Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
XXXXXXXXXX
Attention: XXXXXXXXXX
Dear Sirs:
RE: XXXXXXXXXX
This is in reply to your letter of September 14, 1992 wherein you request an advance Income Tax Ruling concerning section 85 of the Income Tax Act (the ("Act") and enhanced capital gains exemption. In our telephone conversation (XXXXXXXXXX/Guglich) of November 5, 1992 you indicated that an opinion would be acceptable.
XXXXXXXXXX
You inquire whether the orchard property can be rolled into the corporation under section 85 of the Act and whether the orchard property would qualify for the enhanced capital gains exemption as a "qualified farm property".
Our Views
To the extent the orchard land is capital property it may be rolled into the corporation under section 85 of the Act for an elected amount which is between fair market value and the adjusted cost base of the orchard land.
The orchard land would qualify for the enhanced capital gain exemption provided it was purchased before June 18, 1987 and was used by your client in the business of farming in the year of disposition or in at least 5 years during which he owned the orchard land.
If your client requires an advance ruling it must be submitted in accordance with the guidelines described in Information Circular 70-6R2 dated September 28, 1990.
The foregoing comments represent our general views with respect to the subject matter of your letter. The facts of a particular situation may lead to different conclusions. The foregoing opinions are not rulings and, in accordance with the guidelines set out in Information Circular 70-6R2 dated September 28, 1990, are not binding on the Department.
Yours truly,
E. Wheeler for DirectorReorganizations and Non-Resident DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1992
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© Sa Majesté la Reine du Chef du Canada, 1992
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