Words and Phrases - "timber"
7 November 2011 Internal T.I. 2011-0424641I7 F - Right to cut Christmas trees
A taxpayer purchased the right to cut, over a period of 10 years, Christmas trees on another taxpayer's land for a lump sum payable over 4 years. In finding that this cutting right was not a property referred to in Reg. 1100(1)(e) (and before finding that it was a Class 14 property), CRA reiterated its position in IT-373R2, para. 15 that:
A stand of Christmas trees is not viewed as a timber limit since the output is trees, not timber or similar products, and the capital cost allowance in Schedule VI of the Income Tax Regulations is not applicable.
CRA then stated:
Since the definition of "timber" in English brings us back to lumber and similar products, we interpret the term "bois" used in French (which translates the word "timber") in the same sense even though the term "bois" could have had a broader meaning. Thus, Christmas trees that are not lumber or a similar product would not be covered by the term "bois" used in French to translate the term "timber".
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Timber Resource Property | right to cut Christmas trees was not a timber resource property | 93 |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 14 | right to cut Christmas trees with 10-year term was a Class 14 property | 134 |