CRA indicates that only the taxable portion of a capital gain need be distributed for s. 104(21) purposes

CRA indicated that only the taxable portion (and not the non-taxable half) of a capital gain needs to be distributed by the trust in order for the s. 104(21) designation to be available.

Neal Armstrong. Summary of 26 November 2020 STEP Roundtable, Q.3 under s. 104(21).