| 20 June 2023 STEP Roundtable Q. 1, 2023-0961341C6 - Personal-Use Property |
Income Tax Act - Section 54 - Personal-Use Property |
separate testing of whether PUP of deceased is PUP of the estate |
| Income Tax Act - Section 46 - Subsection 46(1) |
personal-use property (PUP) of the deceased may not be PUP of the estate |
| 20 June 2023 STEP Roundtable Q. 2, 2023-0961311C6 - Worthless Property |
Income Tax Act - Section 152 - Subsection 152(4.2) |
CRA may generally process capital losses that a deceased missed claiming if now claimed within the s. 152(4.2) 10-year period |
| 20 June 2023 STEP Roundtable Q. 3, 2023-0968091C6 - Trust Reporting – Definition of Money and Treatment of Dividend Receivable |
Income Tax Act - Section 150 - Subsection 150(1.2) - Paragraph 150(1.2)(b) - Subparagraph 150(1.2)(b)(i) |
gold or silver bar or coin would not qualify as “money”/ dividend receivable not included in “shares” |
| 20 June 2023 STEP Roundtable Q. 4, 2023-0968111C6 - Trust Reporting – Definition of Beneficiary |
Income Tax Regulations - Regulation 204.2 - Subsection 204.2(1) |
"beneficiary" includes a contingent beneficiary |
| 20 June 2023 STEP Roundtable Q. 5, 2023-0959801C6 - Subsection 94(8) Recovery Limit |
Income Tax Act - Section 94 - Subsection 94(3) - Paragraph 94(3)(d) |
illustration of the operation of the recovery limit rules on a resident beneficiary of a s. 94(3) trust that has unpaid Canadian taxes |
| Income Tax Act - Section 94 - Subsection 94(8) |
recovery limit formula operates beyond the taxation year in which unpaid taxes arose, irrespective of whether the trust continues to be a s. 94(3) trust |
| 20 June 2023 STEP Roundtable Q. 6, 2023-0959571C6 - Non-Resident Trust and Canadian Charity |
Income Tax Act - Section 94 - Subsection 94(1) - Resident Beneficiary |
registered charity is not a resident beneficiary |
| 20 June 2023 STEP Roundtable Q. 7, 2023-0959581C6 - Deemed Resident Trust and the Resident Portion |
Income Tax Act - Section 95 - Subsection 95(1) - Controlled Foreign Affiliate - Paragraph (b) |
NR corp wholly owned by s. 94(3) trust is CFA of the resident portion trust |
| Income Tax Act - Section 94 - Subsection 94(2) - Paragraph 94(2)(g) - Subparagraph 94(2)(g)(iv) |
application where a s. 94 trust lent to a resident beneficiary, and when loan repaid |
| Income Tax Act - Section 94 - Subsection 94(2) - Paragraph 94(2)(a) |
contribution to NR trust where beneficiary pays expenses of trust property |
| Income Tax Act - Section 94 - Subsection 94(1) - Resident Portion |
illustration of the resident portion rules for a s. 94 trust that inter alia has lent to a resident beneficiary or earns FAPI |
| 20 June 2023 STEP Roundtable Q. 8, 2023-0961291C6 - Trust and Related |
Income Tax Act - Section 251 - Subsection 251(2) - Paragraph 251(2)(c) - Subparagraph 251(2)(c)(i) |
Consolidated Holding applied to s. 251(2)(c)(i) |
| 20 June 2023 STEP Roundtable Q. 9, 2023-0961301C6 - Paragraph 20(1)(ww) |
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(ww) |
an s. 20(1)(ww) deduction is available for a TOSI taxable capital gain even where an offsetting allowable capital loss |
| 20 June 2023 STEP Roundtable Q. 10, 2023-0965831C6 - Non-Resident Corporations Owning Canadian Real Estate |
Income Tax Act - Section 214 - Subsection 214(3) - Paragraph 214(3)(a) |
Pt. XIII tax is applicable where non-resident corporation makes a Canadian property available to its non-resident shareholder or family |
| Income Tax Act - Section 15 - Subsection 15(1) |
the benefit to a non-resident from personal use of a non-resident corporation’s Canadian cottage is reduced by an interest-free loan from the shareholder |
| 20 June 2023 STEP Roundtable Q. 11, 2023-0971841C6 - Non-Resident Owning Canadian Rental Real Estate |
Income Tax Act - Section 216 - Subsection 216(1) |
policy for one-time acceptance of a late-filed s. 216 return |
| 20 June 2023 STEP Roundtable Q. 12, 2023-0959591C6 - Corporate Beneficiary and CDA |
Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (a) - Subparagraph (a)(i.1) |
no CDA addition if non-taxable half of capital gain is distributed to another beneficiary/ any CDA addition occurs at trust year end |
| Income Tax Act - 101-110 - Section 104 - Subsection 104(21) |
s. 104(21) designation can be made re distributing the taxable half of a trust capital gain to a corporate beneficiary – who receives no CDA addition |
| 20 June 2023 STEP Roundtable Q. 13, 2023-0966611C6 - Trust Online Verification |
General Concepts - Audit and Assessment Procedure |
launch of My Trust Account |
| 20 June 2023 STEP Roundtable Q. 14, 2023-0967371C6 - s.70(6) & Application to Extend |
Income Tax Act - Section 70 - Subsection 70(6) |
requesting an extension of the 36-month vesting period under s. 70(6) |
| 20 June 2023 STEP Roundtable Q. 15, 2023-0963801C6 - Interpretation of clause 110.6(1.3)(a)(ii)(A) |
Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1.3) - Paragraph 110.6(1.3)(a) |
s. 110.6(1.3)(a) can still be satisfied long after the farmer’s death |
| 20 June 2023 STEP Roundtable Q. 16, 2023-0961321C6 - Damages in Respect of Personal Injury or Death |
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(c) |
a damages annuity to a child for a parent’s death would generally need to be under a structured settlement to be exempt |
| Income Tax Act - Section 81 - Subsection 81(1) - Paragraph 81(1)(g.1) |
a damages annuity to a child for financial loss from a parent’s death would not be exempted under ss. 81(1)(g.1) and (g.2) |
| 20 June 2023 STEP Roundtable Q. 17, 2023-0959621C6 - Foreign Reporting, Estate, |
Income Tax Act - Section 233.6 - Subsection 233.6(1) |
T1142 reporting requirements can arise once a foreign estate has been fully administered |
| 20 June 2023 STEP Roundtable Q. 18, 2023-0966631C6 - Foreign Tax Credit Verification and Delays |
Income Tax Act - Section 126 - Subsection 126(1) |
CRA will accept alternatives to a foreign notice of assessment to evidence the foreign tax liability for foreign tax credit purposes |
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