Rules And Recommendations For Farmland Rollovers

Are you a farm owner? The rules of farmland rollovers are complicated and differ depending on (a) whether you're living or deceased at the time of the transfer and (b) whether your spouse or child is the recipient.

Spousal privilege? Not always

If your spouse is the recipient of the land, you can't transfer tax-free while you're alive. You have to sell your land at fair market value. If you're deceased when the rollover occurs however, all your assets transfer tax-free to your spouse at the cost of the property. (Note: This is not exclusive to farmers, but farmland specifically can be transferred at cost.)

Pass it on to the child

Whether you transfer a farm during your lifetime or after death, the rules are the same when passing on land to your child/children. Unlike a spouse, a child can receive your property tax-free while you're alive, but the recipient must be a resident of Canada immediately before the transfer.