Principal Issues: 1) Does subsection 110.6(1.3) of the Act apply for the purpose of determining whether "shares of a particular corporation are "shares of the capital stock of a family farm corporation"? 2) Would arrangements such as a cash rental, crop share, custom work and a joint venture with a non-related farm corporation affect the individual's ability to claim the capital gains exemption and/or the individual's ability to transfer these shares to the individual's children on a tax deferred basis
Position: 1) No. 2) General comments provided.
Reasons: 1) If an individual's shares of a particular corporation are determined to be "shares of the capital stock of a family farm corporation" those shares would be "qualified farm property", as that term is defined in subsection 110.6(1) in their own right and there would be no need to refer to the additional requirements set out in subsection 110.6(1.3) of the Act in making such a determination. 2) IT-268R4, IT-349R3 and IT433R were indicated as addressing the questions.