2007-10-26
End of the year fiscal planning : an important step not to be neglected!

My woodlot, my business Planning is very important in the exploitation of woodlots. A calendar of future harvests and a financial plan outlining the costs, revenues and profits must be established and followed. All commercial businesses must keep accounting records. The minimum required by the ministère du Revenu is a log of your revenues and expenses. Each transaction must be accompanied by a supporting document. Several expenses are eligible. Here are the most frequent: • Cutting right given to the forest contractor • Salaries paid to members of the family (under certain conditions) • Equipment rental fees • Interest paid on loans • Maintenance and repair of equipment • Tools under 200 $ • Telephone, electricity, property taxes and insurance (taking onto account the business percentage only). The main operation revenues are: • Sale of wood • Reimbursement of taxes • Grants (several are available) Tax on forest operations When the net revenue from logging operations is more than 10 000$, the owner must pay, for a taxation year, a tax equal to 10% of the total revenue, not just on the amount that exceeds 10 000$. This tax is payable only in Quebec and can be recovered in the form of a credit. These credits come from the federal for ⅔ of the taxes paid and ⅓ of the provincial. An expert can advise you on the many rules and tax breaks available to you as well as on the pitfalls best avoided. Jocelyne Gunville Administrative assistant