Gentleman farmer - expectation of profit - Call david

My question is: Canadian-specific
QUESTION: We own a farm that we rent out.  We also have limited farming
activitiy on the farm to meet farm gate requirements (to maintain farm
status).  The limited farming activity is haying during 4 days.  The hay is
sold to meet farm gate requirements, and the remainder is used by the
tenants for feeding their livestock.  CRA says that we are running a
business and are disallowing our expenses.  Does this make sense.
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david ingram replies:
You are caught up in the gentleman farmer and the expectation of profit
rules.  Both too big to deal with my time available.
However, I have written many pages on the topic and you can read them by
going to www.centa.com clicking on Tax Guide (top left) and then on the
Farming Income section.
There you will find the results of several cases.  This was written several
years ago but there have not been any significant changes since then.
I have had a lot of experience with expectation of profit and farming cases.
Please realize that the farm gate rules have no relation to income tax
rules.
You might want to consult with me in the future if you want to fight it.
Read the cases first.  The direct URL for the farming section is:
http://www.centa.com/taxguide/farming.htm
You should also read Bulletin IT 533 regarding interest expense and
expectation of profit.
Answers to this and other similar  questions can be obtained free on Air
every Sunday morning.
Every Sunday at 9:00 AM on 600AM in Vancouver, Fred Snyder of Dundee Wealth
Management and I, David Ingram  host a LIVE talk show called "ITS YOUR
MONEY"
Those outside of the Lower Mainland will be able to listen on the internet
at
www.600AM.com <http://www.600am.com/>
Local calls are taken at (604) 280-0600 and Long Distance calls (BC only)
are taken at 1( 866) 778-0600
Callers to the show are invited to attend free seminars on financial
planning with such specialities as deductible mortgage interest. They are
held at Fred Snyder's Office at 1764 West 7th in Vancouver - (604) 731-8900
for more information.
=========================================
David Ingram's US/Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver,  BC, CANADA, V7N 3L7
Res (604) 980-3578 Cell (604) 657-8451
(604) 980-0321 Fax (604) 980-0325
Email to taxman at centa.com <mailto:taxman at centa.com>
www.centa.com <http://www.centa.com>  www.david-ingram.com
<http://www.david-ingram.com/>
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