CRA indicates that a s. 164(6) amendment must be made through filing an amended return, not a T1 Adjustment Request

The conditions for allowing capital losses of a graduated rate estate in its first taxation year to be considered capital losses of the deceased pursuant to s. 164(6) include that an election is filed, and the legal representative amend the deceased’s final T1 return of income. CRA indicated that to make the election, s. 164(6)(e) requires the legal representative to file an amended final T1 return of income for the deceased taxpayer to give effect to the election made under s. 164(6)(c). Filing a T1 adjustment request is not sufficient.

Neal Armstrong. Summaries of 15 June 2022 STEP Roundtable, Q.13 under s. 164(6)(e) and s. 164(3).