Had an interesting query some time back to which I now need a solution. Property gifted to Mrs A in 1973 by Mom and Pop, both of whom were full-time farmers. Mrs A and Mr A farmed the property for many years. Property sold in 2023. On the face of it, it’s pre-1987 property, and qualifies (>50% use for > 5 years) as QFFP, and therefore also qualifies for LCGE.
Two sticking points: was a T664 filed on that property in 1994? Who knows…how would I even find out? I have some vague recollection of seeing a T664 note on RAC on some old client’s account…but can’t find to hand. Anyone know?
Seems that without MyAccount or RAC access, fillling out the T657 will be impossible. Mrs A is in her 90s, does not have MyAccount and may possibly, with her son’s help, be able to get online (does have a passport so maybe via Interac Verification). Has anyone tried this method?
And…how does one prove that it was farmed if CRA asks, anyway…? Yikes!
I had a couple who owned a rental, and knew the previous tax preparer had completed the T664. I requested a copy of the T664 for each. I received the form for one, but CRA could not find the other. As they were partners with identical UCC, I used the one I received for both. After a move, they found the originals, which confirmed the numbers.
No harm in asking. You may get what you are looking for.
If Mrs A is still able to sign her own documents can you not have her sign the TaxCycle Authrep form and efile that to get RAC access?
Then, once you have RAC access a good place to start would be to look at the capital gains reported and capital gains deduction… especially the 1994 amounts. If there are capital gains and cge claimed in 1994 then there is a “chance” they filed a T664 and elected on the farm property. If you get lucky and there is nothing reported in 1994 then she did not file the T664. To my knowledge I have never seen any T664 data in RAC or AFR other than seeing data on the 1994 year.
Once you get RAC access you can build or rebuilt the T657.
The other consideration; has Mr A passed away or is he still alive? If he passed away, did he report a disposition of Qualified Farm property on his final return?
As far as proving the property was farmed or meets the criteria to be Qualifying Farm property, I try to keep copies of tax returns that help meet the criteria. I own about 50 acres of farm property that would be QFP if sold today. I have copies of the returns and Notices of Assessment of the years that meet the test of the permitted user in our safe.
I’ve also mailed requests to CRA for T664 elections. They’ve always come in time. I’ve claimed qualified farm property that has been grandfathered in as having been farmed for at least 5 years prior to June 1987. I’ve never had CRA ask for proof but if they did, I’m sure I could go to a neighbouring farmer who would know the history of area farms and farmers.
Putting the grandfathered property off-side with a T664 election was a big item in our office back then so we were very wary of electing on those farm properties.
Thanks all for the thoughts…client’s son was going to attempt the return themselves, but is now getting me an AuthRep so I can take a look-see. The T657 would certainly be daunting for most non-pros. (The printed version is 26 pages!!)
As well, he thinks they still - in true “farmer fashion” - have a paper copy of the 1994 returns as filed and stashed away in the barn…
In the mid-90s, a former employer was asked how long tax paperwork needs to be kept? After answering the question, hei n turn asked, “Why are you asking?”
The reply, “I’ve got tax papers dating back to 1905 belonging to my great-grandpa, and our barn is running out of space.”
