I have been reading the forum for 2 years but I hesitate to post for the first time due to the negativity for the quality of questions asked, but here it goes…
Couple married 25 years ago. Shortly after marriage purchased 2 parcels of farm land. Farm land deed is in the name of the wife only - credit issues for husband early in marriage, and was not able to qualify for financing thus not on deed. Husband farmed land for 25 years, was his sole and primary source of income. Wife worked outside of the home for 25 years, always had higher income than husband. Combined farm and wife income contributed to household finances and raising children.
Now, 25 years later, they just started their separation. Wife wants husband to keep land to farm it, as it has always been and will be his sole source of employment. Called CRA who say that wife needs to pay capital gains on transfer of land from her name to husband for all 25 years, as she owns the land thus it is not qualified farm property. When asked if they ever make exceptions to the rule, rep said yes - but it is a case by case basis which can be challenged with a tax lawyer once 2019 taxes are filed. (P.S. I was put on hold with a senior rep for about 50min to get this answer)
So, has anyone ever been granted a ‘exception’ to the rule? Is there a different way of approaching this situation that is worthwhile? I find it disappointing that it is being treated like a parcel of recreational property would.