tax Credit for Farmers
This tax credit is for Ontario farmers that donate goods to food banks. This tax credit will provide individuals who donate to food banks or student nutrition programs with a tax credit valued at 25% of the fair market value of the items they provide to community food programs. Products include fruits and vegetables, dairy and eggs, Grains and meat, nuts and mushrooms.
This is the first tax credit of its kind in Canada!
Small Business Tax Breaks
Don’t forget that farming is a business, so farmers are also able to take advantage of the same tax breaks of a small business. Since farming is a very specialized business there are a number of purchases farmers can make and deduct that other businesses aren’t able to. For example this could include deductions on the cost of fertilizers used for the crops.
Another thing to keep in mind is what accounting method you are using, the cash method and accrual accounting are two different methods used to help small businesses. The cash method is the most common for small businesses. Contact your accountant to find the method that best suits your needs.
Farm Property Class Tax Rate Program (FPCTRP)
This program allows farmland owners the ability to have their property tax reduced. The landowner must apply for this.
Eligible applicants receive:
- Your farm residence and one acre of surrounding land will be taxed at your municipality’s residential tax rate
- The remainder of the farm assessment on the property will be taxed at 25% of the residential tax rate.
This tax can also be applied to tenant farmers, meaning if you rent your land to a licensed farmer the Property Class Tax Program is still applicable.Be sure to head here for more information about this program
Managed Forest Tax Incentive Program (MFTIP)
Landowners who have their property classified as a ‘Managed Forest’ will only pay 25% of the municipal tax rate set for residential properties. The landowner must apply for this program, and create a written plan.
To be eligible you need to:
- own 4 hectares (9.88 acres) or more of forested land on a single property in Ontario on one municipal roll number
- be a Canadian citizen or permanent resident
- be a Canadian corporation, partnership
- be a trust or conservation authority
- have a minimum number of trees on each hectare (acre) of forest you own
Conservation Land Tax Incentive Program (CLTIP)
Through this program, land that has important natural heritage features can qualify for a 100% property tax exemption. Properties that qualify are determined by the province. This tax program can apply to part of a farm, further reducing property tax.