In this home study module we have outlined and discussed income tax and estate planning issues relevant to Nova Scotia woodlot owners. As you can see, these issues are very complex, and it was necessary to present the information in a general way.
The income tax rules that deal with the mechanical calculation of income and tax are black and white. But issues such as business income versus capital gains, reasonable expectation of profit, the preferred business entity, and the availability of the “enhanced” capital gains deduction require interpretation and judgement.
Income tax considerations are an important part of conducting business in our present economic and regulatory environment. The annual filing of an income tax return is important - but proper income tax planning involves far more. There is often uncertainty and tough calls have to be made. Your professional advisor can assist with this process.
Each individual’s situation is unique, and requires a specific estate plan. In complex situations professional help is advisable. As with any tax matter, circumstances change, so even the best of plans should be reviewed and updated on a regular basis