Exemption for Certain Transfers of Farmed Land
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Ordinarily, a transfer of farmed land is subject to land transfer tax. However, under Regulation 697, R.R.O. 1990 made under the Land Transfer Tax Act (Act), certain transfers of farmed land between family members may qualify for an exemption from land transfer tax. There are many conditions for the exemption to apply, conditions that must be met both before the transfer and after the transfer.
Click on the link below that describes your transfer of land for information on the required conditions.
The terms family farm corporation, farming, farming assets, members of the family, child, and spouse are defined in the Act or in Regulation 697.
When claiming the family farm exemption, please note that there is a distinction between a family farm corporation and an individual. An individual refers to a single human being operating a farming business in a personal capacity. A family farm corporation is not an individual. It is a separate legal entity from its shareholders and owners. Although a corporation is not an individual, it is a person. Please refer to the court case of Upper Valley Dodge Chrysler Limited v. (Ontario) Minister of Finance for more details on the subject.
It is also important to understand that if a corporation is farming the land (e.g., the expenses and income of the farming are on the corporation's books) then the individual who performs the physical and intellectual work is doing so on behalf of the corporation (for example, as an employee), and not as an individual in his or her personal capacity.
- Transfers from an individual to a family farm corporation
- Transfers from an individual to an individual
- Transfers from the personal representative of the estate of a deceased individual to an individual
- Transfers from a family farm corporation to an individual
- No exemption on transfers from corporation to corporation
- Farmed land exemption: definitions
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Documents required under the Act can be submitted by email, fax or mail, as per the contact information noted below.
If this page does not completely address your situation, refer to the Act and related regulations, visit our website at ontario.ca/finance or contact us by:
- Email: LTTGeneral@Ontario.ca
- Fax: 905-433-5770
- Telephone toll free: 1-866-668-8297
- Teletypewriter (TTY): 1-800-263-7776
- Mail: Ministry of Finance Land Taxes Section 33 King Street West Oshawa ON L1H 8H9