Example: “I am an elderly landowner with a farm that my wife and I have been farming for years. While my children do help out occasionally on the farm, none of them are interested in farming the land although they have said that they would not like to see the farm being sold. I have left the farm to them equally under my will. However, I would like to sell an outside farm to provide for myself and my wife in our later years. What are the tax implications if I sell the outside farm? Will my children be caught for tax on the remainder of the farm when it passes to them? What should I do with the home farm until it is left to my children under my will?”

1 Sale of the outside farm –
capital gains tax