Page 44 - GBC English Fall 2019

The Parting Shot
Plan now for the future of your land
Greetings from Alberta! As I write this article, we are heading into July, which is the middle month of our golf season. We had a good start, with most courses in my area opening in early April, but we have been hit with a lot of rain, some snow and hail, and strong winds that have put a damper on getting momentum to our season. We had a warm January and a brutally cold February which resulted in winterkill at many courses, but they are mostly recovering from that now. I hope the rest of Canada is fairing better than us!
On a positive note, there appears to be a general feeling of optimism in my region. Although the oil business is not even close to where it was, there seems to be more activity around the area with trucks on the road and more people wanting to come out and enjoy a round of golf. Reliance on the oil business and the weather make for a gambler’s mix of possibilities.
This issue of Golf Business Canada has a focus on land ownership. There are as many different ownership structures as there are types of putters and every course will have their own challenges, including annexation or expropriation, sale of the property, succession planning, or community needs for the land. There are many examples in the news of golf courses wanting to restructure and become residential areas that have sparked much debate.
In my business, we have the issue of navigating potential capital gains when doing succession planning. Incorporating in 1963, the land value in rural central Alberta was relatively low, but our land value has soared as the city expanded to where the course is located. Land does not depreciate or appreciate on your balance sheet so when there is a transfer of shares in any number of different scenarios, the next generation could face huge capital gains tax when the current value of the property is compared to the book value.
If this is not dealt with properly and in advance, this scenario could push the next generation into a tax situation where they might have to sell the property to pay the tax. I strongly encourage you to consult an accountant who is well versed in succession planning to gather all the necessary information.
As the second half of this short season begins, its time to amp up programs, change what you can for the rest of the season, and start thinking about the conference coming up in November. If you haven’t already registered, I urge you to do so. I have learned more at the conferences, in particular at the educational sessions and through networking with fellow owners and operators, than I ever learned in college. It’s worth every penny and a nice way to round out the season and get inspired for the next one.
Sincerely,
Lesley McMahon
Owner, Balmoral Golf Course, AB President, NGCOA Canada lesley@balmoralgolf.ca
44 Golf Business Canada
Message From The NGCOA Canada President – Lesley McMahon