CRA indicates that late-filed s. 98(5) designations will be accepted at CRA's discretion

Where a partner carries on a partnership's business after the partnership's dissolution, s. 98(5) of the Income Tax Act allows that partner to make a designation to "bump" the cost amount of non-depreciable capital property.  CRA has stated that, although the Act does not provide any mechanism for late-filed or amended designations, CRA may accept such designations at its discretion.

Scott Armstrong.  Summary of 20 September 2012 T.I. 2012-0452411E5 under s. 98(5).