Qualified farm property and qualified fishing property

Generally, if you disposed of qualified farm property or qualified fishing property, you report any capital gain or loss in section 2 (lines 109 and 110) of Schedule 3.

When you sell or transfer qualified farm property or qualified fishing property, it may also include a gain or loss from a mortgage foreclosure or conditional sales repossession. For more information, see Other mortgage foreclosures and conditional sales repossessions.

Special reporting instructions apply to the disposition of eligible capital property that is qualified farm or fishing property. For more information, see the chapter called "Eligible Capital Expenditures" in guide T4003, Farming Income guide, RC4060, Farming Income and the AgriStability and AgriInvest Programs guide, RC4408, Farming Income and the AgriStability and AgriInvest Programs Harmonized Guide, or T4004, Fishing Income.

If you have a capital gain when you sell qualified farm property or qualified fishing property, you may be eligible for the capital gains deduction.

Completing your Schedule 3

Report dispositions of qualified farm property and qualified fishing property, on lines 109 and 110 of Schedule 3.

If the capital gain or loss is from a mortgage foreclosure or conditional sales repossession, report it on lines 123 and 124 of Schedule 3.

If you dispose of farm or fishing property, other than qualified farm or fishing property, report it on lines 136 and 138 of Schedule 3. For more information, see Real estate, depreciable property, and other properties.

Forms and publications

• Guide T4003, Farming Income
• Guide T4004, Fishing Income
• RC4060, Farming Income and the AgriStability and AgriInvest Programs Guide
• RC4408, Farming Income and the AgriStability and AgriInvest Programs Harmonized Guide
• Schedule 3, Capital Gains (or Losses)

Related topics

• Farmers
• Fishers