Respecting the qualified farm property status of a farm lot that was used as to 60% by Ms. X's husband in the course of carrying on market gardening between 1970 and 1977, and that was recently subdivided and then sold by her on a lot-by-lot basis, CRA stated:
[S]ince Ms. X inherited the land from her husband before June 18, 1987, we consider that the land was used in a farming business in Canada if one of the two conditions in paragraphs 110.6(1.3)(c)(i) or (ii) are satisfied. With respect to the use test in subparagraph 110.6(1.3)(c)(ii), … IT-373R2 … states that the criterion that an asset must be used "principally" in the course of carrying on the business of farming is satisfied if more than 50% of the asset’s use is actually for that business. Consequently, since Ms. X's husband used 60% of the land in the course of market gardening from 1970 to 1977, it appears that that criterion would be satisfied.