Income Tax Technical News, No. 1, 22 July 1994

A pension fund realty corporation that acquires or holds an interest in capital property that is real property will not lose its tax-exempt status if a taxable entity is a co-owner.

If an employee compensation package includes any convertible preferred shares, s. 7(1) will apply when those shares are sold or converted to common shares unless, in the case of the conversion or sale of a convertible preferred share that is a not a forward participating share, the share was issued before December 1, 1994 as part of an employee compensation that was in place on or before August 31, 1994.

Beginning July 1995, sales commission expenses incurred by limited partnerships in connection with the distribution of mutual funds must be amortized on a straight-line basis over three years.