QFFP Disposition Calculator
Work out the tax on a disposition of qualified farm or fishing property, on a sale or on death, including the capital gains deduction and any AMT, then turn it into a client-ready letter, not just a number on screen.
The calculation is only half the work. CodaraFlow finishes the explanation, the tables, and the client-ready letter.
The Gain, the Deduction, and the Tax
This is one of the built-in calculations in CodaraFlow. Enter the farm or fishing property, on a sale or on death, and it computes the gain, applies the available rollovers and the capital gains deduction where the statutory conditions are met, and estimates the tax.
- Sale or DeathThe disposition on a lifetime sale or on death, per component of the property.
- Farm and Fishing RolloversAvailable spousal and intergenerational rollovers where the statutory conditions are met.
- The Capital Gains DeductionApplied where the property qualifies as farm or fishing property.
- Farmhouse and InventoryThe principal residence exemption for a qualifying farmhouse, and inventory taxed as ordinary income, handled separately.
- Recapture and AMTRecapture of CCA on depreciable property, and any AMT arising from a capital gains deduction claim.
From the Calculation to a Client-Ready Letter
The number is not the deliverable. In CodaraFlow the result drops straight into a letter section: the firm’s approved wording, the computation tables, and the statutory notes that actually apply to this client, written in for you. Exported as an editable Word document on your letterhead.
The same reviewed explanation, not whatever the preparer types today.
The rollover, residence, recapture and AMT notes appear only when the file triggers them.
The disposition computation is laid out and footed automatically.
Finish it in Word, on your firm’s letterhead. No proprietary format.
Grounded in the Provisions You Cite
Each part of the calculation ties to the section a reviewer would expect. The wording is firm-editable; the sections are fixed by the Act.
On death the property is deemed disposed at fair market value, except to the extent a rollover applies.
Property to a spouse or spousal trust rolls over at cost, deferring the gain until the spouse later disposes of it.
Qualified farm or fishing property to a child or grandchild may transfer at an elected amount where the statutory conditions are met, deferring the gain.
Gains on qualified farm or fishing property are eligible for the lifetime capital gains deduction, subject to the available balance and the property meeting the tests.
The farmhouse gain may be sheltered by the principal residence exemption, or reduced under the special farm-residence method.
Capital cost allowance on depreciable property is recaptured as income, taxed in full and not sheltered by the deduction.
Claiming the deduction may trigger AMT, potentially recoverable against future regular tax over the following seven years, subject to the statutory recovery rules.
The estimated tax reflects the disposition in isolation and excludes other credits, deductions and income of the taxpayer. Inventory such as crops, market livestock and supplies is not capital property and is taxed as ordinary farming income.
Calculations Firms Reach For Alongside It
Get a working demo account, run this calculation on a real file, and export the letter it produces.
Everything is computed from the figures you enter and assembled from your firm’s approved wording. The app never connects to AI.
Editable Word documents on your firm’s letterhead. Monthly pricing, no long-term contracts.
Questions About This Calculation
Is this a standalone calculator?
No. It’s one of the built-in calculations inside CodaraFlow. The result becomes a client-ready letter section, complete with the computation table and the notes that apply, not just a figure you copy into a client letter.
Lifetime sale or disposition on death?
Both. Run it on a lifetime sale or on a disposition arising on death, per component of the property.
Can we change the wording and which notes appear?
Yes. Every sentence and every note is firm-editable, and can be overridden on an individual letter.
Does any client data go to an AI?
No. The app never connects to AI. Deliverables are assembled from structured facts and your firm’s approved wording.