Is a hobby farmer's loss of income deductible against other income?
Canada (Federal), Canada
The following excerpt is from Sobon v. The Queen, 2004 TCC 2 (CanLII):
In Moldowan v. The Queen[1] Mr. Justice Dickson (as he then was) recognized three categories of farmers: 1. A full-time farmer. (This type of farmer is free of the limitations contained in section 31 of the Act and may deduct all farm losses suffered against other income.); 2. A farmer who operates his farm as a sideline business but who also is employed or carries on another business activity. This type of farmer is subject to the limitations contained in section 31; 3. A hobby farmer. The farm losses sustained by this type of taxpayer are not deductible against other income.
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