I stopped farming in 2013, sold the remainder of land in Jan 2014, how do I enter that amount on the tax return when I have not actively farmed in 2014?

I stopped farming in 2013, sold the remainder of land in Jan 2014, how do I enter that amount on the tax return when I have not actively farmed in 2014?


Answer

For the end of your farming in 2013, you should go back and do an adjustment to your 2013 return. There is an area under the Income tab (in your T2042 Farming Identification Statement) where you can say that it was your final year of farming (see attached graphic). 

For your disposal of your land this year, do the following:

  1. On the Profile tab, select "Did you have income from investments such as interest earned on investments, the sale of stocks or stock options, the sale of real property, income from rental property or other related investment expenses?"
  2. Select Did you sell stock, bonds, mutual funds, real estate or other property?
  3. And here, you can decide which is better for your situation:
I sold my portion of a Canadian farm and fishing business (qualified farm or fishing property)              
Hope this helps. 
            

 

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