[17] What was sold was the siblings' power to exploit the standing timber by severance, and to enter and take the timber from the land within a specified period of time. In this case it constitutes an interest in agricultural land coupled with powers and privileges respecting that interest. It is a capital asset. The proceeds of the sale of the profit a` prendre were not income from a business or property for the year. Thus, in any event, the instalments paid fall within the exception contained in paragraph 12 (1)(g), since they are instalments of the sale price of an interest in agricultural land. They resulted in a capital gain to the Appellant pursuant to subsection 39(1). [18] The Appellant thereupon states that the gain constitutes a disposition of a qualified farm property. (See subsections 110.6(2) and (3) of the Income Tax Act). "Qualified farm property" is defined in subsection 110.6(1) as: ...a property owned at that time by the individual ... or a partnership, an interest in which is an interest in a family farm partnership ... that is (a) real property that has been used by (v) a partnership, an interest in which is an interest in a family farm partnership of ... (the individual) and (vi) ... (B) the property was used by (the) ... partnership ... principally in the course of carrying on the business of farming in Canada throughout a period of at least 24 months during which time an individual ... was actively engaged on a regular and continuous basis in the farming business in which the property was used ... [19] Using the above definition, Jens owned an interest in the land with its standing timber as a tenant in common. His partnership's cattle used the timber for shelter when they pastured on the land. It was the only use of the timber until the sale of the profit a` prendre. For this reason, his interest was used by Jens and Christian in the family farm ranching partnership. Jens sale of the profit a` prendre was the sale of an interest in qualified farm property. [20] The appeal is allowed. This matter is referred to the Minister of National Revenue for reconsideration and reassessment in accordance with these reasons. The Appellant is awarded party and party costs. Signed at Ottawa, Canada this 9th day of July 1998. "D.W. Beaubier" J.T.C.C. PREVIOUS PAGE HOME PAGE