Glassford v. The Queen, 2000 DTC 2531 (TCC) -- summary under Real Estate

The sale by the taxpayer of 320 acres of land on which there was standing timber to a corporation gave rise to a capital gain notwithstanding that the agreement of purchase and sale allocated $292,500 of the $357,500 purchase price to the standing timber and notwithstanding that the taxpayer's spouse subsequently purchased the land from the corporation for $65,000. O'Connor T.C.J. found that as the trees still standing formed part of the real property, consequently what occurred was the sale of real property.