CRA indicated that where an option was granted on a farm consisting of a principal residence and the farmland:
[T]he portion of the consideration received for the option and its extension allocated to the option for the disposition of the principal residence would not form part of the proceeds of disposition included pursuant to subsection 49(1).
The allocation of the consideration received for the option and its extension between the portion for the disposition of the principal residence and the portion for the disposition of the farmland could be based on the reasonable value attributed to each type of property in relation to the total value.