Restricted Losses
It's farm losses you can claim, but you must be a full-time farmer. If farming was not your primary source of income, you can only claim a portion of your losses.
If your farm losses exceed $32,500 and you are a part-time farmer, you can claim $17,500 as a farm loss against income for the year.
If your farm losses are less than $32,500, the Canada Revenue Agency(CRA) requires you to complete this formula: $2,500 +.5 × (your net farm loss – $2,500).
For example, if your farm losses are $20,000, the result of $2,500 + .5 x ($20,000 – $2,500) is $11,250. Because $11,250 is less than your farm losses, that is the amount you report as your loss.
For more information, please click:
TurboTax Understanding Farm Losses
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