Government of Nova Scotia gov.ns.ca
gov.ns.ca Government of Nova Scotia Nova Scotia, Canada
Lands and Forestry

Topics

Module 10: Introduction to Woodlot - Income Tax and Estate Planning

TABLE OF CONTENTS

Part One - Woodlot Income and Tax

Lesson 1: Woodlot and Income Classification
    Nature of Business
  • Commercial vs. Non-Commercial Woodlot
  • Reasonable expectation of profit
  • Mixed-use woodlots
  • Is my commercial woodlot a farm business?
  • Contractors and Loggers
    Business Income and Capital Gains
  • Business Income
  • Commercial
  • Capital Gains
  • Non-Commercial
  • Adventure in the Nature of Trade
  • Payments Based on Production or Use
  • When is income reported?
  • Who reports the income?
  • Business Losses

Lesson 2: Business Types

    Business Entities
  • Proprietorship
  • Partnership
  • Corporation
  • Choosing the right business entity
  • Changing from one business structure to another
    Special Farm Rules
  • Cash Basis Accounting
  • Loss Carryovers
  • Restricted Farm Losses
  • Investment Tax Credits
  • Tax Consequences of Investment Tax Credits Table
  • Capital Gains/Succession
Lesson 3: Measuring Income
  • Record Keeping
  • Canada Revenue Agency requirements
  • Receipts/Revenues
  • Expenses
  • Capital costs
  • Capital Cost Allowance System Table
  • Depletion
  • Inventory
  • Maintenance and operating costs
  • Vehicles – what can I deduct?
  • Interest and taxes
Lesson 4: Miscellaneous Matters
  • Change-Of-Use
  • Government Grants
  • Year end
  • Income Splitting
  • Claw-Back, etc.
  • Filing your taxes on time

Part Two: Estate Planning

Lesson 1: Introduction to Estate Planning

  • The Need for Estate Planning
  • The Estate Planning Team
  • The Estate Planning Process
  • Developing and Implementing the Plan
Lesson 2: Estate Planning Tools
  • Wills
  • Trusts
  • The Taxation of Capital Gains
  • Dealing at Arm’s Length
  • Spousal Rollovers
  • Life Insurance
Lesson 3: Transfer Your Woodlot/Succession Planning
  • General rule – sale at fair market value
  • Farm Property Rollover to Children
  • Capital Gains Exemption
  • Crystallization
  • Intergenerational Transfer New Regulations
  • Estate freezing
Lesson 4: Other Things to Consider When Planning Your Future
  • The Need for Long-term Care
  • Donating Your Woodlot to Charity
  • Gifts of Ecologically-Sensitive Land
  • Probate Fees
  • Power of Attorney

Concluding Comments

Glossary of Terms

Appendix 1 - Decision Tree for Nature of Business and Income

Appendix 2 - Loss Carryover Period
Appendix 3 - 2009 N.S. Marginal Tax Rates
Appendix 4 - Record Keeping System
Appendix 5 - End Notes Referred to in Text, Tax Guides,
Appendix 6 - Exercise

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