Qualified farm or fishing property
Property that, at a given time, is owned by a personal trust or by a family farm or fishing partnership of which a personal trust is a member, and that is:
- immovable property (land or a building) or a fishing vessel used mainly in a farming or fishing business in Canada:
- by a person that is a beneficiary who has a right to receive directly from the trust all or a portion of the trust's income or capital, or the beneficiary's spouse, child or parent, or
- by a family farm or fishing corporation or a family farm or fishing partnership in which the trust holds a share or interest;
- a share of the capital stock of a family farm or fishing corporation;
- an interest in a family farm or fishing partnership;
- property included in class 14.1 used in the course of carrying on a farming or fishing business in Canada by a person or partnership referred to above or by a personal trust from which the individual acquired the property.
Note
End of note
Note
As a rule, the property must be held for at least 24 months prior to the given time by the individual (or the individual's spouse, child or parent) from whom the trust acquired the property or by a family farm or fishing partnership of which the trust holds a share or interest. Furthermore, for the period during which the property (or the property substituted for the property) is owned by the individual or partnership in question, the following requirements must be met:
- the property is used principally in the farming or fishing business in which the trust's beneficiary is actively engaged on a regular and continuous basis and the individual's gross income from the farming or fishing business must exceed that person's income from all other sources; and
- the property (or the property substituted therefor) is used principally in the operation of a business by a family farm or fishing corporation or a family farm or fishing partnership in which the trust holds a share or interest and in which the beneficiary of the trust is actively engaged on a regular and continuous basis.