In the context of a forest management operation that had been managed by the taxpayer and two other family members, CRA stated:
In general, it is necessary that, throughout the 24-month period preceding the time of disposition of the farm property, the property belonged to an individual or the individual’s spouse, common-law partner, child, or parent. Furthermore, in at least two years while the property was owned by one of those persons, it is necessary that the gross revenue of one of those persons from the farming business for the period during which the property was owned by one of those persons exceeded that person's income from all other sources for that period. Lastly, it is necessary that, in the same two-year period while the property was owned by one of those persons, the property was used principally in a farming business carried on in Canada in which one of those persons was actively engaged on a regular and continuous basis.
Thus, to the extent that either of your XXXXXXXXXX is satisfying the conditions set out in subsection 110.6(1.3), including the one relating to gross revenue, and that the activities on the farmland are farming, including forestry activities, we are of the view that your farmland would qualify as qualified farm property eligible for the capital gains deduction.