CRA finds that qualification of partnership units as interests in a family farm or fishing partnership can be based on a previous period of farming use of its assets

In the situation where a farming couple held a partnership holding the farm property, which leased the farm to a farm corporation, also owned by them, which used the land in its farming business for the first 11 of the 20 years that the land was held by the partnership – but, then, apparently ceased operations, CRA accepted that their interests in the partnership qualified under the s. 110.6 definition of "interests in a family farm or fishing partnership," because the land was used in the farming business for over half of the 20-year holding period by the partnership. Thus the units qualified at the end of the 20 year period even though the active use test by the family corporation was no longer satisfied at that time.

Neal Armstrong. Summary of 2013-0478961E5 Tr under s. 110.6(1) - interest in a family farm or fishing partnership.