When getting ready to sell farmland, don’t put the baler before the combine! 

Before the sale of your property, visit your trusted accountant to find out if The Lifetime Capital Gain Exemption (LCGE) is available to you. With farmers having the highest exemption at one million dollars of potentially tax-free capital gain on personally owned properties, as well as a wide variety of assets that also qualify, your accountant is going to be able to tell you if and for how much you qualify for. 

Does your property qualify?

If you’ve owned an actively farmed property for at least two years you may qualify for the full amount, or a portion, if say, a claim of business or investment loss had been made previously. That being said, an alternative minimum tax (AMT) may also be calculated that will see you pay some tax for one year, that is potentially refundable in the future.

Your accountant is a valuable professional and can help ensure you’re getting the best Lifetime Capital Gain Exemption available for your property.

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