MKC Law OfficePeterborough, ON · February 10, 2026Gifting Farm Property: A Tax-Driven Strategy
When you want to keep the farm in the family. The Rollover Provision The Income Tax Act (Canada) (the “ ITA ”) provides special rollover rules for farmers when transferring property. “Qualified farm property” can be transferred by the farmer to a child on a tax-deferred basis, either during the farmer’s lifetime or on death. Subsection 73(3) of the ITA permits a rollover of qualified farm property to a child at the parent’s cost base rather than at fair market value provided specific conditions are met. These conditions include: 1. the property is situated in Canada; 2. the child receiving...
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