Net Income Stabilization Account

Administrative Policy

30 June 2016 External T.I. 2015-0583561E5 F - Déduction pour gain en capital - contamination

Agri-Québec and AgriInvest accounts included

Under the AgriInvest program (and the similar Agri-Québec program), if a farmer contributes up to 1% of his allowable net sales (or $15,000, if less) to an AgriInvest account, the federal and provincial government will together fund a matching contribution. The account can accumulate from year to year until it is used to recover from small income shortfalls, or make investments to reduce on-farm risks. In confirming that these accounts are "net income stabilization accounts,” CRA referred to the "net income stabilization account” definition in s. 248(1) (respecting AgriInvest accounts) and Reg. 5503(2) (respecting Agri-Québec accounts).

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1.1) AgriInvest accounts do not affect qualification of family farm or fishing corporations 97
Tax Topics - Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1) - Share of the Capital Stock of a Family Farm or Fishing Corporation AgriInvest accounts do not taint family farm or fishing corporations 113

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