16 June 2008 External T.I. 2008-0270251E5 F - Bien utilisé dans une entreprise agricole -- summary under Paragraph 110.6(1.3)(c)

The Directorate indicated that in order to qualify as "property …used in the course of carrying on a farming business", the property must satisfy either paragraphs 110.6 (1.3)(a) and (b), or 110.6 (1.3)(a) and (c), depending on whether it was acquired after June 17, 1987 (otherwise than pursuant to an agreement in writing entered into before that date), or before that date. Per its summary, the Directorate noted:

We compared the definitions in the former wording of subsection 110.6(1) under "qualified farm property," and new subsection 110.6 (1.3). It can be seen that, despite the different wording, its tax effect remains the same.

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