In the context of a general response to a query regarding a taxpayer who was preparing to buy a woodlot, and then log the wood and sell it, CRA stated:
It is possible that the woodlot to be acquired by your client would be considered a "commercial non-farm woodlot", as that term is defined in Interpretation Bulletin IT-373R2, and that the woodlot would constitute a "timber limit" for purposes of the Act and Regulations. …
IT-373R2 describes the steps to be followed in determining the main tax rules that apply in respect of a woodlot. …