Dealing with farm income can be a detailed process, but it doesn’t need to be a daunting one. The authors of this paper provide helpful considerations when confronted with a file that requires a determination of farm income. A brief background of farming corporations, sole proprietorship farms, and hobby farms is provided, and revenue sources and levels of income are discussed. Additionally, the authors review expenses, deductions, and adjustments applicable to farm income.  A sample T1 General Return, Statement of Farming Activities for Individuals, and Farming Calculation of Capital Cost Allowance are included..

This paper is part of a collection presented at LESA’s Reading Tax Returns and Corporate Financial Statements program in Edmonton on December 1, 2015 and in Calgary on December 8, 2015.