McCullock-Finney Estate – Tax Court of Canada finds that merely filling in a T664 form was insufficient to step-up a property’s ACB under s. 110.6(19)
The taxpayer disposed of two rental properties in 2010 and calculated her capital gain on the basis that the properties’ adjusted cost base had been stepped up in 1994 through having made an election under s. 110(19) to utilize her otherwise-expiring capital gains deduction. In confirming the Minister’s disallowance of the amount claimed as stepped-up ACB, Masse DJ found that although she intended to make the election and had filled in the form (and possibly even filed it), she had not done the rest of what was required, namely, to report the deemed s. 110.6(19) gain on Sched. 3 of her 1994 return, and to claim the capital gains deduction in another part of the return.
Neal Armstrong. Summary of McCullock-Finney (Estate) v. The Queen, 2017 TCC 103 under s. 110.6(19).