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   FARMING


   QUALIFIED FARM PROPERTY

In an October 3, 2005 External Technical Interpretation, CRA note that farmland is qualified farm property where it was used by the individual, or a parent or child of the individual, principally in the course of farming in Canada in at least five years during which the property was owned by the individual, or a parent or child of the individual (rules for pre-June 18, 1987 property). Because the property was farmed by the parent, it will be qualified farm property eligible for the enhanced capital gain exemption, even though it included a gravel pit operation.

In another October 3, 2005 External Technical Interpretation, CRA note that to be qualified farm property on post- June 18, 1987 property, the individual meeting the two-year gross revenue test may also be the spouse, child or parent. If a parent has met the two-year gross revenue test while he/she owned the property, and the parent later transfers the property to a child, the child is regarded as having met the two-year gross revenue test requirement even though the child may have never farmed the property.

Also, a reference to “parent” or a “child” includes a reference to a grandparent or a grandchild.

    “EBAY” OF THE FARMING WORLD
This website DirectAGSales.com focuses on internet auctions of farm products, materials, and equipment. Although the number of items being offered for sale at this point is fairly low, one can get an idea of the going rate for certain items. In addition, the site offers a localized weather forecast in addition to a variety of useful links and newsletters.

Also, if you own a store that sells farmrelated supplies and equipment, there is a section to enter information about your store and products. A website viewer will be able to see the information you have posted.
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