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RC4408 Farming Income and the AgriStability and AgriInvest Programs Harmonized Guide - Canada.ca

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Farming Income and the AgriStability

and AgriInvest Programs

Harmonized Guide

2025 For AgriStability and AgriInvest participants in British Columbia, Manitoba, Newfoundland and Labrador, Nova Scotia, New Brunswick, Northwest Territories, and Yukon. RC4408(E) Rev. 25

Before you start

This guide will help you complete your forms to participate in the AgriStability and AgriInvest programs.

  • AgriStability – a margin-based program that provides support when you experience larger income losses
  • AgriInvest – a self-managed producer-government savings account designed to help producers:
  • manage small income declines
  • make investments to manage risk and improve market income Review this guide to make sure you fill out your forms correctly. Providing correct information on your forms helps us calculate your benefits accurately and prevents delays. Don’t forget to include your participant identification number (PIN) on your form. A missing PIN is one of the top reasons for processing delays. This guide gives you general information. For complete program rules, see the Sustainable Canadian Agricultural Partnership AgriStability and AgriInvest Program Guidelines.

Find out if this guide is for you

Use this guide and forms if all of the following applies to you. You:

  • want to participate in the AgriStability program or AgriInvest program, or both, for 2025
  • farm in British Columbia, Manitoba, Newfoundland and Labrador, Nova Scotia, New Brunswick, Northwest Territories, or the Yukon
  • earned farming income as a self-employed farmer or partner of a farm partnership, or by renting land under a crop share arrangement
  • are not a trust, a non-resident, a corporation, or an individual registered under the Contact your administration for a separate form and guide for these operations Do not use this guide and forms if you:
  • do not want to participate in the AgriStability or AgriInvest programs:
  • use Guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income
  • file Form T2042, Statement of Farming Activities
  • farm in Alberta, Saskatchewan, Ontario, or Prince Edward Island:
  • use Guide RC4060, Farming Income and the AgriStability and AgriInvest Programs
  • file Form T1163, Statement A – AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Individuals
  • farm in Quebec:
  • use Guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income
  • file Form T2042, Statement of Farming Activities

https://canada.ca/taxes

Indian Act farming on a reserve.

AgriStability and AgriInvest contact information

Federal Administration contact information

  • AgriStability is delivered by the federal government in Manitoba, Newfoundland and Labrador, Nova Scotia, New Brunswick, Northwest Territories, and Yukon.
  • AgriInvest is delivered by the federal government in the Northwest Territories, Yukon and all provinces except Quebec. If you have questions about your participation in the AgriStability and the AgriInvest programs, contact the federal Administration at the address listed below. AgriStability and AgriInvest Administration PO Box 3200 Winnipeg MB R3C 5R7 Toll-free telephone: 1-866-367-8506 Calling from outside Canada: 204-926-9650 Send Forms T1273 and T1274 to the Winnipeg Tax Centre at the mailing address on the following page. For more information on the programs, go to agriculture.canada.ca/agristability Provincial Administration contact information AgriStability is delivered provincially in British Columbia, Alberta, Saskatchewan, Ontario, Quebec and Prince Edward Island. If you have questions about your participation in AgriStability or want to request copies of the forms and guides, contact your provincial Administration at one of the numbers listed below.
  • For Alberta, contact: Agriculture Financial Services Corporation 5718-56th Avenue Lacombe AB T4L 1B1 Toll-free telephone: 1-877-899-2372 Toll-free fax: 1-855-700-2372 Email: info@afsc.ca Website: afsc.ca
  • For British Columbia, contact: AgriStability Administration Ministry of Agriculture and Food 200-1500 Hardy Street Kelowna BC V1Y 8H2 Toll-free telephone: 1-877-343-2767 Toll-free fax: 1-877-605-8467 Email: AgriStability@gov.bc.ca Website: gov.bc.ca/agristability
  • For Ontario, contact: Agricorp 1 Stone Road West Box 3660, Stn. Central Guelph ON N1H 8M4 Toll-free telephone: 1-888-247-4999 Fax: 519-826-4334 Email: contact@agricorp.com Website: agricorp.com

https://canada.ca/taxes

and agriculture.canada.ca/agriinvest.

  • For Prince Edward Island, contact: AgriStability Administration Agricultural Insurance Corporation PO Box 400 7 Gerald McCarville Drive Kensington PE C0B 1M0 Telephone: 902-836-0435 Fax: 902-836-8912 Email: AICStability@gov.pe.ca Website: princeedwardisland.ca
  • For Quebec, contact: La Financière agricole du Québec Toll-free telephone: 1-800-749-3646 Fax: 418-833-3871 Website: fadq.qc.ca
  • For Saskatchewan, contact: Saskatchewan Crop Insurance Corporation (SCIC) Box 3000 484 Prince William Drive Melville SK S0A 2P0 Toll-free telephone: 1-866-270-8450 Toll-free fax: 1-888-728-0440 Email: agristability@scic.ca Website: scic.ca

Forms and publications

Use the following forms with this guide:

  • T1273, Statement A – Harmonized AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Individuals
  • T1274, Statement B – Harmonized AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Additional Farming Operations
  • T1175, Farming – Calculation of Capital Cost Allowance (CCA) and Business-use-of-home Expenses
  • T1275, AgriStability and AgriInvest Programs Additional Information and Adjustment Request Throughout the guide, we refer to other forms and publications. If you need any of these, go to

Where to mail your forms and return

Send the following to the Winnipeg Tax Centre:

  • your income tax return
  • Form T1273
  • Form T1274
  • Form T1175 Mailing address: Canada Revenue Agency Winnipeg Tax Centre PO Box 14001, Station Main Winnipeg MB R3C 3M3 The Winnipeg Tax Centre is the only tax centre that processes these forms. Do not attach correspondence or anything else intended for the AgriStability or AgriInvest programs to your forms. See “How to send additional information for AgriStability and AgriInvest” below.

How to send additional information for AgriStability and AgriInvest

Use Form T1275, AgriStability and AgriInvest Programs Additional Information and Adjustment Request information for your AgriStability and AgriInvest form. Send Form T1275 and any attachments to your administration at the same time that you send your Form T1273 to the CRA. To get this form, go to agriculture.canada.ca/agristability and For more information, see “Adjustments” on page 23.

If you need more information

If you have questions about your participation in AgriStability, contact either:

  • the federal Administration at the address provided on the previous page if you farm in Manitoba, Newfoundland and Labrador, Nova Scotia, New Brunswick, Northwest Territories, or the Yukon
  • your provincial Administration at the address provided on the previous page if you farm in British Columbia If you have questions about your participation in AgriInvest, contact:
  • the federal Administration at the address provided on the previous page. The federal Administration delivers AgriInvest in the Northwest Territories, Yukon and all provinces except Quebec If you have questions about reporting your farm income for tax purposes, contact the CRA at This guide explains the most common tax situations.

https://canada.ca/taxes

https://canada.ca/cra-forms. , to send additional agriculture.canada.ca/agriinvest or call 1-866-367-8506. 1-800-959-5525.

What’s new for 2025

New items in this guide are outlined in colour. These include changes introduced in the 2025 federal budget that had not yet become law at the time this guide was published.

New filing deadlines for AgriInvest

Starting with the 2025 program year, the new initial deadline for AgriInvest participants to send a form (without penalty) is June 30, 2026. The new final deadline to send a form (with penalty), or to file a 2025 income tax return reporting farming income (loss) to the CRA to be eligible for AgriInvest program benefits is September 30, 2026. For more information, see “Important information for AgriStability and AgriInvest” on page 15.

New filing deadlines for AgriStability for British Columbia

Starting with the 2025 program year, the new initial deadline for AgriStability participants in British Columbia to send a form (without penalty) is June 30, 2026. The new final deadline to send a form (with penalty), or to file a 2025 income tax return reporting farming income (loss) to the CRA to be eligible for AgriStability program benefits is September 30, 2026.

Automobile deduction limits

On December 30, 2025, the Government of Canada announced the automobile deduction limits for 2025. For Class 10.1 passenger vehicles (new and used) acquired on or after January 1, 2025, the prescribed amount increases from $37,000 to $38,000, before tax. The maximum deductible automobile leasing costs increase from $1,050 to $ 1,100 per month, before tax, for new leases entered into on or after January 1, 2025.

Critical mineral exploration tax credit and mineral exploration tax credit

Under proposed changes, the critical mineral exploration tax credit has been expanded to include 13 new critical minerals, including bismuth, cesium, chromium, fluorspar, germanium, indium, manganese, molybdenum, niobium, phosphate, tantalum, tin, and tungsten. This expansion applies only to eligible flow through-shares issued after November 4, 2025, and before April 1, 2027. Under proposed changes, the mineral exploration tax credit has also been extended for qualifying flow-through share agreements entered into before April 1, 2027. For more information, see “Critical mineral exploration tax credit” on page 19 and “Mineral exploration tax credit” on page 19.

Capital cost allowance

Accelerated investment incentive property and reaccelerated investment incentive property Under proposed changes, the accelerated investment incentive property (AIIP) rules are available for qualifying property acquired before January 1, 2025, and that becomes available for use before 2028, and the reaccelerated investment incentive property (RIIP) rules are available for qualifying property acquired on or after January 1, 2025, and that becomes available for use before 2034. RIIP has a four-year phase-out for property that becomes available for use after 2029. For more information about accelerated investment incentive and reaccelerated investment incentive, see “Chapter 5 – Capital cost allowance” on page 75. Enhanced first year capital cost allowance Under proposed changes, the enhanced first-year capital cost allowance (CCA) can be up to 100% for new additions of property to the following CCA classes:

  • Class 43.1 property that becomes available for use before 2034
  • Class 44, 46, and 50 property acquired after April 15, 2024, and that becomes available for use before 2027.
  • Class 53 property acquired before 2026 and Class 43 property acquired after 2025
  • Class 54, 55, and 56 property that is acquired and that becomes available for use before 2034 There is a four-year phase out period of the amount of the enhanced first year allowance for most of the classes for property that becomes available for use after 2029. For more information, see “Classes of depreciable property” on page 86.

https://canada.ca/taxes

Changes to Class 43.1 Under proposed changes there are new conditions that transmission equipment must meet to be included in the class and other restrictions on properties included in the class. For more information, see “Class 43.1 (30%) and Class 43.2 (50%) – Clean energy equipment” on page 89. https://canada.ca/taxes

The term income tax return used in this guide has the same meaning as The CRA’s publications and personalized correspondence are available in braille, large print, e-text, and MP3. For more information, go to https://canada.ca/cra-multiple-formats

or call 1-800-959-5525.

This guide uses plain language to explain the most common tax situations. It is provided for information only and does not replace the law. La version française de ce guide est intitulée Guide harmonisé des revenus d’agriculture et des programmes Agri-stabilité et Agri-investissement. Unless otherwise stated, all legislative references are to the Income Tax Act The Canada Revenue Agency uses the term Indian as it has legal meaning under the https://canada.ca/taxes

Income Tax and Benefit Return. or, where appropriate, the Income Tax Regulations. Indian Act.

Generated Markdown table of contents

Table of contents

Page Chapter 1 – General information..................................... 9 Farming income................................................................... 9 How to report your farming income................................. 10 Business records................................................................... 12 Instalment payment............................................................. 14 Dates to remember.............................................................. 14 Important information for AgriStability and AgriInvest......................................................................... 15 Employment insurance premiums.................................... 16 Goods and services tax/harmonized sales tax (GST/HST)................................................................. 16 Find out what a partnership is........................................... 16 Chapter 2 – Your AgriStability and AgriInvest programs........................................................ 19 Participating in the programs............................................ 20 Form T1273, Statement A – Harmonized AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Individuals......... 21 Form T1274, Statement B – Harmonized AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Additional Farming Operations......................................................... 22 Completing the forms......................................................... 22 Participant information....................................................... 23 Other farming information................................................. 26 Identification........................................................................ 26 Chapter 3 – Calculating your farming income or loss.. 27 Commodity and Program payment code lists................. 27 Income................................................................................... 27 Income from program payments....................................... 33 Other farming income......................................................... 35 Summary of income............................................................ 38 Expenses............................................................................... 38 Commodity purchases........................................................ 41 Repayment of program benefits........................................ 42 AgriStability program – Allowable expenses.................. 42 AgriStability program – Non-allowable expenses.......... 45 Summary of income and expenses.................................... 57 Partnership information chart............................................ 62 Chapter 4 – Inventories, purchased inputs, deferrals, receivables and payables........... 63 For AgriStability participants............................................ 63 If the productive capacity of this operation decreased during the program year due to disaster circumstances................................................................... 64 Crop inventory valuation and productive capacity........ 64 Livestock inventory valuation........................................... 70 Livestock productive capacity........................................... 71 Purchased inputs................................................................. 72 Deferred income and receivables...................................... 73 Accounts payable................................................................. 74 8

Page Chapter 5 – Capital cost allowance (CCA)..................... 75 Find out what capital cost allowance is........................... 75 How much CCA you can claim......................................... 77 Form T1175, Farming – Calculation of Capital Cost Allowance (CCA) and Business-use-of-home Expenses........................................................................... 78 Classes of depreciable property........................................ 86 Special situations................................................................. 93 Chapter 6 – Farm losses..................................................... 100 Fully deductible farm losses.............................................. 100 Restricted farm losses (partly deductible)....................... 101 Non-deductible farm losses............................................... 102 Non-capital losses............................................................... 102 Chapter 7 – Capital gains.................................................. 103 Find out what a capital gain is.......................................... 103 Find out what a capital loss is........................................... 103 How to calculate your capital gain or loss....................... 104 Restricted farm losses......................................................... 106 Qualified farm or fishing property and cumulative capital gains deduction................................................... 106 Real property or property included in Class 14.1........... 107 Transfer of farm or fishing property to a child............... 108 Transfer of farm or fishing property to a spouse or common-law partner...................................................... 110 Other special rules.............................................................. 110 Information reporting related to reportable transactions and notifiable transactions....................... 111 Commodity list................................................................... 113 Program payment list A.................................................... 116 Program payment list B..................................................... 118 Inventory code list............................................................. 120 Regional code list............................................................... 144 Units of measurement code list....................................... 146 Expense code list................................................................ 146 Productive capacity list..................................................... 147 Capital cost allowance (CCA) rates................................. 149 How to calculate the mandatory inventory adjustment (MIA)............................................................... 151 GST/HST rates.................................................................... 152 Digital services................................................................... 154 For more information........................................................ 157

Chapter 1 – General information

Farming income

Farming income includes income you earned from the following activities:

  • soil tilling
  • livestock raising or showing
  • racehorse maintenance
  • poultry raising
  • dairy farming
  • fur farming
  • tree farming
  • fruit growing
  • beekeeping
  • cultivating crops in water or hydroponics
  • Christmas tree growing
  • operating a chicken hatchery
  • operating a feedlot In certain circumstances, you may also earn farming income from:
  • raising fish
  • market gardening
  • operating a nursery or greenhouse
  • operating a maple sugar bush (includes the activity of maple sap transformation into maple products if this activity is considered incidental to the basic activities of a maple sugar bush, such as the extraction and the collection of maple sap, which are farming activities) Generally, livestock are domestic animals bred, raised, or kept on a farm or ranch, normally in an agricultural setting, for commercial profit. They may also be used in the production of commodities such as food and fibre, as well as for labour. For more information, see Interpretation Bulletin IT-427, Livestock of Farmers The raising or breeding of animals, fish, insects or any other living thing, to be sold as pets is considered a business activity and must be reported as business income on Form T2125, Activities. Generally, farming income does not include income you earned from working as an employee in a farming business, from trapping or from sharecropping. For more information on sharecropping arrangements, see Income Tax Folio S4-F11-C1, Meaning of Farming and Farming Business. For partnerships or joint ventures, see Income Tax Folio S4-F16-C1, a Partnership? Note Income earned from the following is not allowable for AgriStability or AgriInvest even if it may be considered farming income for income tax purposes:
  • aquaculture trees and seedlings sold for use in reforestation
  • wood sales peat moss
  • wild game reserves cannabis (except for industrial hemp)

For more information on how to report income earned from non-allowable commodities, see “Income” on page 27. Note Sales and purchases of supply managed commodities are not allowable for AgriInvest. https://canada.ca/taxes

. not a farming activity. It is Statement of Business or Professional What is 9

Reporting income and penalties

You must report all your income in your income tax return. If you do not report income The CRA will charge you a penalty if you do not report an amount equal to or greater than $500 that is required to be included in computing your income on your return in a tax year and any of the three previous tax years. If you failed to report an income after your first omission, the penalty is the lesser of:

  • 10% of the amount you did not report on your return for the tax year
  • 50% of the difference between the understated tax payable (and certain overstated refundable tax credits) related to the amount you did not report and the amount of tax withheld related to the amount you did not report False statements or omissions The CRA will charge you a penalty if you knowingly or under circumstances of gross negligence, have made or have participated in the making of the false statement or omission on your income tax return. The penalty is the greater of either $100 or 50% of the amount of understated tax. Note If you are charged a penalty for making a false statement or omission, you cannot be charged a penalty on the same amount for failing to report income. For more information about penalties, go to https://canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/interest-penalties/false-reporting. When you must start reporting income and can start deducting expenses You must start reporting your income and can start deducting your expenses when your business starts. We look at each case on its own merits. Generally, we consider your business to have started whenever you begin some significant activity that is a regular part of the business, or that is necessary to get the business going. Suppose you do research on how to start a business in the hope of going into a business of some kind. We would not consider that as a significant activity that is a regular part of the business. So we would not consider your business to have begun at the time you started doing research. In that case, you cannot deduct any of the costs you have incurred for research. Suppose you decide to buy enough goods for resale or equipment to start your business. We would consider this to be the starting point of your business. From that point, you can usually deduct all the expenses you incur for the business to earn income. You may still deduct the expenses even if, despite all your efforts, your business ended. For more information about the start of a business, see Interpretation Bulletin IT-364, Statistics Canada is allowed by law to get business information collected by the Canada Revenue Agency (CRA). Statistics Canada can share the data with provincial statistical agencies to use for research and analysis purposes only. The data is related to business activities carried on in their respective province.

How to report your farming income

You can earn farming income as a self-employed farmer or as a partner of a farm partnership, or both. Most of the rules that apply to self-employed farmers also apply to partners. However, if you are a partner, you should see “Reporting partnership income” on page 17. Fiscal period Report your farming income based on a fiscal period. A fiscal period starts and the day it ends its business year. For an existing business, the fiscal period is usually 12 months. A fiscal period cannot be longer than 12 months. However, it can be shorter than 12 months in some cases, such as when a new business starts or when a business stops. Self-employed individuals generally have to use a December 31 year-end. If you are an eligible individual, you may be able to use another method of reporting business income that allows you to have a fiscal period that does not end on December 31. If your fiscal year-end is not December 31, see Form T1139, Purposes, to calculate the amount of business income to report on your 2025 income tax return. If you filed Form T1139 with your 2024 income tax return, generally you have to file one again for 2025. 10 https://canada.ca/taxes

Commencement of Business Operations. is the time between the day your farming business Reconciliation of 2025 Business Income for Tax

Note If you receive a T4A slip that includes amounts accrued and reported in a previous year, do not claim that income again in the current year. Instead, write a letter showing the amount and the year you reported the income. If you file on paper, you may include the letter with your return. If you file electronically, keep the letter in case the CRA asks to see it. Reporting methods You can report your farming income using the cash method or the accrual method of accounting. Cash method Note You can use the cash method of accounting for your farming activities, but must use the accrual method for separate business activities or for GST/HST/QST purposes. You must keep a separate set of records for each accounting method that you use. When you use the cash method you must:

  • report income in the fiscal period you receive it
  • deduct expenses in the fiscal period you pay them For special rules, see “Prepaid expenses” on page 41. If you use the cash method and receive a post-dated cheque as security for a debt, include the amount in income when the cheque is payable. If you receive a post-dated cheque as an absolute payment for a debt and the cheque is payable before the debt is due, include the amount in your income on one of the following dates, whichever is earlier:
  • the date the debt is payable
  • the date you cash or deposit the cheque Note The post-dated cheque rules apply to income-producing transactions, such as the sale of grain. They do not apply to transactions involving capital property, such as the sale of a tractor. Only farmers, fishers, and self-employed commission agents can use the cash method. All other business income must be reported using the accrual method. When you use the cash method in a farming business, do not include inventory when you calculate your income. There are, however, two exceptions to this rule. For more information on the cash method for farming income and the exceptions, see Income Tax Folio S4-F11-C1, of Farming and Farming Business. For more information, see “Line 9941 – Optional inventory adjustment – current year” on page 57 and “Line 9942 – Mandatory inventory adjustment – current year” on page 57. Accrual method When you use the accrual method you must:
  • report income in the fiscal period you earn it, no matter when you receive it
  • deduct expenses in the fiscal period you incur them, whether or not you pay them in that period Incur usually means you either paid or will have to pay the expense. For special rules, see “Prepaid expenses” on page 41. When you calculate your income using the accrual method, the value of all inventories, such as livestock, crops, feed, and fertilizer, will form part of the calculation. Make a list of your inventory and count it at the end of your fiscal period. Keep this list as part of your business records.

https://canada.ca/taxes

Meaning 11

You can use one of the following methods to value your inventory:

  • Value all inventory at its fair market value (FMV) (see the definition on page 76). Use either the price you would pay to replace an item or the amount you would get if you sold an item.
  • Value individual items at cost or FMV, whichever is less. You can value items by group when you cannot easily tell one item from another. Cost is the price you incur for an item, plus any expenses to get it to your business location and put in a condition of use for your business.
  • Value livestock according to the unit price base. For this method, complete Form T2034, Prices for Animals. Use the same method you used in past years to value your inventory. The value of your inventory at the start of your 2025 fiscal period is the same as the value at the end of your 2024 fiscal period. In your first year operating a farming business, you will not have an opening inventory at the start of your fiscal period. For more information on inventories, see Interpretation Bulletin IT-473, Note If you use the accrual method to calculate your farming income, calculate your cost of goods sold on a separate piece of paper. Changing your method of reporting income If you decide to change your method of reporting income from the when you file your next income tax return. Make sure you include a statement that shows each adjustment made to your income and expenses because of the difference in methods. If you decide to change from the cash method to the accrual method
  • get permission from your tax services office
  • ask for this change in writing before the date you have to file your income tax return
  • explain why you want to change methods in your letter The cash and accrual methods are different. The first time you file your income tax return using the accrual method, make sure you include a statement that shows each adjustment made to your income and expenses. For information on how to report income and expenses for both the AgriStability and AgriInvest programs, and for tax purposes, see “Method of accounting” on page 26.

Business records

You are required by law to keep records of all your transactions to be able to support your income and expense claims. A record is defined to include an account, an agreement, a book, a chart or table, a diagram, a form, an image, an invoice, a letter, a map, a memorandum, a plan, a return, a statement, a telegram, a voucher and any other proof containing information, whether in writing or in any other form. Keep a record of your daily income and expenses. We do not issue record books nor suggest any type of book or set of books. There are many record books and bookkeeping systems available. You can use a book that has columns and separate pages for income and expenses. Keep your duplicate deposit slips, bank statements, and cancelled cheques. Keep separate records for each business you run. If you want to keep computerized records, make sure they are clear and easy to read. Note Do not send your records with your income tax return. However, do keep them in case we ask to see them at a later date. Benefits of keeping complete and organized records You can benefit from keeping complete and organized records. For example:

  • When you earn income from many places, good records help you identify the source of income. If you keep proper records, you may be able to prove that some income is not from your business, or that it is not taxable
  • Keeping good records will remind you of expenses you can deduct when it is time to do your income tax return
  • Good records will keep you better informed about the past and present financial position of your business
  • Good records can help you budget, spot trends in your business, and get loans from banks and other lenders
  • Good records can prevent problems you may run into if we audit your income tax returns 12 https://canada.ca/taxes

Election to Establish Inventory Unit Inventory Valuation. accrual method to the cash method, use the cash method :

Consequences of not keeping adequate records If you do not keep the necessary information and you do not have any other proof, we may have to determine your income using other methods. We may also disallow expenses you deducted if you cannot support them. There are penalties for not keeping adequate records, for not giving the CRA access to your records when requested, and for not giving information to CRA officials when asked. Income records Keep track of the gross income your farming business earns. Gross income is your total income before you deduct expenses, including those related to the goods sold. Your income records should show the date, amount, and source of the income. Record the income whether you received cash, property, or services. Support all income entries with original documents. Original documents include:

  • sales invoices
  • cash register tapes
  • receipts
  • cash purchase tickets from the sale of grain
  • cheque stubs from marketing boards
  • bank deposit slips
  • fee statements
  • contracts Expense records Always get receipts or other vouchers when you buy something for your business. The receipts have to show all of the following:
  • the date of the purchase
  • the name and address of the seller or supplier
  • the name and address of the buyer
  • a full description of the goods or services
  • the vendor’s business number if they are a GST/HST registrant when the purchase price is $100 or more (before taxes) You were asking? Q. What should I do if there is no description on a receipt? A. When you buy something, make sure the seller describes the item. However, sometimes there is no description on the receipt, as with a cash register tape. In this case, you should write what the item is on the receipt or in your expense records. Q. What should I do if a supplier does not want to give me a receipt? A. When you buy something, make sure you get a receipt. Farmers must get documentation to support the transactions they enter in their books and records. Your transactions may be denied if you do not have the proper documentation to support your purchases. For more information, see Guide RC4022, Keep a record of the properties you bought and sold. This record should show who sold you the property, the cost, and the date you bought it. This information will help you calculate your capital cost allowance (CCA) and other amounts. Chapter 5 explains how to calculate CCA. If you sell or trade a property, show the date you sold or traded it and the amount of the payment or credit from the sale or trade-in.

https://canada.ca/taxes

General Information for GST/HST Registrants. 13

Example The following expense journal is an example of how to record your expenses for one month: Cheque GST Date Particulars Bank No. (5%) July 1 XYZ Radio 407 367.50 17.50 Smith July 1 408 26.95 1.28 Hardware July 2 City of Ottawa 409 157.50 7.50 Andy’s July 3 410 262.50 12.50 Accounting Wholesale July 5 411 1,836.60 87.46 1,749.14 Supply Inc. Ed’s Used July 5 412 1,575.00 75.00 Cars For more information on how to keep your business records, the time limits, and to learn more about the benefits of keeping records complete and organized, go to https://canada.ca/taxes-records

Instalment payment

As a self-employed farmer, you may have to pay an instalment payment. In most cases, we will send you an instalment reminder showing an instalment amount we have calculated for you. You can view your instalment reminders in your CRA account using one of the following:

  • My Account for income tax instalments
  • My Business Account for GST/HST instalments To sign in to your CRA account, go to https://canada.ca/cra-sign-in-services. If you earn farming income, your instalment payment is due December 31. Note If this date falls on a Saturday, Sunday, or public holiday, you have until the next business day to make your instalment payments. There are different methods you can use to calculate instalment payments. For example, you can use the Instalment payment calculator service at My Business Account to calculate them and view their due dates. Go to one of the following:
  • My Business Account at https://canada.ca/cra-sign-in-services, if you are a business owner
  • Represent a Client at https://canada.ca/cra-sign-in-services, if you are an authorized representative or employee You may have to pay interest and a penalty if you do not pay the full instalment amount owed on time. For more information on instalment payments or instalment interest charges, go to

Dates to remember

February 28, 2026 – If you have employees, file your 2025 T4 Summary and T4A Summary. Also, give your employees their copies of the T4 and T4A slips. March 31, 2026 – Most farm partnerships with individuals as partners are required to file a partnership information return. However, there are exceptions, see Guide T4068, Guide for the Partnership Information Return (T5013 forms) April 30, 2026 – Pay any balance owing for 2025. Also, file your 2025 income tax return, if the expenditures of your business are mainly the cost or the capital cost of tax shelter investments. June 15, 2026 – File your 2025 income tax return if you have self-employed farming income, or if you are the spouse or common-law partner of someone who does, unless your business expenditures are mainly the cost or the capital cost of tax shelter investments. Remember to pay any balance owing due by April 30, 2026, to avoid interest charges. 14 https://canada.ca/taxes

Legal & Capital Purchases Adv. Permit Repairs Acct. items 350.00 25.67 150.00 250.00 1,500.00 . https://canada.ca/taxes-instalments. .

June 30, 2026 – For AgriInvest participants in the Northwest Territories, Yukon and all provinces (except Quebec), this is your new initial deadline (without penalty) to send your 2025 Form T1273 to the Winnipeg Tax Centre. If you are an AgriStability participants in British Columbia, Manitoba, Nova Scotia, New Brunswick, Newfoundland and Labrador, Northwest Territories, or Yukon, this is your initial deadline (without penalty) to send your 2025 Form T1273 to the Winnipeg Tax Centre. For more information, see “Important information for AgriStability and AgriInvest” below. September 30, 2026 – For AgriInvest participants in the Northwest Territories, Yukon and all provinces (except Quebec) and for AgriStability participants in British Columbia, Manitoba, Nova Scotia, New Brunswick, Newfoundland and Labrador, Northwest Territories, or Yukon, this is your:

  • final deadline to send your 2025 Form T1273 (with penalty) to the Winnipeg Tax Centre
  • deadline to file your 2025 tax return reporting farming income (loss) to the CRA to be eligible for 2025 AgriStability and AgriInvest benefits. For more information, see “Important information for AgriStability and AgriInvest” below. December 31, 2026 – Make your instalment payment if you meet the following conditions:
  • your main source of income in 2025 is self-employment income from farming
  • your net tax owing is more than $3,000 in each of 2023, 2024, and 2025 ($1,800 if you live in Quebec on December 31 for any of those years) For more information on paying your income tax by instalments, go to Note If any of the dates mentioned above fall on a Saturday, Sunday, or public holiday, you have until the next business day to file your return or make your payment.

Important information for AgriStability and AgriInvest

AgriStability To participate in AgriStability, complete and send pages 1 to 7 of the 2025 Form T1273 to the Winnipeg Tax Centre at the address listed in the “Where to mail your forms and return” section on page 4. For AgriStability participants in British Columbia, Manitoba, Nova Scotia, New Brunswick, Newfoundland and Labrador, Northwest Territories, or Yukon, the initial deadline to send your 2025 Form T1273 without penalty is June 30, 2026. The final deadline to send your form with penalty is September 30, 2026. Forms received after September 30, 2026, will not be eligible for AgriStability benefits. In addition to filing your Form T1273, you must file your 2025 tax return reporting farming income (loss) to CRA by September 30, 2026 to be eligible for 2025 AgriStability benefits. We will reduce your AgriStability benefit by $500 for each month (or part of a month) you send your 2025 Form T1273 between the initial and final deadline. Note If you received an AgriStability Interim Payment or a Targeted Advance Payment (or both), you must complete a 2025 Form T1273 and send it to the Winnipeg Tax Centre by the final deadline for the 2025 program year. If you do not, you will have to repay the money you received. If the initial or final deadlines fall on a Saturday, Sunday, or public holiday, you have until the next business day to file your form. AgriInvest To participate in AgriInvest, complete and send pages 1 to 5 of the 2025 Form T1273 to the Winnipeg Tax Centre at the address listed in the “Where to mail your forms and return” section on page 4. The initial deadline to send your AgriInvest form without penalty is June 30, 2026. The final deadline to send your form with penalty is September 30, 2026. In addition to filing Form T1273, you must file your 2025 tax return reporting farming income (loss) to CRA by September 30, 2026 to be eligible for 2025 AgriInvest benefits. We will reduce your maximum matchable deposit by 5% for each month (or part of a month) that you send your form between the initial and final deadline. Forms received after September 30, 2026 will not be eligible for benefits. https://canada.ca/taxes

https://canada.ca/taxes-instalments. 15

If the initial or final deadlines fall on a Saturday, Sunday, or public holiday, you have until the next business day to file your form.

Employment insurance premiums

As a self-employed individual you may be eligible to contribute to employment insurance (EI) for yourself. You may register to participate if you meet the eligibility criteria defined by Service Canada. Beginning in the year you register, your EI premiums will be calculated on your income tax return for that year. If you register in 2025 to participate in this program, premiums for 2025 will be calculated on your 2025 income tax return. These premiums will be payable by April 30, 2026. Subsequently, if you pay your income tax by instalments, EI premiums may be included in your instalment payments. When you register for the EI program, EI premiums will be payable on your self-employment income for the entire year, regardless of the date you register. For example, whether you register in April 2024 or December 2025, you will pay EI premiums on your self-employment income for the entire 2025 year. EI premiums are payable on the amount of your self-employment earnings up to an annual maximum amount. The annual maximum amount for 2025 is $65,700. Claim your provincial or territorial non-refundable tax credit for the EI premiums on the provincial or territorial Form 428 on line 58305. For more information, go to https://canada.ca/service-canada-home.

Goods and services tax/harmonized sales tax (GST/HST)

Generally, you must register for the GST/HST if your worldwide gross revenues from your taxable supplies of property and services and those of your associates are more than $30,000 in a single calendar quarter or over four consecutive calendar quarters. Taxable supplies of property and services include those that are subject to GST/HST at the applicable rate and those that are taxed at 0% (zero-rated). Do not include in your calculation any revenues from sales of capital property, supplies of financial services or goodwill from the sale of a business. Note If your gross revenue is equal to or less than $30,000, you do not have to register for GST/HST purposes. If you make taxable supplies in your business, you can register if you want to. If you are registered, you may be eligible to claim input tax credits. For information about how the GST/HST applies to taxable farm goods and services, zero-rated farm products, and zero-rated farm purchases, see page 152. For more general information on GST/HST, go to https://canada.ca/gst-hst Registrants. For more information about registering for GST/HST purposes, see GST/HST Memorandum 2.1, Required Registration. The GST/HST Registry The GST/HST Registry is an online service you can use to confirm the GST/HST number of a business. You can use this registry to check if your suppliers are registered for GST/HST when you claim an input tax credit. For more information, go to https://canada.ca/gst-hst-registry. For businesses registered under the simplified regime, you can also use the regime’s new registry to confirm their GST/HST number. GST/HST paid on purchases from these businesses is to https://canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/digital-economy-gsthst/confirming-simplified-gst-hst-account-number. You can check the Quebec sales tax (QST) registration number of any registered business at /EntNa/SX/SX00/SX00.SXCLT20A.ValiderInscription/SXCLT20AA businesses registered under the specified QST regime at https://revenuquebec.ca/en/businesses/consumption-taxes/gsthst-and-qst/special-cases-gsthst-and-qst/suppliers-outside-quebec/list-of-suppliers-outside-quebec-that-are -registered-for-the-qst.

Find out what a partnership is

A partnership is defined as the relationship that exists between persons carrying on a business in common with a view to profit. You can have a partnership without a written agreement. To help you decide if you are a partner in a certain business, determine the type and extent of your involvement in the business and check your province or territory’s laws. 16 https://canada.ca/taxes

or see Guide RC4022, General Information for GST/HST not eligible for input tax credits. For more information, go entreprises.revenuquebec.ca . You can also verify the registration number of

When you form, change, or dissolve a partnership, consider:

  • whether the relationship is a partnership
  • the special rules about capital gains or losses and the recapture of CCA that apply when you transfer properties to a partnership
  • the special rules that apply when you dissolve a partnership
  • the special rules that apply when you dispose of your interest in a partnership For more information about partnerships, see Income Tax Folio S4-F16-C1, the Partnership Information Return (T5013 Forms). Limited partnership A limited partnership is composed of one or more general partners and one or more limited partners. A general partner has unlimited liability for the debts and obligations of the partnership. A limited partner generally has limited liability for the debts and obligations of the partnership unless the partner is involved in running the business. Reporting partnership income A partnership does not file an income tax return, and is not taxed at the partnership level. All income and losses of a partnership flow through to the partners. They report their share on their income tax returns such as their T1, T2, or T3. This requirement is the same whether their share of income was received in cash or as a credit to the partner’s capital account. For more information, see Guide T4068, Guide for the Partnership Information Return (T5013 Forms) Partnership losses If a partnership has a loss from carrying on business in a tax year, this loss is allocated to the partners. In general, the amount of business loss allocated to a particular partner is either netted against the partner’s income from other sources to arrive at net income for the year or is included in determining the partner’s non-capital loss for the year, as the case may be. Note The loss carry-forward period is 20 years for non-capital losses, farm losses, restricted farm losses, and life insurer’s Canadian life investment losses incurred. Filing requirements for partnerships Under subsection 229(1) of the Regulations, all partnerships that carry on business in Canada or are Canadian partnerships or specified investment flow-through (SIFT) partnerships must file a partnership return. However, under CRA administrative policy, certain partnerships that carry on business in Canada or are Canadian partnerships are not required to file a partnership return. For more information about the partnership information return and any other filing exemptions, see Guide T4068, the Partnership Information Return (T5013 Forms). When you receive your T5013 slip, or a partnership financial statement, you must complete a Form T1273 or T1274 in the manner described in Chapter 3. Use a separate Form T1274 to deduct any business expense you incurred for which the partnership did not repay you. For more information, see “Additional expenses (partnerships)” on page 22. Once Form T1273 is completed, enter the gross income from Form T1273 (or total gross income from Form T1273 plus any gross income from Form T1274) on line 14099 of your income tax return. Enter your share of the net income from page 5 of Form T1273 (or total of your share of the net income from Form T1273 plus your share of any net income from Form T1274) on line 14100. Attach copy 2 of your T5013 slip to your return. Capital cost allowance A partnership can own depreciable property and claim capital cost allowance (CCA) on it. However, individual partners cannot claim CCA on property the partnership owns. From the capital cost of depreciable property, subtract any investment tax credit allocated to the individual partners. We consider this allocation to be made at the end of the partnership’s fiscal period. You must also reduce the capital cost by any type of government assistance received. Box 040 of your T5013 slip, CCA the partnership claimed on your behalf. This amount has already been deducted from your business income in box 116 of the T5013 slip. Do not deduct this amount again. For more information on CCA and the adjustments to capital cost, see Chapter 5.

https://canada.ca/taxes

What is a Partnership? or Guide T4068, Guide for . Guide for Statement of Partnership Income, shows the amount of 17

Any recapture of CCA or terminal loss on the sale of a partnership’s depreciable property is included in the partnership’s income or loss for the year that is allocated to the partners. Any taxable capital gain on the sale of a partnership’s depreciable property is also allocated to the partners. For more information about capital gains and losses, as well as recapture and terminal losses, see Chapter 5. GST/HST rebate for partners If you are an individual who is in a partnership, you may be able to get a rebate for the GST/HST you paid on certain expenses. The rebate is based on the GST/HST you paid on expenses you deducted from your share of the partnership income on your income tax return. However, special rules apply if your partnership paid you an allowance for those expenses. For more information, go to https://canada.ca/cra-gst-hst-rebates As an individual who is in a partnership, you may qualify for the GST/HST partner rebate if you meet all of the following conditions:

  • the partnership is a GST/HST registrant
  • you personally paid GST/HST on expenses that:
  • you did not incur on behalf of the partnership
  • you deducted from your share of the partnership income on your income tax return However, special rules apply if the partnership reimbursed you these costs. Examples of expenses subject to the GST/HST are vehicle costs and certain business-use-of-home expenses. The rebate may also apply to the GST/HST you paid on motor vehicles, and aircraft, for which you deducted CCA. The eligible part of the CCA is the part that you deduct on your tax return in the tax year that relates specifically to a motor vehicle or equipment on which you paid GST/HST. It would also be eligible for the rebate, to the extent that the partnership used the property to make taxable supplies. You can also get a GST/HST rebate calculated on the CCA you claimed on certain types of property. For example, you can generally claim the rebate based on the CCA you deducted for a vehicle you bought to earn partnership income if you paid GST/HST when you bought it. If you deduct CCA on more than one property of the same class, separate the part of the CCA of the property that qualifies for the rebate from the CCA on the other property. If any part of the rebate relates to the CCA deduction for a motor vehicle, or equipment, you have to reduce the undepreciated capital cost (UCC) of that property by the amount that is part of the rebate. Fill in Form GST370, Employee and Partner GST/HST Rebate Application receive a rebate, you must include the amount in your income for the tax year in which you receive it. For example, if in 2025 you receive a GST/HST rebate for the 2024 tax year, you have to include the amount of the rebate on your income tax and benefit return for 2025:
  • enter, as an expense, at line 9974 of Form T1273 or T1274 the GST/HST rebate amount for partners that pertains to eligible expenses other than the CCA
  • in column 2 of “Area A – Calculation of CCA claim,” reduce the UCC for the beginning of 2025 by the rebate part that relates to the eligible CCA For more information about the GST/HST rebate, go to our webpage “GST/HST rebate for employees and partners.” Investment tax credit An investment tax credit (ITC) lets you subtract part of the cost of some types of property you acquired or expenditures you incurred from the taxes you owe. You may be able to claim this tax credit in 2025 if you:
  • acquired qualifying property
  • incurred qualifying expenditures
  • were allocated renounced Canadian exploration expenses
  • acquired monies paid to agricultural organizations through check-offs, levies or cash assistance You may also be able to claim this tax credit in 2025 if you have unused ITCs from previous years. For more information about ITCs, see Form T2038(IND), Investment Tax Credit (Individuals) 18 https://canada.ca/taxes

and click on “Employee and partner.” , to claim your GST/HST rebate for partners. If you .

Scientific research and experimental development You can earn a scientific research and experimental development (SR&ED) ITC on qualified expenditures. You can receive them in the form of a cash refund or a reduction of tax payable or both. Unused SR&ED ITC can be carried back 3 years or carried forward 20 years. For more information, see the SR&ED Investment Tax Credit Policy. Note Agricultural producers can access ITCs earned on contributions made to agricultural organizations that fund SR&ED. For more information, see section 8 of the Third-Party Payments Policy on the CRA website. Self-employed farmers may have to file a Form T661, Scientific Research and Experimental Development (SR&ED) Expenditures Claim Form T2038. For more information, see Guide T4088, Scientific Research and Experimental Development (SR&ED) Expenditures Claim – Guide to Form T661. Mineral exploration tax credit Certain renounced Canadian exploration expenses qualify for the mineral exploration tax credit (METC). Eligible expenses must be incurred by a corporation after March 2024 and before 2026, and renounced under flow-through share agreements that are entered into after March 31, 2024, and before April 1, 2027. Under proposed changes, certain Canadian exploration expenses incurred by a corporation after March 2025 and before 2028 also qualify for the METC. To be eligible, these expenses have to be renounced under flow through share agreements entered into after March 2025 and before April 2027. You must subtract the amount of any allowable provincial tax credit from your eligible expenses. Critical mineral exploration tax credit Certain renounced Canadian exploration expenses qualify for the critical mineral exploration tax credit (CMETC) if they were incurred for the exploration of any of the following specified minerals: copper, nickel, lithium, cobalt, graphite, a rare earth element, scandium, titanium, gallium, vanadium, tellurium, magnesium, zinc, a platinum group metal, or uranium. Eligible expenses must be renounced under flow-through share agreements that are entered into after April 7, 2022, and before April 1, 2027. Note To qualify for the CMETC as a Canadian exploration expense, expenses related to the exploration of lithium brine deposits must be incurred on or after March 28, 2023. Under proposed changes, the eligibility of the CMETC also includes expenses related to the exploration of the following critical minerals: bismuth, cesium, chromium, fluorspar, germanium, indium, manganese, molybdenum, niobium, phosphate, tantalum, tin, and tungsten. These expenses have to be renounced under eligible flow-through share agreements entered into after November 4, 2025, and before April 1, 2027. You cannot claim both the CMETC and the METC for your eligible expenses. You must subtract the amount of any allowable provincial tax credit from your eligible expenses. https://canada.ca/taxes

, as well as a 19

Chapter 2 – Your AgriStability and AgriInvest programs

Participating in the programs

You can choose to participate in AgriStability only, AgriInvest only, or both programs together, depending on the business risk management needs of your farm. As a program participant, you are responsible for knowing program deadlines and understanding program policies. For more information, see the program handbooks or visit the program websites. AgriStability AgriStability is a margin-based program that provides support when you experience larger income losses. Find out if you are eligible To participate in AgriStability for the 2025 program year, you must:

  • file a Form T1273
  • file a 2025 Canadian income tax return reporting eligible farming business income (loss) by the final filing deadline (except individuals registered under the Indian Act farming on a reserve in Canada who are exempt from filing an income tax return)
  • meet all program requirements by the deadlines In addition, you must have:
  • enrolled in the program and paid your fee by the deadline shown on your Enrolment Notice
  • completed a minimum of six consecutive months of farming activity
  • completed a production cycle (for example, growing and harvesting a crop or rearing livestock) We may waive the requirements to complete six consecutive months of farming activity and a production cycle if you experienced a disaster. If you are an individual registered under the Indian Act farming on a reserve in Canada and you are not required to file an income tax return, contact your administration for a copy of the form you need to complete and the related guide. For more information on eligibility, see your program handbook or visit the program websites. How to participate Complete and send pages 1 to 7 of your Form T1273 by the deadline. For information on program deadlines, see page 14. AgriStability benefit calculations AgriStability is based on margins. Program margin – your allowable income minus your allowable expenses in the current year adjusted for changes in purchased inputs, receivables, payables, and inventory. Reference margin – an average of your program margins for the past five years with adjustments made to reflect significant changes to the size or structure of your farm. We drop the highest and lowest years and average the remaining years. Generally, you will receive an AgriStability payment when your program margin in the current year falls more than 30% below your reference margin. For the 2025 program year only, the compensation rate has increased from 80% to 90%. In 2025, AgriStability covers 90% of your decline that is beyond the 30%. Reference margins will be calculated for 2025 as follows:
  • If you participated in the program in any of the past four years, we will calculate your reference margin using the program margins for the previous five years. The highest and lowest program margins are dropped and the remaining three are averaged. This is called an Olympic average.
  • If you did not participate in the program in the past four years, we will calculate your reference margin using an average of the three previous program margins. We will continue to calculate your reference margin using three previous program margins until you have five years of historical information on file.
  • If you did not have farming activity in one or more of the five previous years, your reference margin will be calculated using an average of the three previous years. If you did not have farming activity in any of the three previous years, we will create margins for any missing years using industry averages. 20 https://canada.ca/taxes

For more information on margins and how we calculate AgriStability payments, see your program handbook or visit the program website. We will send you a calculation of program benefits notice after we process your form, to show you how we calculated your benefit. AgriStability program fee You must pay an annual fee to participate in AgriStability. The fee is $3.15 for every $1,000 of contribution reference margin protected (based on coverage of 70% of your margin). The minimum fee is $45. For more information on program fees and participation rules, see your Enrolment Notice or your program handbook. AgriStability administrative cost share (ACS) You must pay $55 each year for administration costs. To participate in AgriStability, you must pay your fee and ACS by the deadline. You can:

  • pay electronically through your financial institution (contact them to see if they offer this service)
  • send your cheque direct to your administration For more information, contact your administration. Note The electronic payment is not available for producers in British Columbia. Do not send payments for the AgriStability or AgriInvest programs with your income tax return. The CRA will credit any payments you include with your income tax return to your income tax account. AgriInvest AgriInvest is a self-managed producer-government savings account designed to help you manage small income declines and make investments to manage risk and improve market income. Each year you can deposit money into an AgriInvest account and receive matching government contributions. You can withdraw the money when you need it. Find out if you are eligible To participate in AgriInvest for the 2025 program year, you must:
  • file a Form T1273
  • file a 2025 Canadian income tax return reporting eligible farming business income (loss) by September 30, 2026
  • meet all program requirements by the deadlines If you are an individual registered under the Indian Act farming on a reserve in Canada and you are not required to file an income tax return, contact your administration for a copy of the form you need to complete and the related guide. For more information on eligibility, see the AgriInvest Program Handbook or go to How to participate Complete and send pages 1 to 5 of your Form T1273 by the deadline. For information on program deadlines, see page 14. AgriInvest benefit calculations AgriInvest deposits are based on a percentage of your allowable net sales. Allowable net sales are your total allowable commodity sales and program payments minus your total allowable commodity purchases and repayment of program benefits. Once we process your form, we will send you a Deposit Notice showing your deposit options.

Form T1273, Statement A – Harmonized AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Individuals

As a self-employed farmer, you have to give us a statement that accurately shows your farming activities for the year. Use Form T1273 to report your income and expenses for income tax purposes and to report your farming information for AgriStability and AgriInvest. To get this form, go to https://canada.ca/cra-forms https://canada.ca/taxes

agriculture.canada.ca/agriinvest. . 21

Deceased participant If a deceased individual had farming income or losses, complete Form T1273 in the name of the deceased individual. Print “Estate” in the name area. Use the income and expenses that you are reporting on the individual’s final income tax return for 2025. Send copies of the individual’s death certificate and the probated will (or letters of administration) to the CRA with the final income tax return and to your AgriStability and AgriInvest Administration. If you also file an optional return for the year of death, such as a return of rights and things, contact your administration to get the correct form to provide this information to your administration. Prepare an additional Form T1273 in the name of the surviving spouse or common-law partner if a beneficiary continues the farming business. Contact your administration to get the correct form if a trust has been established for the surviving spouse or common-law partner. Use the income and expenses from the surviving spouses or common-law partner’s 2025 income tax return. For more information about applying as a trust, contact your administration.

Form T1274, Statement B – Harmonized AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Additional Farming Operations

You may have more than one farming operation. For example, you could have a sole proprietorship and be a member of a partnership. If you have more than one farming operation, complete Form T1273 for one operation and a separate Form T1274 for each additional operation. To get these forms, go to Additional expenses (partnerships) Complete Form T1274 if you have reported a partnership operation on Form T1273 and you want to deduct additional expenses for which the partnership did not reimburse you. For example, you may want to deduct the farming business part of allowable motor vehicle expenses or business-use-of-home expenses. If you are using Form T1274 to deduct business-use-of-home expenses, follow these steps:

  • leave the income areas of page 1 blank
  • report your expenses on the appropriate lines of page 2
  • enter the total expense from page 2 to line 9968 of page 3
  • do not fill in the “Partnership information” area of page 3
  • do not make an entry on “Line 9934 – Adjustment to business-use-of-home expenses”
  • complete Form T1175, Farming – Calculation of Capital Cost Allowance (CCA) and Business-use-of-home Expenses The amount you claim reduces your net income from farming on line 14100 of your income tax return. However, you cannot use business-use-of-home expenses to create or increase a loss from farming. Note The instructions in the note in the “Business-use-of-home expenses” section of Form T1175 do not apply if you are only claiming business-use-of-home expenses.

Completing the forms

By completing Form T1273 and Form T1274, you authorize:

  • the CRA to share information from your income tax return with Agriculture and Agri-Food Canada (AAFC)
  • AAFC to share the information from your form and any additional information that you provide with:
  • provincial and territorial ministers of agriculture
  • administrators of other federal or provincial farm programs The information is used for:
  • audit
  • analysis
  • evaluation
  • special assistance payments 22 https://canada.ca/taxes

https://canada.ca/cra-forms.

For more information, see “Confidential information and participant consent” on page 2 of Form T1273. The Privacy Act gives you the right to access your personal information held by the Government of Canada and make any corrections to your information. If you want to access or correct your personal information, contact the access to information and privacy coordinator at: Access to Information and Privacy Office Agriculture and Agri-Food Canada Tower 7, 10 th Floor, Room 130 1341 Baseline Road Ottawa ON K1A 0C5 Email: aafc.atip-aiprp.aac@agr.gc.ca Web page: agriculture.canada.ca/en/department/transparency/access-information-protection-privacy For general inquiries on privacy of personal information, or to make a complaint under the the Privacy Commissioner at: Office of the Privacy Commissioner of Canada 30 Victoria Street Gatineau QC K1A 1H3 Toll-free telephone: 1-800-282-1376 Telephone: 819-994-5444 Teletypewriter: 819-994-6591 Website: priv.gc.ca Adjustments Use Form T1275 to either:

  • send additional information about your farm to your administration
  • adjust your AgriStability and AgriInvest form information If you farm in Manitoba, Newfoundland and Labrador, Nova Scotia, New Brunswick, Northwest Territories, or the Yukon, send this form and any attachments to the federal Administration at the address listed in the “Federal Administration contact information” section on page 3. If you farm in British Columbia, send this form and any attachments to either:
  • both the federal Administration and your provincial Administration for information affecting AgriInvest (pages 1 to 5 of Form T1273 and pages 1 to 5 of Form T1274)
  • your provincial Administration only for information affecting AgriStability (page 7 of Form T1273 and page 5 of Form T1274) For adjustments that affect your net income, send Form T1-ADJ, The following text explains how to complete Form T1273.

Participant information

Participant identification Enter your first and last name. Enter your participant identification number (PIN). You can find your PIN on either your:

  • AgriStability Enrolment Notice
  • AgriInvest Deposit Notice If you cannot find your PIN, contact your administration. Enter your social insurance number (SIN). Enter your business number (BN). If you cannot find your BN, contact the CRA. Enter your telephone, cellphone and fax numbers (if applicable). Enter your email address.

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Privacy Act, contact the Office of T1 Adjustment Request, to the CRA. 23

Farming information Province/Territory of main farmstead Enter the province or territory where you earned most or all of your gross farming income over the previous five years. For more information on province of main farmstead and multi-jurisdiction farms, contact your administration or visit the program websites. Number of years you have farmed Enter the number of years you have farmed. Final year of farming Answer “Yes” if 2025 was your final year of farming. Industry code Enter the industry code that best describes your activity. If more than 50% of your business involves one specific activity, choose the code that identifies that main activity. However, if your business is involved in more than one type of economic activity, and none of the codes make up more than 50% of your business, choose the appropriate level of code from the list. Codes with more than one zero are more general and are at a higher level. When you are filing your return electronically, you have to use the industry codes available from your tax preparation software. If you are filing your income tax return on paper, enter the six digit industry code that corresponds to your business listed in the latest version of the North American Industry Classification System (NAICS). To get the full list of NAICS codes and their descriptions, go to statcan.gc.ca/en/subjects/standard/naics/2022/v1/index There are thousands of NAICS codes. The following are examples of codes for farming operations. Livestock farm 112110 Beef cattle ranching and farming, including feedlots 112120 Dairy cattle and milk production 112210 Hog and pig farming 112310 Chicken egg production 112320 Broiler and other meat-type chicken production 112330 Turkey production 112340 Poultry hatcheries 112391 Combination poultry and egg production 112399 All other poultry production 112410 Sheep farming 112420 Goat farming 112510 Aquaculture 112991 Animal combination farming 115210 Support activities for animal production Other animal specialties farm 112910 Apiculture 112920 Horse and other equine production 112930 Fur-bearing animal and rabbit production 112999 All other miscellaneous animal production Field-crop farm 111110 Soybean farming 111120 Oilseed (except soybean) farming 111130 Dry pea and bean farming 24 https://canada.ca/taxes

.

111140 Wheat farming 111150 Corn farming 111190 Other grain farming 111211 Potato farming 111219 Other vegetable (except potato) and melon farming 111330 Non-citrus fruit and tree nut farming 111411 Mushroom production 111419 Other food crops grown under cover 111421 Nursery and tree production 111422 Floriculture production 111910 Tobacco farming 111940 Hay farming 111993 Fruit and vegetable combination farming 111994 Maple syrup and products production 111999 All other miscellaneous crop farming 115110 Support activities for crop production Production cycle Answer “Yes” or “No” to show if you have completed a production cycle on at least one of the commodities you produced. You must have completed a production cycle to be eligible for AgriStability. We may waive this condition if you experienced a disaster. A production cycle includes at least one of the following:

  • growing and harvesting a crop
  • rearing livestock
  • buying and selling livestock in a fiscal year for feeding or finishing enterprises You do not need to complete a production cycle to be eligible for AgriInvest. Contact person information Fill in this area if you give permission to someone else (such as your spouse, common-law partner, or accountant) to provide or ask for more information about your AgriStability and AgriInvest form. We will call your contact person if we have a question. We will send correspondence to both you and your contact person. Your contact person can:
  • ask us questions about your account
  • send us information or request adjustments to your information
  • ask for copies of letters or statements we sent to you Your contact person cannot:
  • change your address
  • change your direct deposit information for AgriStability
  • ask for an account transfer form for AgriInvest Tick the box if you have a contact person. Enter the first and last name of your contact person, their business name (if applicable), address, and telephone, cellphone, and fax numbers. Answer “Yes” if you want a copy of your Calculation of Program Benefits mailed to your contact person. If you leave this area blank, we will contact you directly if we have a question.

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Federal public office holder or employee of Agriculture and Agri-Food Canada (AAFC) If you or anyone involved in completing this form is a current or former federal public office holder or employee of AAFC, answer “Yes” to this question. If you are a member of a partnership and at least one of your partners is a current or former federal public office holder or employee of AAFC, answer “Yes.”

Other farming information

Location of main farmstead See the list of provincial and territorial jurisdictions (for example, rural municipalities, counties, districts) in the “Regional code list” on page 144 of this guide. You do not have to fill in this section if you farm in Newfoundland and Labrador or Northwest Territories. Combined operations AgriStability is a whole farm program. That means we may combine your farm with another farm even if the operations report separately for income tax. Combining ensures that AgriStability benefits are paid to farms that had decreases in income for reasons beyond their control, not because of business or tax planning decisions. Generally, you should answer “Yes” to this question if one of the following applies:

  • your farm is legally, financially, or operationally dependent on another farming operation
  • all or some of the transactions between the farms are not at fair market value
  • the farms share the same land or equipment Individuals in a partnership do not need to be combined. If your farm has a change in combined operations, enter the operation PIN and tick “Add” or “Remove.” For more information on combining, see your program handbook or visit the program website. Note We need the information from all the combined farms before we can process your form.

Identification

In the following sections of the form, only provide information about your main farming operation (Operation #1). Complete Form T1274 for each additional farming operation you have. Number each operation in the box at the top right-hand corner of each page. Tick the “Sole proprietorship” or “Partnership” box. Fiscal period Enter the fiscal period for your operation. Report the beginning and end of the farm’s business year by the year, month, and day. Your farm’s 2025 fiscal period must end in the 2025 tax year. Method of accounting Use the same method of reporting (cash or accrual) for program purposes as you use for income tax. Enter either:

  • code 1 for accrual method
  • code 2 for cash method Was your farm involved in any of the following Tick the applicable box(es) if your farm was:
  • a member of a feeder association
  • in a crop share arrangement as either a landlord or a tenant For your main farming operation (Operation #1), enter this information on Form T1273. For your other operations, enter this information on Form T1274. 26 https://canada.ca/taxes

Chapter 3 – Calculating your farming income or loss

These sections of the form are used to calculate your allowable net sales for AgriInvest. Allowable net sales are allowable commodity sales and program payments, less allowable purchases. For more information on allowable net sales and how we calculate benefits under AgriInvest, see the AgriInvest Program Handbook or go to We also use these sections to calculate the cash portion of your program year margin for AgriStability. For more information on how we calculate AgriStability margins, see your program handbook or visit the program website. Complete Form T1273 for your main farming operation. If you have more than one farming operation, use Form T1274 for each additional operation. Instructions in this chapter apply to both forms. To make sure you report your information correctly for AgriStability and AgriInvest, read the following instructions carefully.

Commodity and Program payment code lists

Use the Commodity and Program payment code lists found at the back of this guide to report all income and expenses on Form T1273 or T1274. Codes may change from year to year. Check the lists to make sure you use the right code. If you use the accrual method of accounting, report all your sales and your changes in opening and closing commodity inventories separately using the code for the commodity to report both entries.

Income

An agricultural commodity is a plant or an animal produced in a farming business. Some commodities that may be considered farming income for income tax purposes are not allowable for AgriStability and AgriInvest including:

  • aquaculture
  • trees and seedlings sold for use in reforestation
  • wood sales
  • peat moss
  • wild game reserves
  • cannabis (except for industrial hemp) Where permitted by law, hunt farms (not wild game reserves) are eligible. For information on how to apply if you operate a hunt farm, contact your administration. If you do not produce any allowable commodities on your farm, use Form T2042 to report your farming income from non-allowable commodities to the CRA. If you produce both allowable and non-allowable commodities on your farm, report the income from:
  • Non-allowable commodities on line 9600, except for woodlots or cannabis (excluding industrial hemp). Report woodlot sales using code 259 and cannabis using code 382.
  • Allowable commodities on the “Commodity sales and program payments” section of the form. Use the codes at the back of this guide. Report allowable commodity sales based on the point of sale conditions outlined further on page 28. Sales and purchases of supply managed commodities are not allowable for AgriInvest. You must produce allowable commodities in addition to your supply managed commodities to participate in AgriInvest. Enter both your supply managed and non-supply managed commodities on the “Commodity sales and program payments” section of the form. Use the codes found at the back of this guide. If you have questions about whether a commodity you produce is allowable for AgriStability and AgriInvest, call 1-866-367-8506. Farming activities outside Canada If you produce a commodity in Canada, then ship it outside of the country for further production, the income and expenses generated once the commodity leaves Canada are non-allowable for AgriStability and AgriInvest. When shipping commodities outside Canada for further production, include the fair market value (FMV) of the commodity at the point it leaves Canada as allowable income using the code for the commodity.

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agriculture.canada.ca/agriinvest. 27

If the commodity is returned to Canada for further production or sale, include the FMV of the commodity at the point it enters Canada as an allowable purchase using the code for the commodity. If you purchase livestock, you must have made an appreciable contribution to the growth or its increase in value in Canada for the income and expenses to be considered allowable. For AgriStability, commodities reported in the “Livestock inventory valuation” and the “Livestock productive capacity” sections of the form should reflect the allowable production that occurred in Canada only. Point of sale AgriInvest benefits are based on allowable net sales, so you have to determine when the sale occurs. For AgriInvest, the point of sale for your allowable commodity is determined by the following conditions:

  • you produce it on your farm
  • it is separate and identifiable from other producers’ commodities
  • you bear full risk for it
  • you have a separate billing or accounting transaction that shows the sale value and any deductions from that value The point of sale is when you:
  • can no longer identify your commodity as your own
  • are no longer at risk for the value of the commodity If your commodity sales meet these point of sale conditions, fill in the code, name, and gross sale amount of each commodity on the form. Example You have potato sales of $50,000, you fill in: 147 potatoes $50,000 If you received a cheque for a commodity sale that is net of expenses, report the sale to include the full value of the commodity. Example Your receipt from the processor shows: $10,000 gross apple sales
  • $1,500 pack-and-sell costs $8,500 net sales Enter $10,000 as your gross apple sales, and $1,500 as an expense on “Line 9836 – Commissions and levies.” Line 575 – Point of sale adjustments If your commodity sales include charges that were applied after the point of sale, adjust your sales to show the value of the commodity at the point of sale. Enter any amounts charged after the point of sale on “Line 575 – Point of sale adjustments.” This will ensure that we calculate your allowable net sales correctly. Example Your cash ticket from the elevator shows: $7,000 gross wheat sales
  • $1,500 freight charges
  • $300 elevation charges $5,200 net sales Enter the gross wheat sales of $7,000 as income. Enter the freight charges of $1,500 and the elevation charges of $300 as a point of sale adjustment on line 575, under “Commodity purchases and repayment of program benefits” (not under “Allowable expenses”). You enter these charges on line 575 because you incurred these expenses after you delivered your grain to the elevator (for example after the point of sale). 28 https://canada.ca/taxes

Payment in kind A payment in kind occurs when you receive or give goods or services instead of money. For instance, to pay someone for a business expense, you may give them something you produced on your farm instead of money. When you do this, include the FMV of the goods or services in income. Use the appropriate code for the commodity. Enter the same amount as an expense. If you received a payment in kind for a product you would normally have sold, include the FMV of the product in income. If you were a landlord renting out land involved in sharecropping, we consider any payment in kind you received to be rental income. Example You owe your landlord $1,000 for rent. Instead of cash, you pay him by giving him $1,000 worth of seed. Enter the fair market value of the seed crops ($1,000) that you gave the landlord as a commodity sale. Enter the $1,000 on line 9811 as a rental expense. Gifts In your income, include the FMV of livestock or other items you gave that you would normally have sold. Once you give the livestock or other items away, you cannot deduct any more costs for raising or maintaining them. Crop share If you are a tenant in a crop share, you are eligible to apply for AgriStability and AgriInvest. If you are a landlord in a crop share, you are eligible for AgriStability and AgriInvest only if the crop share arrangement is considered a joint venture. For AgriStability, your crop share arrangement is considered a joint venture if your share of the allowable expenses reported to the CRA is reasonable for your share of the allowable income. For AgriInvest, your crop share arrangement is considered a joint venture if your share of allowable purchases reported to the CRA is reasonable for your share of the allowable income. Eligible tenants and landlords report only their individual share of the allowable income and expenses. Example 1 You are a tenant in a crop share and receive 60% of the income from the sale of your crop. Enter only your 60% share of the sales under “Commodity sales and program payments.” Enter your 60% share of expenses under “Allowable expenses.” Example 2 You are an eligible landlord who receives 40% of the income from the sale of the crop. Enter only your 40% share of the sales under “Commodity sales and program payments.” Enter your 40% share of expenses under “Allowable expenses.” Commodity futures You can report income from commodity futures as a commodity sale for AgriStability and AgriInvest purposes if the income is both:

  • from a primary agricultural product that you produced on your farm
  • considered a hedging strategy Report commodity futures as follows:
  • for the gross amount, enter the income as a commodity sale using the code for that commodity. Report related purchases as a commodity purchase using the code for that commodity.
  • for the net amount, enter the net gain as a commodity sale using the code for that commodity. Report the net loss as a commodity purchase using the code for that commodity. Report income from futures transactions involving commodities that you did not produce or that were not considered a hedging strategy as other farming income on line 9600. Enter losses as a non-allowable expense on line 9896. Grains, oilseeds, and special crops If you sold grain directly or through an agency, include in income all the amounts you received from these sales.

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Storage and cash purchase tickets When you delivered grain to a licensed public elevator or process elevator, you received a storage ticket, a cash purchase ticket, or a deferred cash purchase ticket. If you received a storage ticket, a sale did not take place. Therefore, you do not have to include that amount in income. However, if you received a cash purchase ticket, a sale did take place. Since we consider that you received a payment at the time you received the ticket, you must include the amount in income. If you received a deferred cash purchase ticket, you may be able to defer the income until a later fiscal period. You can do this if the ticket provides for payment after the end of the year in which you delivered the grain. This carryover of income is only allowable in specific situations. For more information, see Interpretation Bulletin IT-184, tickets issued for grain. Cash advances Under the Agricultural Marketing Programs Act, you may be able to get advances for crops that someone stores in your name. We consider these advances to be loans. Do not include these payments in your income if you have not sold the crops. Include the full amount from the sale of your crops in your income for the tax year in which the sale occurs. Tree production Allowable tree production Trees must be produced through farming activity to be allowable for AgriStability and AgriInvest. Farming activity for trees includes:

  • planting
  • nurturing
  • harvesting Operations must:
  • pay significant attention to managing the growth, health, and quality of the trees
  • generate normal input and harvesting costs Allowable tree production includes regular seeding and harvesting of:
  • trees
  • shrubs
  • herbaceous perennials
  • annuals, including ornamental, fruit, and Christmas trees Report income, expenses, and inventory of allowable tree production using the code for the commodity. Non-allowable tree production Trees produced or harvested for the following reasons are non-allowable for AgriStability and AgriInvest:
  • firewood
  • construction material
  • poles or posts
  • fibre, pulp and paper
  • trees and seedlings destined for use in reforestation Enter income from these non-allowable items on “Line 9600 – Other (specify).” Wood sales (including stumpage) If you operated or regularly harvested a woodlot, use commodity code 259 to report the sale of trees, lumber, logs, poles, or firewood in your income. This income is non-allowable for AgriStability and AgriInvest. From this income, you can deduct a type of capital cost allowance known as a depletion allowance. For more information, see Interpretation Bulletin IT-481, Timber Resource Property and Timber Limits 30 https://canada.ca/taxes

Deferred cash purchase .

If you earned the income by letting other people remove standing timber from your woodlot, the proceeds may be a capital receipt. A taxable capital gain or an allowable capital loss may result. For more information on capital gains and losses, see Chapter 7 and Guide T4037, Capital Gains. For more information on the sale of wood, see Income Tax Folio S4-F11-C1, Livestock Include insurance payments you received for loss of livestock in the commodity sales column using the livestock commodity code. Custom feedlot operators For AgriStability, income and expenses may be allowable if you:

  • grew (or purchased) the feed used in your custom feeding operation
  • made an appreciable contribution to the growth and maturity of the livestock For AgriInvest, income you earned from custom feeding is allowable based on the value of allowable commodities you grew (or purchased) and fed to custom fed livestock. If your custom feeding invoices are itemized, enter:
  • allowable feed and protein supplements as a prepared feed sale under “Commodity sales and program payments” using code 243
  • other itemized charges under “Commodity sales and program payments” using code 576 If your custom feeding invoices are not itemized, enter:
  • the amount invoiced as a prepared feed sale under “Commodity sales and program payments” using code 246. We will use 70% of this amount to calculate your allowable net sales. PMU contract cancellation income Income you received from the buy-out of pregnant mare urine (PMU) contracts is allowable if paid in lieu of the income you would have received for the sale of the product under the contract. Penalty fees and other compensation are non-allowable. Use code 322 to report amounts you received for your Collection Agreement, Herd and Health payments, West Nile Reimbursement, and Equine Placement Fund. Use “Line 9600 – Other (specify)” to report amounts you received for Business Planning Subsidy and capital costs. Canadian Food Inspection Agency (CFIA) – Destroying livestock You have to include in income any payments you received under the Use the CFIA program payment codes to report CFIA payments you received. For more information on how to report your CFIA payments, see “Income from program payments” on page 33. You can choose to deduct all or part of the payment as an expense in the year. However, if you choose to do this, you have to include in your income for your next fiscal period the amount you deduct in your 2025 fiscal period. If you deferred payments in your 2024 fiscal period, you have to include the deferred amounts as income in your 2025 fiscal period. Use the codes found in the “PDR/PFR/CFIA deferred livestock codes” chart on page 33 to report these amounts. Prescribed drought region (PDR) and Prescribed flood region (PFR) The Livestock Tax Deferral provision may apply if you sell part of your breeding herd due to drought, excess moisture, or flooding in a prescribed drought or flood region. This provision allows you to defer a portion of your sales proceeds to the following tax year or a later year if the condition persists and your region is still a prescribed region. To be able to do this, you must meet the following two conditions:
  • your farming business was located in a PDR or PFR at some time during your 2025 fiscal period
  • you reduced, by sale or other means, your breeding herds by at least 15% For a list of the prescribed regions of drought, flood or excessive moisture, contact the CRA or Agriculture and Agri-Food Canada or visit https://canada.ca and search for “Drought Watch” or “Livestock Tax Deferral Provision.”

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Meaning of Farming and Farming Business. Health of Animals Act for destroying animals. 31

Income deferral The following animals kept for breeding that are over 12 months of age are considered breeding animals eligible for the income deferral:

  • bovine cattle
  • bison
  • goats
  • sheep
  • deer, elk, and other similar grazing ungulates
  • horses you breed to produce pregnant mare’s urine that you sell Eligibility for the income deferral includes:
  • all horses over 12 months of age kept for breeding
  • breeding bees not used mainly to pollinate plants in greenhouses and larvae of such bees. For the purposes of the income deferral rule, breeding bee stock is defined as follows:
  • at any time, a reasonable estimate of the quantity of your breeding bees held at that time in the course of farming business using a unit of measurement that is accepted as an industry standard The unit of measurement at the end of the year is the same as that used for the beginning of the year. A formula is used to calculate what you can defer for breeding bees. To determine the size of your breeding herd at the end of your 2025 fiscal period, fill in the following chart. Breeding herd chart Part 1 How many of your female bovine cattle over 12 months of age held at the end of your 2025 fiscal period have given birth? How many of your female bovine cattle over 12 months of age held at the end of your 2025 fiscal period have never given birth? Enter one half of the amount from line 1 Enter either the amount from line 2 or line 3, whichever is less Part 2 How many breeding animals did you have at the end of your 2025 fiscal period? Enter the amount from line 2 Enter the amount from line 4 Line 6 minus line 7 Number of breeding animals in your breeding herd at the end of your 2025 fiscal period: line 5 If the amount from line 9 does not exceed 85% of the total number of animals in your breeding herd at the end of your 2024 fiscal period, you can defer part of the income received in 2025 from the sale of breeding animals. Before you determine how much you can defer, you need to calculate a few amounts. First, determine your sales of breeding animals for your 2025 fiscal period minus any reserves you claimed for these sales. A reserve is created when you sell property and do not receive the full proceeds at the time of the sale. Instead, the amount of proceeds is spread over a number of years, which allows you to defer reporting these proceeds to the year in which you receive them. For more information on reserves, see Interpretation Bulletin IT-154, When you have determined your sales of breeding animals, subtract you bought in your 2025 fiscal period. The result is your net sales amount. You then determine how much you can defer as follows:
  • if the amount at line 9 is more than 70% and not more than 85% of your breeding herd at the end of your 2024 fiscal period, you can defer up to 30% of your net sales amount
  • if the amount at line 9 is between 0% and 70% of your breeding herd at the end of your 2024 fiscal period, you can defer up to 90% of your net sales amount 32 https://canada.ca/taxes

carrying on a 1 2 3 4 5 6 7 8 minus line 8 9 Special reserves. from this amount the cost of breeding animals

You do not have to defer all of this income. You can include any part of it in your 2025 income. However, the deferred income must be reported in the fiscal period that ends in either:

  • the year beginning after the period or periods when the region stops being a PDR or PFR
  • the year when the farmer dies
  • the first year when, at the end of that year, the farmer is a non-resident and has ceased to carry on business through a fixed place of business in Canada If you want, you can elect to report the deferred income in the year after you deferred it. Report the income you received from the sale of breeding animals as a commodity sale using the commodity code (see “Commodity list” on page 113). Report the amount you are deferring as a purchase using one of the deferred livestock codes listed below. In the year that you must report the deferred income, report it under commodity sales using the same deferred livestock code you used before. PDR/PFR/CFIA deferred livestock codes Deferred bovine cattle Deferred bison Deferred goat Deferred sheep Deferred deer Deferred elk Deferred horse for PMU sales Deferred other breeding animals If your farming business was not in a PDR or PFR at any time during your 2025 fiscal period, you cannot defer the amount you received when you sold breeding animals. Also, you must include in your 2025 income any unreported amounts you deferred in earlier years. However, as long as your farming business was in a PDR or PFR at any time in your 2025 fiscal period, you do not have to include income you deferred in earlier years. Income earned from the use of commodities Include income earned from the use of commodities with commodity sales, except for pollination services. For example, report income from stud fees with horse sales. However, enter income earned from pollination services using code 376.

Income from program payments

Use the codes found in the Program payment list A or B to report your program payment. Using the correct code helps us calculate your benefits accurately and prevents processing delays. Enter the program payment code, name, and amount under “Commodity sales and program payments.” Find the Program payment lists beginning on page 116. If you recorded program payments net of expenses in your books (for example, income minus expenses), report the full amount of the payment as income and the deductions as an expense. Example $6,000 crop insurance proceeds

  • $2,000 premiums $4,000 net proceeds Enter $6,000 as a program payment using code 401, “AgriInsurance (production/crop insurance) – Grains, oilseeds, and special crops.” Enter $2,000 as an allowable expense, on “Line 9665 – Insurance premiums (crop or production).” You should receive an AGR-1 slip, Statement of Farm-Support Payments, identifying all 2025 taxable farm-support program payments from which you received more than $100. These include farm-support programs administered by the federal, provincial, territorial, and municipal governments, and by producer associations.

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150 151 152 153 154 155 156 157 33

You have to include in income all taxable farm-support payments you received in your 2025 fiscal period, including amounts of $100 or less. If your farm is operated as a partnership, only one partner should attach the AGR-1 slip to his or her income tax return. However, if your partnership has to file a partnership information return, you should file the AGR-1 slip with that return. If the annual period of the AGR-1 slip is not the same as the fiscal period of your farming operation, report only the part of the farm-support payments you earned during your normal fiscal period. For example, if your farming business has a fiscal period ending on June 30, 2025, and your AGR-1 slip shows income of $10,000 in box 14, but you earned only $6,000 of that income by June 30, 2025, include only $6,000 in your income for your 2025 fiscal period. Include the remaining $4,000 in your next fiscal period. However, include the AGR-1 slip issued for the 2025 calendar year with your 2025 income tax return or partnership information return. The back of the AGR-1 slip contains information about how to report amounts that appear in the various boxes. Canadian Food Inspection Agency (CFIA) payments Enter the portion of CFIA payments you received for:

  • The loss of an allowable commodity using code 663, “CFIA payment for allowable commodities.”
  • The loss of a commodity that is non-allowable for AgriStability or AgriInvest using code 587, “CFIA payments – Compensation for non-allowable commodities.” For example, a payment you received for the loss of trees destined for use in reforestation.
  • The loss of a supply managed commodity using code 664, “CFIA payment for supply managed commodities.”
  • Costs not directly related to a commodity loss using code 665, “CFIA payment for other amounts.” For example, a payment you received for the cost of carcass disposal. COVID-19 program payments Livestock set aside program Use code 699 to report payments you received to help offset extra expenses because of limited processing capacity at packing plants. Mandatory isolation support for temporary foreign workers program (MISTFWP) Use code 686 to report payments you received to help offset expenses you incurred because you had to isolate your temporary foreign workers for 14 days. Canada Emergency Wage Subsidy (CEWS) To report payments you received to help you pay your employees’ wages, use code 684 to report the portion related to arm’s length salaries and code 685 to report the portion related to non-arm’s length salaries. Temporary 10% wage subsidy If you reduced the payroll deductions that you remitted to the Canada Revenue Agency (CRA), you have to report the amount that you reduced them by. Use code 684 to report the portion related to arm’s length salaries and code 685 to report the portion related to non-arm’s length salaries. Private insurance proceeds For AgriStability, private insurance proceeds for price, revenue, production or margin loss are non-allowable in the program year if they are fully producer funded. For AgriInvest, these proceeds are included in the allowable net sales calculation. Use the following codes to report private insurance payments:
  • code 407 for private hail insurance payments
  • code 661 for payments you received for revenue losses for allowable commodities (production/price/margin insurance)
  • code 667 for livestock price insurance payments Do not include private insurance payments with any AgriInsurance payments you received as AgriInsurance payments are included as allowable income in the program year margin for AgriStability. Private insurance proceeds to replace allowable commodities or allowable expense items For AgriStability, private insurance payments to replace allowable commodities or allowable expense items are allowable in the program year. For AgriInvest, payments to replace allowable commodities are included in the allowable net sales calculation. 34 https://canada.ca/taxes
  • Use code 681 for payments to replace allowable commodities, such as seed or feed.
  • Use code 406 for payments to replace allowable expense items, such as fertilizer, chemicals, fuel or twine. Report private insurance proceeds received for different types of compensation according to the invoice from your insurer. Example You received private insurance proceeds for $150,000 due to an outbreak of avian influenza in your flock. The payment included compensation for the depopulation of your barn and for feed you had to destroy. Your invoice from your insurer shows:
  • $120,000 for depopulation
  • $30,000 for destroyed feed Enter $120,000 for the depopulation of your flock using code 661, Private insurance proceeds for allowable commodities (production/price/margin insurance). Enter $30,000 for the destroyed feed using code 681, Private insurance proceeds for the replacement of allowable commodities. Payments from the AgriStability and AgriInvest programs Do not report any government contributions you have withdrawn from Fund 2 of your AgriInvest account on this form. Payments you receive from AgriStability (shown in box 14 of your AGR-1) are considered farming income. Enter these payments on “Line 9544 – Business risk management (BRM) and disaster assistance program payments.” If you received an AGR-1 slip with a negative amount in box 14, enter this amount on “Line 9896 – Other (specify).” You could have a negative amount if you were in an overpayment in one year and repaid the money the following year.

Other farming income

The instructions for completing “Other farming income” apply to Forms T1273 and T1274. Rental income Except for leases explained under line 9613 on page 36, you do not usually include rental income in your farming income. To determine your rental income, use Form T776, Statement of Real Estate Rentals on line 12600 of your income tax return. However, for AgriStability and AgriInvest, landlords are eligible if the crop share arrangement is a joint venture. For more information, see “Crop share” on page 29. If you were a landlord renting out land involved in sharecropping, we consider the payments you received, whether in kind or cash, to be rental income for tax purposes. Line 9540 – Other program payments Include the total income you received from all other stabilization and farm subsidy programs made to farm producers under federal, provincial, municipal, territorial or joint programs that are not listed on Program payment list A or B (on pages 116 and 118) or under line 9544 (below). If you received an overpayment from any of these programs, enter the amounts you repaid on “Line 9896 For more information, see page 57. Do not include AgriInsurance (production/crop insurance) on this line. Line 9544 – Business risk management (BRM) and disaster assistance program payments Enter any payments you received from federal or provincial BRM and disaster assistance programs (such as AgriStability, including Interim or Targeted Advance Payments). If you received an overpayment from any of these programs, enter the amounts you repaid on “Line 9896 – Other (specify).” For more information, see page 57. Do not include AgriInsurance (production/crop insurance) on this line. Line 9574 – Resales, rebates, GST/HST for allowable expenses Enter the total resales and rebates of allowable expenses, including GST/HST rebates, unless you have already reduced your expenses by these amounts. https://canada.ca/taxes

. Enter the amount of your net rental income

Other (specify).” 35

Line 9575 – Resales, rebates, GST/HST for non-allowable expenses, and recapture of capital cost allowance (CCA) Enter the total resales and rebates for non-allowable expenses, including GST/HST rebates, unless you have already reduced your expenses by these amounts. Recapture of capital cost allowance Include in your income the amount of any recapture of CCA you have from selling depreciable property such as tools and equipment. Fill in the “Calculation of capital cost allowance (CCA) claim” chart on Form T1175, Allowance (CCA) and Business-use-of-home Expenses, to find out if you must report any recapture of CCA. For more information, see Chapter 5. Line 9601 – Agricultural contract work Enter the total of your incidental farming income from such things as custom or contract work, harvesting, combining, crop dusting or spraying, seeding, drying, packing, cleaning, and treating seeds. To report income you received from renting farm machinery, see “Line 9614 – Machine rentals” on page 37. If you are a custom feedlot operator, see page 31 for information on reporting your custom feeding income. Line 9605 – Patronage dividends Enter your total patronage dividends (other than those for consumer goods or services) that are received by eligible members of agricultural co-operatives on line 9605. If you receive a patronage dividend in the form of “tax deferred co-operative shares,” there is no need to immediately include it in income. Tax may be deferred to the year in which the shares are disposed of or deemed to be disposed of. The balance of the shares could then be carried forward and sheltered until actual or deemed disposition. The temporary deferral of tax on patronage dividends paid by an agricultural co-operative corporation in the form of eligible shares is extended in respect of eligible shares issued before 2023. Line 9607 – Interest Enter the total incidental interest earned on business accounts related to your farming business, not interest on personal accounts and investments. Line 9610 – Gravel Enter the amounts you received from the sale of soil, sand, gravel, or stone. For some of these items, you can claim a depletion allowance. Line 9611 – Trucking (farm-related only) Enter the amounts you received for trucking related to your farming business. Line 9612 – Resales of commodities purchased Report the total sales of commodities that you did not produce on your farm. These are commodities that you bought for resale. Enter the corresponding purchases you made in this fiscal period on “Line 9827 – Purchases of commodities resold.” For more information, see page 54. Line 9613 – Leases (gas, oil well, surface, etc.) If you received payments for leasing your farmland for petroleum or natural gas exploration, these payments will be either income or a capital receipt. Include in your income the yearly amounts for rental, severance, or inconvenience from a surface rental agreement. The first payment from these agreements is often larger than the rest of the annual payments. However, the agreement may not specify how much of the first payment is for such things as damage to land, land improvements, severance, inconvenience, or the first year’s rent. When this happens, in the year you received the first payment, include in income an amount that is equal to the annual payment you will receive in the following years. The rest of the first payment is a payment for property. This may result in either a capital gain or loss. For more information on capital gains, see Chapter 7. 36 https://canada.ca/taxes

Farming – Calculation of Capital Cost

Line 9614 – Machine rentals Enter the amounts you received from renting your farm machinery. Line 9600 – Other (specify) Enter the total amount of all other types of farming income not listed on the form. Then list the items on the blank lines provided under it. Report all program non-allowable farming income including:

  • aquaculture
  • trees and seedlings sold for use in reforestation
  • peat moss
  • wild game reserves Income from wood sales, as defined in “Wood sales (including stumpage)” on page 30, is also non-allowable but is reported using code 259. Income from cannabis (except for industrial hemp) is also non-allowable but is reported using code 382. The following paragraphs identify some of the other income items you can enter on line 9600. Return of fuel charge proceeds to farmers tax credit The federal fuel charge ended April 1, 2025. As a result, the return of fuel charge proceeds to farmers tax credit for the 2024 to 2025 fuel charge year will be the final credit available to certain eligible farming businesses. This credit is considered to be government assistance that you received in the year and is taxable to you. Include the amount of the credit (amounts 5A and 5B of your Form T2043, Return of Fuel Charge Proceeds to Farmers Tax Credit the same tax year you claimed the credit. To calculate your credit, fill in Form T2043. Insurance proceeds Enter the amount of any insurance proceeds you received as compensation for loss or damage to certain types of property. For example, you may have received insurance proceeds for damage to a building due to fire, or for the loss of livestock to disease. Enter the total insurance proceeds on this line if you are being reimbursed for either:
  • the cost of non-depreciable property you previously deducted as a current expense
  • the cost of property that was a saleable item, such as livestock If the insurance proceeds compensated you for damages to depreciable property, and you used all of them to property within a reasonable period of time, include the proceeds as income on this line. Claim a deduction for the same amount in the “Expenses” area of the form. Claim repairs to depreciable property that is machinery on line 9760 and repairs to motor vehicles on line 9819. If you did not spend all of the insurance proceeds on repairs within a reasonable length of time, we consider the amounts you did not spend to be proceeds of disposition. For more information, see “Column 5 – Proceeds of dispositions in the year” on page 80. Insurance proceeds that compensate you for replacement of proceeds of disposition for that depreciable property. Do not include this type of insurance proceeds on line 9600. For more information, see Chapter 5. For information on how insurance affects the adjusted cost base of capital property, see Chapter 7. Do not include insurance proceeds from federal, provincial, or municipal government programs. For the codes to use for government insurance programs, see the Program payment lists beginning on page 116.

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)in your income in repair the lost or destroyed depreciable property are considered to be 37

Miscellaneous You can deduct 100% of the cost of property such as small tools if they cost less than $500. If you bought the property and you later sold that property, you have to include this amount as income you received from the sale. Include in your income prizes you won from fairs or farming exhibitions. For more information, see Income Tax Folio S3-F9-C1, Lottery Winnings, Miscellaneous Receipts, and Income (and Losses) from Crime Enter resales and rebates of allowable expenses on line 9574. Temporary taxable benefits You can include the Northern Business Relief Fund as well as the Canada Emergency Response Benefit (CERB) if you claimed the CERB to compensate for business income loss due to the COVID-19 pandemic. For more information, go to https://canada.ca/en/services/taxes/income-tax/personal-income-tax/covid19-taxes

Summary of income

From the “Income” section of the form, enter the amount of Total A and the amount of Total B in the “Summary of income” table. Add the totals for your gross farming income. Gross farming income is your total farming income before you deduct expenses.

Expenses

Use the Commodity and Program payment code lists found at the back of this guide to report your commodity purchases and repayment of program benefits in this section. If you have more than one farming operation, use Form T1274 for each additional operation. Codes may change from year to year. Check the lists to make sure you use the right code. If you use the accrual method of accounting, report all your changes in opening and closing commodity inventories separately, using the commodity code for both entries. You cannot include expenses for your personal use of either of the following:

  • property of your farming business
  • partnership property or services In addition, you cannot include any of the following as part of your expenses:
  • the cost of saleable goods or services you, your family, or your partners and their families personally used or consumed, such as dairy products, eggs, fruit, vegetables, poultry, and meat
  • donations to charities and political contributions
  • interest and penalties you paid on your personal income tax
  • most life insurance premiums (see “Line 9804 – Other insurance premiums” on page 47) For AgriStability, there are two types of expenses:
  • allowable expenses
  • non-allowable expenses Allowable expenses are the operating or input expenses you paid that directly relate to producing your commodities. Non-allowable expenses are costs not directly related to producing your commodities. These include amounts paid for interest and capital-related expenses. For AgriInvest, only allowable commodity purchases are used to calculate your allowable net sales. 38 https://canada.ca/taxes

. .

Current or capital expenses Renovations and expenses that extend the useful life of your property or improve it beyond its original condition are usually capital expenses. However, an increase in a property’s market value because of an expense is not a major factor in deciding whether the expense is capital or current. To decide whether an amount is a current expense or a capital expense, consider your answers to the questions in the following chart. Current or capital expenses Criteria Capital expenses Does the expense provide a A capital expense generally gives a lasting lasting benefit? benefit or advantage. For example, the cost of putting vinyl siding on the exterior walls of a wooden house is a capital expense. Does the expense maintain or The cost of a repair that improves a property improve the property? beyond its original condition is probably a capital expense. If you replace wooden steps with concrete steps, the cost is a capital expense. Is the expense for a part of a property or The cost of replacing a separate asset within for a separate asset? that property is a capital expense. For example, the cost of buying a compressor for use in your business operation is a capital expense. This is the case because a compressor is a separate asset, and is not a part of the building. What is the value of the expense? Compare the cost of the expense to the (Use this test only if you cannot determine value of the property. Generally, if the cost is whether an expense is capital or current by of considerable value in relation to the considering the three previous tests.) property, it is a capital expense. Is the expense for repairs made to used The cost of repairing used property that you property that you acquired intended to acquired to put it in a suitable condition for put it in suitable condition for use? use in your business is considered a capital expense even though in other circumstances it would be treated as a current operating expense. Is the expense for repairs made to an The cost of repairs made in anticipation of asset in order to sell it? selling a property, or as a condition of sale, is regarded as a capital expense. For more information, see Chapter 5 and Income Tax Folio S3-F4-C1, Do not include any of the following in your expenses:

  • salary, wages (including drawings) paid to self, partner(s), or both
  • the cost of saleable goods or services you, your family, or your partners and their families used or consumed (including items such as food, home maintenance, and business properties)
  • items such as dairy products, eggs, fruit, vegetables, poultry, and meat
  • donations to charities and political contributions
  • interest and penalties you paid on your income tax
  • most life insurance premiums (for information on a limited exception, see “Line 9804 – Other insurance premiums” on page 47)
  • the part of any expenses that can be attributed to non-business use of business property
  • most fines and penalties imposed, under the law of Canada or a province or a foreign country

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Current expenses A current expense is one that usually recurs after a short period. For example, the cost of painting the exterior of a wooden house is a current expense. An expense that simply restores a property to its original condition is usually a current expense. For example, the cost of repairing wooden steps is a current expense. The cost of repairing a property by replacing one of its parts is usually a current expense. For instance, electrical wiring is part of a building. Therefore, an amount you spend to rewire is usually a current expense, as long as the rewiring does not improve the property beyond its original condition. This test is not a determining factor by itself. You might spend a large amount of money for maintenance and repairs to your property all at once. If this cost was for ordinary maintenance that was not done when it was necessary, it is a maintenance expense, and you deduct it as a current expense. Where the repairs were for ordinary maintenance of a property you already had in your business, the expense is usually current. Where the repairs would have been made anyway, but a sale was negotiated during the course of the repairs or after their completion, the expense is considered current. General Discussion of Capital Cost Allowance. 39

Disability-related modifications You can deduct expenses you incur for eligible disability-related modifications made to a building in the year you paid them. You can do this instead of adding them to the capital cost of your building. Eligible disability-related modifications include changes you make to accommodate wheelchairs, such as:

  • installing hand activated power door openers
  • installing interior and exterior ramps
  • modifying a bathroom, an elevator, or a doorway You can also deduct expenses paid to install or get the following disability-related devices and equipment:
  • elevator car position indicators (such as braille panels and audio indicators)
  • visual fire alarm indicators
  • listening or telephone devices for people who have a hearing impairment
  • disability specific computer software and hardware attachments Grants, credits, and rebates Subtract, from the applicable expense, any grant, credit, and rebate you received. If the grant, credit, and rebate are for a depreciable asset, subtract the amount of the rebate from the property’s capital cost before calculating the capital cost allowance. For more information, see Chapter 5. If the asset qualifies for the investment tax credit, this reduction to the capital cost will also affect your claim. For more information, see Form T2038(IND), Investment Tax Credit (Individuals). Input tax credits are considered government assistance. Include the amount you claimed on line 108 of your GST/HST return on line 9574 or 9575 only if you cannot apply the rebate, grant, or assistance you received to reduce a particular expense or an asset’s capital cost. GST/HST input tax credits and exempt goods and services GST/HST registrants may claim an input tax credit for the GST/HST they paid or owe for expenses used to provide taxable property and services at the rates of 0%, 5%, 13%, 14%, or 15%. If you claim the GST/HST you paid or owe on your expenses as an input tax credit, reduce the amounts of the business expenses you claim by the amount of the input tax credit. Do this when the GST/HST for which you are claiming the input tax credit was paid or became payable, whichever is earlier. Enter the net expense figure on the appropriate line of Form T1273 or T1274. Input tax credits you claim for the purchase of depreciable property used in your business will affect your claim for CCA. Include the amount you claimed on line 108 of your GST/HST return on line 9574 or 9575 only if you cannot apply the rebate, grant, or assistance you received to reduce a particular expense or an asset’s capital cost. For more information on how claiming the input tax credit for registrants will affect your CCA claim, see “Column 2 – Undepreciated capital cost (UCC) at the start of the year” on page 79. Some purchases of property and services are exempt from GST/HST. Because you do not pay GST/HST on these purchases, there is no input tax credit to claim. Examples of exempt
  • insurance services sold by insurance companies, agents, or brokers
  • most services provided by financial institutions, such as arranging loans or mortgages
  • most health, medical, and dental services Since you don’t pay GST/HST on zero-rated purchases, there is no input tax credit to claim for these purchases. For examples of zero-rated property and services, see “GST/HST rates” on page 152. For more information on claiming the input tax credits and the percentage of use in commercial activity, see GST/HST Memorandum 8.1, General Eligibility Rules, and GST/HST Memorandum 8.2, General Restrictions and Limitations. Eligible registrants can file their GST/HST returns online by using GST/HST NETFILE or the “File a return” service in My Business Account at https://canada.ca/cra-sign-in-services. For information about GST/HST, go to 40 https://canada.ca/taxes

purchases of property include: https://canada.ca/gst-hst.

Prepaid expenses A prepaid expense is an expense you paid for ahead of time. Under the accrual method of accounting, claim the expense you prepay in the year or years in which you get the related benefit. Suppose your fiscal year-end is December 31, 2025. On June 30, 2025, you prepay the rent on your building for a full year (July 1, 2025, to June 30, 2026). You can only deduct one half of this rent as an expense in 2025. You can deduct the other half as an expense in 2026. Under the cash method of accounting, you cannot deduct a prepaid expense amount (other than for inventory) relating to a tax year that is two or more years after the year the expense is paid. However, you can deduct the part of an amount you paid in a previous year for benefits received in the current tax year. These amounts are deductible as long as you have not previously deducted them. If you paid $600 for a three-year service contract for office equipment in 2025, you can deduct $400 in 2025. This represents the part of the expense that applies to 2025 and 2026. On your 2027 income tax return, you could then deduct the balance of $200 for the part of the prepaid lease that applies to 2027. For more information, see Interpretation Bulletin IT-417, Prepaid Expenses and Deferred Charges Business-use-of-home expenses You can deduct expenses for the farming business use of a workspace in your home, if you meet

  • it is your principal place of business
  • you use the space only to earn income from your farming business, and you use it on a regular and ongoing basis to meet your clients or customers You can deduct part of your maintenance costs such as heating, home insurance, electricity, and cleaning materials. You can also deduct part of your property taxes, mortgage interest, and CCA. If you rent your home, you can deduct the part of the rent and any expenses you incur that relate to the workspace. To calculate the part you can deduct, use a reasonable basis, such as the area of the workspace divided by the total area of your home. The amount you can deduct for business-use-of-home expenses cannot be more than your net income from the farming business before you deduct these expenses. In other words, for income tax purposes, you cannot use these expenses to increase or create a farming business loss. If you claimed business-use-of-home expenses and you report a farming loss on line 9944, you must adjust your loss for income tax purposes at line 9934. For more information on how to make this adjustment, see the instructions for line 9934 on page 61. The capital gain and recapture rules will apply if you deduct CCA on the business use part of your home and you later sell your home. For more information about these rules, see Chapters 5 and 7 as well as Guide T4037, Include your expenses for business-use-of-home on “Line 9896 – Other (specify)” of Form T1273 or T1274. For more information, see “Additional expenses (partnerships)” on page 22 and “Line 9934 – Adjustment to business-use-of-home expenses” on page 61. Example Marjorie calculates that $85 of her household electrical expense is for her farming business use. The total electrical expenses for her farm outbuildings are $1,200. She enters $1,200 on line 9799 and $85 on line 9896. Business-use-of-home expenses are non-allowable expenses for AgriStability and AgriInvest. For more information, see Income Tax Folio S4-F2-C2, Business Use of Home Expenses

Commodity purchases

Report the following as commodity purchases:

  • feed
  • seed
  • plants
  • transplants
  • livestock
  • marketable products

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. one of these conditions: Capital Gains. . 41

If you are an apple producer replacing damaged or dead trees, enter apple tree purchases using the code for apples. If you are buying trees to expand an orchard, enter this purchase as a capital expense. Do not include the cost of seeds and plants you used in your personal vegetable or flower garden. Include expenses you incurred from the use of commodities with the commodity purchases, except for pollination fees. For example, report stud fees with horse purchases. However, enter pollination fees using code 376. If you made a payment in kind for a farming business commodity purchase, enter the value of the payment as a purchase. For more information, see “Payment in kind” on page 29. If you are a tenant in a crop share, only include your share of the crop in your income or expenses. Livestock owners and custom feedlot operators with prepared feed purchases If the ingredients on your purchase invoices of prepared feed and protein supplements are listed separately, enter:

  • allowable commodities (such as grains, forage, and oilseeds) and protein supplements using code 046
  • the remaining expenses (such as minerals and salts) using code 570 If the ingredients on your purchase invoices of prepared feed and protein supplements are not listed separately, enter your total purchase using code 571 (we will use 65% of this amount to calculate your allowable net sales). Livestock owners with custom feeding expenses If the ingredients on your purchase invoices are listed separately, enter:
  • allowable commodities (such as grains, forage, and oilseeds) and protein supplements using code 577
  • the remaining expenses (such as minerals and salts) using code 572 If the ingredients on your purchase invoices are not listed separately, enter your total purchase using code 573 (we will use 70% of this amount to calculate your allowable net sales). Ranch fur operators with prepared feed purchases If the ingredients on your purchase invoices of prepared feed and protein supplements are listed separately, enter:
  • allowable commodities (such as grains, forage, and oilseeds) and protein supplements using code 046
  • the remaining expenses (such as minerals and salts) using code 310 If the ingredients on your purchase invoices of prepared feed and protein supplements are not listed separately, enter your total purchases using code 574 (we will use 20% of this amount to calculate your allowable net sales). Livestock insurance premiums Enter premiums you paid for private livestock insurance using “Line 9953 – Private insurance premiums for allowable commodities.”

Repayment of program benefits

If you had to repay a program benefit, report the repayment as a purchase using the code for the program. Amounts you repaid are shown in box 17 of your AGR-1 slip. If you repay a program benefit from the programs listed on lines 9540 and 9544, enter the amounts you repaid on “Line 9896 – Other (specify).”

AgriStability program – Allowable expenses

Line 9661 – Containers and twine Enter the total amount you paid for materials to package, contain, or ship your farm produce or products. If you operated a nursery or greenhouse, report the cost of your containers and pots for the plants you sold. 42 https://canada.ca/taxes

Line 9662 – Fertilizers and soil supplements Enter the total amount you paid for fertilizers and lime you used in your farming business. If you used soil supplements or other growth media, report the amounts you paid for them here. Examples of soil supplements include mulch, sawdust, and weed-mats. Report your expenses for water you purchased to produce your commodity (crop or livestock) if it was not included in your municipal taxes. Line 9663 – Pesticides and chemical treatments Enter the total amount you paid for herbicides, insecticides, rodenticides, and fungicides. Insecticides include chemicals for pest control purposes as well as any predators or parasites introduced for that use. Also report the total amount you paid for chemicals used in treating water, manure, or slurry, as well as those used in disinfecting equipment and facilities. Report seed treatment expenses on this line if the treatment is listed separately from the seed purchase on your original invoice. If not listed separately, include the treatment as part of the commodity purchase. Line 9665 – Insurance premiums (crop or production) Enter the total amount of premiums paid for crop or production insurance (AgriInsurance), including hail insurance on this line. For information on other types of insurance premiums such as private, business-related, or motor vehicle insurance, see “Line 9804 – Other insurance premiums” on page 47. Line 9713 – Veterinary fees, medicine, and breeding fees Enter the total amount you paid for medicine for your animals, and for veterinary and breeding fees. Examples of such fees include the cost of artificial insemination, stud service and semen, embryo transplants, disease testing, and neutering or spaying. Line 9714 – Minerals and salts Enter the total purchases of minerals, salts, vitamins, and premixes (which are mainly minerals and vitamins). If you have purchased feed expenses, see page 41 for information on the codes you use to report these amounts. Line 9764 – Machinery (gasoline, diesel fuel, oil) Enter the total amount you paid for fuel and lubricants for your machinery used in your farming operation. Line 9799 – Electricity Only the part of your electricity costs that relates to your farming business is deductible. To determine the part you can deduct, keep a separate record of the amounts that apply to the farmhouse and other farm properties. The business part of your electricity expense will depend on how much electricity is used for the barns and shops. Because the electricity for the farmhouse is a personal expense, you cannot deduct it unless you meet the conditions explained in “Business-use-of-home expenses” on page 41. Include your expenses for business-use-of-home on “Line 9896 – Other (specify).” Do not include the electricity expense for a house that you rented to someone else. This is a rental expense, which you enter on Form T776, Statement of Real Estate Rentals. Line 9801 – Freight and shipping Enter the amount you paid for shipping farm inputs to your operating site and shipping farm produce to market. Enter amounts you paid for carcass disposal on this line. If you were trucking for someone else, the trucking expenses are non-allowable for AgriStability. For more information on how to report these costs, see “Line 9798 – Agricultural contract work.” For information on how to report freight and shipping charged after the point of sale, see “Line 575 – Point of sale adjustments.” https://canada.ca/taxes

43

Line 9802 – Heating fuel Enter the total amount you paid for natural gas, coal, and oil to heat farm buildings. Also, enter your expenses for fuel used for curing tobacco, crop drying, or greenhouses. You can deduct only the part of these costs that relate to your farming business. To determine the part you can deduct, keep a separate record of the amounts you paid for the farmhouse and other farm properties. The business part of your heating fuel expense will depend on how much heating fuel you used for the barns and shops. Because the heating fuel for the farmhouse is a personal expense, you cannot deduct it unless you meet the conditions explained in “Business-use-of-home expenses” on page 41. Include your expenses for business-use-of-home on “Line 9896 – Other (specify).” Do not include heating fuel expenses for a house that you rented to someone else. This is a rental expense, which you enter on Form T776, Statement of Real Estate Rentals. Line 9815 – Arm’s length salaries Enter the amount of gross wages you paid to your employees. Include the cost of room and board for hired help. If you hire temporary foreign workers, you may also include the costs related to transporting workers to your work site. For AgriStability purposes, you may also include variable costs associated with disposable personal protective equipment for employees due to COVID-19, such as gloves, masks and sanitizer. Do not include costs incurred for improvements to capital items such as workplace modifications, additional housing or installing protective barriers. These improvements are more permanent and have long-term benefits that are considered non-allowable under the program. Do not include salaries paid to related persons (see the definition below). If you paid salaries to related persons, see “Line 9816 – Non-arm’s length salaries” on page 51. Related persons are:

  • individuals connected by blood relationship, marriage or common-law partnership, or adoption
  • a corporation, and:
  • an individual, group of persons, or entity that controls the corporation
  • an individual, group of persons, or entity of a related group that controls the corporation
  • any individual related to a person described above Salaries or drawings paid to yourself are not deductible for tax purposes. As the employer, you must deduct your part of the Canada Pension Plan (CPP) or the Quebec Pension Plan (QPP) contributions and employment insurance premiums. You can also deduct workers’ compensation amounts payable on employees’ remuneration and Provincial Parental Insurance Plan (PPIP) premiums. The PPIP is an income replacement plan for residents of Quebec. For details, contact Revenu Québec. For information on making payroll deductions, go to https://canada.ca/payroll. Do not deduct the amounts you withheld from your employees’ remuneration since you already deducted them in the amount you claimed as wages. You may have paid wages in kind to your employees. For example, you may have paid your employees by giving them livestock or grain instead of cash. If you did this:
  • your employees include in their income the value of the livestock or grain
  • you include the same amount in your gross sales for the year and deduct it as a wage expense Keep a detailed record of the amounts you paid to each employee and the employee’s name, address, and social insurance number. Line 9822 – Storage/drying Enter the amount you paid for storing and drying commodities. For example, include:
  • amounts paid for storage and drying services
  • air treatment expenses
  • purchase of germination inhibitors and other preservative agents Enter electricity and heating fuel costs incurred in storage and drying commodities on lines 9799, “Electricity,” and 9802, “Heating fuel,” respectively. 44 https://canada.ca/taxes

Line 9836 – Commissions and levies Enter the amount you paid in commissions and levies incurred in the sale, purchase, or marketing of commodities. Also include levies paid to marketing boards, except those due to penalties or fines you incurred. Do not include commissions paid to a salesperson you contracted to market your product. If you market fruit or vegetables through a co-op, enter your pack-and-sell expenses here, except pack-and-sell expenses incurred after the point of sale. Enter these amounts on “Line 575 – Point of sale adjustments.” Line 9953 – Private insurance premiums for allowable commodities Enter your private insurance premiums paid for allowable commodities such as livestock. Enter premiums for hail insurance on “Line 9665 – Insurance premiums (crop or production).” Do not include any premiums for:

  • private insurance for non-allowable commodities
  • business-related insurance
  • motor vehicle insurance For information on other types of insurance premiums, see “Line 9804 – Other insurance premiums” on page 47.

AgriStability program – Non-allowable expenses

Line 9760 – Machinery (repairs, licences, insurance) Enter the total amount of repair, licence fee, and insurance premiums for your machinery. If you received insurance proceeds to help pay for repairs, see “Insurance proceeds” on page 37. Line 9765 – Machinery lease/rental Enter the amount you paid for leasing machinery used to earn your farming income. If you lease a passenger vehicle, see “Line 9829 – Motor vehicle interest and leasing costs” on page 54. If you entered a lease agreement, you can choose to treat your lease payments as combined payments of principal and interest. However, you and the person from whom you are leasing must agree to treat the payments this way. In this case, we consider that you have:

  • bought the machinery rather than leased it
  • borrowed an amount equal to the fair market value (see the definition on page 58) of the leased machinery You can deduct the interest part of the payment as an expense. You can also claim capital cost allowance (CCA) on the machinery. For more information on CCA, see Chapter 5. You can make this choice as long as the machinery qualifies and the total fair market value (FMV) of all the machinery that is subject to the lease is more than $25,000. For example, a combine that you lease with a FMV of $35,000 qualifies. However, office furniture and automobiles often do not. To treat your lease this way, attach one of the following forms with your income tax return for the year you make the lease agreement:
  • Form T2145, Election in Respect of the Leasing of Property
  • Form T2146, Election in Respect of Assigned Leases or Subleased Property Both of these forms explain which property qualifies for this treatment. Line 9792 – Advertising and promotion costs Enter the amount you paid for advertising and promoting your farm products. If you market fruit or vegetables through a co-op, see “Line 9836 – Commissions and levies” for information on how to report your pack-and-sell expenses.

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45

Line 9795 – Building and fence repairs Enter the amount you paid for repairs to fences and all buildings you used for farming, except your farmhouse. Do not include the value of your own labour. If the expenditure improved a fence or building beyond its original condition, the costs are capital expenditures. Add the expenditure to the cost of the asset or building on your capital cost allowance (CCA) charts on Form T1175, Farming – Calculation of Capital Cost Allowance (CCA) and Business-use-of-home Expenses CCA charts in Chapter 5. For more information on capital expenditures, see Income Tax Folio S3-F4-C1, Note You may have received insurance proceeds to pay for the cost of repairs. If the insurance proceeds compensated you for damages to depreciable property such as buildings or fences, and you used all of them to repair the property within a reasonable period of time, you can claim a deduction for the amount spent on repairs on line 9795. However, you have to include the insurance proceeds as income on line 9600. If you did not spend all the insurance proceeds on repairs within a reasonable length of time, include the remainder as proceeds of disposition in column 5 of Area A, “Calculation of capital cost allowance (CCA) claim,” on Form T1175. For more information, see “Column 5 – Proceeds of dispositions in the year” on page 80. Line 9796 – Land clearing and draining Enter the total of the expenses listed below. In most cases, you can deduct the costs for:

  • clearing the land of brush, trees, roots, and stones
  • first ploughing of the land for farm use
  • building an unpaved road
  • installing land drainage You do not have to deduct all of the costs in the year you paid them. If you paid all of the costs, you can deduct any part of them in the year you paid them. You can carry forward any part of the costs you did not deduct to another year. However, if you rented land to someone else, you cannot deduct the costs mentioned above. Instead, you may be able to do one of the following:
  • add these costs to the cost of the land
  • add these costs to the cost of the building if you plan to build on the land right away
  • include these costs under Class 8 in the CCA charts on Form T776, plastic, or concrete land drainage system. In this case, you also need to add the costs for a tile, plastic or concrete land drainage system to Class 8 on your CCA charts on Form T2042. For more information, see Chapter 5 For more information, see Interpretation Bulletin IT-485, Cost of clearing or levelling land Improving land You cannot deduct the cost of a paved road. Instead, you have to add this cost to Class 17 of your CCA charts on Form T1175. For more information, see Chapter 5. You can deduct most of the cost to drill or dig water wells in the year you did the work. However, you have to add some of the costs to Class 8 on your CCA charts. The costs you add to Class 8 are those you incurred to purchase and install:
  • the casing and cribwork for the well
  • the system that distributes water, including the pump and pipes You can deduct amounts you paid to have public utilities brought to your farm, as long as the installations remain the property of the utility. You can deduct amounts you paid under the Canada Cooperatives Act service contract. Line 9798 – Agricultural contract work Enter the expenses you paid for custom and contract work, other than custom feeding. For example, you may have had a contract with someone who cleaned, sorted, graded, and sprayed the eggs your hens produced, or someone who had facilities to age the cheese you produced. You may have also contracted someone to do your harvesting, combining, crop dusting, or seed cleaning. If you are a custom feedlot operator, see page 42 for information on reporting your custom feeding expenses. 46 https://canada.ca/taxes

. We explain the General Discussion of Capital Cost Allowance. Statement of Real Estate Rentals, if you installed a tile, . to build a distribution system under a gas

For AgriStability, agricultural contract work is a non-allowable expense. However, if the charges on your invoice are listed separately, report amounts that are allowable expenses for AgriStability on their specific line. For example, your invoice lists the costs charged for chemical, fuel, and salaries. Enter these amounts as follows:

  • chemical on “Line 9663 – Pesticides and chemical treatments”
  • fuel on “Line 9764 – Machinery (gasoline, diesel fuel, oil)”
  • salaries on “Line 9815 – Arm’s length salaries” Enter the remaining non-allowable amounts on line 9798. Line 9804 – Other insurance premiums Enter the amount of business-related insurance premiums you paid to insure your farm buildings, farm equipment (excluding machinery and motor vehicles), and business interruption. For information on reporting premiums for hail insurance or livestock, see “Line 9665 – Insurance premiums (crop or production)” on page 43, and “Line 9953 – Private insurance premiums for allowable commodities” on page 45. In most cases, you cannot deduct your life insurance premiums. However, if you use your life insurance policy as collateral for a loan related to your farming business, you may be able to deduct a limited part of the premiums you paid. For more information, see Interpretation Bulletin IT-309, Premiums on Life Insurance Used as Collateral In most cases, you cannot deduct the amounts you paid to insure personal property such as your home or car. However, if you used the personal property for your farming business, you can deduct the business part of these costs. For more information, see “Business-use-of-home expenses” on page 41, and “Line 9819 – Motor vehicle expenses” on page 51. Premiums to a private health services plan You can deduct premiums paid to a private health services plan (PHSP) if you meet the following conditions:
  • you are actively engaged in your business on a regular and continuous basis, individually or as a member of a partnership
  • the premiums are paid to insure yourself, your spouse or common-law partner, or any member of your household
  • in the year or previous tax year one of the following applies:
  • your net income from self employment (excluding losses and PHSP deductions) is more than 50% of your total income*
  • your income from sources other than self employment** is $10,000 or less
  • To make this claim, calculate your total income as follows:
  • the amount from line 15000 of your income tax return before you deduct any amounts for PHSPs;
  • the amount you entered on lines 20700, 21200, 21700, 22100, 22900, 23100, and 23200 of your income tax return. ** To make this claim, calculate your income from sources other
  • the amount from line 15000 of your income tax return before you deduct any amounts for PHSPs;
  • the amount you entered on lines 13500, 13700, 13900, 14100, 14300 (excluding business losses that reduced the net amount reported on those lines), 20700, 21200, 21700, 22100, 22900, 23100, and 23200 of your income tax return. You cannot claim a deduction for PHSP premiums if another person deducted the amount, or if you or anyone else claimed the premiums as a medical expense. For your premiums to be deductible, your PHSP coverage has to be paid under a contract with one of the following:
  • an insurance company
  • a trust company
  • a person or partnership in the business of administering PHSPs
  • a tax-exempt trade union of which you or the majority of your employees are members
  • a tax-exempt business organization or a tax-exempt professional organization of which you are a member For more information on PHSPs, see Interpretation Bulletin IT-339, subsequent tax years), or go to https://canada.ca/cra-private-health-services-plan

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. minus than self-employment as follows: minus Meaning of ‘private health services plan’ (1988 and . 47

For the purposes of this claim, the following terms apply: Arm’s length employees are, generally, employees who are not related to you and who are not carrying on your business with you, for example, as your partners. For more information, see “Arm’s length” on page 75. Qualified employees are arm’s length, full-time employees who have three months service since they last became employed with a business carried on by you, a business in which you are a majority interest partner, or a business carried on by a corporation affiliated with you. Temporary or seasonal workers are not qualified employees. Insurable persons are people to whom coverage is extended and who are either:

  • qualified employees
  • people who would be qualified employees if they had worked for you for three months
  • people carrying on your business (including yourself and your partners) How to calculate your maximum deduction for PHSPs The following sections explain how to calculate your maximum PHSP deduction based on whether you had employees and whether you insured them throughout the year or for part of the year. Find the section that describes your situation. Note All PHSP deduction limits and calculated limits must include all applicable taxes as part of the total dollar amount. If you did not have any employees throughout 2025 Your PHSP deduction is restricted by an annual dollar limit. The limit is a maximum of:
  • $1,500 for yourself
  • $1,500 for your spouse or common-law partner and each household member that is 18 years of age or older at the start of the period they were insured
  • $750 for each household member under the age of 18 at the start of the period The maximum deduction is also limited by the number of days that person was insured. Calculate your allowable maximum for the year by using the following formula: A ÷ 365 × (B + C), where: A is the number of days during the period of the year you insured yourself and your household members, if applicable B equals $1,500 × the number of household members 18 years of age or older insured during that period C equals $750 × the number of household members under the age of 18 insured during that period Example 1 Edwin was a sole proprietor who ran his farm alone in 2025. He had no employees and did not insure any of his household members. Edwin paid $2,000 for PHSP coverage in 2025. His coverage lasted from July 1 to December 31, 2025, (a total of 184 days). Edwin’s maximum allowable PHSP deduction is calculated as follows: 184 ÷ 365 × $1,500 = $756 Even though Edwin paid $2,000 in premiums in 2025, he can only deduct $756 because the annual limit is $1,500 and he was only insured for half of the year. If he had been insured for the entire year, his deduction limit would be $1,500. Example 2 Bruce was a sole proprietor who ran his farm alone in 2025. He had no employees. From January 1 to December 31, he insured himself, his wife, and his two sons. Bruce paid $1,800 to insure himself, $1,800 to insure his wife, and $1,000 for each of his sons. One of his sons was 15 years old and the other turned 18 on September 1. Bruce’s PHSP deduction is limited to the following amounts:
  • $1,500 for himself
  • $1,500 for his wife
  • $750 for his 15-year-old son
  • $750 for the son who turned 18 (this limit applies because he did not turn 18 until after the insured period began) 48 https://canada.ca/taxes

If you had employees throughout 2025 If you had at least one qualified employee (see the term defined on page 48) throughout all of 2025, and at least 50% of the insurable persons in your business were qualified employees, your claim for PHSP premiums is limited in a different way. Your limit is based on the lowest cost of equivalent coverage for each of your qualified employees. Use the following steps to calculate your maximum allowable claim for the PHSP premiums paid for yourself, your spouse or common-law partner, and your household members. For each of your qualified employees, calculate the following: X × Y = Z, where: X equals the amount you would pay to provide yourself, your spouse or common-law partner, and your household members with coverage equal to that provided to a particular employee, his or her spouse or common-law partner, and household members Y equals the percentage of the premium you pay for that particular employee Z equals your limit based on that particular employee If you had more than one qualified employee, you have to do the X × Y = Z calculation for each employee. Your limit is then the least amount you calculate for each employee. Example 1 You have one qualified employee. To provide yourself with coverage equal to his or hers, you pay a premium of $1,800. You pay 60% of your employee’s premium. Your deduction limit for yourself is $1,080, calculated as follows: $1,800 (amount X) × 60% (amount Y) = $1,080 (amount Z) The maximum you can claim is $1,080, if you had only one qualified employee. Example 2 You have three qualified employees, Jack, Jill, and Sue. The following table shows how much you would pay for coverage equivalent to each of theirs, and the percentage of each employee’s premium you pay. Cost of equivalent coverage for Name of employee yourself Jack $1,500 20% Jill $1,800 50% Sue $1,400 40% You have to do the following three calculations: Jack: $1,500 (X) × 20% (Y) = $300 (Z) Jill: $1,800 (X) × 50% (Y) = $900 (Z) Sue: $1,400 (X) × 40% (Y) = $560 (Z) Your limit is $300, the lowest of the amounts you calculated for the three employees. Note If you have a qualified employee with no coverage, you cannot claim your PHSP premiums as a deduction from self-employment income. However, you may be able to claim them as medical expenses. If you had employees throughout 2025 but the number of arm’s length insurable persons in your business, your maximum allowable deduction is the Amount 1 Determine this amount by calculating: A ÷ 365 × (B + C), where: A is the number of days during the period of the year you insured yourself and your household members, if applicable, but insured less than 50% of your employees B equals $1,500 × the number of household members 18 years of age or older insured during that period C equals $750 × the number of household members under the age of 18 insured during that period https://canada.ca/taxes

% of the employee’s premium you pay employees you insured was less than 50% of all the lesser of the following two amounts: 49

Amount 2 If you had at least one qualified employee, Amount 2 is the lowest cost of equivalent coverage for each qualified employee, calculated by using the X × Y = Z formula in the previous example. If you did not have at least one qualified employee, the limit in Amount 1 will apply. If you had employees for part of the year If you had at least one qualified employee for part of the year and your insurable arm’s length employees represented at least 50% of all the insurable persons in your business, calculate your limit for “If you had employees throughout 2025” on page 49. For the rest of the year when you had no employees or when your insurable 50% of all the insurable persons in your business, your deduction limit for that remaining period is the and Amount 2, calculated in the same way as in the previous section. Undeducted premiums If you deduct only part of your PHSP premium at line 9804 and you paid the premium in the year, you can include the undeducted balance when you calculate your non-refundable medical expense tax credit. For more information, see “Line 33099” in your Income Tax and Benefit Information. Line 9805 – Interest (real estate, mortgage, other) You can deduct interest you incurred on money borrowed for farming business purposes or to acquire property for farming business purposes. However, there are limits on:

  • The interest you can deduct on money you borrowed to buy a passenger vehicle or a zero-emission passenger vehicle. For more information, see “Line 9819 – Motor vehicle expenses” on page 51
  • The amount of interest you can deduct for vacant land. Usually, you can only deduct interest up to the amount of income from the land that remains after you deduct all other expenses. You cannot use any remaining amounts of interest to create or increase a loss, and you cannot deduct them from other sources of income You can report interest you paid on any real estate mortgage you incurred to earn farming income, but you cannot deduct the principal part of loan or mortgage payments. Do not deduct interest on money you borrowed for personal purposes or to pay overdue income taxes. You may be able to report interest expenses for a property you used for farming business purposes, even if you have stopped using the property for such purposes because you are no longer in the farming business. For more information, see Income Tax Folio S3-F6-C1, Interest Deductibility, or call 1-800-959-5525 Line 9807 – Memberships/subscription fees Enter the amount of annual dues or fees you paid to keep your membership in a trade or commercial farming association. You cannot deduct club membership dues (including initiation fees) if the main purpose of the club is dining, recreation, or sporting activities. You can also report fees for subscriptions to farming publications you use in your farming business. Enter the amounts you paid for your AgriStability administrative cost share (ACS) and your fee on this line. Line 9808 – Office expenses You can report the cost of office expenses. These include small items such as pens, pencils, paper clips, stationery, and stamps. Office expenses do not include items such as calculators, filing cabinets, chairs, and desks. These are capital items. For more information on capital property, see “Class 14.1 (5%)” on page 89. Line 9809 – Legal and accounting fees Report the fees you incurred for external professional advice or services, including consulting fees. You can report accounting and legal fees you incur to get advice and help in keeping your records. You can also report fees you incur for preparing and filing your income tax and GST/HST returns. You can deduct accounting or legal fees you paid to have an objection or appeal prepared against an assessment for income tax, CPP or QPP contributions, or EI premiums. However, the full amount of these deductible fees must first be reduced by any reimbursement of these fees you have received. Report the difference on line 23200 of your income tax return. If you received a reimbursement in 2025 for the types of fees you deducted in a previous year, enter the amount you received on line 13000 of your 2025 income tax return. 50 https://canada.ca/taxes

that period by using the X × Y = Z formula of arm’s length employees represented less than lesser of Amount 1 .

You cannot report legal and other fees you incur to buy capital property. Instead, add these fees to the cost of the property. For more information on capital property, see “Class 14.1 (5%)” on page 89. For more information, see Interpretation Bulletin IT-99, Legal and Accounting Fees Line 9810 – Property taxes Enter the amount of land, municipal, and realty taxes you paid for property used in your farming business. Since the municipal tax for the farmhouse is a personal expense, you cannot report it unless you meet the conditions explained in “Business-use-of-home expenses” on page 41. If you are repaying a loan for land drainage through your property tax payments to your township, you cannot include the amount you repaid as part of your property tax expense. Line 9811 – Rent (land, buildings, pastures) Enter the amount of rent you paid for land, buildings, and pastures you used for your farming business. If you farmed in a crop share and paid your landlord a share of the crop, only include your share of the crop in your income and expenses. Line 9816 – Non-arm’s length salaries Keep a detailed record of the amounts you paid to each related person. For a definition of related persons, see “Line 9815 – Arm’s length salaries” on page 44. As the employer, you must deduct your part of CPP or QPP contributions and employment insurance premiums. You can also deduct workers’ compensation amounts payable on employees’ remuneration and Provincial Parental Insurance Plan (PPIP) premiums. The PPIP is an income replacement plan for residents of Quebec. For details, contact Revenu Québec. For information on making payroll deductions, go to https://canada.ca/payroll Do not deduct the amounts you withheld from remuneration, since you already deducted them in the amount you claimed as wages. Do not include the cost of board. The terms “salaries” and “wages” are used interchangeably in the description of this non-allowable expense. You can deduct the wages you paid to your child, as long as you meet all of these conditions:

  • you paid the wages by cheque, in cash or in kind
  • the work your child did was necessary for you to earn farm income
  • the wages were reasonable when you consider your child’s age
  • the amount you paid is what you would have paid someone else to do the same work Keep documents to support the wages you paid to your child. If you paid your child by cheque, keep the cancelled cheque. If you paid cash, have your child sign a receipt. If you paid wages in kind to non-arm’s length employees (including your spouse or children), report such wages in the same manner that is described at “Line 9815 – Arm’s length salaries” on page 44. You can deduct wages you paid to your spouse or common-law partner, as long as that person is not a partner in your business and you follow the same rules that apply to wages paid to your child. If you were a partner of a farm partnership that employed your or your partner’s spouse or common-law partner, the farm partnership can deduct that person’s wages if it incurred the expense to earn farming income and the wages were reasonable. Line 9819 – Motor vehicle expenses Business use of a motor vehicle or passenger vehicle (including zero-emission vehicles and zero-emission passenger vehicles) If you use your motor vehicle or a passenger vehicle for personal and business use, you can deduct only the part of the expenses you paid to earn farming income. Farming business use includes things such as trips to pick up parts and farm supplies, or to deliver grain. You can deduct the full amount of parking fees related to your business activities and supplementary business insurance for your motor vehicle or passenger vehicle. If you did not live on your farm, the travel between the farm and your home is not considered business travel. To support the amount you can deduct, keep a record of the total kilometres you drive and the kilometres you drive to earn income. Also, keep track of what it costs you to run and maintain the motor vehicle for your fiscal period.

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. . 51

What type of vehicle do you own? The kind of vehicle you own can affect the expenses you can deduct. For income tax purposes, you should know the definitions of motor vehicles, zero-emission vehicles, passenger vehicles, and zero-emission passenger vehicles. A motor vehicle is an automotive vehicle designed or adapted for use on highways and streets. A motor vehicle does not include a trolley bus or a vehicle designed or adapted to be operated only on rails. A zero-emission vehicle and a zero-emission passenger vehicle vehicles, see their definitions on page 76. A passenger vehicle is a motor vehicle that is owned by the taxpayer (other than a zero-emission vehicle) or that is leased, and is designed or adapted primarily to carry people on highways and streets. It seats a driver and no more than eight passengers. Most cars, station wagons, vans, and some pick-up trucks are passenger vehicles. Passenger vehicles and zero-emission passenger vehicles are subject to limits on the amount of CCA, interest, and leasing cost that may be deducted. They do not include:

  • an ambulance
  • a clearly marked police or fire emergency response vehicle
  • a motor vehicle you bought to use more than 50% as a taxi, a bus used in the business of transporting passengers, or a hearse used in a funeral business
  • a motor vehicle you bought to sell, rent, or lease in a motor vehicle sales, rental, or leasing business
  • a motor vehicle (except a hearse) you bought to use in a funeral business to transport passengers
  • a van, pick-up truck, or similar vehicle that seats no more than the driver and two passengers and that, in the tax year you bought or leased it, was used more than 50% to transport goods and equipment to earn income
  • a van, pick-up truck, or similar vehicle that, in the tax year you bought or leased it, was used 90% or more to transport goods, equipment, or passengers to earn income
  • a pick-up truck that, in the tax year you bought or leased it, was used more than 50% to transport goods, equipment, or passengers to earn or produce income at a remote work location or at a special work site that is at least 30 kilometres from the nearest community with a population of at least 40,000
  • a clearly marked emergency medical service vehicle used to carry paramedics and their emergency medical equipment If you own a passenger vehicle or a zero emission passenger vehicle (ZEPV), or you lease a passenger vehicle or a passenger vehicle that would otherwise qualify as a ZEPV, there may be a limit on the amounts you can deduct for CCA, interest, and leasing costs. The following chart will help you to determine if you have a motor vehicle or a passenger vehicle. The chart does not cover every situation, but it gives some of the main definitions for vehicles bought or leased and used to earn self-employment income. Vehicle definitions Type of vehicle Coupe, sedan, station wagon, sports car, or luxury car Pick-up truck used to transport goods or equipment Pick-up truck (other than above) Pick-up truck with extended cab used to transport goods, equipment, or passengers Pick-up truck with extended cab (other than above) Sport-utility used to transport goods, equipment, or passengers Sport-utility (other than above) Van or minivan used to transport goods or equipment Van or minivan (other than above) Van or minivan used to transport goods, equipment, or passengers Van or minivan (other than above) 52 https://canada.ca/taxes

are motor vehicles. For more information on these types of Seating Business use in year Vehicle definition (includes driver) bought or leased 1 to 9 1% to 100% passenger 1 to 3 more than 50% motor 1 to 3 1% to 100% passenger 4 to 9 90% or more motor 4 to 9 1% to 100% passenger 4 to 9 90% or more motor 4 to 9 1% to 100% passenger 1 to 3 more than 50% motor 1 to 3 1% to 100% passenger 4 to 9 90% or more motor 4 to 9 1% to 100% passenger

Do not include any of the following:

  • interest on the money you borrow for a motor vehicle
  • leasing costs for a motor vehicle
  • the capital cost allowance (CCA) For more information on interest and leasing costs, see “Line 9829 – Motor vehicle interest and leasing costs” on page 54. For more information on CCA, see Chapter 5. Example Murray’s farming business has a December 31 year-end. He owns a truck that is not a passenger vehicle. He uses the truck to pick up supplies and equipment. Murray kept the following records for his 2025 fiscal period: Farming business kilometres Total kilometres Expenses: Gasoline and oil Repairs and maintenance Insurance Licence and registration fees Total expenses for the truck This is how Murray determines the motor vehicle expenses he can deduct in his 2025 fiscal period: 27,000 (business kilometres) ÷ 30,000 (total kilometres) × $5,100 = $4,590 Murray enters $4,590 on line 9819 of the form as motor vehicle expenses in his 2025 fiscal period. He calculates and deducts the interest on the loan to buy his truck separately on line 9829. Note You may have received insurance proceeds to pay for the cost of repairs. If the insurance proceeds compensated you for damages to a motor vehicle for which you claimed CCA, and you used all of them to repair the vehicle within a reasonable period of time, claim a deduction for the amount spent on repairs on line 9819. You must also include the insurance proceeds as income on line 9600. If you did not spend all the insurance proceeds on repairs within a reasonable length of time, include the remainder as proceeds of disposition in column 5 of Area A, “Calculation of capital cost allowance (CCA) claim,” on Form T1175, Farming – Calculation of Capital Cost Allowance (CCA) and Business-use-of-home Expenses. For more information, see “Column 5 – Proceeds of dispositions in the year” on page 80. For more information on motor vehicle expenses, see Interpretation Bulletin IT-521, Self-Employed Individuals. Simplified logbook for motor vehicle expense provisions Following a Federal initiative to reduce the paper burden on businesses, you can choose to maintain a full logbook for one complete year to establish a base year’s business use of a vehicle. After one complete year of keeping a logbook to establish the base year, you can use a three month sample logbook to extrapolate business use for the entire year, as long as the usage is within the same range (within 10%) of the results of the base year. Businesses will have to show that the use of the vehicle in the base year remains representative of its normal use. More than one vehicle If you use more than one motor vehicle or passenger vehicle for your business, for each vehicle keep a separate record that shows the total personal use kilometres and business kilometres you drive, as well as the cost to run and maintain each vehicle. Calculate each vehicle’s expenses separately. For more information, see Interpretation Bulletin IT-521, Motor Vehicle Expenses Claimed by Self-Employed Individuals Line 9820 – Small tools If a tool costs you less than $500, you can report its full cost. If it costs you $500 or more, add the cost to your CCA charts on Form T1175 as Class 8 property. Small tools that cost less than $500 are fully deductible in the year you buy them. You may claim them as an expense at line 9820 or claim CCA by including them in Class 12 (with a CCA rate of 100%). Either method is acceptable, but do not claim the amount twice. For more information on CCA, see Chapter 5.

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27,000 km 30,000 km $ 3,500 $ 500 $ 1,000 $ 100 $ 5,100 Motor Vehicle Expenses Claimed by . 53

Line 9821 – Soil testing Enter the amount of expenses you paid for testing soil samples. Line 9823 – Licences/permits Enter the total of annual licence and permit fees that you paid to run your business. Line 9824 – Telephone Do not deduct the basic monthly rate of your home telephone. However, you can deduct any long-distance telephone calls you made on your home telephone for farming business purposes. If you have a separate telephone to use in your business and you use it for business calls only, you can deduct its basic monthly rate. Line 9825 – Quota rental (tobacco, dairy) Enter the amount of expenses you paid for quota rentals in the fiscal period. Line 9826 – Gravel Enter the amount of expenses you paid for gravel used to earn farming income in the fiscal period. Line 9827 – Purchases of commodities resold Enter purchases of commodities that you bought for resale and then sold. Enter the corresponding sales of commodities purchased for resale on “Line 9612 – Resales of commodities purchased.” Enter purchases of commodities that you bought for resale but have not yet sold. Line 9829 – Motor vehicle interest and leasing costs Enter the leasing costs for your motor vehicle or the interest on the money you borrowed for a motor vehicle. If you used a passenger vehicle (see the definition on page 52) or a income, there is a limit on the amount of interest you can deduct. Whether you use the cash or accrual method to determine your income, fill in the following chart to calculate the interest you can deduct. If you used your passenger vehicle or zero-emission passenger vehicle for both personal and farming business use, fill in the chart before you determine how much interest you can deduct as an expense. Interest chart Enter the total interest you paid (cash method) or that is payable (accrual method) in your fiscal period $10* × ______, number of days in your fiscal period for which interest was paid or payable Your available interest expense is either A or B, whichever amount is less

  • For passenger vehicles bought: from September 1, 1989, to December 31, 1996, and from 2001 to 2025, use $10; and from 1997 to 2000, use $8.33. Example Heather’s farming business has a December 31 year-end. On January 1, 2025, she bought a new passenger vehicle that she uses for both personal and business use. She borrowed money to buy the vehicle, and the interest she paid in her 2025 fiscal period was $2,200. Since the car Heather bought is a passenger vehicle, there is a limit on the interest she can deduct. Heather’s available interest is either of these two amounts, whichever is less:
  • $2,200 (the total interest she paid in her 2025 fiscal period)
  • $4,270 ($350 ÷ 30 × 366 days) Heather drove 20,000 kilometres on farming business out of the total 25,000 kilometres she drove in her 2025 fiscal period. Here is how Heather determines the motor vehicle interest expenses she can deduct for her 2025 fiscal period: 20,000 (business kilometres) ÷ 25,000 (total kilometres) × $2,200 = $1,760 Heather enters $1,760 on line 9829, as motor vehicle interest for her 2025 fiscal period. 54 https://canada.ca/taxes

zero-emission passenger vehicle to earn farming $ A $ B $

Leasing costs for a passenger vehicle (or a vehicle that would qualify as a zero-emission passenger vehicle if you owned it) You can report costs you incur to lease a passenger vehicle you use to earn income. Include these amounts on line 9819. When you use a passenger vehicle to earn farming business income, there is a limit on the amount of the leasing costs you can deduct. This limit does not apply to zero-emission passenger vehicles. To calculate your eligible leasing costs, fill in the “Eligible leasing costs for passenger vehicles” chart. If the lease agreement for your passenger vehicle includes items such as insurance, maintenance, and taxes, include them as part of the lease charges on line 1 when you fill in the chart. Note Generally, leases include taxes, GST/HST or provincial sales tax (PST), but not items such as insurance and maintenance. You have to pay these amounts separately. Include the taxes at line 1 of the chart, and list the items like insurance and maintenance on the appropriate lines on Form T1273. For your 2025 fiscal period, use the GST rate of 5% or the applicable HST rate of your specific province to fill in the chart below. The following example shows how to calculate the eligible leasing costs. In this chart, we use prescribed amounts. Prescribed means it is written in the law. Example On July 1, 2025, Meadow started leasing a car that is a passenger vehicle. She used the car to earn farming income. Her business has a December 31 fiscal year-end. The PST rate for her province is 8% and GST is 5%. Meadow entered the following for 2025: Monthly lease payment Lease payments for 2025 Manufacturer’s suggested list price Number of days in 2025 she leased the car Prescribed CCA capital cost limit Prescribed CCA capital cost limit × Prescribed limit rate: 37,000 × (100 ÷ 85) Prescribed deductible leasing costs limit GST and PST on $38,000 GST and PST on $44,706 GST and PST on $1,100 Total lease charges incurred in 2025 fiscal period for the vehicle Total lease payments deducted in fiscal periods before 2025 for the vehicle Total number of days the vehicle was leased in 2025 and previous fiscal periods Manufacturer’s list price The highest amount: line 4 or ($44,706 + $5,812) × 85% ($1,100 x 1.13 × 184) ÷ 30 ($42,940 x $3,000) ÷ $42,940 Meadow’s eligible leasing cost is either line 6 or 7, whichever https://canada.ca/taxes

$ 500 $ 3,000 $ 33,000 184 $ 38,000 $ 44,706 $ 1,100 $ 4,940 $ 5,812 $ 143 $ 3,000 1 $ 0 2 184 3 $ 33,000 4 $ 42,940 5 $ 7,624 6 $ 3,000 7 amount is less. In this case, her allowable claim is $3,000. 55

Eligible leasing costs for passenger vehicles Total lease charges incurred in your 2025 fiscal period for the vehicle Total lease payments deducted before your 2025 fiscal period for the vehicle Total number of days the vehicle was leased in 2025 and before 2025 Manufacturer’s list price The amount on line 4 or ($44,706* + GST** and PST**, or $44,706* + HST**), $ whichever is more [($1,100*** + GST** and PST**, or $1,100*** + HST**) × line 3] $ 30 [($38,000**** + GST** and PST**, or $38,000**** + HST**) × line 1] = line 5 Eligible leasing cost: Line 6 or line 7, whichever is less

  • For leases entered into in 2024, this amount is $43,529. For leases entered into in 2023, this amount is $42,353. For leases entered into in 2022, this amount is $40,000. For leases entered into before 2022, this amount is $35,294. ** Use a GST rate of 5% or the HST rate applicable to your province. *** For leases entered into in 2024, this amount is $1,050. For leases entered into in 2023, this amount is $950. For leases entered into in 2022, this amount is $900. For leases entered into before 2022, this amount is $800. **** For leases entered into in 2024, this amount is $37,000. For leases entered into in 2023, this amount is $36,000. For leases entered into in 2022, this amount is $34,000. For leases entered into before 2022, this amount is $30,000. Repayments and imputed interest When you lease a passenger vehicle, you may have a repayment owing to you, or you may have imputed interest. If so, you will not be able to use the chart. Imputed interest is interest that would be owing to you if interest were paid on the money you deposited to lease a passenger vehicle. Calculate imputed interest for leasing costs on a passenger vehicle only if
  • one or more deposits were made for the leased passenger vehicle
  • one or more deposits are refundable
  • the total of the deposits is more than $1,000 For more information, see Interpretation Bulletin IT-521, Motor Vehicle Expenses Claimed by Self-Employed Individuals Joint ownership of a passenger vehicle or a zero-emission passenger vehicle If you and another person own or lease a passenger vehicle or zero-emission passenger vehicle, the limits on CCA, interest, and leasing costs still apply. If you and another person own or lease a zero-emission passenger vehicle, only the limits on CCA and interest apply. The total amount you (as a joint owner) or any other owners deduct cannot be more than the amount one person owning or leasing the vehicle could deduct. Line 9936 – Capital cost allowance Enter the amount of CCA you calculate on all the eligible assets used in your farming operation. To calculate your CCA claim, use the charts on Form T1175, Farming – Calculation of Capital Cost Allowance (CCA) and Business-use-of-home Expenses. For information on how to fill in these charts, see Chapter 5. Line 9937 – Mandatory inventory adjustments – prior year If you included an amount for the mandatory inventory adjustment (MIA) on line 9942 in your 2024 fiscal period, enter the amount as an expense on line 9937 in your 2025 fiscal period. Do not include the valuation of inventories if you are using the accrual method of accounting. For information about the accrual method, see “Reporting methods” on page 11. For more information on MIA, see “Line 9942 – Mandatory inventory adjustment – current year” on page 57. Line 9938 – Optional inventory adjustments – prior year If you included an amount for the optional inventory adjustment (OIA) on line 9941 in your 2024 fiscal period, deduct the amount as an expense on line 9938 in your 2025 fiscal period. Do not include the valuation of inventories if you are using the accrual method of accounting. For information about the accrual method, see “Reporting methods” on page 11. For more information on OIA, see “Line 9941 – Optional inventory adjustment – current year” on page 57. 56 https://canada.ca/taxes

$ 1 $ 2 3 $ 4 × 85% = $ 5

  • line 2: $ = $ 6 $ 7 $ all of the following apply: .

Line 9896 – Other (specify) The expenses listed on the form are only the most common ones. If you have other farming expenses that are not listed on this form and are non-allowable for AgriStability, enter the total amount on line 9896. Then list the items on the blank lines provided under line 9896. For more information about other expenses, see Guide T4002, Commission, Farming, and Fishing Income. Enter any overpayments you repaid for any of the programs identified on lines 9540 and 9544. Summary of expenses Copy Totals C, D, and E from the bottom of each of the three tables in the “Expenses” section of the form. Add the totals for your total expenses.

Summary of income and expenses

Line 9959 – Gross farming income Enter your gross farming income from line 9959 on line 14099 of your income tax return. If you also completed Form T1274, add the totals from line 9959 on your Form T1273 and all your T1274 forms. Enter the result on line 14099 of your income tax return. Line 9969 – Net income (loss) before adjustments If you are a partner of a partnership, this amount is the net farming business income of the partnership. If the amount is negative, enter the amount in brackets. Line 9940 – Other deductions You can enter any business-use-of-home expenses that you are carrying forward from a previous fiscal period, as long as you meet one of the following conditions:

  • the workspace is your principal place of business
  • you use the space only to earn your farming business income, and you use it on a regular, ongoing basis to meet your customers For more information, see “Line 9934 – Adjustment to business-use-of-home expenses” on page 61. Line 9941 – Optional inventory adjustment – current year If you want to include an inventory amount in income, read this section. By making the OIA, you can include in your income an amount up to the FMV of your inventory minus the MIA. You can only make the OIA if you use the cash method. For the meaning of inventory and FMV, see “Line 9942 – Mandatory inventory adjustment – current year.” For the OIA, unlike for the MIA, the inventory does not have to be purchased inventory. It is the entire inventory you still have at the end of your 2025 fiscal period. Enter the amount of your OIA on line 9941. You must deduct this amount as an expense in your next fiscal period. Line 9942 – Mandatory inventory adjustment – current year The mandatory inventory adjustment (MIA) decreases your net loss if you held inventory at the end of your fiscal period. Read this section even if you do not have to make the MIA. This section will show you how to determine the value of the farm inventory you bought and still have at the end of your 2025 fiscal period. You will need to know this value if you have to make the MIA this year or in the future. You have to make the MIA if all of the following apply:
  • you use the cash method to report your income
  • you have a net loss on line 9969 of the form
  • you bought inventory and still have it at the end of your 2025 fiscal period. This does not refer only to inventory you bought in 2025. It includes inventory you had previously bought and still owned at the end of your 2025 fiscal period

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Self-employed Business, Professional, 57

Your MIA is the lesser of these two amounts:

  • the net loss before adjustments on line 9969
  • the value of the purchased inventory you still have at the end of your 2025 fiscal period To calculate your MIA, fill in Charts 1, 2, 3, and 4 on page 151. Once you have filled in Chart 4, enter the amount on line 9942. For more information, see Interpretation Bulletin IT-526, In your next fiscal period, deduct from your farming income the MIA you add to your net loss in your 2025 fiscal period. Note If you bought a specified animal in a non-arm’s length transaction, we consider that you bought the animal in the same year and at the same price for which the seller bought it. A non-arm’s length transaction is, for example, a transaction between members of a family, such as a husband and wife, or a parent and child. See the definition of “specified animal” below and the definition of “non-arm’s length” on page 75. To value your inventory, you need to know the meaning of the following terms: Inventory is a group of items that a business holds and intends to consume or sell to its customers. Farm inventory is tangible property that is:
  • held for sale, such as harvested grain
  • used in the production of saleable goods, such as seed and feed
  • in the process of being produced, such as standing crops or feeder livestock Seed you have already planted and fertilizer or chemicals you have already applied are no longer part of your inventory items but are included in the value of the standing crops that may be included in the OIA. Purchased inventory is inventory you have bought and paid for. Specified animals are horses. You may also elect to designate cattle you registered under the specified animals. To make this choice, put a note on your income tax return saying you want to designate the animal this way. If you indicate on your return that it is a specified animal, we will continue to consider it as such until you sell it. Cash cost is the amount you paid to buy your inventory. Fair market value (FMV) – generally the highest dollar value you can get for your property. We define this term on page 76. Value of your purchased inventory To value your purchased inventory, read the text that follows and the example of how to fill in the MIA charts. There are blank charts for you to use on page 151 of this guide. Keep these charts as part of your records. Except for specified animals, you have to value any purchased inventory you bought before or during your 2025 fiscal period at the lesser of these amounts:
  • the cash cost
  • the FMV To determine which amount is less, compare each item or group of items separately in the inventory. Value the specified animals you acquired in your 2025 fiscal period and still have at the end of this period at following amounts:
  • the cash cost
  • 70% of the cash cost
  • any amount between these two amounts 58 https://canada.ca/taxes

Farming – Cash method inventory adjustments. Animal Pedigree Act as one of the

Value the specified animals you acquired before your 2025 fiscal period and still have at the end of this period at following amounts:

  • the cash cost
  • 70% of:
  • the value of the specified animals for MIA purposes as determined at the end of your 2024 fiscal period,
  • any amounts you paid in your 2025 fiscal period toward the purchase price
  • any amount between these two amounts Example Doug started his farming business in 2022 and uses the cash method to report his income. His year-end is December 31. Doug shows a net loss of $55,000 in 2025 on line 9969. Doug has purchased inventory at the end of his 2025 fiscal period. This means he has to decrease his net loss by the MIA. Doug made a chart for the cash cost of his livestock that is purchased inventory at the end of his 2025 fiscal period. Livestock Year of purchase Cost of purchase 2025 $30,000 2024 $26,000 2023 $22,000 2022 $20,000
  • For livestock bought in his 2024 fiscal period, Doug paid $19,000 in 2024 and $7,000 in 2025. Doug’s other inventory is fertilizer, seed, and fuel. The cash cost is the same as the fair market value for this inventory. Its value is as follows:
  • $15,000 bought in his 2025 fiscal period
  • $6,000 bought in his 2024 fiscal period
  • $5,000 bought in his 2023 fiscal period At the end of his 2025 fiscal period, Doug did not have any other inventory that he bought before his 2022 fiscal period. Doug has registered his livestock under the Animal Pedigree Act. He wants to designate these animals as specified animals. Doug fills in Chart 1 as follows: Chart 1 Cash cost of purchased inventory Doug enters the amount he paid by the end of his 2025 fiscal period for the specified animals he bought Fiscal period in his 2025 fiscal period in his 2024 fiscal period in his 2023 fiscal period in his 2022 fiscal period before his 2022 fiscal period Doug enters the amount he paid by the end of his 2025 fiscal period for all other inventory he bought: in his 2025 fiscal period in his 2024 fiscal period in his 2023 fiscal period in his 2022 fiscal period before his 2022 fiscal period

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one of the plus Amount Doug paid by the end of his 2025 fiscal period $25,000 $26,000* $22,000 $20,000 : Cash cost $ 25,000 1 $ 26,000 2 $ 22,000 3 $ 20,000 4 $ 0 5 $ 15,000 6 $ 6,000 7 $ 5,000 8 $ 0 9 $ 0 10 59

Doug now knows the cash cost of his purchased inventory, including his specified animals. He uses these amounts to calculate the value of his purchased inventory at the end of his 2025 fiscal period. To do this, he fills in Charts 2, 3, and 4 as follows: Chart 2 Value of purchased inventory for specified animals The small letters in front of each line match the paragraphs at the end of this chart. These paragraphs explain how Doug calculates the number on each line. Inventory bought in his 2025 fiscal period Doug enters an amount that is not more than the amount from line 1, but not less than 70% of this amount Inventory bought in his 2024 fiscal period Doug enters an amount that is not more than the amount from line 2, but not less than 70% of the total of the value at the end of his 2024 fiscal period, plus any amounts he paid in his 2025 fiscal period toward the purchase price Inventory bought in his 2023 fiscal period Doug enters an amount that is not more than the amount from line 3, but not less than 70% of the total of the value at the end of his 2024 fiscal period, plus any amounts he paid in his 2025 fiscal period toward the purchase price Inventory bought in his 2022 fiscal period Doug enters an amount that is not more than the amount from line 4, but not less than 70% of the total of the value at the end of his 2024 fiscal period, plus any amounts he paid in his 2025 fiscal period toward the purchase price Inventory bought before his 2022 fiscal period a) Doug chose $20,000, which is between the cash cost of $25,000 and $17,500 (70% of the cash cost). b) Doug chose to value the inventory he bought in his 2024 fiscal period at 70% of the cash cost. Therefore, the value of this inventory at the end of his 2024 fiscal period was $13,300 ($19,000 × 70%). Remember, Doug paid $19,000 for these specified animals in 2024. He paid $7,000 in 2025. For his 2025 fiscal period, Doug chose to value the inventory that he bought in his 2024 fiscal period at 70% of the total of the value at the end of the 2024 fiscal period plus any amounts that he paid in his 2025 fiscal period toward the purchase price. Therefore, the amount that he enters on line 12 is $14,210 [70% × ($13,300 + $7,000)]. He could choose any amount between the cash cost of $26,000 and the lowest acceptable inventory value of $14,210. c) Doug chose to value the inventory that he bought in his 2023 fiscal period at 70% of the cash cost. Therefore, the value of this inventory at the end of his 2023 fiscal period was $15,400 ($22,000 × 70%). For his 2024 fiscal period, Doug chose to value the inventory that he bought in his 2023 fiscal period at 70% of the total of the value at the end of his 2023 fiscal period. Therefore, the value of this inventory at the end of his 2024 fiscal period was $10,780 ($15,400 × 70%). For his 2025 fiscal period, Doug chose to value the inventory that he bought in his 2023 fiscal period at 70% of the total of the value at the end of his 2024 fiscal period. Therefore, the amount he enters on line 13 is $7,546 ($10,780 × 70%). He could choose any amount between the cash cost of $22,000 and the lowest acceptable inventory value of $7,546. d) Doug chose to value the inventory that he bought in his 2022 fiscal period at 70% of the cash cost. Therefore, the value of this inventory at the end of his 2022 fiscal period was $14,000 ($20,000 × 70%). For his 2023 fiscal period, Doug chose to value the inventory that he bought in his 2022 fiscal period at 70% of the total of the value at the end of his 2022 fiscal period. Therefore, the value of this inventory at the end of his 2023 fiscal period was $9,800 ($14,000 × 70%). For his 2024 fiscal period, Doug chose to value the inventory that he bought in his 2022 fiscal period at 70% of the total of the value at the end of his 2023 fiscal period. Therefore, the value of this inventory at the end of his 2024 fiscal period was $6,860 ($9,800 × 70%). For his 2025 fiscal period, Doug chose to value the inventory that he bought in his 2022 fiscal period at 70% of the total of the value at the end of his 2024 fiscal period. Therefore, the amount he enters on line 14 is $4,802 ($6,860 × 70%). He could choose any amount between the cash cost of $20,000 and the lowest acceptable inventory value of $4,802. e) Doug had not purchased any specified animals before his 2022 fiscal period. 60 https://canada.ca/taxes

a) $ 20,000 11 b) $ 14,210 12 c) $ 7,546 13 d) $ 4,802 14 e) $ 0 15

Chart 3 Value of purchased inventory for all other inventory Inventory bought in his 2025 fiscal period: Doug enters the amount from line 6 or the fair market value, whichever is less Inventory bought in his 2024 fiscal period: Doug enters the amount from line 7 or the fair market value, whichever is less Inventory bought in his 2023 fiscal period: Doug enters the amount from line 8 or the fair market value, whichever is less Inventory bought in his 2022 fiscal period: Doug enters the amount from line 9 or the fair market value, whichever is less Inventory bought before his 2022 fiscal period: Doug enters the amount from line 10 or the fair market value, whichever is less Chart 4 Calculation of MIA Doug enters the amount of his net loss from line 9969 Doug enters the value of his inventory from Charts 2 and 3:

  • the amount from line 11
  • the amount from line 12
  • the amount from line 13
  • the amount from line 14
  • the amount from line 15
  • the amount from line 16
  • the amount from line 17
  • the amount from line 18
  • the amount from line 19
  • the amount from line 20 Total value of inventory MIA – Doug enters the amount from line 21 or line 22, whichever is less The MIA that Doug uses for his 2025 fiscal period will be the same amount that he deducts from his farming income when he calculates his income for his next fiscal period. Enter the amount from line 23 of Chart 4 on line 9942 of Form T1273. Partnership information – Your share of amount C Enter your share of amount C or the amount from your T5013 slip. Fill in the “Partnership information” chart on your form. For more information, see page 62. Line 9951 – Return of fuel charge proceeds to farmers tax credit allocated to you in the year The federal fuel charge ended April 1, 2025. As a result, the return of fuel charge proceeds to farmers tax credit for the 2024 to 2025 fuel charge year will be the final credit available to certain eligible farming businesses. If you are a member of a partnership with a fiscal period beginning in 2024, and the partnership operated a farming business in a designated province, you can still claim the credit for the period that falls in the 2024 calendar year. This credit is considered to be government assistance that you received in the year and is taxable to you. Include in your income the amount of the credit allocated to you by the partnership (amount 5C of your Form T2043) in the same tax year in which you claimed the credit. Line 9934 – Adjustment to business-use-of-home expenses If you have claimed business-use-of-home expenses (including a carryforward from a previous year claimed on line 9940) in arriving at your net income (loss), and the amount on line 9944 is negative (a loss), you must make an adjustment on line 9934. Enter the lesser of the following amounts:
  • the expenses you claimed from the business use of your home, including current-year expenses and any expenses you are carrying forward from previous years

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$ 15,000 16 $ 6,000 17 $ 5,000 18 $ 0 19 $ 0 20 $ 55,000 21 $ 20,000 $ 14,210 $ 7,546 $ 4,802 $ 0 $ 15,000 $ 6,000 $ 5,000 $ 0 $ 0 $ 72,558 $ 72,558 22 $ 55,000 23 61

  • the amount of your loss on line 9944 This does not mean that you cannot use your claim for business-use-of-home expenses. In a future year, you can use any expense you could not deduct in your 2025 fiscal period, as long as you meet one of these conditions:
  • the workspace is your principal place of business
  • you use the space only to earn your farming business income, and you use it on a regular and ongoing basis to meet your customers Use the chart on Form T1175 to calculate your allowable claim for business-use-of-home expenses. Be sure to include any part of the CCA that you claimed for the business use of your home. For more information, see Income Tax Folio S4-F2-C2, Business Use of Home Expenses Line 9974 – GST/HST rebate for partners received in the year If you received a GST/HST rebate for partners, enter the amount of the rebate that relates to eligible expenses other than CCA on line 9974, in the section “Summary of income and expenses” of Forms T1273 or T1274 in the year you receive the rebate. In the chart “Partnership information,” show the full names of the other partners, as well their percentages of ownership shares in the partnership. Line 9946 – Net farming income (loss) Enter your net farming income or loss on this line of your form. Also enter it on line 14100 of your return if:
  • your fiscal year-end is December 31, 2025
  • you did not file Form T1139, Reconciliation of 2024 Business Income for Tax Purposes If you have more than one farming operation or additional expenses that apply to partnerships, add the amounts from line 9946 of Form T1273 and Form T1274. Enter the total of these amounts on line 14100 of your income tax return. If you have a loss, enter the amount in brackets. For more information about losses, see Chapter 6. You may have to adjust the figure from line 9946 before entering it on your income tax return. You may have filed Form T1139, Reconciliation of 2024 Business Income for Tax Purposes complete the same form for 2025. To find out if you have to file Form T1139, and calculate the amount of income to report on your 2025 income tax return, see Form T1139, Reconciliation of 2025 Business Income for Tax Purposes.

Partnership information chart

Partnership name Enter the partnership’s name. Your percentage of the partnership Fill in this chart if you are a member of a partnership. Enter your own percentage share of the partnership. Fill in all other partners’ information on the lines below. AgriStability and AgriInvest participant identification number (PIN) Enter the PIN (if available) for each individual partner, corporate or co-operative partner. Partners’ names Fill in the first and last names of each individual partner. If a corporation or co-operative is a partner, enter the name of the corporation or co-operative. If another partnership is a partner, list the names of the partners in that partnership. Percentage (%) share Enter each partner’s percentage share based on the allocation of partnership net income or loss reported to us unless one of the following conditions is met:

. , with your 2024 income tax return , with your 2024 income tax return. If so, you may have to

In these cases, exclude these amounts when you determine the partner’s percentage share. If another partnership is a partner, determine the beneficial ownership of each individual partner. See the following example. Example The Fred and Mary Smith Partnership (a 50/50 partnership) owns 60% of the Sunny Skies Partnership. Therefore, Fred and Mary Smith would each have a 30% beneficial ownership in the Sunny Skies Partnership.

Chapter 4 – Inventories, purchased inputs, deferrals, receivables and payables

For AgriStability participants

In addition to completing pages 1 to 5, you must fill in page 7 of Form T1273 to participate in AgriStability. Fill in only the areas that apply to your farming operation. If you have additional farming operations, also complete Form T1274. If you file to the CRA on the accrual method of accounting, you do not need to fill in the following parts of this form:

  • the “End of year price” column for the “Crop inventory valuation and productive capacity” and “Livestock inventory valuation” sections
  • the “Purchased inputs,” “Deferred income and receivables,” and “Accounts payable” sections Read the instructions below for further details. If there are not enough lines on the form to provide all of your information, attach a second copy of the page to your form, with the rest of the information on it. AgriStability program codes You will need to refer to the following code lists to fill in page 7 of the form. These lists can change from year to year so it is important to check each year for the right code.
  • Inventory code list (page 120): Includes the codes and descriptions of the commodities to fill in the “Crop inventory valuation and productive capacity” and “Livestock inventory valuation” sections of the form.
  • Units of measurement code list (page 146): Includes the unit of measurement codes (for example tonnes or bushels) to fill in your “Crop inventory valuation and productive capacity” section of the form.
  • Expense code list (page 146): Includes the codes and descriptions of the allowable expenses to fill in the “Purchased inputs” and “Accounts payable” sections of the form.
  • Commodity list (page 113): Includes the codes and descriptions of commodities to fill in the “Purchased inputs,” “Deferred income and receivables,” and “Accounts payable” sections of the form.
  • Program payment lists (pages 116 and 118): Includes the codes and descriptions of program payments to fill in “Deferred income and receivables” section of the form.
  • Productive capacity list (page 147): Includes the codes and units used to fill in “other” commodities not listed in the “Livestock productive capacity” section of the form. Commodities with published prices You are not required to provide End of year prices (EYPs) in the “Crop inventory valuation and productive capacity” and “Livestock inventory valuation” sections of the form if the commodities you report are marked by an “X” on the “Inventory code list” for your province or territory. We develop prices for commodities marked with an “X” using information from:
  • Statistics Canada
  • Agriculture and Agri-Food Canada (AAFC)
  • provincial agricultural departments
  • commodity organizations

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63

The prices are published in the AgriStability Price List. We use these prices to value your inventory. You can request this list from us or find it on the program website. If you do not feel these prices are appropriate for your farm, you may use your own prices if you can show that either your:

  • commodity is substantially different from the commodity listed
  • method of marketing the commodity was substantially different from the general marketing practice In either of these cases, you may use prices based on sales or purchases of the specific commodity:
  • in your name
  • occurring within 30 days either before or after your fiscal year-end To use your own prices, send copies of receipts or documents that support your prices to your administration. Send this information at the same time you send your form to the Winnipeg Tax Centre, or within your adjustment time frame. For more information on adjustments, see “Adjustments” on page 23. We will determine if the prices are reasonable for your commodity. Commodities with unpublished prices You must provide End of year prices (EYPs) for the crop and livestock inventories that are shaded on the “Inventory code list” (for your province or territory). Base your prices on either:
  • the estimated market prices at year-end
  • sales or purchases within 12 months before or after your fiscal year-end You are not required to provide documentation to support these prices for unpublished commodities. However, if you do, it will increase the chances of your price being accepted. Supporting documentation includes either:
  • receipts from sales or purchases of the commodity
  • commodity specific price information from appropriate commodity marketing agencies Send your supporting documentation to your administration at the same time you send your forms to the Winnipeg Tax Centre or within your adjustment time frame. For more information on adjustments, see “Adjustments” on page 23. We will determine if the prices are reasonable for your commodity.

If the productive capacity of this operation decreased during the program year due to disaster circumstances

Tick “Yes” if the productive capacity of your farm decreased due to disaster circumstances during the program year. A decrease in productive capacity means a decrease in the overall amount that you produced. For example, tick “Yes” if CFIA ordered your livestock destroyed due to disease or if you could not seed or harvest some or all of your land because of extreme wet or dry conditions. If you participated in crop or production insurance in the program year for this operation, provide the Contract or Identification numbers. If you participated in AgriInsurance (crop or production), including hail insurance, provide your contract or identification numbers related to the crops listed in the “Crop inventory valuation and productive capacity” section.

Crop inventory valuation and productive capacity

Fill in this section if you either:

  • produced or seeded crops or forage with the expectation of harvest during your fiscal period
  • had unseedable acres in your fiscal period
  • carried over crops or forage in your inventories from your previous fiscal period 64 https://canada.ca/taxes

This part of the form is used to:

  • measure the change in your crop and forage inventory from the ending amount you reported in 2024 to the ending amount in the 2025 fiscal period
  • show that you have completed a production cycle
  • adjust your reference margins if you had a structural change To help you fill in this section, refer to your:
  • crop production records
  • sales and feeding records
  • crop insurance measurements
  • inventory records How to fill in the columns Code and Crop/Grade Use the “Inventory code list” to report all commodities by code and description that you either:
  • produced
  • had on hand at the end of your fiscal period
  • planned to produce but could not because your land was too wet or too dry Enter each grade or variety of crop separately. For example, enter #1 CWRS wheat separately from #2 CWRS wheat. Leave the code blank if the commodity is not listed in the “Inventory code list.” Units Use the “Units of measurement code list” to enter the code used to measure your production. Fill in your “Quantity produced” and “Ending inventory” using the same unit of measurement. Acres Enter the number of acres used to produce each crop. Report only those acres that produced or should have produced a crop during your 2025 fiscal period. If you had unseedable acres (too wet or too dry), enter them in the “Unseedable acres” column. Enter all summerfallow, pasture and wasteland acres on the designated lines. For commodities not measured in acres, use the unit of measurement that is standard for the commodity. Example Greenhouse and nursery operations (including floriculture) report in square metres, based on the productive area. Maple syrup operations report in hundreds of taps producing. For example, if you have 350 taps producing, you enter 3.5 (350 ÷ 100 = 3.5). Unseedable acres Report acres you planned to seed for each commodity that should have produced a crop but did not because the land was too wet or too dry. Example At the beginning of the year, you planned to grow canola on 300 of your acres. However, you only seeded 200 acres because of flooding. In your crop inventory, enter 200 acres of canola and 100 unseedable acres of canola. If you planned to produce multi-stage crops, enter the unseedable acres for each multi-stage commodity you planned to seed in your fiscal year. Quantity produced Enter the quantity of crop you produced in your fiscal period.

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Ending Inventory Enter the quantity of crop you had at the end of your 2025 fiscal period. End of year price Provide an End of year price (EYP) to value crops that are shaded on the “Inventory code list” for your province or territory. Leave this column blank if your commodity is marked with an “X” on the “Inventory code list” for your province or territory, unless you meet the conditions to use your own price. For more information, see “Commodities with published prices” on page 63. Do not fill in this column if you file to the CRA on the accrual method of accounting. Crops or forage carried over from 2024 but no longer seeded or produced in 2025 If you had inventory at the end of your 2024 fiscal period for a commodity you did not produce in 2025:

  • fill in the “Code,” “Crop/Grade,” and “Units” columns
  • enter “0” in the “Acres” and “Quantity produced” columns
  • enter ending inventory in the “Ending inventory” column if you are carrying the inventory over to your 2026 fiscal period Landlords/tenants If you are a tenant in a crop share, or a landlord in a joint venture crop share, report your share of the acres and quantities. Example You rent 300 acres in a crop share agreement. You receive 2/3 of the crop and pay 2/3 of the allowable expenses. Your landlord receives the remaining 1/3 of the crop and pays 1/3 of the allowable expenses. In 2025, the rented land produced 300 tonnes of wheat. You enter your 2/3 share of both the acreage and the production:
  • 200 acres
  • 200 tonnes of wheat Your landlord enters his 1/3 share of both the acreage and the production:
  • 100 acres
  • 100 tonnes of wheat Commodity pools If you sold commodities into a pool, enter the full value of your commodity even if you only received a portion of the payment in your 2025 fiscal period. Use code 4020, “Expected grains and oilseeds pool payments,” to enter any payments you received or expect to receive for your commodity after your 2025 fiscal period as a receivable in the “Deferred income and receivables” section of the form. Example In 2025 you sold 10 tonnes of wheat through G3 Canada Limited. You received initial and adjusted pool payments of $2,554.50 in 2025, and estimate that the final payment you will receive in 2026 will be $645.50. Enter:
  • $2,554.50 as a wheat sale using code 056
  • $645.50 in the “Deferred income and receivables” section using code 4020, “Expected grains and oilseeds pool payments” Perishable horticulture crops A perishable horticulture or floriculture crop:
  • spoils or decays easily
  • cannot be stored for periods longer than 10 months, such as potatoes, apples, or carrots 66 https://canada.ca/taxes

Perishable horticulture crops are adjusted on an accounts receivable basis, not on an inventory valuation basis. Enter only the “Quantity produced” from your 2025 fiscal period. Do not report ending inventories or production from your previous fiscal period. Enter any income from the sales of 2025 crops that you will receive in your 2026 fiscal period in the “Deferred income and receivables” section. Swath grazing If you use swath grazing as a management practice, use code 5588 to enter the number of acres you used for swath grazing. Enter your production (in tonnes) and any swath remaining at the end of your fiscal period as ending inventory. Organic production Report your crop as “organic” only if it has been Certified Organic. We may ask for your organic certification. Unharvestable acres If you grew a commodity and expected to harvest it in your fiscal period but could not for reasons beyond your control, enter the commodity, acres and a “0” as the total production. Snowed-under crops If you could not harvest some or all of your crop at the end of your fiscal period because it was snowed under, enter the:

  • total acres for the crop using the inventory code for that crop
  • estimated production that you may be able to harvest next year Then use code 6826, “Harvest discount allowance,” to enter all of the commodities that were snowed under. Example You seeded 350 acres; 100 acres of canola and 250 acres of barley. You harvested 80 of your canola acres and 200 of your barley acres before the remainder of your crops were snowed under. Enter:
  • 100 acres for canola
  • 250 acres for barley
  • the amount you harvested from those acres Enter the remaining 70 acres as snowed under using code 6826, “Harvest discount allowance.” 350 seeded acres
  • 80 acres of harvested canola
  • 200 acres of harvested barley 70 acres snowed under Standing crops If your farm always has a standing crop at the end of your fiscal period (for example, July 31), do not report the standing crop. If your farm has an unexpected standing crop because you could not harvest it before the end of your fiscal period, include the standing crop in inventory. Report the total acres for each crop you grew using the inventory codes for the commodity. Then use code 6826, “Harvest discount allowance,” to enter the total acreage of all commodities that had standing crop at your fiscal year-end.

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Example You had 400 acres seeded to flax. You were only able to harvest 250 of these acres before your fiscal year-end, leaving you with 150 acres still standing. 400 acres of flax

  • 250 acres harvested 150 acres with standing crop Enter 400 acres of flax (and the actual amount you harvested from those acres). Then enter 150 acres as standing using code 6826, “Harvest discount allowance.” Multiple crops In provinces such as British Columbia, you may be able to harvest your commodity early enough to plant another commodity on those same acres. If you harvest both commodities in your 2025 fiscal period; report each commodity’s acreage and production in your crop inventory. Example You planted two acres of strawberries and harvested the berries early in the summer. You then removed the strawberry plants and planted potatoes, which you harvested in the fall. Enter:
  • 2 acres of strawberries and the amount you harvested from those acres
  • 2 acres of potatoes and the amount you harvested from those acres Multi-stage crops Multi-stage crops are commodities that take longer than one year to reach full production. Because multi-stage crops are grown over several years, there are different inventory codes to reflect the stage of production. Use the “Inventory code list” on page 120 to report the stage of production for your commodity. Report all the acres of your crop even if you did not harvest the crop in your 2025 fiscal period. The multi-stage crops include:
  • highbush blueberries
  • grapes
  • sod
  • Christmas trees
  • echinacea
  • ginseng In British Columbia, multi-stage crops also include:
  • cranberries
  • hops
  • sweet cherries
  • apples In New Brunswick and Nova Scotia, multi-stage crops also include:
  • lowbush blueberries
  • cranberries 68 https://canada.ca/taxes

Highbush blueberries and grapes Start reporting your acres in the year you plant. Continue reporting your acres during the non-bearing years. Lowbush blueberries Start reporting your acres once you have cleared the land and started nurturing the plants. Once you start producing blueberries, report your acres based on their stage of growth. Sod Report your total sod acres (seeded, growing, and harvested) based on their stage of growth at the end of your fiscal period. Example 1 You seeded 150 acres at the end of 2025 and harvested them in 2026. Enter 150 acres using code 6941, “Sod, acres seeded.” Example 2 You seeded 150 acres in 2024 but did not harvest these acres until 2026. Enter 150 acres using code 6943, “Sod, acres growing.” If you harvested and then re-seeded the same sod acres in your 2025 fiscal period, report the acres twice. Example If you harvested and then reseeded 150 acres, enter 150 acres using code 6945, “Sod, acres harvested,” and 150 acres using code 6941, “Sod, acres seeded.” If you produce sod in the following regions of British Columbia:

  • use code 6937, “Sod, acres harvested (BC Coastal Regions),” to enter your sod
  • enter your acres once, even if you had more than one harvest within your fiscal period Alberni-Clayoquot (23) Greater Vancouver (15) Capital (17) Nanaimo (21) Comox-Strathcona (25) Powell River (27) Cowichan Valley (19) Squamish-Lillooet (31) Fraser Valley (9) Sunshine Coast (29) Christmas trees There are two types of Christmas tree operations:
  • tree farms
  • managed natural tree stands Tree farms plant their seedlings in a greenhouse, garden or tree farm, and maintain them until harvested. Report your total acres of trees based on their stage of growth at the end of your fiscal period. Report your production and ending inventories based on the number of trees you had in each of the stages of growth. To report your trees, use:
  • nursery codes for the seedlings you grow in your greenhouse or garden prior to transplanting to your tree farm
  • code 6960 for the seedlings or trees you planted on your tree farm the first year (establishment stage)
  • codes 6961, 6962, 6963, and 6964 to report your seedlings or trees based on their stage of growth Managed natural tree stand operations select their trees from existing forest and actively maintain them until harvested. Report the acres of trees that you actively maintained as either pre-harvested (in the ground) or harvested (removed from the ground). Base the number of acres you report on 1,000 trees per acre. Example If you had 9,500 pre-harvested trees at the end of your fiscal period, enter 9.5 acres (9,500 ÷ 1,000 = 9.5).

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For pre-harvested acres, enter the quantity produced based on the number of trees. Enter ending inventories and an end of year price for your pre-harvested trees. For harvested acres, enter quantity produced based on the number of trees harvested. Do not enter ending inventories or an end of year price for your harvested trees. Harvested trees are a perishable commodity. They are adjusted on an accounts receivable basis, not an inventory basis. Echinacea and ginseng Enter acres in the establishment stage until the year of harvest. When you harvest the acres, enter them as root harvested. Cranberries Enter acres in the establishment stage until production starts. This stage can last up to three years. Hops Start entering your acres in the year you plant. Sweet cherries and apples Enter the total acres planted for each commodity. Your administration will collect details on the variety, age, and density of apples and sweet cherries.

Livestock inventory valuation

Fill in this section if you had livestock in your inventory during your fiscal year. Include livestock carried over from a previous fiscal period, or carried into the next fiscal period. This part of the form is used to:

  • measure your livestock inventory change from the ending amount you reported in 2024 to the ending amount in your 2025 fiscal period
  • show that your farm has completed a production cycle How to fill in the columns Code and description Use the “Inventory code list” on page 120 to report all livestock you had on hand at the end of your 2025 fiscal period. Enter each class of livestock separately. Ending inventory Enter the number of head that you had on hand at the end of your 2025 fiscal period. Use actual (not rounded) numbers. End of year price Include an End of year price (EYP) to value livestock inventories that are shaded on the “Inventory code list” (for your province or territory). If you are reporting a livestock category that is marked with an “X” on the “Inventory code list,” leave the column blank. Do not fill in this column if you file to the CRA on the accrual method of accounting. Livestock lease agreements If you are involved in a lease agreement, or if you own part of an animal, report only your share of the lease agreement. For example, if you co-own a bull with another producer, enter 1/2 Lessee: if you lease a breeding herd but take only a percentage of the calf crop, enter your share of the:
  • herd based on your share of the calf crop (use code 8134, “Breeding females, leased (not owned),” to enter the leased cows)
  • calves (use the code for their weight class) Example If you lease 100 cows but take only 60% of the calf crop, enter only 60 cows (60% of 100) under code 8134. Then enter 60 calves using the codes based on their weights. 70 https://canada.ca/taxes

a bull in your inventory.

Lessor: if you own cows but lease them out and take a percentage of the calf crop, enter:

  • 100% of your cows (use the codes found in the “Inventory code list”)
  • your share of the calf crop (use the code for their weight class)

Livestock productive capacity

This information is used to adjust your reference margins if your operation experienced a change in structure. Livestock lease agreements If you lease animals but do not take 100% of the revenue from the animal, report only your share of the agreement. Example If you lease 100 cows but only keep 60% of the calf crop, enter 60 cows. 100 × 60% = 60 Productive animals Code 104 – Cattle Enter the number of cows that calved in your 2025 fiscal period. Do not use this code to report calves that were born in your 2025 fiscal period, even if they were:

  • weaned
  • sold
  • held over to sell in a different fiscal period Enter all your calves as inventory in the “Livestock inventory valuation” section, even if you hold them over to your next fiscal period. If you hold your calves over to your next fiscal period, enter them as code 105, “Feeder cattle,” next year if they have an appreciable gain in that fiscal period. Codes 123 and 145 – Hogs Enter the number of sows in the breeding herd within the 2025 fiscal period. Enter the sows based on the type of operation (farrowing or farrow-to-finish). Calculate the average number of breeding sows by dividing the births in your 2025 fiscal period by your average birthrate per sow. Example 10,000 births ÷ 23 average birthrate per sow 435 average number of breeding sows If your hog operation only produced for part of the year, ensure your average number of breeding sows is lower to reflect your reduced production. Codes 105 and 106 – Feeder livestock – Cattle Enter the number of animals you fed that had an appreciable gain in 2025 (a 90 kg/200 lb weight gain or a minimum of 60 days on feed). Group the animals fed based on either:
  • the sale weight, if sold in your fiscal period
  • expected sale weight, if not sold in your fiscal period Do not include the following animals in this section:
  • breeding animals
  • culls
  • animals that have not been weaned
  • animals born within the operation in your fiscal period

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Codes 124 and 125 – Feeder livestock – Hogs Enter the number of animals fed. Group the animals fed based on either:

  • the sale weight, if sold in your fiscal period
  • expected sale weight, if not sold in your fiscal period Do not include the following animals in this section:
  • breeding animals
  • culls
  • animals that have not been weaned
  • animals born within your operation in your fiscal period
  • animals previously reported in a farrow to finish operation Example You purchased, fed, and sold 100 Isoweans to weanling weight (8 to 50 lbs) and fed another 100 feeder hogs (50 lbs to slaughter). Enter 100 Hogs, nursery (fed up to 50 lbs), and 100 Hogs, feeders (fed over 50 lbs). Custom fed livestock Enter the number of animal feed days. Animal feed days are the number of animals × the number of days each animal was fed. Example 100 animals fed × 90 days 9,000 animal feed days Supply managed commodities Enter the amount of quota and contract held. Ranch fur operators Enter the number of females that birthed. Other (specify below) Use the “Productive capacity list” on page 147 to enter any commodities that do not fit into the above categories. If the commodity is not listed, leave the code blank.

Purchased inputs

Fill in this section if it is relevant to your farm. Do not fill in this section if you filed to the CRA on the accrual method of accounting. Enter inputs you purchased to produce your agricultural commodities that you did not use by the end of your fiscal period. Some examples of purchased inputs are:

  • fuel
  • chemicals
  • purchased seed
  • feed
  • embryos
  • semen
  • fall application such as seed, fertilizers, and chemicals Do not report your purchased inputs as ending inventory in the “Crop inventory valuation and productive capacity” and “Livestock inventory valuation” sections. For example, if you purchased $5,000 of wheat seed for next year’s crop, enter the amount as a purchased input but do not include the seed in the crop inventory section. 72 https://canada.ca/taxes

How to fill in the columns Code and description Use the “Expense code list” on page 146 or the “Commodity list” on page 113 to identify each item you enter. If your item is not listed, leave the code blank. End of year amount Enter the dollar amount that you had on hand at the end of your 2025 fiscal period. Include any applicable fall 2025 applications and any prepaid purchases in 2025 that are designated for the 2026 fiscal period. Example Based on a December 31 fiscal year-end: In October 2025, you purchased $45,000 worth of fertilizer. You used half of it in your 2025 fiscal year and carried the other half over to the 2026 fiscal year as inventory. Enter a total of $45,000 in the “End of year amount” column. Livestock owners and custom feedlot operators with prepared feed purchases Use code 571 to enter the value of prepared feed and protein supplements you have on hand at the end of your fiscal period. Ranch fur operators with prepared feed expenses Use code 574 to enter the value of prepared feed and protein supplements you have on hand at the end of your fiscal period.

Deferred income and receivables

Fill in this section if it is relevant to your farm. Do not fill in this section if you file to the CRA on the accrual method of accounting. Deferred income is income you have chosen to postpone receipt of to the following fiscal period. A receivable is income that is owed to you for goods delivered or services provided in this fiscal period but is not paid to you until your next fiscal period. Deferred income or receivables must be for income that is allowable for AgriStability. For example, a receivable for the sale of grain is allowable; a receivable for machinery rental is non-allowable. For more information on allowable and non-allowable items, see your program handbook or visit the program website. Enter your AgriInsurance (production/crop insurance) indemnity as a receivable, even if you did not receive your full indemnity before your 2025 fiscal year-end. How to fill in the columns Code and description Use the “Commodity list” on page 113 and the Program payment lists on pages 116 and 118 to enter all deferred income and receivables you had at the end of your fiscal period. If your item is not listed, leave the code blank. Use code 9574, “Resales, rebates, GST/HST for allowable expenses,” to enter all deferred income or receivables for resale, rebate or GST/HST related to your allowable expenses. Ending receivables and income deferred to 2026 Enter the dollar value of the account receivable or deferred income item owed to you at the end of your 2025 fiscal period. Commodity pools If you sold commodities into a pool but did not receive the full value for the sale of your commodity at your fiscal year-end, use code 4020, “Expected grains and oilseeds pool payments,” to enter any adjustments or final payments you received or expect to receive after your 2025 fiscal period. Provide an estimate if you do not know the amount of the adjustment or final payment. If you deferred your pool payments (adjustments, interim, or final) to your next fiscal period, enter these deferrals using the code for the commodity. Custom feedlot operator income Use code 246 to enter any amounts owed to you for custom feeding livestock. https://canada.ca/taxes

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Prescribed drought region (PDR), Prescribed flood region (PFR) and Canadian Food Inspection Agency (CFIA) deferrals If you deferred a PDR/PFR or CFIA payment out of your current fiscal period, enter the amount using the codes from the “PDR/PFR/CFIA deferred livestock codes” chart on page 33 of this guide. Perishable horticulture crops Enter the sales of the 2025 crop that occurred in the 2026 fiscal period as an ending receivable, after your entire 2025 crop has been marketed and sold. Use code 4999, “Perishables-unreported deferral,” to enter your sales and leave the ending receivable blank, if you have not either:

  • marketed your entire 2025 crop
  • received all of your income from your 2025 fiscal period When you know the ending receivable value, send the information to your administration. We cannot process your form until you provide this amount.

Accounts payable

Fill in this section if it is relevant to your farm. Do not fill in this section if you filed to the CRA on the accrual method of accounting. An account payable is an expense that you owe for goods and services that you have received, but have not paid for in this fiscal period. An account payable must be for an expense that is allowable for AgriStability. For example, a payable for a livestock purchase is allowable; a payable for building a barn is non-allowable. Include in your payables any:

  • inputs that you did not pay for yet but were on hand in your inventory at the end of your 2025 fiscal period (you must also enter them in the “Purchased inputs” section)
  • feed or livestock that you did not pay for yet but had on hand in your inventory at the end of your 2025 fiscal period (you must also enter them in the “Crop inventory valuation and productive capacity” and “Livestock inventory valuation” sections) Do not include in your payables either:
  • the interest part of an account payable
  • amounts you owed for items purchased through loans, lines of credit, or credit cards that have already been reported as an expense to CRA for tax purposes How to fill in the columns Code and description Use the “Expense code list” on page 146 and the “Commodity list” on page 113 to enter the accounts payable you had at the end of your fiscal period. If your item is not listed, leave the code blank. End of year amount Enter the dollar amount that you owed for the payable item at the end of your 2025 fiscal period. Livestock owners and custom feedlot operators with prepared feed purchases Use code 571 to enter purchases of prepared feed and protein supplements that were not paid for by the end of your fiscal period. Livestock owners with custom feeding expenses Use code 573 to enter custom feeding expenses that were not paid for by the end of your fiscal period. Ranch fur operators with prepared feed expenses Use code 574 to enter purchases of prepared feed and protein supplements that were not paid for by the end of your fiscal period. 74 https://canada.ca/taxes

Chapter 5 – Capital cost allowance

Find out what capital cost allowance is

You might acquire a depreciable property, such as a building, machinery, or equipment, to use in your farming business. You cannot deduct the cost of the property when you calculate your net farming income for the year. However, since these properties may wear out or become obsolete over time, you can deduct their cost over a period of several years. The deduction is called capital cost allowance (CCA). You can usually claim CCA on a property when it becomes available for use. To calculate your CCA claim, you will need to know the meaning of the following terms. Accelerated investment incentive property (AIIP) – Property that is eligible for an enhanced first-year allowance under the CCA rules. The property may be eligible if it is acquired after November 20, 2018, and becomes available for use before 2028. Under proposed changes, the property is only AIIP if it is acquired after November 20, 2018, and before 2025, and becomes available for use before 2028. Property acquired after 2024 generally is reaccelerated investment incentive property (RIIP) instead. For more information about RIIP, read the definition below. For more information on AIIP, go to https://canada.ca/taxes-accelerated-investment-income Reaccelerated investment incentive property (RIIP) – under proposed changes, a RIIP is a property that is eligible for an enhanced first-year allowance under the CCA rules. The property may be eligible if it is acquired after 2024 and becomes available for use before 2034. For more information on RIIP, go to https://canada.ca/taxes accelerated investment income Arm’s length refers to a relationship or a transaction between unrelated persons who act in their own separate interests. An arm’s length transaction is generally a transaction that reflects ordinary commercial dealings between unrelated parties acting in their own separate interests. For more information, see Income Tax Folio S1 F5 C1, Related Persons and Dealing at Arm’s Length Related persons are not considered to deal with each other at arm’s length. Related persons include individuals connected by blood relationship, marriage, common-law partnership or adoption (legal or in fact). A corporation and another person or two corporations may also be related persons. For more information, see Income Tax Folio S1 F5 C1, Related Persons and Dealing at Arm’s Length Unrelated persons may not be dealing with each other at arm’s length at a particular time. Each case will depend upon its own facts. The following criteria will generally be used to determine if the parties to a transaction are not dealing at arm’s length:

  • whether there is a common mind that directs the bargaining for the parties to a transaction
  • whether the parties to a transaction act in concert without separate interests; (“acting in concert” means, for example, that parties act with considerable interdependence on a transaction of common interest)
  • whether there is de facto control of one party by the other because of, for example, advantage, authority or influence For more information, see Income Tax Folio S1-F5-C1, Related Persons and Dealing at Arm’s Length Available for use – Property other than a building usually becomes available for use on the earlier of:
  • the date you first use it to earn income
  • the second tax year after the year you acquire the property
  • the time just before you dispose of the property
  • the time the property is delivered or made available to you and is capable of producing a saleable product or service
  • the time the property is delivered and is capable of performing the function for which it was acquired only in respect of property acquired by you in the course of carrying on your farming or fishing business Example If you buy a tractor and the seller delivers it to you in 2025, but it was not in working order until 2026, you cannot claim CCA on it until 2026. However, if you buy a tractor and the seller delivers it to you in working order in 2025, but you did not use it until 2026; you can still claim CCA in 2025 because it was available for use.

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A building or part of a building usually becomes available for use on the earlier of the following dates:

  • the date you start using 90% or more of the building in your business
  • the second tax year after the year you acquire the building
  • the time just before you dispose of the building A building or part of a building you are constructing, renovating earlier of the following dates:
  • the date you complete the construction, renovation, or alteration
  • the date you start using 90% or more of the building in your business
  • the second tax year after the year you acquire the building
  • the time just before you dispose of the building Capital cost – generally the taxpayer’s full cost of acquiring the property. The capital cost of a property is usually the total of the following:
  • the purchase price not including the cost of land, which is not depreciable (see “Land” on page 80)
  • the part of your legal, accounting, engineering, installation, and other fees that relate to buying or constructing the property (not including the part that applies to land)
  • the cost of any additions or improvements you made to the property after you acquired it, if you did not claim these costs as a current expense (such as modifications to accommodate persons with disabilities)
  • for a building, soft costs (such as interest, legal and accounting fees, and property taxes) related to the period you are constructing, renovating, or altering the building, if these expenses have not been deducted as current expenses Depreciable property – the property on which you can claim CCA. It is usually capital property from a business or property. The capital cost can be written off as CCA over a number of years. You usually group depreciable properties into classes. Diggers, drills, and tools that cost $500 or more belong in Class 8. You have to base your CCA claim on the rate assigned to each class of property. For the most common classes of depreciable properties you could use in your farming operation, see “Classes of depreciable property” on page 86, and the “Capital cost allowance (CCA) rates” chart on page 149. Fair market value (FMV) – generally, the highest dollar value that you can get for your property in an open and unrestricted market between an informed and willing buyer and an informed and willing seller who are dealing at arm’s length with each other. Non-arm’s length generally refers to a relationship or transaction between persons who are related to each other. However, a non-arm’s length relationship might also exist between unrelated individuals, partnerships or corporations, depending on the circumstances. For more information, see the definition of “Arm’s length.” Proceeds of disposition – the amounts you receive, or that we consider you to have received, when you dispose of your property (usually the selling price of the property). Proceeds of disposition is also defined to include, amongst other things, compensation you received for depreciable property that has been destroyed, expropriated, damaged, or stolen. Undepreciated capital cost (UCC) – generally, the amount left after you deduct CCA from the capital cost of a depreciable property. Each year, the CCA you claim reduces the UCC of the property. Zero-emission passenger vehicle (ZEPV) – means an automobile that is owned by the taxpayer and is included in Class 54 (but would otherwise be included in Class 10 or 10.1). The rules that apply to the definition of passenger vehicles apply to zero-emission passenger vehicles. A ZEPV does not include a leased passenger vehicle, but other vehicles that would otherwise qualify as a ZEPV if owned by the taxpayer are subject to the same leasing deduction restrictions as passenger vehicles. Zero-emission vehicle (ZEV) – is a motor vehicle that is owned by the taxpayer and where all of the following conditions are met:
  • is a plug-in hybrid with a battery capacity of at least 7kWh or is either fully:
  • electric
  • powered by hydrogen
  • is acquired, and becomes available for use, after March 18, 2019, and before 2028
  • has not been used or acquired for use for any purpose before it was acquired by the taxpayer 76 https://canada.ca/taxes

, or altering usually becomes available for use on the

  • is a vehicle in respect of which an amount has not been deducted as CCA and a terminal loss has not been claimed by another person or partnership Note If the property was acquired after March 1, 2020, it may have been used, but a vehicle that was subject to a prior CCA or terminal loss claim cannot have been acquired by the taxpayer on a tax-deferred “rollover” basis nor previously owned or acquired by the taxpayer or a non-arm’s length person or partnership.
  • is a vehicle for which:
  • an election has not been made to forgo the Class 54 or 55 treatment
  • assistance has not been provided by the Government of Canada under the new incentive announced on March 19, 2019 Under proposed changes, the period during which a motor vehicle needs to be acquired and become available for use is extended until before 2034.

How much CCA you can claim

The CCA you can claim depends on the type of property you own and the date you acquired it. Group the depreciable property you own into classes. A specific rate of CCA generally applies to each class. We explain the most common classes of property in “Classes of depreciable property” on page 86. We list most of the classes and their rates in the “Capital cost allowance (CCA) rates” chart on page 149. Base your CCA claim on your fiscal period ending in 2025, and not the calendar year. Basic information about CCA To decide whether an amount is a current expense or a capital expense, see the “Current or capital expenses” chart on page 39. For the most part, use the declining balance method to calculate your CCA, as it is the most common one. This means that you apply the CCA rate to the capital cost (see the definition on page 76). Over the life of the property, the rate is applied against the remaining balance. The remaining balance declines each year that you claim CCA. Example Last year, Abeer bought a building for $60,000 to use in her business. On her income tax return for last year, she claimed CCA of $1,200 on the building. This year, Abeer bases her CCA claim on her balance of $58,800 ($60,000 – $1,200). You do not have to claim the maximum amount of CCA in any given year. You can claim any amount you like, from zero to the maximum allowed for the year. If you do not have to pay income tax for the year, you may not want to claim CCA. Claiming CCA reduces the balance of the class by the amount of CCA claimed. As a result, the amount of CCA available for you to claim in future years will be reduced. In the year you acquire a depreciable property, you can usually claim CCA only on one-half of your net additions to a class. We explain this half-year rule in “Column 18 – Adjustment for current-year additions subject to the half-year rule” on page 85. The available-for-use rules may also affect the amount of CCA you can claim. For more information, see “Available for use” on page 75. You cannot claim CCA on most land or on living things such as trees, shrubs, or animals. However, you can claim CCA on timber limits, cutting rights, and wood assets. For more information, see Interpretation Bulletin IT-481, Property and Timber Limits, and IT-501, Capital Cost Allowance – Logging Assets If you receive income from a quarry, sand, or gravel pit, or a woodlot, you can claim a type of allowance known as a depletion allowance. For more information, see Income Tax Folio S4-F11-C1, Interpretation Bulletin IT-492, Capital cost allowance – Industrial mineral mines If you claim CCA and you later dispose of the property, you may have to add an amount to your income as a recapture of CCA. Alternatively, you may be able to deduct an additional amount from your income as a terminal loss. For more information, see “Column 7 – UCC after additions and dispositions” on page 81. If you used depreciable property in 2025 that you used in your farming business before January 1, 1972, fill in “Area A – Part XVII properties (acquired before 1972)” on Form T1175, Business-use-of-home Expenses. If you are a member of a partnership, you cannot separately claim CCA for depreciable property owned by the partnership. Instead, the partnership can deduct CCA when calculating its net income or loss for the year. The partnership’s net income or loss is then allocated to the partners and the partner’s share is shown on the partner’s T5013 slip, https://canada.ca/taxes

Timber Resource , and its Special Release, Archived IT-501SR. Meaning of Farming and Farming Business, and . Farming – Calculation of Capital Cost Allowance (CCA) and Statement of Partnership 77

Income. If the partnership does not need to file a partnership information return, you will not get a T5013. If this is the case, fill in Area A of your form to report the CCA claim for the partnership. You were asking? Q. How do I calculate my CCA claim if I start a business and my first fiscal period is from June 1, 2025, to December 31, 2025? A. Since your fiscal period is less than 365 days, you must prorate your CCA claim. Calculate your CCA using the rules we discuss in this chapter. However, base your CCA claim on the number of days in your fiscal period compared to 365 days. In this case, your fiscal period is 214 days. Suppose you calculate your CCA to be $3,500. The amount of CCA you can claim is $2,052 ($3,500 × 214 ÷ 365). Immediate expensing incentive The immediate expensing incentive has the following characteristics:

  • An eligible person or partnership (EPOP) (see definition in Guide T4002, Farming, and Fishing Income ) may deduct the full cost of designated immediate expensing properties (DIEPs) up to $1.5 million per tax year, subject to specific limitations
  • The deduction applies only to immediate expensing property (see definition in Guide T4002, Professional, Commission, Farming, and Fishing Income ) that you designated as a DIEP on the prescribed form you must file with the minister by the due date
  • The deduction is available only for the year when the property becomes available for use
  • The deduction is limited to $1.5 million per tax year:
  • The $1.5 million may be shared among associated members of a group. Each member must file an agreement on the prescribed form assigning a percentage to one or more of them for the year
  • The limit is also prorated for tax years shorter than 365 days
  • If the capital cost of the DIEP is more than $1.5 million and is included in more than one CCA class, the EPOP can decide which CCA class the immediate expensing deduction is attributed to
  • The deduction is limited to the amount of income earned (before deducting CCA) from the business or property for which the DIEP is used EPOPs with less than $1.5 million of eligible capital costs can’t carry forward any unused annual immediate expensing limit. As a result of this new CCA incentive, columns 4, 6, 8, 9, 10, 11, 12 and 13 have been added to Area A of Form T1175. For more information on how this could affect your CCA calculations, go to /expansion-of-the-eligibility-for-tax-support-for-business-investments

Form T1175, Farming – Calculation of Capital Cost Allowance (CCA) and Business-use-of-home Expenses

Business-use-of-home expenses Use this section on Form T1175 to list your expenses and any amount of CCA for the business use of your home. Include these expenses and any amount of CCA for business-use-of-home expenses on “Line 9896 – Other (specify)” in the “Expenses” section of Form T1273 or Form T1274. You can also report any business-use-of-home expense carryforward from a previous year on the chart. This chart is for information purposes and to help you make an adjustment at line 9934 if you have a loss in the year. For more information on this adjustment, see page 61. Area A – Calculation of CCA claim Use Area A on Form T1175 to calculate your CCA deduction. Add amounts ii and iii of the charts and enter the result on line 9936 in the “Expenses” section of Form T1273 or Form T1274. If any part of the CCA is for business-use-of-home expenses, enter that part in the “Business-use-of-home expenses” section. For more information, see above. Column 1 – Class number Enter in this column the class numbers of your properties. If this is the first year you are claiming CCA, see “Column 3 – Cost of additions in the year” below before completing column 1. If you claimed CCA last year, you can get the class numbers of your properties from last year’s form. We discuss the more common types of depreciable properties in “Classes of depreciable property” on page 86, and we list most of the classes and their rates in the “Capital cost allowance (CCA) rates” chart on page 149. 78 https://canada.ca/taxes

Self-employed Business, Professional, Commission, Self-employed Business, https://canada.ca/en/department-finance/news/2022/02 .

Column 2 – Undepreciated capital cost (UCC) at the start of the year If this is the first year you are claiming CCA, skip this column. Otherwise, enter in this column the UCC for each class at the end of last year. Enter these amounts from column 19 from your 2024 form. From your UCC at the start of 2025, subtract any investment tax credit (ITC) you claimed or were refunded in 2024. Also, subtract any 2024 ITC you carried back to a year before 2024. In 2024, you may have received a GST/HST input tax credit for a passenger vehicle you used less than 90% of the time for your business. In this case, subtract the amount of the credit you got from your 2025 opening UCC. For more information, see “Grants, subsidies, and rebates” on page 95. Note In 2025, you may be claiming, carrying back or getting a refund of an ITC. If you still have depreciable property in the class, in 2026 you have to adjust, the UCC of the class to which the property belongs. To do this, subtract the amount of the credit from the UCC at the start of 2026. When there is no property left in the class, report the amount of the ITC as income in 2026. Column 3 – Cost of additions in the year If you acquire or make improvements to depreciable property in the year, we consider them to be additions to the class in which the property belongs. You should:

  • fill in Areas B or C on your form, if applicable, as explained on page 79
  • for each class, enter in column 3 of Area A’s calculation table the amounts from column 5 for each class in Areas B and C If a chart asks for the personal part of a property, this refers to the part you use personally, separate from the part you use for business. For example, if you use 25% of the building you live in for your farming business, your personal part is the remaining 75%. If you are using the administrative method for calculating CCA, see “Personal use of property” on page 93. Do not include the value of your labour in the cost of a property you build or improve. Include the cost of surveying or valuing a property you acquire. Remember that a property usually has to be page 75) in the year before you can claim CCA. If you received insurance proceeds to reimburse you for the loss you spent to replace the property in column 3 of Area A, as well as in Area B or C, whichever applies. Include the amount of insurance proceeds considered as proceeds of disposition column 4 of Area D or E, whichever applies. If you replaced lost or destroyed property, special rules for replacement property may apply. The replacement property must be acquired within two years of the end of the tax year in which it was lost or destroyed. For more information, see Income Tax Folio S3-F3-C1, Replacement Property. To find out if any of these special situations apply, see “Special situations” on page 93. Note If you acquired a Class 14.1 property through a non-arm’s length transfer, enter only 75% of the capital cost of the property if the following conditions apply:
  • the property or a similar property was previously an eligible capital property owned by you or by a person or partnership not dealing at arm’s length with you
  • the UCC was increased in respect of an earlier disposition of the property or similar property by yourself or the non-arm’s length person or partnership Area B – Equipment additions in the year List the details of all equipment (including motor vehicles) you acquired or improved in 2025. Group the equipment into the applicable classes, and put each class on a separate line. Equipment you acquire to use in your business to earn income can include:
  • cement mixer, snow blower and lawn mower, machinery, motor vehicles
  • material for fishing Enter on line 9925 the total business part of the cost of the equipment.

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available for use (see the definition on or destruction of depreciable property, enter the amount in column 5 of Area A, as well as in 79

Area C – Building additions in the year List the details of all buildings you acquired or improved in 2025. Group the buildings into the applicable classes and put each class on a separate line. Enter on line 9927 the total business part of the cost of the buildings. The cost includes the purchase price of the building, and any related expenses you should add to the capital cost of the building, such as legal fees, land transfer taxes, and mortgage fees. Land Generally, land is not a depreciable property. Therefore, you cannot claim CCA on its cost. If you acquire a farm property that includes both land and a building, enter in column 3 of Area C only the cost that relates to the building. To calculate the building’s capital cost, you have to split any fees that relate to buying the property between the land and the building. Related fees may include legal and accounting fees. Calculate the part of the related fees you can include in the capital cost of the building as follows: (building value ÷ total purchase price) × legal, accounting or other fees = the part of the fees you can include in the building’s cost You do not have to split a fee if it relates only to the land, or only to the building. In this case, you would add the amount of the fee to the cost to which it relates; either the land or the building. Area F – Land additions and dispositions in the year Enter on line 9923 the total cost of acquiring land in 2025. The cost includes the purchase price of the land plus any related expenses you should add to the capital cost of the land, such as legal fees, land transfer taxes, and mortgage fees. You cannot claim CCA on land. Do not enter this amount in column 3 of Area A. Area H – Quota additions and dispositions in the year Enter on line 9929 the total cost of acquiring quotas in 2025. Column 4 – Cost of additions from column 3 that are DIEPs For each class, enter in column 4 the amount that you designate as immediate expensing property (see definition in Guide T4002, Self employed Business, Professional, Commission, Farming, and Fishing Income column 3. The cost of DIEPs is included in column 3 in the total cost of additions in the year and shown separately in column 4. If you are part of an associated group of EPOPs, fill in Area G of your form as explained below. Remember that property has to be available for use in the year before you can claim CCA. Area G – Agreement between associated eligible persons or partnerships (EPOPs) Fill in this area if you are associated in the tax year with one or more EPOPs and you entered into an agreement with them under subsection 1104(3.3) of the Income Tax Regulations. The agreement assigns a percentage to one or more of you in the tax year so you can share the immediate expensing limit. For this agreement, individuals and partnerships are considered to be corporations. List in the table the names of the associated EPOPs, including your business, their identification number and the percentage the agreement assigned to each of them. Calculate the immediate expensing limit allocated to you by multiplying $1.5 million by the percentage assigned to your business in column 3. Enter the result at amount iv of Form T1175. If the total percentage assigned in column 3 exceeds 100%, the immediate expensing limit of the associated group is zero. Column 5 – Proceeds of dispositions in the year Enter the details of your 2025 dispositions on your form, as explained below. If you disposed of depreciable property in the current tax year, you should:

  • fill in Areas D and E for each class, if applicable
  • enter in column 5 of the calculation table in Area A the amounts for each class from column 5 of Areas D and E When completing the tables in Areas D and E, enter in column 3 of the table the lesser of:
  • your proceeds of disposition minus any related expenses
  • the capital cost of the property 80 https://canada.ca/taxes

) from the total cost included in

Note If you dispose of Class 14.1 property and that property was eligible capital property before January 1, 2017, include only 75% of the lesser of the proceeds of disposition and the capital cost of the property. For more information on transitional rules for former eligible capital property, go to If a chart asks for the personal part of a property, this refers to the part you use personally, separate from the part you use for business. For example, if you use 25% of the building you live in for business, your personal part is the other 75%. If you are using the administrative method for calculating CCA, see “Personal use of property” on page 93. If you received insurance proceeds to reimburse you for the loss or destruction of depreciable property, enter the amount you paid to replace the property in column 3 of Area A, as well as in Area B or C, whichever area applies. Include the amount of insurance proceeds considered as proceeds of disposition column 4 of Area D or E, whichever applies. This could include compensation you receive for property that someone destroys, expropriates, steals, or damages. Note For more information, see “Insurance proceeds” on page 37. If you dispose of a property for proceeds that are more than it cost you to acquire it (or you receive insurance proceeds for a property that was lost or destroyed that exceed the cost of the property), you will have a capital gain and possibly a recapture of CCA. You may be able to postpone or defer recognition of a capital gain or recapture of CCA in computing income if, among other things, the property disposed of is replaced within certain specified time limits. For more information, see “Replacement property” on page 98 and Income Tax Folio S3-F3-C1, Special rules may apply if you dispose of a building for less than both its UCC and your capital cost. If this is the case, see “Special rules for disposing of a building in the year” on page 97. If you dispose of a depreciable property for more than its cost, you will have a capital gain. For more information on capital gains, see Chapter 7. You cannot have a capital loss when you sell depreciable property. However, you may have a terminal loss. For an explanation of terminal losses, see “Terminal loss” below. For more information on proceeds of disposition, see Income Tax Folio S3-F4-C1, Area D – Equipment dispositions in the year List the details of all equipment (including motor vehicles) you disposed of in your 2025 fiscal period. Group the equipment into the applicable classes and put each class on a separate line. Enter on line 9926 the total business part of the proceeds of disposition of the equipment. Area E – Building dispositions in the year List all buildings and leasehold interests you disposed of in the current tax year. Group the buildings and leasehold interests into the applicable classes, and put each class on a separate line. Enter at line 9928 the total business part of the proceeds of disposition of the buildings and leasehold interests. Area F – Land additions and dispositions in the year Enter on line 9924 the total of all amounts you received or will receive for disposing of land in the fiscal period. Area H – Quota additions and dispositions in the year Enter on line 9930 the total of all amounts you received or will receive for disposing of quotas in the fiscal period. Column 6 – Proceeds of dispositions of DIEP Enter in column 6 the total proceeds of disposition from column 5 of any DIEP that was acquired in the year. Proceeds of dispositions of DIEP are included in column 5 in the total proceeds of dispositions in the year and shown separately in column 6. https://canada.ca/taxes

budget.gc.ca/2016/docs/tm-mf/notes-en.html. in column 5 of Area A, as well as in Replacement Property. General Discussion of Capital Cost Allowance. 81

Column 7 – UCC after additions and dispositions The UCC amount for column 7 is the initial UCC amount at the start of the year in column 2 column 3 minus the proceeds of dispositions in column 5. You cannot claim CCA when the amount in column 7 is:

  • negative (see “Recapture of CCA” below)
  • positive and you do not have any property left in that class at the end of your 2025 fiscal period (see “Terminal loss” below) In either case, enter “0” in column 22. Recapture of CCA If the amount in column 7 is negative, you have a recapture of CCA. Enter your recapture on line 9600 in the “Income” section of Form T1273 or T1274. A recapture of CCA can happen if the proceeds from the sale of depreciable property are more than the total of the following amounts:
  • the UCC of the class at the start of the period
  • the capital cost of any new additions during the period A recapture of CCA can also occur, for example, when you get a government grant or claim an investment tax credit. In some cases, you may be able to postpone a recapture of CCA. For example, you may sell a property and replace it with a similar one, someone may expropriate your property, or you may transfer property to a corporation, a partnership, or your child. Terminal loss If the amount in column 7 is positive and you no longer own any property in that class, you may have a terminal loss. More precisely, you may have a terminal loss when, at the end of a fiscal period, there is no longer any property in the class, but there is still an amount you have not deducted as CCA. You can usually subtract this terminal loss from your gross farming income in the year you disposed of the depreciable property. Enter your terminal loss on line 9896 in the “Expenses” section of Form T1273 or T1274. For more information on recapture of CCA and terminal loss, see Income Tax Folio S3-F4-C1, Cost Allowance. Notes If you dispose of a property that you used for both business and personal use, you must calculate the allowable part of the recapture of CCA and terminal loss. For more information, see “Personal use of property” on page 93. The rules for recapture of CCA and terminal loss do not apply to passenger vehicles in Class 10.1 unless they are DIEPs. To calculate your CCA claim, see the comments in “Column 19 – Base amount for CCA” on page 85. Column 8 – UCC of DIEP Enter in column 8 the cost of DIEP additions from column 4 minus the result of column 4 minus column 6 exceeds the amount from column 7, enter in column 8 the amount from column 7. If the amount from column 7 is negative, enter “0.” Since immediate expensing is only available for DIEP that becomes available in the year, there can be no UCC of DIEP from the previous year. Column 9 – Immediate expensing amount for DIEPs Enter the immediate expensing amount you choose to apply to each class. The total immediate expensing amount must be equal to or less than the lesser of the following amounts:
  • $1.5 million, if you are not associated with any other EPOP in the year
  • the UCC of the DIEP before any CCA deductions in the year
  • the amount of income, if any, before any CCA deductions, earned from the source of income that is a business or property for which the relevant DIEP is used for the tax year 82 https://canada.ca/taxes

plus the cost of additions in General Discussion of Capital the proceeds of dispositions of DIEP from column 6. If

Column 10 – Cost of remaining additions after immediate expensing Column 10 represents the cost of additions after applying the immediate expensing deduction to DIEP. The column includes the cost of properties that are not immediate expensing property, are immediate expensing property not designated, or are DIEPs that is more than the immediate expensing deduction for the fiscal period for each class. To calculate this amount, subtract the immediate expensing amount in column 9 from the total cost of additions in column 3. Column 11 – Cost of remaining additions from column 10 that are AIIPs or ZEVs acquired before 2025 For each class, enter from column 10 the total cost of properties that are accelerated investment incentive properties (AIIPs) or properties included in Classes 54 to 56 that you acquired before 2025 and that became available for use during the year. They are included in column 10 and shown separately in column 11. An AIIP generally means a property, other than zero-emission vehicles and automotive equipment included in Classes 54 to 56, acquired after November 20, 2018, and that becomes available for use before 2028. Under proposed changes, to be an AIIP, a property has to be acquired before 2025. If you did not acquire any AIIPs, ZEVs or Class 56 properties, enter “0” in this column. For more details, see “Class 54 (30%) and Class 55 (40%) – Zero-emission vehicles” on page 91, “Class 56 (30%)” on page 93 and the “Accelerated investment incentive property (AIIP)” definition on page 75. Column 12 – Cost of remaining additions from column 10 that are RIIPs or ZEVs acquired after 2024 Under proposed changes, for each class, enter from column 10 the total cost of properties that are reaccelerated investment incentive properties (RIIPs) or properties included in Classes 54 to 56 that you acquired after 2024 and that became available for use in 2025. They are included in column 10 and shown separately in column 12. A RIIP generally means a property, other than zero emission vehicles and automotive equipment included in Classes 54 to 56, acquired after 2024, and that becomes available for use before 2034. If you did not acquire any RIIPs, ZEVs, or Class 56 properties, enter “0” in this column. For more details, see “Class 54 (30%) and Class 55 (40%) – Zero-emission vehicles” on page 91, “Class 56 (30%)” on page 93, and the “Reaccelerated investment incentive property” definition on page 75. Column 13 – Remaining UCC after immediate expensing Column 13 represents the remaining portion of UCC after applying the immediate expensing deduction. The remaining portion of UCC will be used to calculate the regular CCA deduction. Subtract the amount in column 9 from the amount in column 7 and enter the difference. Column 14 – Proceeds of dispositions available to reduce additions of AIIPs, RIIPs and ZEVs This column calculates the adjustments under certain circumstances to the additions for the year where there is also a disposition in the year. When an AIIP and a property that is neither an AIIP nor, under proposed changes, a RIIP of the same class are purchased during the year and a disposition occurs, the disposition first reduces the UCC of the property that is neither an AIIP nor, under proposed changes, a RIIP before reducing the UCC of the AIIP. Under proposed changes, when a RIIP and a property that is neither a RIIP nor an AIIP of the same class are purchased during the year and a disposition occurs, the disposition also reduces the UCC of the property that is neither a RIIP nor an AIIP before reducing the UCC of the RIIP. To determine which part of your proceeds of dispositions, if any, will reduce the cost of your AIIP, ZEV, Class 56, or under proposed changes, RIIP additions, take the proceeds of disposition in column 5 year in column 10 plus the cost of remaining additions of AIIPs, ZEVs or Class 56 properties acquired before 2025 in column 11 plus, under proposed changes, the cost of remaining additions of RIIPs, ZEVs, or Class 56 properties acquired after 2024 in column 12. If the result is negative, enter “0.” If you did not acquire any AIIPs, ZEVs or Class 56 properties, or, under proposed changes, RIIPs, you do not need to use this column. Column 15 – UCC adjustment for current-year additions of AIIPs and ZEVs acquired before 2025 This column calculates the enhanced UCC amount used to determine the additional CCA for AIIPs, ZEVs or Class 56 properties acquired before 2025. https://canada.ca/taxes

minus the cost of remaining additions in the 83

For this column, reduce the cost of AIIP, ZEV or Class 56 additions in column 11 by the proceeds of disposition available to reduce the AIIP, ZEV, Class 56, or, under proposed changes, RIIP additions as calculated in column 14. by the following factor:

  • 1/2 for Classes 43.2 and 53
  • 7/8 for Class 55
  • 1 1/2 for Classes 43.1, 54 and 56
  • 0 for the remaining AIIPs These factors will change for properties that become available for use after 2025 and the incentive is completely phased out for properties that become available for use after 2027. For more information, go to -investment-income. Under proposed changes, if property included in Class 44, 46, or 50 is acquired and becomes available for use after April 15, 2024, the following factors apply:
  • 2 1/3 for Class 46
  • 3 for Class 44
  • 9/11 for Class 50 These factors will change for Class 44, 46, or 50 properties that become available for use after 2026. If you did not acquire any AIIPs, ZEVs or Class 56 properties, enter “0” in this column. Column 16 – Proceeds of dispositions available to reduce additions of RIIPs and ZEVs acquired after 2024 Under proposed changes, this column calculates the adjustments under certain circumstances to the additions for the year where there is also a disposition in the year. Under an administrative position, the Canada Revenue Agency (CRA) allows the proceeds of disposition available to reduce AIIP, RIIP, and ZEV additions to reduce the UCC of the AIIP and ZEV acquired before 2025 before reducing the UCC of the RIIP and ZEV acquired after 2024. To determine which part of your proceeds of dispositions, if any, will reduce the cost of your RIIP, ZEV, or Class 56 additions acquired after 2024, subtract the cost of remaining additions that are AIIPs or ZEVs acquired before 2025 in column 11 from the proceeds of disposition available to reduce additions of AIIPs, RIIPs, and ZEVs in column 14.If the result is negative, enter “0 Column 17 – UCC adjustment for current year additions of RIIPs and ZEVs acquired after 2024 Under proposed changes, this column calculates the enhanced UCC amount used to determine the additional CCA for RIIPs, ZEVs, and Class 56 properties acquired after 2024. For this column, reduce the cost of RIIP, ZEV, or Class 56 additions in column 12 by the proceeds of disposition available to reduce the RIIP, ZEV, or Class 56 acquired after 2024 additions as calculated in column 16. following factors:
  • 3 for Class 44
  • 2 1/3 for Classes 43.1, 46, 54, and 56
  • 1 1/2 for Class 55
  • 1 for Class 53
  • 9/11 for Class 50
  • 0 for Classes 12, 13, 14, 15, and 59, as well as properties that are Canadian vessels included in paragraph 1100(1)(v) of the Income Tax Regulations
  • 1/2 for the remaining RIIPs For property that is acquired after 2025 and included in Class 43, but that would have been included in Class 53 if it had been acquired in 2025, the factor will be 2 1/3. These factors will change for properties that become available for use after 2026 or 2029, depending on the class, and the incentive will be completely phased out for properties that become available for use after 2033. If you did not acquire any RIIPs, ZEVs, or Class 56 properties, enter “0” in this column. 84 https://canada.ca/taxes

Multiply the result https://canada.ca/taxes-accelerated Multiply the result by the

Column 18 – Adjustment for current-year additions subject to the half-year rule Generally, in the year you acquire or make additions to a property, you can usually claim CCA on half of your net additions. We call this the half-year rule. You calculate your CCA only on the net adjusted amount. For example, if before November 20, 2018, you acquired a property for $30,000, you would base your CCA claim on $15,000 ($30,000 × 50%) in the year you acquired the property. However, the half-year rule does not apply to AIIPs, ZEVs, Class 56 properties or, under proposed changes, RIIPs. Calculate the net first-year additions that are subject to the half-year rule by taking the cost of remaining additions in column 10 minus AIIP, ZEV and Class 56 acquired before 2025 additions in column 11 RIIP, ZEV, and Class 56 acquired after 2024 additions in column 12 of the result in column18. If the result is negative, enter “0.” There are circumstances where the half-year rule does not apply. For example, in a definition on page 76) you may buy depreciable property that the seller continuously owned from the day that is at least 364 days before the end of your 2025 fiscal period to the day the property was acquired. However, if you transfer personal property, such as a car or a personal computer, into your business, the half-year rule applies to the particular property transferred. Also, some properties are not subject to the half-year rule. Some examples are those in Classes 13, 14, 23, 24, 27, 34, and 52, as well as most of those in Class 12, such as small tools. The half-year rule discussed on page 63 denies a CCA claim until the second tax year after you acquire the property. For more information on the special rules that apply to Class 13, see Interpretation Bulletin IT-464, Leasehold Interests. For more information on the half-year rule, see Income Tax Folio S3-F4-C1, Cost Allowance. Column 19 – Base amount for CCA The base amount for CCA is the remaining UCC amount after additions, dispositions and the current-year adjustments. This is the amount in column 13 plus the amount in column 15 minus the amount in column 18. The CCA rate is applied to this amount. For a Class 10.1 vehicle you disposed of in your 2025 fiscal period, you may be able to claim 50% of the CCA that would be allowed if you still owned the vehicle at the end of your 2025 fiscal period. This is known as the You can use the half-year rule on sale if, at the end of your 2024 fiscal period, you owned the Class 10.1 vehicle you disposed of in 2025. If this applies to you, enter 50% of the amount for Class 10.1 vehicles from column 2 in column 19. Column 20 – CCA rate (%) Enter the prescribed CCA rate (percentage) for each property class you have listed in column 1. For information on certain kinds of property, see “Classes of depreciable property” on page 86. For a list of rates, see “Capital cost allowance (CCA) rates” on page 149. Column 21 – CCA for the year In column 21, enter the CCA you want to deduct for 2025. You can claim the CCA for the year up to the maximum amount allowed. In Area A, you calculate the maximum amount for column 21 by multiplying the amount in column 19 by the amount in column 20, then adding the amount in column 9. In your first year of business, you may have to prorate your CCA claim. See “You were asking?” on page 78. Add the amounts in column 21 and enter the total on amount ii. For Part XVII assets, add the amounts in column 6 and enter the total on amount iii. Enter the total of amounts ii and iii, line 9936 of the “Expenses” section of Form T1273 or T1274. If you are a co-owner, enter only your share of the CCA. To find out how to calculate your CCA claim if you are using the property for both business and personal use, see “Personal use of property” on page 93. Enter any CCA for business-use-of-home expenses on page 1 of Form T1175. For more information, see “Business-use-of-home expenses” on page 41. Column 22 – UCC at the end of the year The final result in column 22 is the UCC at the end of the year. This is the result of the UCC after additions and dispositions in column 7, minus the amount for CCA claimed for the year in column 21. The amount in column 22 is the starting UCC balance you will use when you calculate your CCA claim next year. Next year, enter this amount in column 2. If you have a terminal loss or a recapture of CCA, enter “0” in column 22. The example at the end of this chapter sums up CCA. https://canada.ca/taxes

minus, under proposed changes, minus proceeds of dispositions in column 5. Enter 50% non-arm’s length transaction (see the does not apply when the available for use rules Capital Cost Allowance – General Discussion of Capital plus, under proposed changes, the amount in column 17 half-year rule on sale. minus any CCA for business-use-of-home expenses, on 85

Classes of depreciable property

In this part, we discuss the more common classes of depreciable farm property and the rates that apply to each class. Class 1 (4%) A building may belong to Class 1, 3, or 6, depending on what the building is made of and the date you acquired it. You also include in these classes the parts that make up the building, such as:

  • electrical wiring
  • lighting fixtures
  • plumbing
  • sprinkler systems
  • heating equipment
  • air-conditioning equipment (other than window units)
  • elevators
  • escalators Note Land is not depreciable property. Therefore, when you acquire property, only include the cost related to the building in Area A and Area C. Enter on line 9923 in Area F the cost of all land additions in 2025. For more information, see “Area F – Land additions and dispositions in the year” on page 80 and “Column 3 – Cost of additions in the year” on page 79. For more information, see Interpretation Bulletin IT-79, Capital Cost Allowance – Buildings or Other Structures Class 1 includes most buildings acquired after 1987, unless they specifically belong in another class. Class 1 also includes the cost of certain additions or alterations you made to a Class 1 building or certain buildings of another class after 1987. The CCA rate for eligible non-residential buildings acquired by a taxpayer after March 18, 2007, and used in Canada to manufacture or process goods for sale or lease, includes an additional allowance of 6% for a total rate of 10%. The CCA rate for other eligible non-residential buildings includes an additional allowance of 2% for a total rate of 6%. To be eligible for one of the additional allowances, you must elect to put a building in a separate class. To make the election, attach a letter to your return for the tax year in which you acquired the building. If you do not file an election to put it in a separate class, the 4% rate will apply. The additional allowance applies to buildings acquired after March 18, 2007, (including a new building, if any part of it is acquired after March 18, 2007, when the building was under construction on March 19, 2007) that have not been used or acquired for use before March 19, 2007. To be eligible for the 6% additional allowance, at least 90% of a building (measured by square footage) must be used in Canada for the designated purpose at the end of the tax year. Manufacturing and processing buildings that do not meet the 90% use test will be eligible for the additional 2% allowance if at least 90% of the building is used in Canada for non-residential purposes at the end of the tax year. Class 3 (5%) Most buildings acquired before 1988 are included in Class 3 or Class 6. If you acquired a building before 1990 that does not fall into Class 6, you can include it in Class 3 with a CCA rate of 5% if one of the following applies:
  • you acquired the building under the terms of a written agreement entered into before June 18, 1987
  • the building was under construction by you, or for you, on June 18, 1987 Include in Class 3 the cost of any additions or alterations made after 1987 to a Class 3 building that does not exceed the lesser of the following two amounts:
  • $500,000
  • 25% of the building’s capital cost (including the cost of additions or alterations to the building included in Class 3, Class 6, or Class 20 before 1988) Any amount that exceeds the lesser amount above is included in Class 1. 86 https://canada.ca/taxes

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Class 6 (10%) Include a building in Class 6 with a CCA rate of 10% if it is made of frame, log, stucco on frame, galvanized iron, or corrugated metal. In addition, one of the following conditions has to apply:

  • you acquired the building before 1979
  • the building is used to gain or produce income from farming
  • the building has no footings or other base supports below ground level If any of the above conditions apply, you also add the full cost of all additions and alterations to the building to Class 6. If none of the above conditions apply, include the building in Class 6 if one of the following conditions applies:
  • you entered into a written agreement before 1979 to acquire the building, and the footings or other base supports of the building were started before 1979
  • you started construction of the building before 1979 (or it was started under the terms of a written agreement you entered into before 1979), and the footings or other base supports of the building were started before 1979 Also include in Class 6 certain greenhouses and fences. For additions or alterations to such a building:
  • add to Class 6 the first $100,000 of additions or alterations made after 1978
  • add to Class 3:
  • the part of the cost of all additions or alterations over $100,000 made after 1978 and before 1988
  • the part of the cost of additions or alterations over $100,000 made after 1987, but only up to $500,000 or 25% of the cost of the building, whichever is less
  • add to Class 1 any additions or alterations over these limits For more information, see Interpretation Bulletin IT-79, Capital Cost Allowance – Buildings or Other Structures Class 8 (20%) Class 8 with a CCA rate of 20% includes certain property that is not included in another class. Examples are furniture, appliances, and tools costing $500 or more per tool, some fixtures, machinery, outdoor advertising signs, refrigeration equipment, and other equipment you use in the business. Photocopiers and electronic communications equipment, such as fax machines and electronic telephone equipment, are also included in Class 8. Note If this equipment costs $1,000 or more, you can elect to have it included in a separate class. The CCA rate will not change but a separate CCA deduction can now be calculated for a five-year period. When all the property in the class is disposed of, the UCC is fully deductible as a terminal loss. Any UCC balance remaining in the separate class at the end of the fifth year has to be transferred back to the general class in which it would otherwise belong. To make an election, attach a letter to your income tax return for the tax year in which you acquired the property. Include data network infrastructure equipment and systems software for that equipment acquired before March 23, 2004, in Class 8. If acquired after March 22, 2004, include it in Class 46. See “Class 46 (30%)” on page 90. Include buildings you use to store fresh fruit or vegetables at a controlled temperature, by or for the persons by whom they were grown, in Class 8 instead of Class 1, Class 3, or Class 6. Also include in Class 8 any buildings you use to store silage. Class 10 (30%) Class 10 with a CCA rate of 30% includes general purpose electronic data processing equipment (commonly called computer hardware) and systems software for that equipment, including ancillary data processing equipment, if you acquired them either:
  • before March 23, 2004
  • after March 22, 2004, and before 2005, and you made an election Class 10 also includes motor vehicles, as well as some passenger vehicles. Include your passenger vehicle in Class 10 unless it meets a Class 10.1 condition. List each Class 10.1 vehicle separately.

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Eligible zero-emission vehicles (see definition on page 76) are included in Class 54. Class 10.1 (30%) Your passenger vehicle (see the definition on page 52) can belong in either Class 10 or Class 10.1. To determine the class your passenger vehicle belongs in, you have to use the cost of the vehicle before you add the GST/HST or the PST. Include your passenger vehicle in Class 10.1 if you bought it in 2025 and it cost more than $37,000 before tax. List each Class 10.1 vehicle separately. The capital cost limits for a Class 10.1 passenger vehicle are as follows:

  • $30,000 for vehicles acquired before 2022, plus the GST/HST or PST
  • $34,000 for vehicles acquired in 2022, plus the GST/HST or PST
  • $36,000 for vehicles acquired in 2023, plus the GST/HST or PST
  • $37,000 for vehicles acquired in 2024, plus the GST/HST or PST
  • $38,000 for vehicles acquired in 2024, plus the GST/HST or PST Note Use the GST rate of 5% and the appropriate PST rate for your province or territory. If your province participates in HST, use the appropriate HST rate. For more information on the GST and the HST, see Guide RC4022, GST/HST Registrants. Example Vivienne owns a farming business. On June 21, 2025, she bought two passenger vehicles to use in her farming business. The PST rate for her province is 8%. Vivienne kept the following records for 2025: Cost Vehicle 1 $39,000 $1,950 Vehicle 2 $28,000 $1,400 Vivienne puts Vehicle 1 in Class 10.1, since she bought it in 2025 and it cost her more than $37,000. Before Vivienne enters an amount in column 3 of Area B, she has to calculate the GST and PST on $37,000. She does this as follows:
  • GST at 5% of $38,000 = $1,900
  • PST at 8% of $38,000 = $3,040 Therefore, Vivienne’s capital cost is $42,940 ($38,000 + $1,900 + $3,040). She enters this amount in column 3 of Area B. Vivienne puts Vehicle 2 into Class 10, since she bought it in 2025, and it did not cost her more than $38,000. Vivienne’s capital cost is $31,640 ($28,000 + $1,400 + $2,240). She enters this amount in column 3 of Area B. Under the immediate expensing rules, if you dispose of a passenger vehicle acquired after April 18, 2021 to a person or partnership with whom you deal at arm’s length, and its cost exceeds the capital cost limit, the proceeds of disposition will be adjusted based on a factor equal to the capital cost limit as a proportion of the actual cost of the vehicle. Eligible zero-emission vehicles (see the definition on page 76) are included in Class 54. Class 12 (100%) Class 12 includes property such as tools, medical or dental instruments, and kitchen utensils that cost less than $500 and were acquired on or after May 2, 2006. Class 12 includes china, cutlery, linen, and uniforms. It also includes video cassettes, video laser discs, and digital video disks that you rent and do not expect to rent to any one person for more than 7 days in a 30-day period. Most small tools in Class 12 are not subject to the half-year rule. They are fully deductible in the year of purchase. If the tool costs $500 or more, include it in Class 8 with a CCA rate of 20%. Class 12 tools that are subject to the half-year rule include dies, jigs, patterns, moulds or lasts, and the cutting or shaping part of a machine. For more information, see Income Tax Folio S3-F4-C1, Include in Class 12 with a CCA rate of 100% computer software that is not systems software. Software in Class 12 to the half-year rule. Class 12 specifically excludes electronic communication devices and electronic data processing equipment. 88 https://canada.ca/taxes

General Information for GST PST Total $3,120 $44,070 $2,240 $31,640 General Discussion of Capital Cost Allowance. is subject

Class 14 (5%) Class 14 includes patents, franchises, concessions, or licences for a limited period. Your CCA is whichever of the following amounts is less:

  • the total of the capital cost of each property spread out over the life of the property
  • the undepreciated capital cost to the taxpayer as of the end of the tax year of property of that class Class 14.1 (5%) Starting January 1, 2017, include in Class 14.1 property that:
  • is goodwill
  • was eligible capital property immediately before January 1, 2017, and is owned at the beginning of that day
  • is acquired after 2016, other than:
  • property that is tangible or corporeal property
  • property that is not acquired for the purpose of gaining or producing income from business
  • property in respect of which any amount is deductible (other than as a result of being included in Class 14.1) in computing the income from the business
  • an interest in a trust
  • an interest in a partnership
  • a share, bond, debenture, mortgage, hypothecary claim, note, bill or other similar property
  • property that is an interest in, or for civil law a right in, or a right to acquire, a property described in any of the above sub-bullets Examples for farming are milk and egg quotas. For tax years that end prior to 2027, properties included in Class 14.1 that were acquired before January 1, 2017, will be depreciable at a CCA rate of 7% instead of 5%. Transitional rules will apply. Properties that are included in Class 14.1 and acquired after 2016 will be included in this class at a 100% inclusion rate with a 5% CCA rate on a declining-balance basis and the existing CCA rules will normally apply. For more information about the new Class 14.1 and the transitional rules, see “Explanatory Notes – Eligible Capital Property” at budget.gc.ca/2016/docs/tm-mf/notes-en. html. Note Property in this new Class 14.1 is excluded from the definition of capital property for GST/HST purposes. Class 43.1 (30%) and Class 43.2 (50%) – Clean energy equipment Classes 43.1 and 43.2 provide accelerated CCA rates for qualifying investments in clean energy generation and energy conservation equipment. Most of the equipment described in Class 43.1 (30% CCA rate) qualifies under Class 43.2 (50% CCA rate), but Class 43.2 property must be acquired before 2025. For property that becomes available for use after 2024, access to Classes 43.1 and 43.2 for certain fossil-fuelled and low efficiency waste-fuelled electrical generation equipment is restricted by:
  • removing some property that are currently included in these classes (for example, fossil fuelled cogeneration systems)
  • narrowing the eligibility by imposing heat rate thresholds for others (for example, producer gas generating equipment) Under proposed changes, for certain property that is acquired and becomes available for use after November 17, 2025, access to Class 43.1 is restricted by:
  • clarifying that some properties are excluded from this class (for example, property used to charge vehicles or other automotive equipment)
  • adding new conditions that transmission equipment must meet to be eligible These properties may benefit from the enhanced first-year CCA that previously provided full expensing of the property in the year of acquisition. This enhanced first-year CCA is being gradually phased-out for property that becomes available for use after 2023 and before 2028. Under proposed changes, this enhanced first-year CCA phase out only applies to properties acquired before 2025. For properties acquired after 2024, a new enhanced first-year CCA applies to Class 43.1 property. To be eligible, qualifying

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property has to be acquired on or after January 1, 2025, and become available for use before 2034. There will be a four year phase out for property that becomes available for use after 2029. For more information, see Income Tax Folio S3-F8-C2, Tax Incentives for Clean Energy Equipment For more information on the enhanced first-year CCA, go to https://canada.ca/taxes-accelerated-investment-income Class 44 (25%) Include in Class 44 patents or a licence to use patents for a limited or unlimited period that was acquired after April 26, 1993. However, you can elect not to include such property in Class 44 by attaching a letter to the return for the year you acquired the property. In the letter, indicate the property you do not want to include in Class 44. The property you elect not to include in Class 44 will be included in Class 14 instead, if it has a limited life. If it has an unlimited life, it may qualify as an eligible capital property (before 2017) or as a Class 14.1 property (after 2016). Under proposed changes, new additions of Class 44 property are eligible for an enhanced first-year deduction of 100%. This applies to property acquired after April 15, 2024, and that becomes available for use before 2027. Property that becomes available for use in 2027 will continue to benefit from the AII or RII. The AII and RII restrictions also apply to these properties. For more information on these restrictions, go to -accelerated-investment-income. Class 45 (45%) Include general-purpose electronic data processing equipment (commonly called computer hardware) and systems software for that equipment, including associated data processing equipment, in Class 45 with a CCA rate of 45% if you acquired them after March 22, 2004, and before March 19, 2007. Note If you acquired the equipment or software before 2005 and made the separate Class 8 election, as discussed in the Class 8 note, the property does not qualify for the 45% rate. Class 46 (30%) Include in Class 46 with a CCA rate of 30% data network infrastructure equipment and systems software for that equipment if they were acquired after March 22, 2004. If they were acquired before March 23, 2004, include them in Class 8. See “Class 8 (20%)” on page 87. Under proposed changes, new additions of Class 46 property are eligible for an enhanced first-year deduction of 100%. This applies to property acquired after April 15, 2024, and that becomes available for use before 2027. Property that becomes available for use in 2027 will continue to benefit from the AII or RII. The AII and RII restrictions also apply to these properties. For more information on these restrictions, go to -accelerated-investment-income. Class 50 (55%) Include in Class 50 with a CCA rate of 55% property acquired after March 18, 2007, that is general purpose electronic data processing equipment and systems software for that equipment, including ancillary data processing equipment. Do not include property that is included in Class 52 or that is mainly or is used mainly as: a) electronic process control or monitor equipment b) electronic communications control equipment c) systems software for equipment referred to in a) or b) d) data handling equipment (other than data handling equipment that is ancillary to general-purpose electronic data processing equipment) Under proposed changes, new additions of Class 50 property are eligible for an enhanced first-year deduction of 100%. This applies to property acquired after April 15, 2024, and that becomes available for use before 2027. Property that becomes available for use in 2027 will continue to benefit from the AII or RII. The AII and RII restrictions also apply to these properties. For more information on these restrictions, go to -accelerated-investment-income. 90 https://canada.ca/taxes

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Class 52 (100%) Include in Class 52 with a CCA rate of 100% (with no half-year rule) general purpose electronic data processing equipment (commonly called computer hardware) and systems software for that equipment, including ancillary data processing equipment if acquired after January 27, 2009, and before February 1, 2011. Do not include property that is mainly or is used mainly as: a) electronic process control or monitor equipment b) electronic communications control equipment c) systems software for equipment referred to in a) or b) d) data handling equipment (other than equipment that is ancillary to general-purpose electronic data processing equipment) To qualify for this rate the asset must also meet the following conditions:

  • be located in Canada
  • not have been used, or acquired for use, for any purpose before it was acquired by the taxpayer
  • be acquired by the taxpayer either:
  • for use in a business carried on by the taxpayer in Canada or to earn income from property located in Canada
  • for lease by the taxpayer to a lessee for the lessee to use in a business the lessee carried on in Canada or to earn income from property located in Canada Class 54 (30%) and Class 55 (40%) – Zero-emission vehicles There are two CCA classes for zero-emission vehicles (see the definition on page 76) acquired after March 18, 2019. Class 54 was created for zero-emission vehicles that would otherwise be included in Class 10 or 10.1, with the same CCA rate of 30%. Class 55 was created for zero-emission vehicles otherwise included in Class 16, with the same CCA rate of 40%. The CCA still applies on a declining-balance basis. An enhanced first-year CCA deduction with the following phase-out period is available:
  • 100% after March 18, 2019, and before 2024
  • 75% after 2023 and before 2026
  • 55% after 2025 and before 2028 Under proposed changes, this phase-out period only applies to property acquired before 2025. The enhanced first year CCA deduction is reinstated for zero-emission vehicles under Classes 54 and 55 acquired after 2024. To be eligible, qualifying property has to be acquired and become available for use on or after January 1, 2025, and before 2034. The reinstated deduction is subject to the following phase-out period:
  • 100% on or after January 1, 2025, and before 2030
  • 75% after 2029 and before 2032
  • 55% after 2031 and before 2034 For the enhanced first-year allowance, the following step should be taken before calculating the CCA:
  • increase the net capital cost addition to the class as follows:
  • For Class 54: if the property becomes available for use before 2028 and, under proposed changes, is acquired before 2025, increase

the capital cost addition by an amount equal to: o 2 1/3 times the net addition to the class for property that became available for use before 2024 o 1 1/2 times the net addition to the class for property that became available for use in 2024 or 2025 o 5/6 times the net addition to the class for property that became available for use after 2025 and before 2028

  • under proposed changes, if the property is acquired after 2024 and becomes available for use before 2034, increase the capital cost addition by an amount equal to: o 2 1/3 times the net addition to the class for property that becomes available for use before 2030 o 1 1/2 times the net addition to the class for property that becomes available for use in 2030 or 2031

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o 5/6 times the net addition to the class for property that becomes available for use after 2031 and before 2034

  • For Class 55: if the property becomes available for use before 2028 and, under proposed changes, is acquired before 2025, increase

the capital cost addition by an amount equal to: o 1 1/2 times the net addition to the class for property that became available for use before 2024 o 7/8 times the net addition to the class for property that became available for use in 2024 or 2025 o 3/8 times the net addition to the class for property that became available for use after 2025 and before 2028

  • under proposed changes, if the property is acquired after 2024 and becomes available for use before 2034, increase the capital cost addition by an amount equal to: o 1 1/2 times the net addition to the class for property that becomes available for use before 2030 o 7/8 times the net addition to the class for property that becomes available for use in 2030 or 2031 o 3/8 times the net addition to the class for property that becomes available for use after 2031 and before 2034
  • suspend the existing CCA half-year rule Multiply the result by the prescribed CCA rate of 30% for Class 54 and 40% for Class 55. The CCA will be applicable on any remaining balance in these classes using the specific rate for the class. A taxpayer may elect to not include in Class 54 or 55 a vehicle that would otherwise be a zero-emission vehicle or a zero-emission passenger vehicle. When such an election is filed, the vehicle will no longer be considered to be a zero-emission vehicle or a zero-emission passenger vehicle. As a result, the vehicle will be included in its usual CCA Class 10, 10.1 or 16 as the case may be. Such vehicles will not qualify for the enhanced first-year CCA under the ZEV rules. However, those vehicles that will be included in Class 10, 10.1 or 16, may be eligible for the immediate expensing incentive or enhanced CCA under the AIIP rules or, under proposed changes, the RIIP rules. The election must be filed with the minister of national revenue in your income tax and benefit return for the tax year in which the vehicle is acquired. There is no provision for late-filing or amended elections. Class 54 (30%) Include in Class 54 zero-emission vehicles that are not included in Class 16 or 55 and would normally be included in Class 10 or 10.1. There is a limit of $61,000 (plus federal and provincial sales taxes) on the capital cost for each zero-emission passenger vehicle in Class 54. Class 54 may include both zero-emission vehicles that do and do not exceed the prescribed threshold. However, unlike Class 10.1, Class 54 does not establish a separate class for each vehicle whose cost exceeds the threshold. If a zero-emission vehicle is disposed of to a person or partnership with whom you deal at arm’s length, and its cost exceeds the prescribed amount ($55,000 for vehicles acquired after March 18, 2019, and before January 1, 2022; $59,000 for vehicles acquired after December 31, 2021, and before January 1, 2023; or $61,000 for vehicles acquired after December 31, 2022), the proceeds of disposition will be adjusted based on a factor equal to the prescribed amount as a proportion of the actual cost of the vehicle. For dispositions made after July 29, 2019, the actual cost of the vehicle will also be adjusted for the payment or repayment of government assistance. Example Acquisition cost $65,000 First-year CCA Undepreciated capital cost (UCC) Proceeds of disposition $30,000 Part of proceeds of disposition to be deducted from the UCC Class 55 (40%) Include in Class 55 zero-emission vehicles that would normally be included in Class 16. 92 https://canada.ca/taxes

First-year enhanced allowance $61,000 × 75% = $45,750 $61,000 – $45,750 = $15,250 $30,000 × ($45,750 ÷ $65,000) = $21,115

Class 56 (30%) Include in Class 56 (CCA rate of 30%) zero-emission automotive equipment and vehicles (other than motor vehicles) that do not currently benefit from the accelerated rate provided by Classes 54 and 55. To be included in this class, such property needs to be acquired after March 1, 2020, and become available for use before 2028. Under proposed changes, Class 56 is amended to extend the eligibility to include property that becomes available for use before 2034. The enhanced first-year CCA deduction for this class applies only for the tax year in which the equipment or vehicle first becomes available for use. The deduction is subject to the following phase-out period:

  • 100% on or after March 2, 2020, and before 2024
  • 75% after 2023 and before 2026
  • 55% after 2025 and before 2028 Under proposed changes, this phase-out period only applies to property acquired before 2025. The enhanced first year CCA deduction is reinstated for properties included in Class 56 acquired after 2024. To be eligible, qualifying property has to be acquired and become available for use on or after January 1, 2025, and before 2034. The reinstated deduction is subject to the following phase-out period:
  • 100% on or after January 1, 2025, and before 2030
  • 75% after 2029 and before 2032
  • 55% after 2031 and before 2034 To be eligible for the enhanced first-year allowance, a vehicle or equipment must be automotive (that is, self-propelled) and fully electric or powered by hydrogen. Vehicles or equipment that are powered partially by electricity or hydrogen (which includes hybrid vehicles and vehicles that require human or animal power for propulsion) are not eligible. Class 56 captures automotive equipment that is not designed for use on highways or streets such as zero-emission aircraft, watercraft, trolley buses and railway locomotives. Additions or alterations may qualify if they convert automotive equipment (other than a motor vehicle) into a zero-emission property. The CCA is deductible on any remaining balance in the class on a declining-balance basis at the CCA rate of 30%. You may elect to not include the vehicle or equipment in Class 56. As a result, the property is then included in the class for which it would otherwise be eligible. Class 56 excludes property in respect of which CCA or a terminal loss has previously been claimed by another person or partnership where the equipment was acquired by the taxpayer on a tax-deferred “rollover” basis or it was previously owned or acquired by the taxpayer or a non-arm’s length person or partnership.

Special situations

Personal use of property If you buy property for business and personal use, you can show the business part of the property in Area B or C in one of two ways:

  • Regular method (your business use stays the same from year to year):
  • Enter the total cost of the property in column 3, the personal part in column 4, and the business part in column 5
  • Enter the amount from column 5 of Area B or C in column 3 of Area A
  • Administrative method (if your business use changes from year to year, use this method accepted by the CRA to make your calculation easier for you):
  • Enter the total cost of the property in columns 3 and 5, and enter “0” in column 4
  • Enter in column 3 of Area A the amount from column 5 of Area B or C

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If you dispose of property you used for business and personal use, you can show the business part of the property in Area D or E in one of two ways:

  • If you used the regular method when you bought the property:
  • enter the proceeds of disposition of the property in column 3, the personal part in column 4, and the business part in column 5
  • enter the amount from column 5 of Area D or E in column 5 of Area A
  • If you used the administrative method when you bought the property:
  • enter the proceeds of disposition of the property in columns 3 and 5, and enter “0” in column 4
  • enter in column 5 of Area A the amount from column 5 of Area D or E The amount in column 22 (UCC at the end of the year) of Area A is equal to the amount in column 7 column 21. If you are using the administrative method, you may need to make an additional adjustment in column 22 if the property you disposed of is not the last property in its class and an amount remains in column 22 for that class. This adjustment is to ensure that any future CCA you will claim will be related to the business use of the property only. If you are using the administrative method, you will have to calculate the allowable part you can claim for business use when you claim CCA on line 9936. Example Jennifer owns a business. She bought a car in 2025 that she uses for both personal and business use. The car cost $20,000, including all charges and taxes. Therefore, she includes the car in Class 10. Her business use this year was 12,000 kilometres of the total 18,000 kilometres driven. She calculates her CCA on the car for 2025 as follows: She enters $20,000 in column 3 and column 5 of Area B. She also enters $20,000 in column 3 of Area A. By completing the other columns in the chart, she calculates a CCA claim of $3,000. Because Jennifer used her car partly for personal use, she calculates her CCA claim as follows: 12,000 (business kilometres) ÷ 18,000 (total kilometres) × $3,000 = $2,000 Jennifer enters $2,000 on line 9936 in the “Expenses” section of Form T1273 or T1274. Note The capital cost limits on a Class 10.1 vehicle (a passenger vehicle) still apply when you split the capital cost between business and personal use. For more information, see “Class 10.1 (30%)” on page 88. Changing from personal to business use If you bought a property for personal use and started using it in your farming business in your current tax year, there is a change in use. You need to determine the capital cost for business purposes at the moment of this change in use. If the fair market value (FMV) of a depreciable property (such as equipment or a building) is less than its original cost when you change its use, the amount you enter in column 3 of Area B or C is the FMV of the property (excluding the land value if the property is land and a building). If the FMV is more than the original cost of the property (excluding the land value if the property is land and a building) when you change its use, use the following chart to determine the amount to enter in column 3 of Area B or Area C. Enter the FMV of the property in column 3 of Area B or C, whichever applies, if, at the time of change in use, the FMV of the depreciable property is less than its original cost. When you start using your property for your farming business use, you are considered to have disposed of it. If the FMV of the property is more than its cost, you may have a capital gain unless you file an election. For more information on capital gains, see Chapter 7 or Guide T4037. Use the following chart to determine the amount to enter in column 3 of Area B or C when the FMV is more than its original cost. 94 https://canada.ca/taxes

minus the amount in

Capital cost calculation – Change in use Actual cost of the property FMV of the property Amount from line 1 Line 2 minus line 3 (if negative, enter “0”) Enter all capital gains deductions claimed for the capital gains related to the depreciable property Line 4 minus line 5 (if negative, enter “0”) Capital cost (line 1 plus line 6) Enter the capital cost of the property from line 7 in column 3 of Area B or C. Note We consider that you acquire the land for an amount equal to its FMV when you change its use. Include this amount on “Line 9923 – Total cost of all land additions in the year” in Area F. Grants, subsidies, and rebates You should subtract from the applicable expense any rebate, grant, or assistance you received. Enter the net expense on the appropriate line of your form. When you receive a grant, subsidy, or rebate from a government or a government agency to buy depreciable property, subtract the amount of the grant, subsidy, or rebate from the property’s capital cost. Do this before you enter the capital cost in column 3 of Area B or C. If the rebate is more than the remaining undepreciated capital cost in the particular class, add the excess to income on line 9574 or 9575. You may have paid GST or HST on some of the depreciable property you acquired for your business. If so, you may have also received an input tax credit from us. Subtract the input tax credit from the property’s capital cost. Do this before you enter the capital cost in column 3 of Area B or C, whichever applies. If you get an input tax credit for a passenger vehicle you use in your business, use one of these methods:

  • For a passenger vehicle you used 90% or more of the time for your business, subtract the amount of the credit from the vehicle’s cost before you enter its capital cost in column 3 of Area B.
  • For a passenger vehicle you used less than 90% of the time for your business, do not make an adjustment in 2025. Instead, subtract the amount of the credit from your beginning UCC in 2026. For information on claiming input tax credits for the GST/HST you paid to buy a passenger vehicle, see GST/HST Memorandum 8.2, General Restrictions and Limitations. Input tax credits are considered government assistance. Include the amount you claimed on line 108 of your GST/HST return on line 9574 or 9575 only if you cannot apply the rebate, grant, or assistance you received to reduce a particular expense or an asset’s capital cost. You may get an incentive from a non-government agency to buy depreciable property. For example, you may receive a tax credit that you can use to reduce your income tax payable. For more information about government assistance, see Interpretation Bulletin IT-273, General Comments. Non-arm’s length transactions When you acquire depreciable property in a non-arm’s length special rules for determining the property’s cost. These special rules do not apply if you acquire the property because of someone’s death. You can acquire depreciable property in a non-arm’s length transaction from:
  • an individual resident in Canada
  • a partnership with at least one partner who is an individual resident in Canada
  • a partnership with at least one partner who is another partnership

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$ 1 $ 2 $ 3 $ 4 $ × 2 = $ 5 $ × 1/2 = $ 6 $ 7 Government Assistance – (see the definition on page 76) transaction, there are 95

If you pay more for the property than the seller paid for it, calculate the capital cost as follows: Capital cost calculation Non-arm’s length transaction – Resident of Canada The seller’s cost or capital cost The seller’s proceeds of disposition Amount from line 1 Line 2 minus line 3 (if negative, enter “0”) Enter any capital gains deduction claimed for the capital gains related to the depreciable property Line 4 minus line 5 (if negative, enter “0”) Capital cost Line 1 plus line 6 Enter the amount from line 7 in column 3 of either Area B or C, whichever applies. Do not include the cost of the related land. Include the cost of the related land on “Line 9923 – Total cost of all land additions in the year” in Area F of your form. We consider that you acquire the land for an amount equal to its FMV when you change its use. Include this amount on line 9923 in Area F. You can also acquire depreciable property in a non-arm’s length transaction from:

  • a corporation
  • an individual who is not a resident of Canada
  • a partnership with no partners who are individuals resident in Canada or with no partners that are other partnerships If you pay more for the property than the seller paid for it, calculate the capital cost as follows: Capital cost calculation Non-arm’s length transaction – Non-resident of Canada The seller’s cost or capital cost The seller’s proceeds of disposition Amount from line 1 Line 2 minus line 3 (if negative, enter “0”) Capital cost Line 1 plus line 4 Enter the amount from line 5 in column 3 of either Area B or C, whichever applies. Do not include the cost of the related land. Include the cost of the related land on “Line 9923 – Total cost of all land additions in the year” in Area F of your form. If you acquire depreciable property in a non-arm’s length transaction and pay less for it than the seller paid, your capital cost is the same amount as the seller paid. The difference between what you paid and what the seller paid is considered to be deducted as CCA. Enter the amount you paid in column 3 of Area A. Enter the same amount in Area B or C, whichever applies. Example Rachel bought a pickup truck for $4,000 from her father, Marcus, in her 2025 fiscal period. Marcus paid $10,000 for the truck in 2015. Since the amount Rachel paid is less than the amount Marcus paid, we consider Rachel’s cost to be $10,000. We also consider Rachel to have deducted CCA of $6,000 in the past ($10,000 – $4,000). Rachel fills in the CCA chart as follows:
  • in Area B, she enters $10,000 in column 3, “Total cost”
  • in Area A, she enters $4,000 in column 3, “Cost of additions in the year,” as the addition for her 2025 fiscal period 96 https://canada.ca/taxes

$ 1 $ 2 $ 3 $ 4 $ × 2 = $ 5 $ × 1/2 = $ 6 $ 7 $ 1 $ 2 $ 3 $ × 1/2 = $ 4 $ 5

There is a limit on the cost of a passenger vehicle you buy in a non-arm’s length transaction. The cost is the

  • the FMV when you buy it
  • $38,000 plus any GST/HST or PST you would pay on $38,000 if you bought it in your 2025 fiscal period
  • the seller’s cost amount of the vehicle when you buy it The cost amount can vary depending on what the seller used the vehicle for before you bought it. If the seller used the vehicle to earn income, the cost amount would be the UCC of the vehicle when you buy it. If the seller did not use the vehicle to earn income, the cost amount will usually be the original cost of the vehicle. For more information on non-arm’s length transactions, see the Income Tax Folio S1-F5-C1, Arm’s Length. Special rules for disposing of a building in the year If you disposed of a building in the current tax year, special rules may apply, making the proceeds of disposition an amount other than the actual proceeds of disposition. This happens when you meet
  • you disposed of the building for an amount less than both its cost amount, as calculated below, and its capital cost to you
  • you, or a person with whom you do not deal at arm’s length building is on, or the land next to it, that was necessary for the building’s use To calculate the cost amount:
  • if the building was the only property in the class, the cost amount is the undepreciated capital cost (UCC) of the class before you disposed of the building
  • if more than one property is in the same class, you have to calculate the cost amount of each building as follows: (capital cost of the building ÷ capital cost of all property in the class not previously disposed of) × UCC of the class = cost amount of the building Note If a building acquired in a non-arm’s length transaction was previously used for something other than producing income, the capital cost of the property will need to be recalculated to determine the cost amount of the building. For more information on proceeds of disposition, see Income Tax Folio S3-F4-C1, If you disposed of a building under these conditions and you or a person with whom you do not deal at arm’s length disposed of the land in the same year, calculate your deemed proceeds of disposition as shown in Calculation A, on page 98. If you, or a person with whom you do not deal at arm’s length, did not dispose of the land in the same year as the building, calculate your deemed proceeds of disposition as shown in Calculation B, on page 98.

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lesser of: Related Persons and Dealing at both of the following conditions: (see the definition on page 75), owned the land that the General Discussion of Capital Cost Allowance. 97

Calculation A Land and building disposed of in the same year FMV of the building when you disposed of it FMV of the land just before you disposed of it Line 1 plus line 2 Seller’s adjusted cost base of the land Total capital gains (without reserves) from any disposition of the land (such as a change in use) by you, or by a person not dealing at arm’s length with you, in the three-year period before you disposed of the building, to you or to another person not dealing at arm’s length with you Line 4 minus line 5 (if negative, enter “0”) Line 2 or line 6, whichever amount is less Line 3 minus line 7 (if negative, enter “0”) Cost amount of the building just before you disposed of it Capital cost of the building just before you disposed of it Line 9 or line 10, whichever amount is less Line 1 or line 11, whichever amount is more Deemed proceeds of disposition of the building Line 8 or line 12, whichever amount is less (enter the amount from line 13 in column 3 of Area E, and include it in column 5 of Area A) Deemed proceeds of disposition of the land Proceeds of disposition of the land and the building Amount from line 13 Line 14 minus line 15 (include this amount on line 9924 of Area F) If you have a terminal loss on the building, include it on line 9896 in the “Expenses” section of your Form T1273. Calculation B Land and building disposed of in different years Cost amount of the building just before you disposed of it FMV of the building just before you disposed of it Line 1 or line 2, whichever amount is more Actual proceeds of disposition, if any Line 3 minus line 4 Amount from line 5 Amount from line 4 Deemed proceeds of disposition for the building Line 6 plus line 7 (enter this amount in column 3 of Area E and include it in column 5 of Area A) If you have a terminal loss on the building, include it on line 9896 in the “Expenses” section of your Form T1273. Usually, you can deduct 100% of a terminal loss, but only 50% of a capital loss. Calculation B makes sure you use the same percentage to calculate both a terminal loss on a building and a capital loss on land. As a result of this calculation, you add 50% of the amount on line 5 to the actual proceeds of disposition from the building. For more information, see “Terminal loss” on page 82. Replacement property In some cases, you can postpone or defer including a capital gain or recapture of CCA in calculating income. You might sell a business property and replace it with a similar one, or your property might be stolen, destroyed, or expropriated, and you 98 https://canada.ca/taxes

$ 1 $ 2 $ 3 $ 4 $ 5 $ 6 $ 7 $ 8 $ 9 $ 10 $ 11 $ 12 $ 13 $ 14 $ 15 $ 16 $ 1 $ 2 $ 3 $ 4 $ 5 $ × 1/2 = $ 6 $ 7 $ 8

replace it with a similar one. To defer reporting the gain or recapture of CCA, you must acquire the replacement property within the specified time limits and you (or a person related to you) must use the new property for the same or similar purpose. For more information, see Income Tax Folio S3-F3-C1, Replacement Property Note The period beginning on March 15, 2020, and ending on March 12, 2022, is not counted in the calculation of the specified time limits. You can also defer a capital gain or recapture of CCA when you transfer property to a corporation, a partnership, or your child. For more information on transferring farm property to your child, see page 108. For more information on transfers to a corporation or a partnership, see:

  • Information Circular IC76-19, Transfer of Property to a Corporation Under Section 85
  • Interpretation Bulletin IT-291, Transfer of Property to a Corporation Under Subsection 85(1)
  • Interpretation Bulletin IT-378, Winding-up of a Partnership
  • Interpretation Bulletin IT-413, Election by Members of a Partnership Under Subsection 97(2) Details of equity Line 9931 – Total business liabilities A liability is a debt or an obligation of a business. Total business liabilities are the total of all amounts your business owes at the end of its fiscal period. Total business liabilities include:
  • accounts payable
  • notes payable
  • income taxes and taxes payable
  • unpaid salaries, wages, and benefits
  • interest payable
  • deferred or unearned revenues
  • loans payable
  • mortgages payable
  • any other outstanding balance related to the business Line 9932 – Drawings in 2025 A drawing is any withdrawal of cash (including salaries) or other assets, or services of a business by the proprietor or partners. This includes transactions by the proprietor or partners (or family members) like withdrawing cash for non-business use and using business assets and services for personal use. Include the cost or value of the personal use of business assets or services in your drawings for the year. Line 9933 – Capital contributions in 2025 A capital contribution is cash or other assets you added to the farming business during its fiscal period. This includes personal funds you added to the business account, business debts you paid with personal funds, and personal assets you transferred to the farming business. The following example summarizes this chapter on CCA. Example In 2025, Trevor bought a building to use for his farming business. The total cost was $95,000 (the $90,000 total purchase price and the $5,000 total expenses connected with the purchase), as follows: Building value Land value Total purchase price Expenses connected with the purchase Legal fees Land transfer taxes

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. $ 75,000 $ 15,000 $ 90,000 $ 3,000 $ 2,000 99

Total fees Trevor’s farming business has a December 31 year-end. In 2025, Trevor’s farming income was $6,000 and his expenses were $4,900. Therefore, his net income before deducting CCA was $1,100 ($6,000 – $4,900). Before Trevor can fill in his CCA schedule, he has to calculate the capital cost of the building. Since land is not depreciable farm property, he has to calculate the part of the expenses connected with the purchase that relates only to the building. To do this, he has to use the following formula: ($75,000 ÷ $90,000) × $5,000 = $4,166.67 This $4,166.67 represents the part of the $5,000 in legal fees and land transfer taxes that relates to the purchase of the building, while the remaining $833.33 relates to the purchase of the land. Therefore, the capital cost of the building is: Building value Related expenses Capital cost of the building Trevor enters $79,166.67 in column 3 of Area C and $15,833.33 ($15,000 + $833.33) on line 9923 of Area F as the capital cost of the land. Note Trevor did not own farm property before 2025. Therefore, he has no UCC to enter in column 2 of Area A. Trevor acquired his farm property in 2025. Therefore, he is subject to the half-year rule that we explain under “Column 18 – Adjustment for current-year additions subject to the half-year rule” on page 85.

Chapter 6 – Farm losses

When your farming business expenses are more than your farming business income in a year, you have a net loss. However, before you can calculate your net farm loss for the year, you may have to increase or decrease the loss by certain adjustments explained in “Line 9941 – Optional inventory adjustment – current year” on page 57 and “Line 9942 – Mandatory inventory adjustment – current year” on page 57. If you show a net farm loss for the year, read this chapter for information on how to treat your loss. For more information on farm losses, see Income Tax Folio S4-F11-C1, Meaning of Farming and Farming Business The amount of the net farm loss you can deduct depends on the nature and extent of your business. Your farm loss may be one of the following:

  • fully deductible
  • restricted (partly deductible)
  • non-deductible

Fully deductible farm losses

If you made your living from farming, we consider farming to be your main source of income. As long as farming was your main source of income, you can deduct the full amount of your net farm loss from other income. Farming can still be your main source of income even if your farm did not show a profit. Other income could come from investments, part-time employment, and so on. To determine if farming was your main source of income, you need to consider such factors as:

  • gross income
  • net income
  • capital invested
  • cash flow
  • personal involvement
  • your farm’s ability to make a profit (both actual and potential)
  • plans to maintain or develop your farm and how you carried them out Although you may have been a partner in a farming business, you still have to determine if farming was your own main source of income. 100 https://canada.ca/taxes

$ 5,000 $ 75,000.00 $ 4,166.67 $ 79,166.67 .

When farming is your main source of income and you show a net farm loss in 2025, you may have to reduce the loss when you have other income in 2025. Any loss that is left is your farm loss for 2025. Example Rick’s farming business, which is his main source of income, has a December 31 fiscal year-end. His farm loss before adjustments is $50,000. He wants to reduce his loss by the optional inventory adjustment (OIA). Rick kept the following records for 2025: Net farm loss before adjustments Optional inventory adjustment Other income To reduce the loss amount, Rick adds back his OIA. He determines his farm loss for 2025 as follows: Farm loss before adjustments Add optional inventory adjustment Farm loss after adjustments Add other income Farm loss for 2025 Applying your 2025 farm loss You may have a farming loss in 2025. If you do, you can carry it back for up to 3 years or carry it forward for up to 20 years for all non-capital losses incurred after 2005. In both cases, you can deduct it from all your sources of income in those years. If you choose to carry back your 2025 farm loss to your 2022, 2023, or 2024 income tax returns, complete Form T1A, for Loss Carryback. Attach the completed form to your 2025 Income Tax and Benefit Return or to your request for an adjustment and send it to your tax centre. You can also send the form on its own. Do not file an amended return for the year to which you apply the loss. Applying your farm losses from years before 2025 The 20-year carryforward is only allowed for losses starting January 1, 2006, and onward. You may be able to apply farm losses you had in any year from 2006 to 2024 on your 2025 income tax return. You can apply these losses if you did not already deduct them and you have net income in 2025. To apply these losses to 2025, you have to apply the loss from the earliest year first. Enter the amount you wish to deduct on line 25200 on your income tax return.

Restricted farm losses (partly deductible)

You may have run your farm as a business. For your farm to be considered a business, you must have carried on activities with the intention of making a profit and there must be evidence to support that intention. However, if farming was neither your main source of income (for example, you did not rely on farming alone to make your living) nor was it your main source of income in addition to some other subordinate source of income (for example, where the other source of income was a side-line employment or business), you may only be able to deduct a part of your net farm loss. Each year you have a farm loss, review your situation carefully to see if farming was either your main source of income or it was your main source of income in addition to some other subordinate source of income. It is important to do this, since a farming loss may be restricted in one year, but not in another year. How to calculate your restricted farm loss If farming was neither your main source of income nor your main source of income in addition to some other subordinate source of income and you had a net farm loss, the loss you can deduct depends on the amount of your net farm loss. For tax years that end after March 20, 2013, the annual maximum deduction used in the calculation for restricted farm losses is $17,500. When your net farm loss is $32,500 or more, you can deduct $17,500 from your other income. The rest of your net farm loss is your restricted farm loss. When your net farm loss is less than $32,500, the amount you can deduct from your other income is the a) your net farm loss for the year https://canada.ca/taxes

$ 50,000 $ 15,000 $ 2,000 ($ 50,000) $ 15,000 ($ 35,000) $ 2,000 ($ 33,000) Request lesser of: 101

b) $2,500 plus 50% × (your net farm loss minus $2,500) The amount remaining is your restricted farm loss. Note When the farm loss you can deduct is different from your actual farm loss because of the restricted farm loss calculation, you should indicate this on your income tax return on line 14099, “Farming Income.” For example, you can do this by noting “restricted farm loss,” “RFL,” or “Section 31” to the left of line 14099. Example Sharon ran a cattle farm with the intention of making a profit. However, farming was neither her main source of income, nor her main source of income in addition to some other subordinate source of income in 2025. In 2025, she had employment income and a net farm loss of $9,200, which she calculated on line 9946 in the “Summary of income and expenses” section of Form T1273. The part of Sharon’s net farm loss that she can deduct from her other income in 2025 is either amount A or amount B, whichever is less: a) $9,200 b) $2,500 plus 50% × ($9,200 – $2,500) $2,500 plus 50% × $6,700 Therefore, B = ($2,500 + $3,350) = $5,850 Because Sharon can only deduct either A or B, whichever amount is return and deducts this amount from her other income in 2025. Her restricted farm loss is the amount that remains, which is $3,350 ($9,200 minus $5,850). Sharon prints “Section 31” to the left of line 14099 on her income tax return to show that the loss she is deducting is the result of a restricted farm loss calculation. Applying your 2025 restricted farm loss You can carry back your 2025 restricted farm loss up to 3 years. You can also carry it forward up to 20 years. The amount you deduct in any year cannot be more than your net farming income for that year. If you have no net farming income in any of those years, you cannot deduct any restricted farm loss. To carry back your 2025 restricted farm loss to your 2022, 2023, or 2024 income tax returns, use Form T1A, Carryback. Attach the completed form to your 2025 Income Tax and Benefit Return or to your request for an adjustment and send it to your tax centre. You can also send the form on its own. Do not file an amended return for the year to which you would like the loss applied. Applying your restricted farm losses from years before 2025 The 20-year carryforward is only allowed for losses starting January 1, 2006, and onward. If you have net farming income in 2025, you may be able to apply restricted farm losses you had in any year from 2006 to 2024 on your 2025 income tax return. You can apply these losses as long as you did not already deduct them from your farming income. Also, you can only apply them up to the amount of your net farming income in 2025. You have to apply the loss from the earliest year before you apply the losses from other years. Claim this amount on line 25200 of your income tax return. You may have sold farmland at a time when you had restricted farm losses you did not claim. When this happens, you may be able to reduce the amount of your capital gain from the sale. In this case, see “Restricted farm losses” on page 106.

Non-deductible farm losses

If you did not run your farm as a business, you cannot deduct any part of your net farm loss. The size and scope of your farm may make it impossible for the farm to make a profit, either now or in the near future. In this case, you cannot deduct your farm loss. We consider this kind of farm to be personal. Therefore, any farm expenses are personal expenses.

Non-capital losses

You may have incurred a loss in 2025 from a business other than farming. If this loss is more than your other income for the year, you may have a non-capital loss. Use Form T1A, Request for Loss Carryback You can carry back your non-capital loss up to 3 years. Non-capital losses incurred after 2005 can be carried forward up to 20 years. 102 https://canada.ca/taxes

less, she enters $5,850 on line 14100 of her income tax Request for Loss , to calculate your 2025 non-capital loss.

If you choose to carry back your 2025 non-capital loss to your 2022, 2023, or 2024 income tax returns, complete Form T1A. Attach the completed form to your 2025 Income Tax and Benefit Return or to your request for an adjustment and send it to your tax centre. You can also send the form on its own. Do not file an amended return for the year to which you apply the loss. For more information about non-capital losses, see Interpretation Bulletin IT-232, or in Other Years. You can view carry-over amounts using My Account -services.

Chapter 7 – Capital gains

This chapter explains the capital gains rules for people who farm. General capital gains rules are covered in Guide T4037, Capital Gains. Throughout this chapter, we use the terms sell, sold, buy, or However, the information in this chapter also applies to deemed dispositions or acquisitions. When reading this chapter, you can use the terms sold instead of disposed of, and bought your situation. List the dispositions of all your properties on Schedule 3, Capital Gains or Losses and publications at https://canada.ca/cra-forms, or by calling 1-800-959-5525 You may be in a partnership and receive a T5013 slip, Statement of Partnership Income will allocate part of that gain to you. The gain will show on the partnership’s financial statements or on your T5013 slip.

Find out what a capital gain is

You have a capital gain when you sell, or are considered to have sold, a capital property for plus the outlays or expenses you incurred to sell the property. To calculate your capital gain, subtract the adjusted cost base of your property from the proceeds of disposition. From this amount, subtract any outlays or expenses you incurred when selling your property. In most cases, capital property includes land, buildings, and equipment that you used in your farming business. Therefore, capital property includes depreciable and non-depreciable property. You must include your taxable capital gain in income. Not all your capital gain is taxable. For 2025, generally, your taxable capital gain is one-half of your capital gain. A disposition of depreciable property may result in a recapture of capital cost allowance (CCA). We explain recapture on page 82.

Find out what a capital loss is

You have a capital loss when you sell, or are considered to have sold, non-depreciable capital property for adjusted cost base plus the outlays or expenses you incurred to sell the property. To calculate your capital loss, subtract the adjusted cost base of your property from the proceeds of disposition. From this amount, subtract any outlays or expenses you incurred when selling your property. Not all your capital loss is deductible. For 2025, your allowable capital loss is one-half of your capital loss. You can only deduct an allowable capital loss from a taxable capital gain. A loss on a disposition of depreciable property may only result in a terminal loss. We explain terminal loss on page 82. Before you can determine your capital gain or capital loss, you will need to know the following terms. Proceeds of disposition – in most cases means the sale price of the property, see page 76. Adjusted cost base (ACB) – the original cost of the property (including amounts you paid to buy it, such as commissions and legal fees). ACB includes other costs such as the cost of any additions, or the cost to renovate or improve the property. Outlays and expenses – amounts you incurred to sell your property. They include costs such as commissions, surveyors’ fees, transfer taxes, and advertising costs. Fair market value (FMV) – generally the highest dollar value you can get for your property. We define this term on page 76. https://canada.ca/taxes

Losses – Their Deductibility in the Loss Year or Represent a Client at https://canada.ca/cra-sign-in bought. These words describe most capital transactions. instead of acquired, if they more clearly describe . You can get this schedule and other forms . . If the partnership has a capital gain, it more than its adjusted cost base less than its 103

How to calculate your capital gain or loss

To calculate your capital gain or loss, use the following formula: Proceeds of disposition Adjusted cost base Line 1 minus line 2 Outlays and expenses Capital gain (loss) = Line 3 minus line 4 Note You have to calculate the capital gain or loss on each property separately. If you sold in 2025 capital property that you owned before 1972 If you did, you have to apply a special set of rules when you calculate your capital gain or loss because you did not have to pay tax on capital gains before 1972. To help you calculate your gain or loss from the sale of property you owned before 1972, use Form T1105, Supplementary Schedule for Dispositions of Capital Property Acquired Before 1972 Disposing of farmland that includes your principal residence Your home is usually your principal residence. If your home was your principal residence for every year you owned it, you generally do not pay tax on any capital gains when you dispose of it. Therefore, if you sold farmland that included your home in 2025, only part of the gain is taxable. The sale must be reported, along with any principal residence designation, on Schedule 3, “Qualified farm or fishing property” or “Real estate, depreciable property, and other properties.” The CRA can accept a late designation in certain circumstances, but a penalty may apply. For information on change in use rules or on deemed dispositions from a full or partial change of use of a property, see Guide T4037, Capital Gains. You can choose one of two methods to determine your taxable capital gain. Try both methods to see which one is best for you. The land on which your home is located can be part of your principal residence. Usually, the amount of land that you can consider as part of your principal residence is limited to one half hectare (1.24 acres). If you can show that you need more land to use and enjoy your home, you can consider more than 1.24 acres as part of your principal residence. For example, this may happen if the minimum lot size imposed by a municipality at the time you bought the property is larger than one half hectare. Method 1 Separately calculate the capital gain on your principal residence and each of your farm properties. To do this, apportion the proceeds of disposition, the ACB, and any outlays and expenses between:

  • your principal residence
  • each of your farm properties Then, calculate the taxable capital gain on your principal residence, if any, and each of the farm properties. Value the land that is part of your principal residence at one of the following two amounts, whichever is
  • the fair market value (FMV) of the land
  • the FMV of a comparable residential building site in the area Note If your home was not your principal residence for every year you owned it, there could be a capital gain on it you have to include in your income. Form T2091(IND), Designation of a Property as a Principal Residence by an Individual (Other Than a Personal Trust), will help you calculate the number of years you are entitled to designate your home as your principal residence and calculate the part of your gain, if any, that is taxable. For more information on how to report the disposition of your principal residence, see Guide T4037, Capital Gains 104 https://canada.ca/taxes

$ 1 $ 2 $ 3 $ 4 $ 5 . Capital Gains or Losses, under more: .

Example On February 1, 2025, Helena sold her 32-acre farm, which included her principal residence. One acre of land is part of her principal residence. Helena has these details: Value of land when she purchased her farm FMV of similar farmland per acre $ 3,750 FMV of a typical residential building site in the area $ 15,000 Value of land when she sold her farm FMV of similar farmland per acre $ 6,250 FMV of a typical residential building site in the area $ 25,000 Adjusted cost base – actual purchase price Land $ 120,000 House $ 60,000 Barn $ 16,000 Silo $ 4,000 Total $ 200,000 Proceeds of disposition – actual sale price Land $ 200,000 House $ 75,000 Barn $ 20,000 Silo $ 5,000 Total $ 300,000

  • Helena uses the value of a typical residential building site for the land that is part of her principal residence, because the FMV of a typical site in the area is more than the FMV of one acre of farmland. ** Because Helena’s home was her principal residence during all the years she owned it, the capital gain is not taxable. Method 2 Determine the capital gain on your land and your principal residence. Then subtract $1,000 from the gain. Subtract an additional $1,000 for each year after 1971 that the property was your principal residence and you were a resident of Canada. Using Method 2, you can reduce a gain to nil, but you cannot create a loss. To calculate your capital gain, use the following formula: Proceeds of disposition Adjusted cost base Line A minus line B Outlays and expenses Capital gain before reduction (Line C minus line D) Method 2 reduction Capital gain after reduction (Line E minus line F) Note Transfer the entries from lines A, B, D, and G to the relevant columns on Schedule 3, “Qualified farm or fishing property” or “Real estate, depreciable property, and other properties.” If you choose this method, attach a letter to your income tax return that includes the following information:
  • a statement by you that you sold your farm and are electing under subparagraph 40(2)(c)(ii) of the Income Tax Act
  • a description of the property you sold

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Proceeds of Principal Farm Total disposition residence properties Land $ 25,000* $ 175,000 $ 200,000 House $ 75,000 $ 75,000 Barn $ 20,000 $ 20,000 Silo $ 5,000 $ 5,000 $ 100,000 $ 200,000 $ 300,000 Minus ACB: Land $ 15,000* $ 105,000 $ 120,000 House $ 60,000 $ 60,000 Barn $ 16,000 $ 16,000 Silo $ 4,000 $ 4,000 $ 75,000 $ 125,000 $ 200,000 Gain on sale $ 25,000 $ 75,000 $ 100,000 Minus: Gain on principal residence** $ 25,000 $ 25,000 Capital gain $ 0 $ 75,000 $ 75,000 Taxable capital gain (1/2 × $75,000) $ 37,500 $ A $ B $ C $ D $ E $ F $ G Capital Gains or Losses, under 105

  • the number of years after 1971 that the farmhouse was your principal residence during which you were a resident of Canada (if you purchased your farm after 1971, give the date you purchased it) As proof of the value of your property, regardless of the method you choose, keep documents that have the following information:
  • a description of the farm, including the size of the buildings and construction type
  • the cost of the property and the date of purchase
  • the cost of any additions or improvements you made to the property
  • the assessment for property tax purposes
  • any insurance coverage
  • the type of land (arable, bush, or scrub)
  • the type of farm operation For more information, see Income Tax Folio S1-F3-C2, Principal Residence

Restricted farm losses

You may have a capital gain from farmland you sell in 2025. You may also have restricted farm losses from previous years you have not yet used. In this case, you can deduct part of these losses from the gain. The part you can deduct is the property taxes and the interest on money you borrowed to buy the land, if you included these amounts in the calculation of the restricted farm loss in question. You cannot use the restricted farm loss to create or increase a capital loss on the sale of your farmland.

Qualified farm or fishing property and capital gains deduction

The following is a list of updated definitions effective January 1, 2014:

  • the new definition qualified farm or fishing property (QFFP) replaced the two previous definitions:
  • qualified farm property (QFP)
  • qualified fishing property (QXP)
  • the new definition interest in a family farm or fishing partnership
  • interest in a family-farm partnership
  • interest in a family-fishing partnership
  • the new definition share of the capital stock of a family farm or fishing corporation two previous definitions:
  • share of the capital stock of a family-farm corporation
  • share of the capital stock of a family-fishing corporation Find out what a qualified farm or fishing property is QFFP is certain property you or your spouse or common-law partner own. It is also certain property owned by a family farm or fishing partnership in which you or your spouse or common-law partner holds an interest. We define spouse and common-law partner in the Federal Income Tax and Benefit Information. QFFP includes:
  • a real property, such as land and buildings
  • a share of the capital stock of a family farm or fishing corporation you or your spouse or common-law partner owns
  • an interest in a family farm or fishing partnership that you or your spouse or common-law partner owns
  • a property included in Class 14.1 used in the course of carrying on a farming or fishing business, such as milk and egg quotas 106 https://canada.ca/taxes

. replaced the two previous definitions: replaced the

Capital gains deduction If you have a taxable capital gain from the sale of QFFP, you may be able to claim a capital gains deduction. Under proposed changes, the lifetime capital gains exemption (LCGE) for qualifying properties in 2025 is $1,250,000. Indexation of the LCGE will resume in 2026. The amount of the existing maximum capital gains deduction for qualifying properties is $625,000 (one-half of $1,250,000). For more information on how to calculate your capital gains deduction, see Form T657, for 2025, and Form T936, Calculation of Cumulative Net Investment Loss (CNIL) to December 31, 2025 You may be a member of a partnership that sold capital property. In this case, the partnership would allocate any taxable capital gains or allowable capital losses to the partners. If you are allocated a share of a taxable capital gain on QFFP, you may be entitled to claim a capital gains deduction. The LCGE rules on certain farming or fishing property, shares or interests apply to taxpayers involved in a combination of farming and fishing businesses.

  • Property held directly or through a partnership:
  • Where an individual carries on a farming or fishing business as a sole proprietor, or through a partnership, in order to be eligible for the LCGE, the qualifying property must be used mainly in a farming business or a fishing business. Eligibility for the LCGE extends to property of an individual used mainly in a combination of farming and fishing.
  • Shares or partnership interests:
  • In order for an individual’s shares in a family corporation or interest in a family partnership to qualify for the LCGE, all or substantially all (generally interpreted as 90% or more) of the fair market value of the property of the entity must be property used mainly in a farming business or a fishing business. A property held by a family-farm corporation or partnership that is used in a combination of farming and fishing must be used mainly in farming in order to count towards the “all or substantially all” test. A similar rule applies for a property held by a family-fishing corporation or partnership.
  • Eligibility for the LCGE extends to an individual’s shares in a corporation, or interest in a partnership, where the corporation or partnership carries on both a farming business and a fishing business. In particular, if a property of the corporation or partnership is used mainly in either business, or is used mainly in a combination of farming and fishing, the property will count towards the “all or substantially all” test.
  • Also, throughout any 24-month period ending before that time, more than 50% of the fair market value of the property of the entity was attributable to property. That property must have been used principally in the course of carrying on a farming or fishing business in Canada in which a qualified user was actively engaged on a regular and continuous basis, by the following:
  • you, your spouse or common-law partner, or any of your parents or children (we define children on page 108) the beneficiary of a personal trust, or the spouse or common-law partner, parent, or child of such a beneficiary
  • a family farm or fishing corporation where any of the above persons owns a share of the corporation a family farm or fishing partnership where any of the above persons (except a family-farm or fishing corporation)

owns an interest in the partnership

Real property or property included in Class 14.1

Real property or property included in Class 14.1 is QFFP only if it is used to carry on a farming or fishing business in Canada by any of the following:

  • you, your spouse or common-law partner, or any of your parents or children (we define children on page 108)
  • the beneficiary of a personal trust, or the spouse or common-law partner, parent, or child of such a beneficiary
  • a family farm or fishing corporation where any of the above persons owns a share of the corporation
  • a family farm or fishing partnership where any of the above persons (except a family-farm or family-fishing corporation) owns an interest in the partnership We will consider real property or property included in Class 14.1 to be used to carry on a farming or fishing business in Canada if you meet the following conditions:
  • throughout the 24 months before the sale, you, your spouse or common-law partner, any of your children, or parents, a personal trust from which one of these persons acquired the property, or a family-farm or family-fishing partnership (in which any of these persons has an interest) must have owned the property
  • you meet one of the following two conditions:

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Calculation of Capital Gains Deduction . 107

  • While the property was owned by any of the above persons in at least two years; the property or the property it replaced was mainly used in a farming or fishing business in Canada in which any of the above persons was actively engaged on a regular and ongoing basis. Also, while the property was owned by any of the above persons in at least two years; the person’s gross income from the business was larger than the person’s income from all other sources in the year.
  • Family farm or a fishing partnership or corporation used the property for at least 24 months, to carry on a farming or fishing business in Canada. Also, during this time, you, your spouse or common-law partner, any of your children, or your parents must have been actively engaged on a regular and ongoing basis in the business. Real property or property included in Class 14.1 bought before June 18, 1987 You may have bought or entered into an agreement to buy real property or property included in Class 14.1 before June 18, 1987. We consider you to have used this property in carrying on a farming business in Canada if you meet the following conditions:
  • In the year you disposed of it, the property or the one it replaced was used in a farming business in Canada by any of the above persons, a family-farm partnership, a corporation, or by a personal trust from which one of the above individuals acquired the property.
  • The property, or the property it replaced, was used in a farming business in Canada for at least five years by any of the above persons, a family-farm partnership, or corporation, or by a personal trust from which one of the above individuals acquired the property. During this time, the property was owned by any of the above persons or a family-farm partnership or corporation.

Transfer of farm or fishing property to a child

You may be able to transfer Canadian farm or fishing property to your child. When you do this, you can postpone tax on any taxable capital gain and any recapture of capital cost allowance until the child sells the property. To do this, these conditions have to be met:

  • your child was a resident of Canada just before the transfer
  • the farm or fishing property was land in Canada, or depreciable property in Canada of a prescribed class, in respect of a farming or fishing business carried on in Canada, and has been used in the business in which you, your spouse or common-law partner, or any of your children were actively engaged on a regular and ongoing basis before the transfer The rules on intergenerational transfers of certain farming and fishing property from an individual to the individual’s child include taxpayers involved in a combination of farming and fishing businesses. Where an individual carries on a farming or fishing business as a sole proprietor, or through a partnership, in order to be eligible for the intergenerational transfer, the qualifying property must be used mainly in a farming business or a fishing business. Eligibility for the intergenerational transfer extends to property of an individual used mainly in a combination of farming and fishing. Your children include:
  • your natural child, your adopted child, or your spouse’s or common-law partner’s child
  • your grandchild or great-grandchild
  • your child’s spouse or common-law partner
  • another person who is wholly dependent on you for support and who is, or was immediately before the age of 19, in your custody and under your control The following types of property qualify for this transfer:
  • farmland
  • depreciable property, including buildings Furthermore, a share of the capital stock of a family farm or fishing corporation and an interest in a family farm or fishing partnership also qualify for this transfer if your child is a resident of Canada just before the transfer. The rules on intergenerational transfers of certain farming and fishing property from an individual to the individual’s child include taxpayers involved in a combination of farming and fishing businesses.
  • Shares or partnership interests:
  • In order for an individual’s shares in a family corporation or interest in a family partnership to qualify for the intergenerational transfer, all or substantially all (generally interpreted as 90% or more) of the fair market value of the 108 https://canada.ca/taxes

one of both of

property of the entity must be property used mainly in a farming business or a fishing business. Eligibility for the intergenerational transfer extends to an individual’s shares in a corporation, or interest in a partnership, where the corporation or partnership carries on both a farming business and a fishing business. In particular, if a property of the corporation or partnership is used mainly in either business, or is used mainly in a combination of farming and fishing, the property will count towards the “all or substantially all” test. For most property, the transfer price can be any amount between the ACB and its FMV. For depreciable property, the transfer price can be any amount between its undepreciated capital cost (UCC) and its FMV. Example Wade wants to transfer these farm properties to Vicky, his 19-year-old daughter. Land ACB FMV at the time of transfer Combine FMV UCC at the time of transfer Therefore, Wade can transfer the following:

  • the land at any amount between $85,000 (ACB) and $100,000 (FMV)
  • the combine at any amount between $7,840 (UCC) and $9,000 (FMV) If Wade transfers the land at a price equal to its ACB and the combine at a price equal to its UCC, he postpones any taxable capital gain and any recapture of capital cost allowance (CCA). Also, if he does this, we consider that Wade’s proceeds of disposition and the amounts Vicky paid to acquire the properties are $85,000 for the land and $7,840 for the combine. When Vicky disposes of the land and the combine, she includes in her income any taxable capital gain and recapture that Wade postpones. Note For information on intergenerational business transfers from an individual to a corporation controlled by one or more of the individual’s children, see Form T2066, Election for Immediate or Gradual Intergenerational Business Transfer or subsections 84.1(2.31) and 84.1(2.32)of the Income Tax Act. Transfer of farm or fishing property to a child if a parent dies in the year We allow a tax-free transfer of a deceased taxpayer’s Canadian farm or fishing property to a child if are met:
  • the child was resident in Canada just before the parent’s death
  • the property was used mainly in a farming or fishing business on a regular and ongoing basis by the deceased, the deceased’s spouse or common-law partner, or any of the children before the parent’s death
  • the property was transferred to the child no later than 36 months after the parent’s death. In some cases, we may allow the transfer even if it took place later than 36 months after the parent’s death Note The rules under “Transfer of farm or fishing property to a child” may also apply in this section if the deceased’s legal representative doesn’t elect to have paragraph 70(9.01)(b) of the The following types of farm or fishing property qualify for this transfer:
  • land and buildings, or other depreciable property used mainly in a farming or fishing business
  • a share of the capital stock of a family farm or fishing corporation, and an interest in a family-farm or fishing partnership For most property, the transfer price can be any amount between the ACB and its FMV. For depreciable property, the transfer price can be an amount between the property’s FMV and a special amount. For more information, go to https://canada.ca/guide-taxes-deceased-person. The deceased’s legal representative can elect, under paragraph 70(9.01)(b), to choose the amount in the year of death. We consider the child to acquire these properties at the amount chosen. Similar rules apply for property that a deceased person leased to the family farm or fishing corporation or partnership. If a child gets a farm or fishing property from a parent and the child later dies, the property can be transferred to the surviving parent based on the same rules.

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$ 85,000 $ 100,000 $ 9,000 $ 7,840 all of these conditions Income Tax Act apply in respect of the property. 109

Shares or other property of a family farm or fishing holding corporation can also be transferred based on the same rules, from a spouse or common-law partner trust to a child of the settlor. The settlor is the person who sets up a trust, or the person who transfers property to a trust. For more information on these transfers, see Interpretation Bulletin IT-349, on Death.

Transfer of farm or fishing property to a spouse or common-law partner

A farmer can transfer farm property to a spouse or common-law partner or to a spousal or common-law partner trust during the farmer’s lifetime. At the time of transfer, the farmer can postpone any taxable capital gain or recapture of CCA. If the spouse or common-law partner later disposes of the property, the farmer, not the spouse or common-law partner generally has to report any taxable capital gain. This rule applies where the farmer is living at the time the spouse or common-law partner sells the property. However, there are exceptions to this rule. For more information, see Interpretation Bulletin IT-511, Interspousal and Certain Other Transfers and Loans of Property A transfer of farm property can also occur after the farmer dies. For more information, go to -deceased-person. The rollover provisions available for farm properties also apply to land and depreciable property used mainly in a woodlot farming business. They will apply where the deceased, the deceased’s spouse or common-law partner, or any of the deceased’s children were engaged in the woodlot operation as required by a for the woodlot.

Other special rules

You may also be able to postpone paying tax on capital gains in the following situations. Reserves When you dispose of a capital property, you usually receive full payment at that time. However, sometimes you receive the amount over a number of years. Generally, a reserve allows you to defer reporting part of the capital gain to the year in which you receive the proceeds. For example, you may sell a capital property for $50,000 and receive $10,000 at the time of the sale. You receive the remaining $40,000 over four years. In this situation, you can claim a reserve. However, there is a limit to the number of years you can do this. For more information on reserves, see Guide T4037, Capital Gains Capital Property. Exchanges or expropriations of property There are special rules that apply when you dispose of a property and replace it with a similar one, or when someone expropriates your property. For more information, see Income Tax Folio S3-F3-C1, 110 https://canada.ca/taxes

Intergenerational Transfers of Farm Property . https://canada.ca/guide-taxes prescribed forest management plan , and Form T2017, Summary of Reserves on Dispositions of Replacement Property.

Information reporting related to reportable transactions and notifiable transactions

If you are a taxpayer, advisor or promoter who engages in or who is entitled to certain fees in relation to certain tax avoidance transactions, you are subject to new reporting requirements. Reportable transactions Effective for transactions entered into after June 21, 2023, a transaction is reportable if it is an avoidance transaction as defined in subsection 237.3(1), previously 245(3), of the Income Tax Act three generic hallmarks:

  • the advisor or promoter (including any non-arm’s length parties) has or had an entitlement to contingent fee arrangements
  • the advisor or promoter (including any non-arm’s length parties) has or had confidential protection in respect of a tax treatment related to the avoidance transaction
  • the taxpayer, advisor or promoter (including any non-arm’s length parties) has or had contractual protection for the transaction (other than as a result of certain types of fees or, for transactions entered into after 2022, because it concerns contractual protection offered in the context of normal commercial transactions to a wide market) For more information on examples of activities that would not meet a hallmark, and therefore would not have to meet a reporting obligation, go to https://canada.ca/mandatory-disclosure-rules#toc6 A reportable transaction does not include a transaction that is, or is part of, a series of transactions that includes the acquisition of a tax shelter or issuance of a flow-through share for which an information return has been filed with the minister of national revenue under subsections 237.1(7) or 66(12.68), respectively. This is the case unless it is reasonable to conclude that one of the main reasons for the acquisition of a tax shelter, or the issuance of a flow through-share, was to avoid the reportable transactions provisions under section 237.3. Notifiable transactions You are now required to report notifiable transactions. The minister of national revenue has the authority to designate, with the agreement of the minister of finance, a transaction or a series of transactions as a notifiable transaction. Reporting requirements (and exceptions to the rule) similar to those for reportable transactions apply with the inclusion of a prescribed form. A notifiable transaction is a transaction that is the same as, or substantially similar to, a designated transaction, or a transaction in a series of transactions that is the same as, or substantially similar to, a designated series of transactions. This applies to notifiable transactions entered into after June 21, 2023. For a list of notifiable transactions designated by the minister of National Revenue, go to You can subscribe to CRA’s electronic mailing list at https://canada.ca/cra-email-lists designates new notifiable transactions. Filing requirements For reportable transactions and notifiable transactions entered into after June 21, 2023, you must file Form RC312, Transaction and Notifiable Transaction Information Return. You must send it to us within 90 days of the earlier of the day the business or a person transacting for it:
  • becomes contractually obligated to enter into the reportable or notifiable transaction
  • enters into the reportable or notifiable transaction An extended reassessment period may apply under paragraphs 152(4)(b.5) and 152(4)(b.6)of the Income Tax Act. If the information return is not filed as required, the reassessment period is extended by three years after the day on which it is filed as required. The scope of an assessment, reassessment, or additional assessment during the extended reassessment period for a taxpayer’s tax year is limited to the extent that it can reasonably be regarded as relating to the reportable or notifiable transaction. For reportable transactions entered into before June 22, 2023, you must file a previous version of Form RC312 by June 30 of the calendar year following the calendar year in which the transaction first becomes a reportable transaction.

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and has at least one (previously two) of the following . https://canada.ca/notifiable-transactions. to receive an email when the minister Reportable 111

File this return separately from your tax return. Before you file it, make a copy for your records. Send the original return, amended return or any additional information to: Winnipeg Tax Centre Data Assessment and Evaluation Programs Validation and Verification Section Foreign Reporting Returns 66 Stapon Road Winnipeg MB R3C 3M2 Penalties Under the mandatory disclosure rules (MDR), specific penalty provisions apply to reportable or notifiable transactions. For that reason, there is no general penalty provision for not filing an information return for these transactions. This is deemed to have come into force on June 22, 2023, which is the coming into force date of the specific penalty provisions under the MDR. Failure to report could result in suspension of the tax benefit and a penalty. For transactions entered into after June 21, 2023, penalties will apply for each failure to report a reportable transaction or a notifiable transaction:

  • to persons who enter into such transactions or for whom a tax benefit results from such transactions
  • to advisors and promoters of such transactions and persons who do not deal at arm’s length with them and who are entitled to a fee for the transactions For more information on the penalty amounts, go to https://canada.ca/mandatory-disclosure-rules#toc32 112 https://canada.ca/taxes

.

Commodity list

Commodity Code Grains, oilseeds, and special crops Barley 003 Beans (dry edible) 004 Borage 006 Buckwheat 007 Camelina 282 Canadian Wheat Board payments 002 Canary seed 008 Canola 010 Chick peas/Garbanzo beans 023 Corn 011 Faba beans 012 Field peas 013 Flaxseed 014 Forage (including pellets, silage) 264 Forage seed 015 Grain (pellets, screenings, silage) 039 Hemp 030 Kenaf 317 Khorasan wheat/Kamut 036 Lathyrus 040 Lentils 041 Lupins 042 Millet 043 Mixed grain 024 Mustard seed 044 Niger seed/Niger thistle 283 Oats 045 Oilseed radish 038 Prepared feed and protein supplements 046 (itemized) Quinoa 047 Rice 048 Rye 049 Safflower 050 Soybeans 053 Spelt 037 Straw 267 Sugar beets (including molasses) 268 Sunflowers 054 Tobacco 269 Triticale 055 Vegetable seed (seed production only) 051 Wheat 056 Edible horticulture Flowers (edible) 180 Hops 383 Mushrooms (including spawn) 131 Nuts (all) 140 Weeds (edible) 211 Berries Blackberries 066 Blueberries 067 https://canada.ca/taxes

Cranberries 068 Currants (black, red) 065 Elderberries 074 Gooseberries 069 Haskap 075 Loganberries 070 Raspberries 071 Saskatoon berries 072 Sea buckthorn 076 Strawberries 073 Fruit Apples 060 Apricots 091 Cantaloupe 168 Cherries (sweet, sour) 092 Fruit juice 081 Grapefruit 082 Grapes 083 Kiwi fruit 084 Lemons 085 Melons 185 Nectarines 093 Oranges 086 Peaches 094 Pears 095 Plums 096 Prunes 097 Watermelon 087 Wine 088 Herbs and spices Anise 101 Basil 102 Caraway seed 103 Chervil 158 Chives 104 Cilantro 105 Comfrey 106 Coriander 107 Cumin 144 Dill 108 Echinacea 142 Fennel 110 Fenugreek 111 Fireweed 377 Garlic 113 Gingko biloba 380 Ginseng 114 Lavender 379 Lemon balm 378 Marjoram 115 Mint 116 Monarda 117 Oregano 118 113

Parsley 119 Pepper 120 Rosemary 121 Sage 122 Salsify 123 St. John’s wort 381 Summer savory 125 Tarragon 126 Thyme 127 Watercress 128 Vegetables Artichokes 160 Arugula/Rocket 195 Asparagus 161 Beans, fresh 025 Beets 162 Bok choi 163 Broccoflower 164 Broccoli 165 Brussels sprouts 166 Cabbage 167 Carrots 169 Cauliflower 170 Celery 171 Chinese vegetables 173 Collards 174 Cucumbers 175 Eggplant 176 Endive 177 Fiddleheads 179 Gherkins 221 Green peas 223 Horseradish 181 Kale 214 Kohlrabi 182 Leeks 183 Lettuce 184 Mustard leaves 186 Okra 227 Onions 187 Parsnip 190 Peppers 191 Potatoes and by-products 147 Pumpkins 192 Radish 193 Rhubarb 194 Rutabagas 197 Shallots 198 Spinach 201 Squash 202 Stevia 230 Sweet corn 203 Sweet peas 204 Sweet potatoes/Yams 205 Swiss chard 206 Tomatoes 207 114 https://canada.ca/taxes

Turnips 208 Vegetable marrow 209 Witloof chicory 212 Zucchini 213 Vegetables – Greenhouse Cherry tomatoes 233 Cucumbers 234 Lettuce 235 Peppers 236 Tomatoes 237 Non-edible horticulture Bedding plants 132 Flowers and ornamental foliage 133 Fruits and vegetables (non-edible) 134 Seeds and bulbs 135 Shrubs 136 Sod 137 Trees (cultivated Christmas) 138 Trees (fruit and ornamental) 139 Income feed Custom feedlot operator income Custom feedlot operator income (itemized invoices) - Qualifying feed and protein 243 supplements Custom feedlot operator income (non-itemized 246 invoices) - Qualifying prepared feed Other custom feeding income (itemized) 576 Expense feed Livestock owners and custom feedlot operators with prepared feed purchases Other feed charges (itemized) 570 Prepared feed and protein supplements 046 (itemized) Prepared feed and purchases (non-itemized) 571 Livestock owners and custom feeding expense Custom feeding expenses (non-itemized) 573 Livestock owners custom feeding expense (itemized)-Qualifying feed and 577 protein supplements Other custom feeding expenses (itemized) 572 Ranch fur operators with prepared feed purchases Prepared feed and protein supplements 046 (itemized) Ranch fur operators feed purchases 574 (non-itemized) Ranch fur operators other feed expenses 310 (itemized) Poultry, fowl, ratites Chickens 366 Chickens (non-supply managed) 590 Chickens, eggs (non-supply managed) 589 Chickens, eggs for consumption 343 Chickens, eggs for hatching 344 Ducks 332 Emus 373 Geese 333 Ostriches 371 Partridge 323 Pheasants 338

Pigeons 327 Quail 324 Rheas 372 Silkies 326 Taiwanese chickens 325 Turkeys 334 Turkeys (non-supply managed) 591 Turkey eggs 342 Prescribed drought region (PDR)/Prescribed flood region (PFR)/CFIA livestock codes Deferred bison 151 Deferred bovine cattle 150 Deferred deer 154 Deferred elk 155 Deferred goat 152 Deferred horse for PMU sales 156 Deferred other breeding animals 157 Deferred sheep 153 Livestock Alpacas 370 Bees, honey 374 Bees, leaf cutter 312 Bison 350 Cattle, calves 719 Cattle, cows and bulls 706 Cattle, fat/slaughter 720 Cattle, feeder 721 Cattle, purebred breeding 722 Chinchilla 240 Deer 352 Dogs (kennels and pet breeding excluded) 313 Note For information on any commodities not included in this listing, contact your administration. https://canada.ca/taxes

Donkeys/Mules 367 Elk 353 Fox 241 Goats 354 Groundhogs/Hedgehogs 369 Horses 316 Llamas 355 Mink 242 Pot bellied pigs 239 Rabbits 356 Reindeer 244 Sheep, ewes and rams 734 Sheep, lambs 723 Swine 341 Wild boar 247 Other products Bee by-products 375 Cannabis 382 Elk velvet 764 Fish meal 263 Honey 129 Manure 318 Maple products 130 Milk and cream (cattle) 319 Milk and cream (non-supply managed) 592 Pollination services fee 376 Pregnant mare urine (PMU) 322 Semen and embryos 712 Wood 259 Wool 328 115

Program payment list A

See the following lists to determine the correct code to report the program payment on Form T1273 or Form T1274. Payments received from programs on the following list are marked with an “X” to show whether they are included in the calculation of your program year production margin for AgriStability, your allowable net sales (ANS) for AgriInvest, or both. Program payment – included in AgriStability and AgriInvest calculations AgriInsurance (production/crop insurance) – Edible horticulture crops AgriInsurance (production/crop insurance) – Grains, oilseeds, and special crops AgriInsurance (production/crop insurance) – Non-edible horticulture crops AgriInsurance (production/crop insurance) – Other commodities, including livestock AgriRecovery bee assistance payments (allowable portion) AgriRecovery drought assistance payments (allowable portion) AgriRecovery feed assistance payments (allowable portion) AgriRecovery flood assistance payments (allowable portion) Canadian Food Inspection Agency (CFIA) payment for allowable commodities Canadian Food Inspection Agency (CFIA) payment for other amounts Canadian Food Inspection Agency (CFIA) payment for supply managed commodities COVID-19 – AgriRecovery livestock set aside programs COVID-19 – Other assistance payments (allowable portion) COVID-19 – Temporary foreign worker subsidy payments COVID-19 – Wage subsidy payments for arm’s length salaries Crop cover protection program Cull breeding swine program (all provinces) Dairy direct payment program (DDPP) Livestock feed insurance program Livestock price insurance On farm climate action fund (allowable portion) Other AgriRecovery program (allowable portion)* Polar vortex industry recovery program (allowable portion) Post tropical storm Dorian response program Prairie watershed climate program (PWCP) (allowable portion) Private hail insurance Private insurance proceeds for allowable commodities (production/price/margin insurance) Private insurance proceeds for the replacement of allowable commodities Private insurance proceeds for the replacement of allowable expense items Resilient agricultural landscapes program (RALP) (allowable portion) Waterfowl/Wildlife damage compensation – Grains, oilseeds, and special crops Waterfowl/Wildlife damage compensation – Horticulture Waterfowl/Wildlife damage compensation – Other commodities Alberta 2021 Canada - Alberta hog recovery initiative 2021 Canada - Alberta livestock feed assistance initiative (allowable portion) British Columbia 2021 Canada-British Columbia flood recovery program for food security 2021 Canada-British Columbia wildfire and drought recovery initiative (allowable portion) 116 https://canada.ca/taxes

Agri- Agri- Code stability Invest X X 402 X X 401 X X 470 X X 463 X 800 X 774 X 801 X 802 X X 663 X 665 X 664 X X 699 X 687 X 686 X 684 X 473 X 582 X 683 X X 412 X 667 X 804 X 627 X 795 X 772 X 798 X 407 X 661 X X 681 X 406 X 797 X X 418 X X 419 X X 425 X 778 X 776 X 788 X 786

Manitoba Canada-Manitoba livestock feed and transportation drought assistance Canada-Manitoba livestock transportation drought assistance 2021 Canada-Manitoba herd management drought assistance program 2023 Canada-Manitoba bee mortality assistance program Newfoundland and Labrador Newfoundland and Labrador livestock insurance program New Brunswick New Brunswick – Livestock genetic enhancement initiative New Brunswick Lime Transportation Assistance Program Nova Scotia 2016 Canada – Nova Scotia fire blight initiative 2018 Nova Scotia frost loss program Nova Scotia apiculture sustainability growth and health program Nova Scotia genetic improvement program Nova Scotia season response program Ontario 2021 Canada-Ontario dry weather AgriRecovery initiative Canada-Ontario grapevine winter injury initiative (2021-2022) Canada-Ontario overwinter bee colony loss replacement initiative (2021-2022) Ontario special beekeepers fund Prince Edward Island 2018 Canada-PEI fall harvest recovery initiative 2020 PEI potato seed recovery program 2022 Canada-PEI surplus potato management response plan Fiona agriculture support program (PEI) Saskatchewan 2016 Canada-Saskatchewan bovine tuberculosis assistance initiative Saskatchewan cattle and hog support program

  • This code should only be used for AgriRecovery programs (allowable income for AgriStability) not specifically listed above.

https://canada.ca/taxes

X 779 X 780 X 784 X 785 X X 771 X 793 X 782 X 673 X 678 X 799 X 792 X 803 X 789 X 791 X 790 X 552 X 680 X 770 X 781 X 783 X 675 X 593 117

Program payment list B

Payments received from programs on the following list are not included in the calculation of your program year production margin for AgriStability or your allowable net sales (ANS) for AgriInvest. Program payment AgriRecovery drought assistance payments (non-allowable portion) Alternate land use services (ALUS) Apple industry growth and efficiency program Canadian agricultural skills service (CASS) Canadian farm business advisory service (CFBAS) Canadian Food Inspection Agency (CFIA) payments – Compensation for non-allowable commodities COVID-19 – Other assistance payments (non-allowable portion) COVID-19 – Wage subsidy payments for non-arm’s length salaries Dairy farm investment program (DFIP) Dairy subsidies Green plan, farm-based program – Permanent cover practices Hog farm transition program Industry transition production assistance program Market revenue insurance (MRI) – Non-edible horticulture crops Market revenue insurance (MRI) – Qualifying edible horticulture crops Market revenue insurance (MRI) – Qualifying grains, oilseeds, and special crops Other AgriRecovery program (non-allowable portion)* Polar vortex industry recovery program (non-allowable portion) Production insurance premium adjustment Special farm assistance Tobacco transition program Transitional financial assistance program (TFA) Young farmer rebate Alberta 2021 Canada – Alberta livestock feed assistance initiative (non-allowable portion) Alberta spring price endorsement British Columbia 2014 Canada - British Columbia avian influenza assistance initiative 2017 Canada - British Columbia wildfire recovery initiative 2018 Canada – British Columbia wildfire recovery initiative 2021 Canada-British Columbia wildfire and drought recovery initiative (non-allowable portion) Manitoba Manitoba farmland school tax rebate program Nova Scotia 2016 Canada – Nova Scotia maple sector initiative Nova Scotia Fiona agricultural disaster assistance program 118 https://canada.ca/taxes

Code 773 557 669 561 562 587 688 685 682 435 466 607 478 474 411 410 632 796 499 560 606 427 559 775 495 670 677 679 787 556 672 794

Ontario Canada – Ontario grain and oilseed payment Canada – Ontario grain stabilization payment Ontario cattle, hog and horticulture payment Ontario cost recognition top-up Ontario edible horticulture support/program payment Ontario grain and oilseed program payment Ontario inventory transition payment program Ontario risk management program (including the self-directed risk management program) Saskatchewan Saskatchewan crop insurance premium adjustment

  • This code should only be used for AgriRecovery programs (non-allowable income for AgriStability) not specifically listed above.

https://canada.ca/taxes

410 410 581 553 475 471 441 565 619 119

Inventory code list

To find the code for your commodity, locate the name of your commodity and look under the column for your province.

  • If the box is blank, the code cannot be used in your province.
  • If the box is marked with an X, use this code on your form. The Administration will assign a price for the commodity. You can submit your own price for this commodity only if you meet the criteria outlined in this guide.
  • If the box is shaded, use this code on your form. You must provide your own price for this commodity. For more information, refer to the guide.

Edible horticulture

Code Description 6850 Anise 5030 Apples 5031 Apples, organic 5032 Apricots 5034 Artichokes 6851 Arugula 6998 Asparagus 6852 Basil 6978 Bean, lima 6980 Bean, mung 6972 Beans, broad 6974 Beans, green 6975 Beans, green, organic 6976 Beans, Jacob 6982 Beans, snap 6983 Beans, snap, fresh 6984 Beans, soldier 6986 Beans, wax 7000 Beets 5000 Blackberries 5060 Blueberries, highbush (non-bearing year) 5059 Blueberries, highbush (planting year) 5061 Blueberries, highbush (years 1 to 2 of production) 5062 Blueberries, highbush (years 3 to 6 of production) 5063 Blueberries, highbush (years 7 to 9 of production) 5064 Blueberries, highbush (years 10+ of production) 5004 Blueberries, lowbush 5099 Blueberries, lowbush (burn/sprout/mow) 5095 Blueberries, lowbush (establishment stage) 5098 Blueberries, lowbush (mature/full production) Blueberries, lowbush (primary production – 1st and 2nd harvest 5096 crop) Blueberries, lowbush (secondary production – 3rd and 4th harvest 5097 crop) 7002 Bok choi 6854 Borage 120 https://canada.ca/taxes

BC MB NB NL NS NT YT

Code Description 7004 Broccoflower 7006 Broccoli 7008 Brussels sprouts 7010 Cabbage 7012 Cabbage, Chinese 5036 Cantaloupes 7014 Carrots 7015 Carrots, organic 7016 Cauliflower 7018 Celery 5038 Cherries, sour 5040 Cherries, sweet 6855 Chervil 6856 Chives 6858 Cilantro 7020 Collards 6860 Comfrey 6862 Coriander 7022 Corn, sweet 5006 Cranberries 4990 Cranberries (establishment stage) 4991 Cranberries, 1st year of production 4992 Cranberries, 2nd year of production 4993 Cranberries, 3rd year of production 4994 Cranberries, 4+ years of production 7024 Cucumbers 7026 Cucumbers, English 7028 Cucumbers, greenhouse 6864 Cumin 5007 Currants, black 5009 Currants, red 6866 Dill 6869 Echinacea, establishment 6867 Echinacea, root harvested 7035 Edible flowers 7030 Eggplant 7031 Eggplant, greenhouse 5010 Elderberries 7032 Endive 6870 Evening primrose 6872 Fennel 6874 Fenugreek 7034 Fiddle heads 6876 Fireweed https://canada.ca/taxes

BC MB NB NL NS NT YT 121

Code Description 7036 Garlic 7037 Garlic, organic 7038 Gherkins 6893 Gingko biloba 6879 Ginseng, establishment stage 6877 Ginseng, root harvested 5012 Gooseberries 7069 Gourds 5042 Grapefruit 4996 Grapes (non-bearing year) 4995 Grapes (planting year) 4997 Grapes (year 1 of production) 4998 Grapes (year 2+ of production) 5021 Haskap 7039 Hazelnuts 4780 Hops establishment (planting year 1) 4781 Hops, year 2 4782 Hops, year 3 4783 Hops, year 4+ 7040 Horseradish, condiment 7042 Horseradish, enzyme 7099 Kale, organic 6920 Kenaf 5044 Kiwi fruit 7044 Kohlrabi 6883 Lavender 7046 Leeks 7047 Leeks, organic 6881 Lemon balm 5046 Lemons 7048 Lettuce 7050 Lettuce, greenhouse 7049 Lettuce, organic 7052 Lettuce, romaine 5016 Loganberries 6930 Maple syrup 6931 Maple syrup, vacuum 6880 Marjoram 7054 Melons 6882 Mint 6884 Monarda 6928 Mushrooms, brown 6929 Mushrooms, white 6934 Mustard leaves 122 https://canada.ca/taxes

BC MB NB NL NS NT YT

Code Description 5048 Nectarines 6936 Oilseed, radish 6922 Okra 7056 Onions 7057 Onions, organic 5050 Oranges 6886 Oregano 6888 Parsley 7058 Parsnips 5052 Peaches 5054 Pears 7060 Peas, green, fresh 7062 Peas, sweet 7064 Peppers, green 7066 Peppers, greenhouse 5056 Plums 7204 Potatoes, elite 1 7206 Potatoes, elite 2 7200 Potatoes, mini-tuber 6991 Potatoes, organic 7202 Potatoes, pre-elite 6990 Potatoes, processing 6992 Potatoes, seed 6994 Potatoes, sweet 6996 Potatoes, table 5058 Prunes 7068 Pumpkin 7070 Radish 6938 Radish seed, fodder 6940 Radish seed, organic 5018 Raspberries 7072 Rhubarb 6933 Rice, wild 6892 Rosemary 7074 Rutabagas 6894 Sage 7076 Salsify 5020 Saskatoon berries 7078 Scorzonera 5022 Sea buckthorn, berries 6988 Sea buckthorn, leaves 7080 Shallots 7082 Spinach 7083 Spinach, organic https://canada.ca/taxes

BC MB NB NL NS NT YT 123

Code Description 7084 Squash 6896 St. John’s wort 6898 Stevia 5024 Strawberries 6946 Sugar beets 6900 Summer savory 7086 Swiss chard 7087 Swiss chard, organic 6902 Tarragon 6903 Thyme 6948 Tobacco 7088 Tomatoes 7090 Tomatoes, cherry, greenhouse 7092 Tomatoes, greenhouse 7094 Turnips 7097 Walnuts 6904 Watercress 7096 Watermelon 5066 Wine (bottled) 5067 Wine (bulk/pre-bottled) 7098 Zucchini

Forage

Code Description BC 5560 Alfalfa, dehy 5562 Greenfeed 5564 Hay, alfalfa 5568 Hay, alfalfa/brome 5570 Hay, alfalfa/grass 5566 Hay, alfalfa, organic 5572 Hay, clover 5574 Hay, grass 5576 Hay, other 5578 Hay, slough 5579 Hay, timothy 5580 Haylage 5582 Millet 5584 Silage 5583 Silage, corn 5586 Straw 5588 Swath grazing 124 https://canada.ca/taxes

BC MB NB NL NS NT YT MB NB NL NS NT YT

Forage seed

Code Description BC 5600 Alfalfa, common seed 5603 Alfalfa, organic, seed 5602 Alfalfa, pedigreed seed 5604 Bentgrass, common seed 5606 Bentgrass, pedigreed seed 5608 Birdsfoot trefoil, common seed 5610 Birdsfoot trefoil, pedigreed seed 5736 Black medic 5612 Blue grama, common seed 5614 Blue grama, pedigreed seed 5724 Bromes, meadow, common seed 5726 Bromes, meadow, pedigreed seed 5723 Bromes, smooth, common seed 5725 Bromes, smooth, pedigreed seed 5729 Chickling vetch, seed 5620 Clover, alsike, common seed 5622 Clover, alsike, pedigreed seed 5624 Clover, kura, common seed 5626 Clover, kura, pedigreed seed 5619 Clover, organic, seed 5628 Clover, other, common seed 5732 Clover, red, common seed, double cut 5731 Clover, red, common seed, single cut 5734 Clover, red, pedigreed seed, double cut 5733 Clover, red, pedigreed seed, single cut 5636 Clover, sweet, common seed 5638 Clover, sweet, pedigreed seed 5640 Fescue, meadow, common seed 5642 Fescue, meadow, pedigreed seed 5727 Fescue, red, creeping, common seed 5728 Fescue, red, creeping, pedigreed seed 5644 Fescue, tall, forage, common seed 5646 Fescue, tall, forage, pedigreed seed 5648 Fescue, tall, turf, common seed 5650 Fescue, tall, turf, pedigreed seed 5652 Fescues, other, common seed 5671 Grass, fowl blue 5656 Grass, green needle, common seed 5658 Grass, green needle, pedigreed seed 5660 Grass, Indian, common seed 5662 Grass, Indian, pedigreed seed 5664 Grass, June, common seed 5666 Grass, June, pedigreed seed https://canada.ca/taxes

MB NB NL NS NT YT 125

Code Description BC 5668 Grass, Kentucky blue, common seed 5670 Grass, Kentucky blue, pedigreed seed 5672 Grass, orchard, common seed 5674 Grass, orchard, pedigreed seed 5676 Grass, other, common seed 5680 Grass, reed canary, common seed 5682 Grass, reed canary, pedigreed seed 5684 Grass, switch, common seed 5686 Grass, switch, pedigreed seed 5688 Grass, tufted hair, common seed 5690 Grass, tufted hair, pedigreed seed 5592 Grass, wheat, crested, common seed 5596 Grass, wheat, crested, pedigreed seed 5593 Grass, wheat, intermediate common seed 5597 Grass, wheat, intermediate pedigreed seed 5595 Grass, wheat, pubescent common seed 5599 Grass, wheat, pubescent pedigreed seed 5594 Grass, wheat, slender common seed 5598 Grass, wheat, slender pedigreed seed 5699 Milkvetch, American 5697 Milkvetch, Canada 5696 Milkvetch, common seed 5698 Milkvetch, pedigreed seed 5700 Millet, common seed 5702 Millet, pedigreed seed 5693 Native wheatgrass, northern 5695 Native wheatgrass, streambank 5691 Native wheatgrass, western 5683 Native, bluestem, big 5685 Native, bluestem, little 5659 Native, needle and thread 5689 Native, prairie cordgrass 5687 Native, prairie sandreed 5615 Native, sideoats grama 5742 Niger thistle 5704 Ryegrass, annual, common seed 5706 Ryegrass, annual, pedigreed seed 5709 Ryegrass, native, Canadian wild 5708 Ryegrass, perennial, common seed 5714 Ryegrass, perennial, pedigreed seed 5716 Sainfoin, common seed 5718 Sainfoin, pedigreed seed 5730 Sloughgrass, American 5720 Timothy, common seed 126 https://canada.ca/taxes

MB NB NL NS NT YT

Code Description BC 5722 Timothy, pedigreed seed

Grains and oilseeds

Code Description 5100 Barley 5233 Barley, CW select six-row 5238 Barley, CW select two-row 5101 Barley, feed (>=48 lbs/bu.) 5102 Barley, feed (42 lbs/bu. to 47 lbs/bu.) 5195 Barley, feed (off board) 5200 Barley, organic 5205 Barley, organic six-row 5206 Barley, organic six-row, pedigreed 5210 Barley, organic two-row 5211 Barley, organic two-row, pedigreed 5204 Barley, organic, feed 5215 Barley, pedigreed seed 5220 Barley, pedigreed seed six-row 5225 Barley, pedigreed seed two-row 6970 Beans, adzuki 5368 Beans, black 5370 Beans, black, no. 1 5372 Beans, black, no. 2 5374 Beans, black, no. 3 5369 Beans, black, organic 5375 Beans, black, pedigreed seed 5376 Beans, brown, no. 1 5378 Beans, brown, no. 2 5380 Beans, brown, no. 3 5382 Beans, brown, organic 5384 Beans, brown, pedigreed seed 5386 Beans, cranberry, no. 1 5388 Beans, cranberry, no. 2 5390 Beans, cranberry, no. 3 5392 Beans, cranberry, organic 5394 Beans, cranberry, pedigreed seed 5405 Beans, dry, red kidney 5468 Beans, dry, yellow eye 5446 Beans, feed 5396 Beans, great northern, no. 1 5398 Beans, great northern, no. 2 5400 Beans, great northern, no. 3 5402 Beans, great northern, organic https://canada.ca/taxes

MB NB NL NS NT YT BC MB NB NL NS NT YT X X X X X X X 127

Code Description 5404 Beans, great northern, pedigreed seed 5406 Beans, kidney, dark red, no. 1 5408 Beans, kidney, dark red, no. 2 5410 Beans, kidney, dark red, no. 3 5412 Beans, kidney, dark red, organic 5414 Beans, kidney, dark red, pedigreed seed 5416 Beans, kidney, light red, no. 1 5418 Beans, kidney, light red, no. 2 5420 Beans, kidney, light red, no. 3 5422 Beans, kidney, light red, organic 5424 Beans, kidney, light red, pedigreed seed 5426 Beans, pink, no. 1 5428 Beans, pink, no. 2 5430 Beans, pink, no. 3 5432 Beans, pink, organic 5434 Beans, pink, pedigreed seed 5436 Beans, pinto, no, 1 5438 Beans, pinto, no. 2 5440 Beans, pinto, no. 3 5442 Beans, pinto, organic 5444 Beans, pinto, pedigreed seed 5448 Beans, small red, no. 1 5450 Beans, small red, no. 2 5452 Beans, small red, no. 3 5454 Beans, small red, organic 5456 Beans, small red, pedigreed seed 5457 Beans, white pea (navy) 5458 Beans, white pea (navy), no. 1 5460 Beans, white pea (navy), no. 2 5462 Beans, white pea (navy), no. 3 5464 Beans, white peas (navy), organic 5466 Beans, white peas (navy), pedigreed seed 5240 Buckwheat, no. 1 5242 Buckwheat, no. 2 5244 Buckwheat, no. 3 5246 Buckwheat, organic 5248 Buckwheat, pedigreed seed 5540 Camelina 5542 Camelina, organic 5544 Camelina, pedigreed seed 5250 Canary seed 5252 Canary seed, organic 5254 Canary seed, pedigreed seed 5260 Canola, Argentine 128 https://canada.ca/taxes

BC MB NB NL NS NT YT X

Code Description 5262 Canola, Argentine, no. 1 5264 Canola, Argentine, no. 2 5266 Canola, Argentine, no. 3 5268 Canola, Argentine, organic 5270 Canola, Argentine, pedigreed seed 5272 Canola, Argentine, sample 5274 Canola, Polish 5276 Canola, Polish, no. 1 5278 Canola, Polish, no. 2 5280 Canola, Polish, no. 3 5282 Canola, Polish, organic 5284 Canola, Polish, pedigreed seed 5286 Canola, Polish, sample 5290 Caraway seed 5292 Caraway seed, organic 5294 Caraway seed, pedigreed seed 5300 Chickpeas, desi, no. 1 5302 Chickpeas, desi, no. 2 5303 Chickpeas, desi, no. 3 5304 Chickpeas, desi, organic 5306 Chickpeas, desi, pedigreed seed 5330 Chickpeas, feed 5310 Chickpeas, large kabuli (average), no. 1 5312 Chickpeas, large kabuli (average), no. 2 5314 Chickpeas, large kabuli (average), no. 3 5316 Chickpeas, large kabuli, organic 5318 Chickpeas, large kabuli, pedigreed seed 5322 Chickpeas, small kabuli, no. 1 5324 Chickpeas, small kabuli, no. 2 5325 Chickpeas, small kabuli, no. 3 5326 Chickpeas, small kabuli, organic 5328 Chickpeas, small kabuli, pedigreed seed 5340 Corn, grain 5342 Corn, grain, organic 5344 Corn, grain, pedigreed seed 5360 Fababeans, feed 5350 Fababeans, no. 1 5352 Fababeans, no. 2 5354 Fababeans, no. 3 5356 Fababeans, organic 5358 Fababeans, pedigreed seed 5550 Flax 5552 Flax, organic 5553 Flax, organic, pedigreed seed https://canada.ca/taxes

BC MB NB NL NS NT YT X X X X X X X X X X X X X X X X X X X 129

Code Description 5554 Flax, pedigreed seed 5556 Flax, sample 6826 Harvest discount allowance 5750 Hemp, fiber 5752 Hemp, grain 5754 Hemp, pedigreed seed 5070 Kamut 5072 Kamut, organic 5074 Kamut, pedigreed seed 5822 Lentils, black, organic 5760 Lentils, dark green speckled, extra no. 3 5762 Lentils, dark green speckled, no. 1 5764 Lentils, dark green speckled, no. 2 5766 Lentils, dark green speckled, no. 3 5768 Lentils, dark green speckled, organic 5770 Lentils, dark green speckled, pedigreed 5820 Lentils, feed 5772 Lentils, large green, extra no. 3 5774 Lentils, large green, no. 1 5776 Lentils, large green, no. 2 5778 Lentils, large green, no. 3 5780 Lentils, large green, organic 5782 Lentils, large green, pedigreed seed 5784 Lentils, medium green, extra no. 3 5786 Lentils, medium green, no. 1 5788 Lentils, medium green, no. 2 5790 Lentils, medium green, no. 3 5792 Lentils, medium green, organic 5794 Lentils, medium green, pedigreed seed 5821 Lentils, organic, pedigreed seed 5796 Lentils, red, extra no. 3 5798 Lentils, red, no. 1 5800 Lentils, red, no. 2 5802 Lentils, red, no. 3 5804 Lentils, red, organic 5806 Lentils, red, pedigreed seed 5808 Lentils, small green, extra no. 3 5810 Lentils, small green, no. 1 5812 Lentils, small green, no. 2 5814 Lentils, small green, no. 3 5816 Lentils, small green, organic 5818 Lentils, small green, pedigreed seed 5830 Linola 5832 Linola, organic 130 https://canada.ca/taxes

BC MB NB NL NS NT YT X X X X X X X X X X X X X X X X X X X X

Code Description 5834 Linola, pedigreed seed 5836 Linola, sample 5840 Mixed grain 5841 Mixed grain, organic 5850 Mustard, brown, no. 1 5852 Mustard, brown, no. 2 5854 Mustard, brown, no. 3 5856 Mustard, brown, no. 4 5858 Mustard, brown, organic 5860 Mustard, brown, pedigreed seed 5862 Mustard, oriental, no. 1 5864 Mustard, oriental, no. 2 5866 Mustard, oriental, no. 3 5868 Mustard, oriental, no. 4 5870 Mustard, oriental, organic 5872 Mustard, oriental, pedigreed seed 5874 Mustard, sample 5876 Mustard, yellow, no. 1 5878 Mustard, yellow, no. 2 5880 Mustard, yellow, no. 3 5882 Mustard, yellow, no. 4 5884 Mustard, yellow, organic 5886 Mustard, yellow, pedigreed seed 5968 Niger seed 5900 Oats 5902 Oats, organic 5903 Oats, organic, pedigreed seed 5904 Oats, pedigreed seed 5906 Oats, sample 5500 Peas, dry, feed 5502 Peas, dry, feed, organic 5504 Peas, dry, food, green, no. 1 5506 Peas, dry, food, green, no. 2 5508 Peas, dry, food, green, organic 5510 Peas, dry, food, yellow, no. 1 5512 Peas, dry, food, yellow, no. 2 5514 Peas, dry, food, yellow, organic 5516 Peas, dry, maple 5518 Peas, dry, marrowfat 5520 Peas, dry, pedigreed seed 5076 Quinoa 5078 Quinoa, organic 5080 Quinoa, pedigreed seed 5259 Rapeseed, high erucic acid https://canada.ca/taxes

BC MB NB NL NS NT YT X X X X X X X X X X X X X X X X X X X X X X 131

Code Description 5910 Rye, fall 5912 Rye, fall, organic 5914 Rye, fall, pedigreed seed 5916 Rye, spring 5918 Rye, spring, organic 5920 Rye, spring, pedigreed seed 5930 Safflower, no. 1 5932 Safflower, organic 5934 Safflower, pedigreed seed 5936 Safflower, sample 5907 Screenings, all crops 5908 Screenings, all crops, organic 5940 Soybeans 5942 Soybeans, organic 5944 Soybeans, pedigreed seed 5946 Soybeans, sample 5082 Spelt 5084 Spelt, organic 5086 Spelt, pedigreed seed 5950 Sunflower, confectionary, birdseed 5952 Sunflower, confectionary, no. 1 5954 Sunflower, confectionary, no. 2 5956 Sunflower, feed 5964 Sunflower, organic 5958 Sunflower, pedigreed seed 5960 Sunflowers, oilseed, no. 1 5962 Sunflowers, oilseed, no. 2 5970 Sunola 5972 Sunola, organic 5974 Sunola, pedigreed seed 5980 Triticale 5982 Triticale, organic 5984 Triticale, pedigreed seed 6000 Wheat 6295 Wheat, CNHR, no. 1 6296 Wheat, CNHR, no. 2 & 3 6200 Wheat, CPS 6730 Wheat, CPS red, organic 6735 Wheat, CPS red, pedigreed seed 6740 Wheat, CPS white, organic 6745 Wheat, CPS white, pedigreed seed 6202 Wheat, CPSR, no. 1 6204 Wheat, CPSR, no. 2 6210 Wheat, CWAD, no. 1 132 https://canada.ca/taxes

BC MB NB NL NS NT YT X X X X X X X X X X X X X X

Code Description 6212 Wheat, CWAD, no. 2 6215 Wheat, CWAD, no. 3 6217 Wheat, CWAD, no. 4 6750 Wheat, CWAD, organic 6755 Wheat, CWAD, pedigreed seed 6225 Wheat, CWES 6770 Wheat, CWES, organic 6775 Wheat, CWES, pedigreed seed 6810 Wheat, CWHW, organic 6815 Wheat, CWHW, pedigreed seed 6235 Wheat, CWHWS, no. 1 6242 Wheat, CWHWS, no. 2 6245 Wheat, CWHWS, no. 3 6255 Wheat, CWRS, no. 1 6262 Wheat, CWRS, no. 2 6270 Wheat, CWRS, no. 3 6272 Wheat, CWRS, no. 4 6780 Wheat, CWRS, organic 6782 Wheat, CWRS, organic, pedigreed seed 6785 Wheat, CWRS, pedigreed seed 6275 Wheat, CWRW 6276 Wheat, CWRW, no. 1 6277 Wheat, CWRW, no. 2 6495 Wheat, CWRW, organic 6500 Wheat, CWRW, pedigreed seed 6790 Wheat, CWRWS, organic 6795 Wheat, CWRWS, pedigreed seed 6290 Wheat, CWSP 6285 Wheat, CWSWS 6800 Wheat, CWSWS, organic 6805 Wheat, CWSWS, pedigreed seed 6001 Wheat, feed (> = 58 lbs./bu.) 6002 Wheat, feed (52 lbs./bu. to 57 lbs./bu.) 6726 Wheat, feed, organic 6725 Wheat, non-CWB, feed 6820 Wheat, organic 6825 Wheat, pedigreed seed

Inedible horticulture

Code Description 6959 Bedding plants 5001 Blackberry plants 5005 Blueberry plants 6961 Christmas trees, (1st to 2nd years) https://canada.ca/taxes

BC MB NB NL NS NT YT X X X X X X X X X X X X X X BC MB NB NL NS NT YT 133

Code Description 6962 Christmas trees, (3rd to 5th years) 6963 Christmas trees, (6th to 9th years) 6964 Christmas trees, (9+ years) 6960 Christmas trees, (establishment) 6966 Christmas trees, natural stand, harvested 6965 Christmas trees, natural stand, pre-harvest 5011 Currants, bushes 6951 Flowers, fresh cut 6949 Flowers, fresh cut, greenhouse 7110 Perennials, 1 gallon, field/container 7112 Perennials, 2 gallon, field/container 7140 Perennials, 7 gallon, field/container 7142 Perennials, 10 gallon, field/container 7144 Perennials, 15 gallon, field/container 7146 Perennials, 25 gallon, field/container 7148 Perennials, 30 gallon, field/container 7106 Perennials, 1 gallon, indoor 7108 Perennials, 2 gallon, indoor 7103 Perennials, 2.5 inch 7104 Perennials, 4 inch 7102 Perennials, plugs/liners 7130 Perennials, potted, indoor 7132 Perennials, potted, outdoor, nursery 7134 Perennials, rootstock, field grown 7101 Plants, potted 6957 Raspberry plants (canes) 7073 Rhubarb plants 6943 Sod, acres growing 6945 Sod, acres harvested 6937 Sod, acres harvested (BC Coastal Regions) 6941 Sod, acres seeded 6956 Strawberry, plants 7124 Trees and shrubs, 1 gallon, field/container 7126 Trees and shrubs, 2 gallon, field/container 7128 Trees and shrubs, 5 gallon, field/container 7118 Trees and shrubs, 1 gallon, indoor 7120 Trees and shrubs, 2 gallon, indoor 7122 Trees and shrubs, 5 gallon, indoor 7116 Trees and shrubs, 4 inch 7117 Trees and shrubs, ball and burlap, field 7129 Trees and shrubs, caliper, field stock 7115 Trees and shrubs, high value ball and burlap, field stock 7114 Trees and shrubs, plugs/liners 134 https://canada.ca/taxes

BC MB NB NL NS NT YT

Bees and bee by products

Code Description BC 7603 Bees, pollen 7600 Beeswax 7604 Honey 7606 Honey bees 7608 Honey bees, nuclear colony 7610 Honey bees, package 7616 Leaf cutter bees

Bison

Code Description BC 7902 Bison, breeding, bulls 7904 Bison, breeding, cows 7908 Bison, calves, bull 7910 Bison, calves, heifer 7924 Bison, two year old, bulls 7926 Bison, two year old, heifers 7928 Bison, yearling, bulls 7930 Bison, yearling, heifers

Cattle

Code Description BC 8000 Beef, breeding, bulls 8002 Beef, breeding, cows 8007 Beef, calves, birth – 300 lbs 8060 Beef, feeder, cows 8032 Beef, heifer, feeder, 301 – 400 lbs 8036 Beef, heifer, feeder, 401 – 500 lbs 8040 Beef, heifer, feeder, 501 – 600 lbs 8044 Beef, heifer, feeder, 601 – 700 lbs 8048 Beef, heifer, feeder, 701 – 800 lbs 8052 Beef, heifer, feeder, 801 – 900 lbs 8056 Beef, heifer, feeder, 901 – 1000 lbs 8014 Beef, heifer, feeder, 1001 – 1100 lbs 8018 Beef, heifer, feeder, 1101 – 1200 lbs 8022 Beef, heifer, feeder, 1201 – 1300 lbs 8028 Beef, heifer, feeder, 1301 + lbs 8062 Beef, replacement heifers (bred animals) 8034 Beef, steer, feeder, 301 – 400 lbs 8038 Beef, steer, feeder, 401 – 500 lbs 8042 Beef, steer, feeder, 501 – 600 lbs 8046 Beef, steer, feeder, 601 – 700 lbs 8050 Beef, steer, feeder, 701 – 800 lbs https://canada.ca/taxes

MB NB NL NS NT YT MB NB NL NS NT YT MB NB NL NS NT YT X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X 135

Code Description BC 8054 Beef, steer, feeder, 801 – 900 lbs 8058 Beef, steer, feeder, 901 – 1000 lbs 8016 Beef, steer, feeder, 1001 – 1100 lbs 8020 Beef, steer, feeder, 1101 – 1200 lbs 8024 Beef, steer, feeder, 1201 – 1300 lbs 8026 Beef, steer, feeder, 1301 – 1400 lbs 8030 Beef, steer, feeder, 1401 + lbs 8063 Cattle, semen 8100 Purebred beef, 301 – 400 lbs, bulls 8104 Purebred beef, 401 – 500 lbs, bulls 8108 Purebred beef, 501 – 600 lbs, bulls 8112 Purebred beef, 601 – 700 lbs, bulls 8116 Purebred beef, 701 – 800 lbs, bulls 8120 Purebred beef, 801 – 900 lbs, bulls 8124 Purebred beef, 901 – 1000 lbs, bulls 8082 Purebred beef, 1001 – 1100 lbs, bulls 8086 Purebred beef, 1101 – 1200 lbs, bulls 8090 Purebred beef, 1201 – 1300 lbs, bulls 8092 Purebred beef, 1301 – 1400 lbs, bulls 8096 Purebred beef, 1401 lbs +, bulls 8098 Purebred beef, 301 – 400 lbs, heifers 8102 Purebred beef, 401 – 500 lbs, heifers 8106 Purebred beef, 501 – 600 lbs, heifers 8110 Purebred beef, 601 – 700 lbs, heifers 8114 Purebred beef, 701 – 800 lbs, heifers 8118 Purebred beef, 801 – 900 lbs, heifers 8122 Purebred beef, 901 – 1000 lbs, heifers 8080 Purebred beef, 1001 – 1100 lbs, heifers 8084 Purebred beef, 1101 – 1200 lbs, heifers 8088 Purebred beef, 1201 – 1300 lbs, heifers 8094 Purebred beef, 1301 lbs +, heifers 8070 Purebred beef, breeding, bulls 8072 Purebred beef, breeding, cows 8077 Purebred beef, calves, birth – 300 lbs 8071 Purebred beef, embryo 8127 Purebred beef, heifers, bred 8128 Purebred beef, replacement heifers

Dairy

Code Description BC 8200 Dairy quota, butterfat 8202 Dairy quota, milk 8204 Dairy, breeding, bulls 136 https://canada.ca/taxes

MB NB NL NS NT YT X X X X X X X X X X X X X X MB NB NL NS NT YT

Code Description BC 8206 Dairy, breeding, cows 8210 Dairy, calves, heifer 8212 Dairy, calves, steer 8236 Dairy, feeder 301 – 400 lbs, heifers 8240 Dairy, feeder 401 – 500 lbs, heifers 8244 Dairy, feeder 501 – 600 lbs, heifers 8248 Dairy, feeder 601 – 700 lbs, heifers 8252 Dairy, feeder 701 – 800 lbs, heifers 8256 Dairy, feeder 801 – 900 lbs, heifers 8260 Dairy, feeder 901 – 1000 lbs, heifers 8218 Dairy, feeder 1001 – 1100 lbs, heifers 8222 Dairy, feeder 1101 – 1200 lbs, heifers 8226 Dairy, feeder 1201 – 1300 lbs, heifers 8232 Dairy, feeder 1301 lbs +, heifers 8238 Dairy, feeder 301 – 400 lbs, steers 8242 Dairy, feeder 401 – 500 lbs, steers 8246 Dairy, feeder 501 – 600 lbs, steers 8250 Dairy, feeder 601 – 700 lbs, steers 8254 Dairy, feeder 701 – 800 lbs, steers 8258 Dairy, feeder 801 – 900 lbs, steers 8262 Dairy, feeder 901 – 1000 lbs, steers 8220 Dairy, feeder 1001 – 1100 lbs, steers 8224 Dairy, feeder 1101 – 1200 lbs, steers 8228 Dairy, feeder 1201 – 1300 lbs, steers 8230 Dairy, feeder 1301 – 1400 lbs, steers 8234 Dairy, feeder 1401 lbs +, steers 8266 Dairy, replacement heifers 8302 Purebred dairy, 301 – 400 lbs, bulls 8306 Purebred dairy, 401 – 500 lbs, bulls 8310 Purebred dairy, 501 – 600 lbs, bulls 8314 Purebred dairy, 601 – 700 lbs, bulls 8318 Purebred dairy, 701 – 800 lbs, bulls 8322 Purebred dairy, 801 – 900 lbs, bulls 8326 Purebred dairy, 901 – 1000 lbs, bulls 8284 Purebred dairy, 1001 – 1100 lbs, bulls 8288 Purebred dairy, 1101 – 1200 lbs, bulls 8292 Purebred dairy, 1201 – 1300 lbs, bulls 8294 Purebred dairy, 1301 – 1400 lbs, bulls 8298 Purebred dairy, 1401 lbs +, bulls 8300 Purebred dairy, 301 – 400 lbs, heifers 8304 Purebred dairy, 401 – 500 lbs, heifers 8308 Purebred dairy, 501 – 600 lbs, heifers 8312 Purebred dairy, 601 – 700 lbs, heifers 8316 Purebred dairy, 701 – 800 lbs, heifers https://canada.ca/taxes

MB NB NL NS NT YT 137

Code Description BC 8320 Purebred dairy, 801 – 900 lbs, heifers 8324 Purebred dairy, 901 – 1000 lbs, heifers 8282 Purebred dairy, 1001 – 1100 lbs, heifers 8286 Purebred dairy, 1101 – 1200 lbs, heifers 8290 Purebred dairy, 1201 – 1300 lbs, heifers 8296 Purebred dairy, 1301 lbs +, heifers 8272 Purebred dairy, breeding, bulls 8274 Purebred dairy, breeding, cows 8278 Purebred dairy, calves, heifer 8280 Purebred dairy, calves, steers 8327 Purebred dairy, heifers, bred 8328 Purebred dairy, replacement heifers

Goats

Code Description BC 8902 Goats, breeding, bucks 8904 Goats, breeding, does 8912 Goats, kids (<=65 lbs) 8910 Goats, kids (>=66 lbs) 8916 Purebred goats, breeding, bucks 8918 Purebred goats, breeding, does 8922 Purebred goats, kids (<=65 lbs) 8920 Purebred goats, kids (>=66 lbs)

Horses

Code Description BC 8558 Horses, breeding, mares 8560 Horses, breeding, studs 8562 Horses, colts 8569 Horses, geldings 8567 Horses, mares 8561 Horses, semen 8570 Horses, slaughter 8572 Pregnant mare urine produced (PMU) 8574 Purebred horses, breeding, mares 8576 Purebred horses, breeding, studs 8578 Purebred horses, colts 8582 Purebred horses, slaughter

Other livestock

Code Description BC 7502 Alpaca, breeding, hembras 7504 Alpaca, breeding, machos 138 https://canada.ca/taxes

MB NB NL NS NT YT MB NB NL NS NT YT MB NB NL NS NT YT MB NB NL NS NT YT

Code Description BC 7506 Alpaca, cria, hembras 7508 Alpaca, cria, machos 7516 Alpaca, fibre 8134 Breeding females, leased (not owned) 8602 Chinchillas, breeding, females 8604 Chinchillas, breeding, males 8600 Chinchillas, pelts 8402 Deer, breeding, bucks 8404 Deer, breeding, does 8410 Deer, fawn, bucks 8412 Deer, fawn, does 8416 Deer, feeder, bucks 8418 Deer, feeder, does 8421 Deer, hunt, bucks 8419 Deer, semen 8420 Deer, yearling, bucks 8422 Deer, yearling, does 8555 Donkey, geldings 8550 Donkey, jackass 8551 Donkey, jackass, registered 8552 Donkey, jennys 8553 Donkey, jennys, registered 8452 Elk, breeding, bulls 8454 Elk, breeding, cows 8456 Elk, bulls producing velvet 8460 Elk, calves, bull 8462 Elk, calves, heifer 8453 Elk, hunt, bulls 8469 Elk, semen 8470 Elk, velvet 8474 Elk, yearling, heifers 8476 Elk, yearling, spikers 8629 Fox, breeding, reynards 8631 Fox, breeding, vixens 8627 Fox, pelts 8637 Fox, pups 7552 Llama, breeding, females 7554 Llama, breeding, males 7556 Llama, cria, females 7558 Llama, cria, males 7566 Llama, fibre 8654 Mink, breeding, females 8656 Mink, breeding, males 8662 Mink, kits https://canada.ca/taxes

MB NB NL NS NT YT 139

Code Description BC 8652 Mink, pelts 8557 Mule, johns 8556 Mule, mollys 8677 Rabbits, breeding, bucks 8679 Rabbits, breeding, does 8691 Rabbits, fryers 8687 Rabbits, kits 8693 Rabbits, stewers 8423 Red deer, breeding, bulls 8424 Red deer, breeding, cows 8425 Red deer, bulls, producing velvet 8426 Red deer, calves bull 8427 Red deer, calves heifer 8430 Red deer, feeder, heifers 8436 Red deer, hunt, bulls 8431 Red deer, semen 8432 Red deer, velvet 8433 Red deer, yearling, heifers 8434 Red deer, yearling, spikers 8502 Reindeer, breeding, bulls 8504 Reindeer, breeding, cows 8508 Reindeer, calves, bull 8510 Reindeer, calves, heifers 8512 Reindeer, feeder, bulls 8514 Reindeer, feeder, heifers 8520 Reindeer, trained 8516 Reindeer, yearling, bulls 8518 Reindeer, yearling, heifers 8852 Wild boar, breeding, boars 8854 Wild boar, breeding, sows 8856 Wild boar, finishers 8858 Wild boar, growers 8862 Wild boar, weanlings

Poultry

Code Description BC 7680 Chickens (up to 1.4 kg) 7681 Chickens (over 1.4 kg up to 2.7 kg) 7682 Chickens (over 2.7 kg) 7677 Chickens, broilers, chicks hatched 7667 Chickens, chicks 7654 Chickens, layers, broiler eggs for hatching 7678 Chickens, layers, chicks hatched 140 https://canada.ca/taxes

MB NB NL NS NT YT MB NB NL NS NT YT

Code Description BC 7656 Chickens, layers, eggs for consumption 7658 Chickens, pullets 7660 Chickens, roosters 7702 Ducks, broilers 7706 Ducks, drakes 7708 Ducks, ducklings 7712 Ducks, eggs 7714 Ducks, hens 7664 Eggs for consumption 7665 Eggs for consumption, organic 7663 Eggs for hatching 7752 Geese, broilers 7758 Geese, eggs 7760 Geese, female 7762 Geese, ganders 7764 Geese, goslings 7793 Partridge, broilers 7798 Partridge, eggs for hatching 7800 Partridge, hens 7795 Partridge, pullets 7796 Partridge, roosters 7804 Pheasant, chicks 7810 Pheasant, eggs 7812 Pheasant, hens 7811 Pheasant, ring necked, broilers 7814 Pheasant, rooster 7813 Pheasant, white, broilers 7825 Pigeon, breeding pair 7820 Pigeon, pullets 7818 Pigeon, squab roasters 7670 Purebred chickens, layers, broiler eggs for hatching 7672 Purebred chickens, layers, eggs for consumption 7674 Purebred, chickens, pullets 7676 Purebred, chickens, roosters 7852 Purebred turkeys, chicks 7856 Purebred turkeys, eggs 7858 Purebred turkeys, hens 7860 Purebred turkeys, toms 7888 Quail, broilers 7895 Quail, eggs for consumption 7893 Quail, eggs for hatching 7894 Quail, hens 7890 Quail, pullets 7891 Quail, roosters https://canada.ca/taxes

MB NB NL NS NT YT 141

Code Description BC 7842 Silkies, broilers 7900 Silkies, chicks 7847 Silkies, eggs for hatching 7899 Silkies, hens 7844 Silkies, pullets 7845 Silkies, roosters 7880 Taiwanese chickens, broilers 7887 Taiwanese chickens, chicks 7885 Taiwanese chickens, eggs for hatching 7877 Taiwanese chickens, hens 7882 Taiwanese chickens, pullets 7883 Taiwanese chickens, roosters 7861 Turkeys (up to 6.2 kg) 7863 Turkeys (over 6.2 kg up to 8.5 kg) 7865 Turkeys (over 8.5 kg up to 10.8 kg) 7867 Turkeys (over 10.8 kg up to 13.3 kg) 7869 Turkeys (over 13.3 kg) 7870 Turkeys, eggs 7872 Turkeys, hens 7871 Turkeys, poults, breeding 7873 Turkeys, poults, broilers 7876 Turkeys, toms

Ratites

Code Description BC 7727 Emu, boomers 7729 Emu, chicks 7737 Emu, eggs 7739 Emu, flyers 7741 Emu, slaughter 7777 Ostrich, chicks 7783 Ostrich, eggs 7785 Ostrich, hens 7787 Ostrich, roosters 7789 Ostrich, slaughter 7827 Rheas, chicks 7833 Rheas, eggs 7835 Rheas, hens 7837 Rheas, roosters 7839 Rheas, slaughter 142 https://canada.ca/taxes

MB NB NL NS NT YT MB NB NL NS NT YT

Sheep

Code Description BC 8966 Purebred sheep, breeding, ewes 8968 Purebred sheep, breeding, rams 8972 Purebred sheep, lambs 8952 Sheep, breeding, ewes 8954 Sheep, breeding, rams 8962 Sheep, lambs (<=79 lbs) 8960 Sheep, lambs (>=80 lbs) 8976 Wool

Swine

Code Description BC 8752 Hogs, breeding, boars 8754 Hogs, breeding, sows 8763 Hogs, feeder, birth – 18 lbs 8764 Hogs, feeder, 19 lbs – 36 lbs 8765 Hogs, feeder, 37 lbs – 65 lbs 8766 Hogs, feeder, 66 lbs – 100 lbs 8767 Hogs, feeder, 101 lbs – 140 lbs 8768 Hogs, feeder, 141 lbs – 180 lbs 8769 Hogs, feeder, 181 lbs – 220 lbs 8770 Hogs, feeder, 221 lbs – 240 lbs 8791 Hogs, feeder, 241 lbs – 260+ lbs 8755 Hogs, gilts 8771 Hogs, semen 8774 Purebred hogs, breeding, boars 8776 Purebred hogs, breeding, sows 8789 Purebred hogs, gilts https://canada.ca/taxes

MB NB NL NS NT YT MB NB NL NS NT YT X X X X X X X X X X X X X X X X X X X X 143

Regional code list

British Columbia District District name number 23 Alberni-Clayoquot 51 Bulkley-Nechako 17 Capital 41 Cariboo 45 Central Coast 3 Central Kootenay 35 Central Okanagan 39 Columbia-Shuswap 26 Comox Valley 19 Cowichan Valley 1 East Kootenay 9 Fraser Valley 53 Fraser-Fort George 15 Greater Vancouver 49 Kitimat-Stikine 5 Kootenay Boundary 43 Mount Waddington (Island part) 21 Nanaimo 37 North Okanagan 59 Northern Rockies 7 Okanagan-Similkameen 55 Peace River 27 Powell River 47 Skeena-Queen Charlotte 31 Squamish-Lillooet 57 Stikine 24 Strathcona 29 Sunshine Coast 33 Thompson-Nicola Manitoba Municipality Municipality name number 600 Alexander 601 Alonsa 102 Argyle 602 Armstrong 105 Bifrost-Riverton 153 Boissevain-Morton 109 Brenda-Waskada 144 https://canada.ca/taxes

Manitoba Municipality Municipality name number 110 Brokenhead 112 Cartier 167 Cartwright-Roblin 114 Clanwilliam-Erickson 115 Coldwell 116 Cornwallis 118 Dauphin 119 De Salaberry 205 Deloraine-Winchester 120 Dufferin 121 East St. Paul 101 Ellice-Archie 124 Elton 127 Emerson-Franklin 126 Ethelbert 605 Fisher 323 Gilbert Plains 129 Gimli 187 Glenboro-South Cypress 142 Glenella-Lansdowne 606 Grahamdale 132 Grandview 111 Grassland 133 Grey 331 Hamiota 135 Hanover 609 Harrison Park 208 Headingley 182 Hillsburg-Roblin-Shell River 604 Kelsey 196 Killarney-Turtle Mountain 138 La Broquerie 139 Lac Du Bonnet 143 Lakeshore 144 Lorne 145 Louise 146 Macdonald 147 McCreary 149 Minitonas-Bowsman 159 Minto-Odanah

Manitoba Municipality Municipality name number 151 Montcalm 152 Morris 154 Mossey River 617 Mountain 188 Norfolk Treherne 155 North Cypress-Langford 156 North Norfolk 999 Northern Region 157 Oakland-Wawanesa 107 Oakview 161 Pembina 610 Piney 162 Pipestone 163 Portage La Prairie 192 Prairie Lakes 403 Prairie View 611 Reynolds 164 Rhineland 181 Riding Mountain West 165 Ritchot 443 Riverdale 168 Rockwood 169 Roland 170 Rosedale 353 Rossburn 172 Rosser 445 Russell-Binscarth 184 Sifton 449 Souris-Glenwood 189 Springfield 174 St. Andrews 176 St. Clements 177 St. Francois Xavier 178 St. Laurent 190 Stanley 175 Ste. Anne 359 Ste. Rose 612 Stuartburn 193 Swan Valley West 194 Tache 195 Thompson 122 Two Borders https://canada.ca/taxes

Manitoba Municipality Municipality name number 197 Victoria 198 Victoria Beach 199 Wallace-Woodworth 185 West Interlake 201 West St. Paul 200 Westlake-Gladstone 202 Whitehead 203 Whitemouth 590 Winnipeg, City 206 Woodlands 183 Yellowhead New Brunswick County County name number 6 Albert 11 Carleton 2 Charlotte 15 Gloucester 8 Kent 5 Kings 13 Madawaska 9 Northumberland 4 Queens 14 Restigouche 1 St. John 3 Sunbury 12 Victoria 7 Westmorland 10 York Northwest Territories Region Region name number 1 Dehcho 0 Entire Province 2 Inuvik 3 North Slave 4 Sahtu 5 South Slave 145

Nova Scotia County County name number 5 Annapolis 14 Antigonish 17 Cape Breton 10 Colchester 11 Cumberland 3 Digby 13 Guysbourough 9 Halifax 8 Hants 15 Inverness 7 Kings 6 Lunenburg 12 Pictou 4 Queens 16 Richmond 1 Shelburne 18 Victoria 2 Yarmouth

Units of measurement code list

Code Description 4 Bushels 16 CWT 5 Kilograms 10 Litres 64 Other

Expense code list

Code Expenses 9815 Arm’s length salaries 9836 Commissions and levies 9661 Containers and twine 9799 Electricity 9662 Fertilizer and soil supplements 9801 Freight and shipping 9802 Heating fuel 9665 Insurance premiums (crop or production) 146 https://canada.ca/taxes

Yukon District District name number 1 Dawson-Mayo 2 Kluane 3 Pelly-Faro-Carmacks 4 Watson Lake 5 Whitehorse Code Description 8 Bales, large 7 Bales, small 1 Pounds 2 Tonnes Code Expenses 9764 Machinery (gasoline, diesel fuel, oil) 9714 Minerals and salts 9663 Pesticides and chemical treatments Private insurance premiums for allowable 9953 commodities 9822 Storage/drying 9713 Veterinary fees, medicine, and breeding fees

Productive capacity list

Code Description 100 Alpaca 101 Bison 159 Blue leg, breeder, hatching eggs 158 Blue leg, broilers 104 Cattle 171 Cattle, bred heifers 151 Cattle, semen 143 Chickens, broilers 108 Chickens, breeder, broiler hatching eggs 109 Chickens, layers, eggs for consumption 157 Chickens, Taiwanese, breeder, hatching eggs 156 Chickens, Taiwanese, broilers 197 Chickens, pullets 193 Chinchillas 181 Custom fed bison 141 Custom fed cattle 198 Custom fed chickens pullets 190 Custom fed elk 184 Custom fed goats 142 Custom fed hogs 200 Custom fed mink 182 Custom fed sheep 115 Deer 175 Deer, feeders 152 Deer, semen 178 Donkeys 168 Ducks, breeder, hatching eggs 116 Ducks, broilers 117 Elk 118 Elk, bulls producing velvet 173 Elk, feeders 150 Elk, semen 119 Emu 102 Feeder bison (fed up to 700 lbs) 103 Finished bison (fed over 700 lbs) 105 Feeder cattle (fed up to 900 lbs) 106 Finished cattle (fed over 900 lbs) 112 Feeder dairy cattle (fed up to 900 lbs) 111 Finished dairy cattle (fed over 900 lbs) 194 Fox 169 Geese, breeder, hatching eggs 121 Geese, broilers https://canada.ca/taxes

Units Number of females that have birthed Number of females that have birthed Number of producing hens Number sold Number of females that have birthed Number sold Number of straws sold Number of kg produced Number of producing hens Number of producing hens Number of producing hens Number sold Number of animals fed Number of females that have birthed Number of animal feed days Number of animal feed days Number of animals fed Number of animal feed days Number of animal feed days Number of animal feed days Number of animals fed Number of animal feed days Number of females that have birthed Number of animals fed Number of straws sold Number of females that have birthed Number of producing hens Number sold Number of females that have birthed Number of bulls producing Number of animals fed Number of straws sold Number of females that have birthed Number of animals fed Number of animals fed Number of animals fed Number of animals fed Number of animals fed Number of animals fed Number of females that have birthed Number of producing hens Number sold 147

Code Description 122 Goats 191 Goats, dairy 183 Goats, feeders 123 Hogs, farrow to finish 145 Hogs, farrowing 124 Hogs, feeders (fed over 50 lbs) 180 Hogs, gilts 125 Hogs, nursery (fed up to 50 lbs) 149 Hogs, semen 126 Honey bees, producing (hives) 127 Horses 176 Horses, feeders 192 Horses, semen 129 Leaf cutter bees, producing (gallons) 130 Llama 113 Milk quota, milkfat 195 Mink 132 Ostrich 161 Partridge, breeder, hatching eggs 160 Partridge, broilers 163 Pheasant, ring-necked, breeder, hatching eggs 162 Pheasant, ring-necked, broilers 165 Pheasant, white, breeder, hatching eggs 164 Pheasant, white, broilers 128 Pregnant mare urine (PMU) produced 167 Quail, breeder, hatching eggs 166 Quail, broilers 174 Quail, layers, eggs for consumption 196 Rabbits 187 Red deer 186 Red deer, bulls producing velvet 188 Red deer, semen 136 Reindeer 137 Rheas 138 Sheep 172 Sheep, feeders 155 Silkies, breeder, hatching eggs 154 Silkies, broilers 170 Squab, breeding set 153 Turkeys, breeder, hatching eggs 144 Turkeys, broilers 199 Turkeys, poults 140 Wild boar 177 Wild Boar, finishers 148 https://canada.ca/taxes

Units Number of females that have birthed Number of females in milk producing herd Number of animals fed Number of females that have birthed Number of females that have birthed Number of animals fed Number sold Number of animals fed Number of straws sold Number of hives producing Number of females that have birthed Number of animals fed Number of straws sold Number of gallons of bees pollinating Number of females that have birthed Number of kg of butterfat/day Number of females that have birthed Number of females that have birthed Number of producing hens Number sold Number of producing hens Number sold Number of producing hens Number sold Number of grams contracted Number of producing hens Number sold Number of producing hens Number of females that have birthed Number of females that have birthed Number of bulls producing Number of straws sold Number of females that have birthed Number of females that have birthed Number of females that have birthed Number of animals fed Number of producing hens Number sold Number of breeding sets Number of producing hens Number of kg produced Number of poults hatched Number of females that have birthed Number of animals fed

Capital cost allowance (CCA) rates

Below you will find the more common depreciable properties that a business may use along with the class of each property. The CCA rates appear at the end of the list. For more information on Classes 13, 14, 34, and 43.1, and Part XVII of the Income Tax Act, call us at 1-800-959-5525. Depreciable property Class No. Aircraft – Acquired before May 26, 1976............................. 16 Aircraft – Acquired after May 25, 1976.................................. 9 Bee equipment........................................................................... 8 Boats and component parts..................................................... 7 Breakwaters Cement or stone.................................................................... 3 Wood...................................................................................... 6 Brooders..................................................................................... 8 Buildings and component parts Wood, galvanized, or portable............................................ 6 Other: Acquired after 1978 and before 1988*................................ 3 Acquired after 1987............................................................... 1 Fruit and vegetable storage (after Feb. 19, 1973).............. 8 Casing, cribwork for water wells............................................ 8 Chain-saws.............................................................................. 10 Cleaners – grain or seed........................................................... 8 Combines Drawn..................................................................................... 8 Self-propelled...................................................................... 10 Computer equipment and systems software Acquired before March 23, 2004....................................... 10 Acquired after March 22, 2004.......................................... 45 Acquired after March 18, 2007.......................................... 50 Acquired after January 27, 2009, and before February 2011.......................................................... 52 Computer software (other than systems software)............ 12 Coolers – Milk.......................................................................... 8 Cream separators...................................................................... 8 Cultivators................................................................................. 8 Dams Cement, stone, wood, or earth............................................ 1 Data network infrastructure equipment – Acquired after March 22, 2004........................................................... 46 Diggers – All types................................................................... 8 Discs........................................................................................... 8 Docks......................................................................................... 3 Drills – All types....................................................................... 8 Dugouts, dikes, and lagoons................................................... 6 Electric-generating equipment – portable............................. 8 Electric motors.......................................................................... 8 Elevators.................................................................................... 8 Engines – Stationary................................................................. 8 Fences – All types..................................................................... 6 Forage harvesters Drawn..................................................................................... 8 Self-propelled...................................................................... 10 Graders – Fruit or vegetable.................................................... 8 Grain-drying equipment.......................................................... 8 Grain loaders............................................................................ 8 Grain separators........................................................................ 8 Grain-storage building Wood, galvanized steel........................................................ 6 Other....................................................................................... 1 https://canada.ca/taxes

Depreciable property Class No. Greenhouses (all except as noted below)............................... 6 Greenhouses of rigid frames covered with replaceable flexible plastic........................................................................ 8 Grinder....................................................................................... 8 Harness..................................................................................... 10 Harrows...................................................................................... 8 Hay balers and stookers Drawn..................................................................................... 8 Self-propelled....................................................................... 10 Hay loaders................................................................................ 8 Ice machines............................................................................... 8 Incubators................................................................................... 8 Irrigation equipment – Overhead........................................... 8 Irrigation ponds........................................................................ 6 Leasehold interest................................................................... 13 Manure spreaders..................................................................... 8 Milking machines...................................................................... 8 Mixers......................................................................................... 8 Mowers....................................................................................... 8 Nets............................................................................................. 8 Office equipment including photocopiers, fax machines.... 8 Outboard motors..................................................................... 10 Passenger vehicles (see Chapter 5).......................... 10 or 10.1 Piping – Permanent................................................................... 2 Planters – All types................................................................... 8 Plows........................................................................................... 8 Power block – Purse seine........................................................ 7 Pumps......................................................................................... 8 Radar or radio equipment Acquired before May 26, 1976............................................. 9 Acquired after May 25, 1976................................................ 8 Rakes........................................................................................... 8 Roads or other surface areas – Paved or concrete............... 17 Silo fillers.................................................................................... 8 Silos............................................................................................. 8 Sleighs....................................................................................... 10 Sprayers...................................................................................... 8 Stable cleaners........................................................................... 8 Stalk cutters................................................................................ 8 Swathers Drawn..................................................................................... 8 Self-propelled....................................................................... 10 Threshers.................................................................................... 8 Tile or concrete drainage system – Acquired before 1965.... 13 Tillers – All types...................................................................... 8 Tools Less than $500...................................................................... 12 $500 and more........................................................................ 8 Tractors..................................................................................... 10 Trailers...................................................................................... 10 Traps........................................................................................... 8 Trucks....................................................................................... 10 Trucks (freight)........................................................................ 16 149

Depreciable property Class No. Wagons.................................................................................... 10 Water towers............................................................................. 6 Weeders..................................................................................... 8 Weirs........................................................................................... 3 Weirs – Fish............................................................................... 8 Welding equipment.................................................................. 8 Well equipment........................................................................ 8 Wharves Cement, steel, or stone......................................................... 3 Wood...................................................................................... 6

  • You may add to or alter a Class 3 building after 1987. In this case, there is a limit on the amount you can include in Class 3. The most you can include in Class 3 is the lesser of $500,000 or 25% of the building’s cost on December 31, 1987. In Class 1, include any costs you incur that are over this limit. Class 1.................................. 4% Class 8................................ 20% Class 2.................................. 6% Class 9................................ 25% Class 3.................................. 5% Class 10.............................. 30% Class 6................................ 10% Class 10.1........................... 30% Class 7................................ 15% Class 12............................ 100% ** You can claim CCA on leasehold interest, but the maximum rate depends on the type of leasehold interest and the terms of the lease. 150 https://canada.ca/taxes

Depreciable property Class No. Wind chargers............................................................................ 8 Wind-energy conversion equipment Acquired before February 22, 1994................................... 34 Acquired after February 21, 1994................................... 43.1 (Note: Class 43.1 can be used other than for wind energy.) Zero-emission automotive equipment or vehicles (other than motor vehicles)............................................................ 56 Zero-emission vehicles that would otherwise be in Class 10 or 10.1................................................................ 54 Zero-emission vehicles that would otherwise be in Class 16........................................................................ 55 Class 13** Class 50.............................. 55% Class 16.............................. 40% Class 52............................ 100% Class 17................................ 8% Class 54.............................. 30% Class 45.............................. 45% Class 55.............................. 40% Class 46.............................. 30% Class 56.............................. 30%

How to calculate the mandatory inventory adjustment (MIA)

For instructions on how to fill in the following charts, see page 57 in Chapter 3. Chart 1 Cash cost of purchased inventory Enter the amount you paid by the end of the 2025 fiscal period for the specified animals you bought: Fiscal period Cash cost

  • in your 2025 fiscal period $ 1
  • in your 2024 fiscal period $ 2
  • in your 2023 fiscal period $ 3
  • in your 2022 fiscal period $ 4
  • before your 2022 fiscal period $ 5 Enter the amount you paid by the end of your 2025 fiscal period for all other inventory you bought:
  • in your 2025 fiscal period $ 6
  • in your 2024 fiscal period $ 7
  • in your 2023 fiscal period $ 8
  • in your 2022 fiscal period $ 9
  • before your 2022 fiscal period $ 10 Chart 2 Value of purchased inventory for specified animals Inventory bought in your 2025 fiscal period Enter an amount that is not more than the amount from line 1 but not less than 70% of this amount. $ 11 Inventory bought in your 2024 fiscal period Enter an amount that is not more than the amount from line 2, but not less than 70% of the total of the value at the end of your 2024 fiscal period plus any amounts you paid in your 2025 fiscal period toward the purchase price. $ 12 Inventory bought in your 2023 fiscal period Enter an amount that is not more than the amount from line 3, but not less than 70% of the total of the value at the end of your 2024 fiscal period plus any amounts you paid in your 2025 fiscal period toward the purchase price. $ 13 Inventory bought in your 2022 fiscal period Enter an amount that is not more than the amount from line 4, but not less than 70% of the total of the value at the end of your 2024 fiscal period plus any amounts you paid in your 2025 fiscal period toward the purchase price. $ 14 Inventory bought before your 2022 fiscal period Enter an amount that is not more than the amount from line 5, but not less than 70% of the total of the value at the end of your 2024 fiscal period plus any amounts you paid in your 2025 fiscal period toward the purchase price. $ 15

https://canada.ca/taxes

Chart 3 Value of purchased inventory for all other inventory Inventory bought in your 2025 fiscal period Enter the amount from line 6 or the fair market value, whichever is less. $ 16 Inventory bought in your 2024 fiscal period Enter the amount from line 7 or the fair market value, whichever is less. $ 17 Inventory bought in your 2023 fiscal period Enter the amount from line 8 or the fair market value, whichever is less. $ 18 Inventory bought in your 2022 fiscal period Enter the amount from line 9 or the fair market value, whichever is less. $ 19 Inventory bought before your 2022 fiscal period Enter the amount from line 10 or the fair market value, whichever is less. $ 20 Chart 4 Calculation of MIA Enter the amount of your net loss from line 9969 of Form T1273 or T1274. $ 21 Enter the value of your inventory from Chart 2 and Chart 3:

  • the amount from line 11 $
  • the amount from line 12 $
  • the amount from line 13 $
  • the amount from line 14 $
  • the amount from line 15 $
  • the amount from line 16 $
  • the amount from line 17 $
  • the amount from line 18 $
  • the amount from line 19 $
  • the amount from line 20 $ Total value of inventory $ $ 22 MIA – enter the amount from line 21 or line 22, whichever is less. $ 23 151

GST/HST rates

Supplies of farm goods and services subject to GST (5%) or HST (13%, 14%, or 15%) include:

  • crop dusting
  • contract work, including field clearing, tilling, harvesting done by one farmer on behalf of another
  • road-clearing services
  • stud or artificial insemination services
  • storing goods (for example, storing grain in a grain elevator)
  • beeswax
  • maple sugar candy
  • canary seed, lawn seed, and flower seed
  • bedding plants, sod, cut flowers, living trees, and firewood
  • furs, animal hides, and dead animals not suitable for human consumption
  • fertilizer in bulk quantities of less than 500 kg, or any quantities of soil or soil mixture whether or not it contains fertilizer
  • gravel, stones, rock, soil, and soil additives
  • livestock or poultry not normally raised as food or to produce food for human consumption (for example, horses, mules, rabbits, exhibition poultry, and mink)
  • processed wool, feathers, and down Other supplies are taxable at 0%. We refer to these as zero-rated supplies purchases and you do not charge GST/HST when you supply them to your customers. Zero-rated farm supplies are:
  • fruits and vegetables
  • grains or seeds in their natural state, treated for seeding purposes or irradiated for storage purposes, hay or silage, or other fodder crops, when they are sold in quantities larger than ordinarily offered for sale to consumers, and seeds sold to use as feed for wild birds or pet food
  • feed sold by a feedlot operator, as long as the price is separately identified on the invoice or written agreement
  • hops, barley, flaxseed, straw, sugar cane, or sugar beets
  • livestock such as cattle, hogs, poultry, bees, or sheep that are raised or kept to produce food, or to be used as food, for human consumption, or to produce wool
  • poultry or fish eggs that are produced for hatching
  • rabbits, except those that are to be sold as pets
  • frozen, salted, smoked, dried, scaled, eviscerated or filleted fish, or seafood sold for human consumption
  • fertilizer sold in individual bags of at least 25 kg when the total quantity is at least 500 kg
  • wool that is not further processed than washed
  • tobacco leaves that are not further processed than dried and sorted Zero-rated farm purchases are:
  • large farm tractors (60 PTO hp. and over)
  • pull and self-propelled combines, swathers, and wind-rowers
  • headers for combines, forage harvesters, swathers or wind-rowers
  • combine or forage harvester pickups
  • forage harvesters, and self-propelled, tractor-mounted, or pull-type mechanical fruit or vegetable pickers or harvesters
  • mouldboard and disc ploughs (3 or more furrows), and chisel ploughs and subsoil chisels (at least 8 feet or 2.44 metres)
  • discers, rod weeders, or bean rods (at least 8 feet or 2.44 metres) 152 https://canada.ca/taxes

. You do not pay GST/HST when you make these except grains

  • field and row crop cultivators (at least 8 feet or 2.44 metres)
  • combination discer-cultivators (at least 8 feet or 2.44 metres)
  • rototillers and rotovators (at least 6 feet or 1.83 metres)
  • harrows sold in complete units and pulverizers (at least 8 feet or 2.44 metres)
  • land packers, mulchers, and rotary hoes (at least 8 feet or 2.44 metres)
  • airflow seeders, grain and seed drills (at least 8 feet or 2.44 metres), and farm-type row-crop or toolbar seeders or planters designed to seed 2 or more rows at a time
  • mower conditioners, hay balers, hay cubers, hay rakes, hay conditioners, hay crushers, hay crimpers, hay tedders, swath turners, and wind-row turners
  • bale throwers, elevators, or conveyors, silage baggers and round bale wrapping machines
  • grain bins or tanks with a capacity of 181 cubic meters or less (5,000 bushels)
  • transportable grain augers, utility augers, elevators and transportable conveyors with belts less than 76.2 cm (30 inches) wide and 0.48 cm (3/16 inch) thick
  • bin sweep or cleaner attachments for portable grain augers
  • tractor-powered pneumatic grain conveyors
  • feed mills, including roller mills and hammer mills
  • feed mixers, grinders, grinder mixers, and tub grinders
  • ensilage mixers, and self-propelled feed or ensilage carts
  • grain toasters to use in livestock feed production
  • grain dryers
  • farm bulk milk coolers
  • assembled and fully operational milking systems or individual components of these systems
  • automated and computerized farm livestock or poultry feeding systems or individual components of these systems
  • self-propelled, tractor-mounted, or pull-type agricultural wagons or trailers designed for off-road handling and transporting of grain, forage, livestock feed, or fertilizer, and to be used at speeds not exceeding 40 km per hour
  • mechanical rock or stone pickers, rock or root rakes, and rock or root wind-rowers, forage blowers, silo unloaders, and shredders with an operational width of at least 3.66 m or 12 feet
  • tractor-mounted, self-propelled, or pull-type field sprayers with tank capacities of at least 300 litres or 66 gallons
  • granular fertilizer or pesticide applicators with an operational capacity of at least 0.2265 cubic metres or 8 cubic feet
  • liquid box, tank, or flail manure spreaders and injection systems for liquid manure spreaders
  • leafcutter bees
  • complete feeds, supplements, micro-premixes, macro-premixes, and mineral feeds other than trace mineral salt feeds, labelled in accordance with the Feeds Regulations, and designed for rabbits or a specific type of farm livestock, fish, or poultry ordinarily raised or kept for human consumption or to produce wool, and sold in bulk quantities or bags of 20 kg or more
  • feed sold in bulk quantities or bags of 20 kg or more and designed for ostriches, rheas, emus, or bees
  • food processing by-products sold in bulk quantities or bags of 20 kg or more and used as feed or as ingredients in feed for farm livestock, fish, or poultry that is ordinarily raised or kept for human consumption or to produce wool, or for rabbits, ostriches, rheas, emus, or bees
  • pesticides used for agricultural purposes labelled by the Pest Control Products Regulations and not designed for domestic use
  • sales of quotas between farmers for zero-rated products (including dairy, turkey, chicken, eggs, and tobacco leaves)
  • farmland rented to a registrant under a sharecropping arrangement, where a share of the production that is zero-rated is part of the price (any other extra payments are taxable)

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Digital services

The CRA’s digital services are fast, easy, and secure!

My Account

My Account lets you access your personal income tax and benefit information, and interact with the CRA online throughout the year. Profile

  • Change your address, phone numbers, direct deposit information, marital status, information about children in your care, and language preference
  • Edit your notification preferences and receive email notifications when important changes are made to your account
  • Manage your authorized representatives and authorization requests
  • Manage your multi-factor authentication settings, security options, and personal identification number (PIN) Tax returns
  • View your notice of assessment or reassessment, special elections and returns, carryover amounts, and tax information slips (T4 and more) Accounts and payments
  • View your account balance and statement of account
  • Make a payment online to the CRA with the My Payment service, create a pre-authorized debit (PAD) agreement, or create a QR code to pay in person at Canada Post for a fee
  • Transfer a payment Benefits and credits
  • View your benefit and credit information, and apply for certain benefits Savings and pension plans
  • View information about your Registered Retirement Savings Plan (RRSP), Tax-Free Savings Account (TFSA), Home Buyers’ Plan (HBP), First Home Savings Account (FHSA), and Lifelong Learning Plan (LLP) Correspondence
  • View mail from the CRA
  • Submit documents to the CRA
  • Submit an audit enquiry
  • File a formal dispute
  • Request a CPP/EI ruling Additional digital services
  • Track the progress of certain files and enquiries you have submitted to the CRA
  • View and print your proof of income statement 154 https://canada.ca/taxes

Receive your CRA mail online – Individuals Set your correspondence preference to “Electronic mail” to receive email notifications when CRA mail, like your notice of assessment, is available in your account. You will no longer receive your CRA mail by paper. For more information, go to https://canada.ca/cra-email-notifications Access My Account To access My Account, go to https://canada.ca/cra-sign-in-services and sign in to or register for a CRA account.

Handle your business taxes online

My Business Account lets you access your business taxes information and interact with the CRA online throughout the year.

Profile

  • Manage your addresses, direct deposit information, program account names, operating names, phone numbers, business numbers in your profile, and language preference
  • Manage your notification preferences and receive email notifications when important changes are made to your account
  • Manage your authorized representatives and authorization requests
  • Manage your multi-factor authentication settings and security options

Balances and payments

  • Make a payment online to the CRA with My Payment, create a pre-authorized debit (PAD) agreement, or create a QR code to pay in person at Canada Post for a fee
  • View and pay account balance
  • View account transactions
  • Transfer payments and immediately view the updated balance
  • View interest
  • Calculate a future balance
  • View direct deposit transactions
  • Calculate and make instalment payments

Transactions

  • File a return, view the status of filed returns, and adjust returns online
  • Make an online request about your account and view answers to common enquiries
  • Track the progress of certain files and enquiries you have submitted to the CRA
  • Download reports
  • Request relief of penalties and interest
  • Close an account

Correspondence

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. . 155

Access My Business Account

To access My Business Account, go to https://canada.ca/cra-sign-in-services Receive your CRA mail online – Businesses Most correspondence is only available online in My Business Account by default, except when a business has changed its delivery method to receive paper mail. Make sure you register for email notifications from the CRA to find out when you have new mail to view in My Business Account. For more information, go to https://canada.ca/cra-business-email-notifications

Electronic payments

Make your payment using:

  • your Canadian bank or credit union’s online banking, mobile app or telephone service
  • the CRA’s My Payment service at https://canada.ca/cra-my-payment Canadian bank or credit union with a Visa Debit, or Debit Mastercard logo (does
  • pre-authorized debit (PAD) at https://canada.ca/cra-sign-in-services set up payments to the CRA from a Canadian chequing account on preset dates starting in five or more business days
  • pay an amount due, repay overpaid amounts or make instalment payments view your account history and modify, cancel or skip a payment (For more information on PAD, go to

-authorized-debit )

  • the “Proceed to pay” button through My Account in the “Accounts and payments” panel on the “Overview” page, or directly through “Accounts and Payments” side navigation menu item and under the “Account balance and statement of account” and “Instalments” panels
  • your credit card, Interac e-transfer or PayPal through one of the third-party service providers For more information, go to https://canada.ca/payments. 156 https://canada.ca/taxes

and sign in to or register for a CRA account . with your activated debit card from a participating not include credit cards) which lets you: https://canada.ca/pay for a fee

For more information

If you need help

For help with common topics, current contact centre wait times, and links to online self-serve options, go to -contact.

Direct deposit

Direct deposit is a fast, convenient, and secure way to receive your CRA payments directly in your account at a financial institution in Canada. For more information, go to https://canada.ca/cra-direct-deposit can view your direct deposit information and online transactions at

Forms and publications

The CRA encourages you to file your return electronically. If you need a paper version of the CRA’s forms and publications, go to https://canada.ca/cra-forms-publications.

Electronic mailing lists

The CRA can send you an email when new information on a subject of interest is available on its website. To subscribe, go to https://canada.ca/cra-email-lists.

Teletypewriter (TTY) and Video Relay Service (VRS) users

If you use a TTY for a hearing or speech impairment, call 1-800-665-0354 Register with Canada VRS to download the app, by going to If you use another operator-assisted relay service, call the CRA’s regular telephone numbers instead of the TTY or Canada VRS numbers.

Formal disputes (objections and appeals)

You have the right to file an objection or an appeal if you disagree with an assessment, determination or decision. For more information, go to https://canada.ca/crafile-objection.

CRA service feedback program

Service complaints You can expect to be treated fairly and to receive a high level of service every time you interact with the CRA. You may provide compliments or suggestions, however, if you are not satisfied with the service you received:

  • You may save time by calling the CRA first depending on your situation. You can call the telephone number provided in your CRA correspondence or discuss your concerns with the employee you have been dealing with. If you do not have a contact number, go to https://canada.ca/cra-contact
  • You can ask to discuss the matter with the employee’s supervisor if you have not been able to resolve your service issue
  • You can submit feedback by filling out Form RC193, Service Feedback information, go to https://canada.ca/cra-service-feedback
  • You may contact the Office of the Taxpayers’ Ombudsperson if you are not satisfied with the response you have received. The Ombudsperson will only respond to complaints that the CRA has already tried to address For more information about the Taxpayer Bill of Rights, go to

https://canada.ca/taxes

https://canada.ca/cra or contact your financial institution. You https://canada.ca/cra-sign-in-services. . srvcanadavrs.ca/en/get-the-app, and call the VRS line. , if the issue remains unresolved. For more https://canada.ca/taxpayer rights. 157

Reprisal complaints

If you received a response about a previously submitted service complaint or a formal review of a CRA decision and felt that you were not treated fairly by a CRA employee, you can submit a reprisal complaint by filling out Form RC459, Complaint. For more information, go to https://canada.ca/cra-reprisal-complaints

Due dates

When a due date falls on a Saturday, Sunday, or public holiday recognized by the CRA, your return is considered on time if the CRA receives it or if it is postmarked on or before the next business day. For more information, go to https://canada.ca/taxes-dates-individuals

Cancel or waive penalties and interest

The Canada Revenue Agency (CRA) administers legislation, commonly called “taxpayer relief provisions,” that gives the CRA discretion to cancel or waive penalties and interest when taxpayers cannot meet their tax obligations due to circumstances beyond their control. The CRA’s discretion is limited to any period that ends within 10 calendar years before the year the request is made.

Penalties

The CRA will consider your request only if it relates to a tax year or fiscal period ending in any of the 10 calendar years before the year you make your request. For example, your request made in 2024 must relate to a penalty for a tax year or fiscal period ending in 2015 or later.

Interest on a balance owing

The CRA will consider only the amounts that accrued during the 10 calendar years before the year you make your request. For example, your request made in 2025 must relate to interest that accrued in 2015or later. Taxpayer relief requests can be made online using the CRA’s My Account, My Business Account, or Represent a Client digital services. You can also fill out form RC4288, Taxpayer Relief Request - Cancel or Waive Penalties and Interest

  • online using My Account, My Business Account, or Represent a client
  • by mail or courier to the designated office, as shown on the last page of the form, based on your place of residence For information on the Submit Documents Online, go to https://canada.ca/cra-submit-documents-online For more details about cancelling or waiving penalties and interest, go to 158 https://canada.ca/taxes

Reprisal . . , and send it: . https://canada.ca/penalty-interest-relief.