Selling farmland involves navigating complex Harmonized Sales Tax (HST) implications. When farmland includes a principal residence, the sale is treated as two separate transactions: the sale of the residence itself is not subject to HST, while the remaining acreage could be. If the land was used as a hobby farm, no HST applies to that portion. However, if the land has been leased to a third party for farming, the sale will be subject to HST, as leasing is considered a business activity. Understanding these nuances is essential, and consulting a tax professional is recommended for personalized guidance.