CRA appears to find that a limited partner’s status as a trader does not affect the capital gains character of its partnership allocations

CRA found that a capital gain realized by a partnership from a real estate sale retained its character as such when allocated to a limited partner, even (it would appear) where the latter was a trader.

This position presumably also would apply to a securities dealer which was a minority limited partner in an investment partnership.

Neal Armstrong.  Summary of 25 April 2013 Memorandum 2013-0478511I7 F under s. 96(1)(f).