A taxpayer purchased the right to cut, over a period of 10 years, Christmas trees on another taxpayer's land for a lump sum payable over 4 years. After finding that this cutting right was not a timber resource property, nor a property referred to in Reg. 1100(1)(e), CRA found that it was a Class 14 property, stating:
[T]he right to cut Christmas trees could qualify as rights or privileges that allow the holder to carry on its business of selling Christmas trees or to facilitate that operation. Indeed, this right to cut allows the holder to obtain the raw material, the fir tree. In addition, according to the information you provided, we understand that this right to cut is not renewable. It seems to have a limited duration of 10 years.