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Part $1$

Which statement best describes the distinction between regular farm losses and restricted farm$$ losses?

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Part $1$

A$.$

In the carry over$$ period, regular farm losses can be applied against any source of$$ income, whereas restricted farm losses can only be applied to the extent of capital gains in the year.

B$.$

Both regular farm losses and restricted farm losses can be carried back three years. Regular farm losses can carry forward$$ indefinitely, whereas restricted farm losses can be carried forward only twenty years.

C$.$

$$Full$-$time farmers can incur regular farm losses. Restricted farm losses occur from farming activity where there is no reasonable expectation of profit.

D$.$

$$Full$-$time farmers can incur regular farm losses.$$ Part$-$time farmers or taxpayers whose chief source of income for a taxation year is neither farming nor a combination of farming and another source of income can incur restricted farm losses.