| 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
| “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.
Doug Nicholson* & Co.,CGA *Professional Corporation
100-1780 Wellington Ave, Winnipeg, Manitoba R3H 1B3.