When farmers are looking at acquiring a new piece of equipment or land, it often becomes a question of whether it's better to lease or buy.

Chartered accountant Lance Stockbrugger is talking about the options as part of Farm Credit Canada's Seminar Series. Stockbrugger says when looking at leasing, it's important to make sure the lease is set up properly to avoid any tax implications at the end of the term.

"To make sure that you do get that full disclosure and interest rate is reasonable compared to what a buying interest rate might be in you were to get a loan, " he said. "The main thing to focus on is to make sure you have a reasonable attempt at the residual value and that you keep that number reasonable."

He says if the lease is not set up properly, Revenue Canada could look at it the same as a capital purchase. He adds that any gains on leased equipment do not qualify for capital gains exemption.