Qualified farm or fishing property (QFFP)

A farm or fishing seller meets this term when working out whether a sale can use the capital gains deduction. The CRA’s capital gains guide says qualified farm or fishing property is certain property that you or your spouse or common-law partner owns, and certain property owned by a family-farm or fishing partnership in which you or your spouse or common-law partner holds an interest.

What the rules list

The CRA lists a share of a family-farm or fishing corporation, or an interest in a family-farm or fishing partnership, that you or your spouse or common-law partner owns. The Income Tax Act’s definition also covers real or immovable property or a fishing vessel used in a farming or fishing business in Canada by the individual, the individual’s spouse or common-law partner, child or parent, or certain corporations and partnerships of theirs. The conditions for each kind of property are detailed, so read subsection 110.6(1).

What to check or ask

• What kind of property is being sold: land, shares or a partnership interest
• Who has owned and used it, and for how long
• Whether the sale is structured to meet the definition

See quota, land and family transfers in a farm sale and the lifetime capital gains exemption.