| 10 October 2024 APFF Financial Strategies and Instruments Roundtable Q. 1, 2024-1023641C6 - Intercompany loans and taxable benefits |
Income Tax Act - Section 15 - Subsection 15(1) |
inter-corporate bona fide non-interest bearing loan does not engage s. 15 |
| Income Tax Act - Section 246 - Subsection 246(1) |
s. 246(1) not engaged by no-interest loan between corporations with distinct ownership |
| 10 October 2024 APFF Financial Strategies and Instruments Roundtable Q. 2, 2024-1023251C6 F - Use of an average rate for coupons |
Income Tax Act - Section 261 - Subsection 261(2) - Paragraph 261(2)(b) |
four conditions for the use of an average exchange rate in the example of a stripped coupon |
| 10 October 2024 APFF Financial Strategies and Instruments Roundtable Q. 3, 2024-1027801C6 F - Revente précipitée et auto-construction |
Income Tax Act - Section 12 - Subsection 12(13) |
the holding period for a housing unit under the flipped property rules commences when it becomes habitable |
| 10 October 2024 APFF Financial Strategies and Instruments Roundtable Q. 4, 2024-1027831C6 F - Revente précipitée et changement d'usage |
Income Tax Act - Section 12 - Subsection 12(13) |
a s. 45 change of use does not restart the 365-day period under the flipped property rules |
| Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(a) - Subparagraph 45(1)(a)(i) |
s. 45 rules apply only for capital gains purposes |
| 10 October 2024 APFF Financial Strategies and Instruments Roundtable Q. 5, 2024-1023291C6 F - Paiements rétroactifs - Droits ou biens / Retroact |
Income Tax Act - Section 70 - Subsection 70(2) |
s. 70(2) return can be filed before the filing deadline with an estimated amount if precise amount is not yet known due to administrative delay |
| 10 October 2024 APFF Financial Strategies and Instruments Roundtable Q. 6, 2024-1023301C6 F - CELIAPP - Séparation / FHSA - Separation |
Income Tax Act - Section 146.6 - Subsection 146.6(7) |
s. 146.6(7) does not override the requirement for the transferee (ex-)spouse to be a “qualifying individual” |
| 10 October 2024 APFF Financial Strategies and Instruments Roundtable Q. 7, 2024-1024211C6 F - CELIAPP et transfert via la succession |
Income Tax Act - Section 146.6 - Subsection 146.6(15) - Paragraph 146.6(15)(a) |
a deceased’s FHSA can be rolled into the surviving spouse’s FHSA, RRSP or RRIF even if the proceeds go first to the estate (albeit, subject to s. 153(1)(v)(i) withholding) |
| 10 October 2024 APFF Financial Strategies and Instruments Roundtable Q. 8, 2024-1023591C6 F - NERDTOH and foreign investment income |
Income Tax Act - Section 129 - Subsection 129(4) - Non-Eligible Refundable Dividend Tax on Hand - Paragraph (a) - Subparagraph (a)(i) - Variable B |
explanation of 8% adjustment to the FTC deduction under the NERDTOH computation for foreign investment income |
| 10 October 2024 APFF Financial Strategies and Instruments Roundtable Q. 9, 2024-1015481C6 F - Crédit d'impôt pour la rénovation d'habitations multigénérationnelles et exemption pour résidence principale |
Income Tax Act - Section 252 - Subsection 252(2) - Paragraph 252(2)(g) |
s. 252(2)(g) does not extend to the spouse or common-law partner of a niece or nephew |
| Income Tax Act - Section 122.92 - Subsection 122.92(1) - Qualifying Relation |
qualifying relation does not extend to the spouse of a nephew or niece |
| Income Tax Act - Section 54 - Principal Residence |
renovation to create a secondary unit for s. 122.92 credit purposes generally means that the whole building no longer can be designated as the taxpayer’s principal residence |
| Income Tax Act - Section 122.92 - Subsection 122.92(1) - Eligible Individual |
credit is not lost if secondary unit is then sold to its qualifying occupants |
| 10 October 2024 APFF Financial Strategies and Instruments Roundtable Q. 10, 2024-1027331C6 F - Distribution of life insurance - 107(2) and 148(7) |
Income Tax Act - 101-110 - Section 107 - Subsection 107(2) |
s. 107(2) prevails over s. 148(7) re a life insurance policy distribution in satisfaction of a capital interest |
| Income Tax Act - Section 148 - Subsection 148(7) |
where both ss. 107(2) and 148(7) apply to a personal trust’s distribution of a life insurance policy in satisfaction of capital interest, s. 107(2) prevails over s. 148(7) |
| 10 October 2024 APFF Financial Strategies and Instruments Roundtable Q. 11, 2024-1031061C6 F - Remboursement dans le cadre du RAP - Repayment und |
Income Tax Act - Section 146.01 - Subsection 146.01(3) |
HBP balance not reduced to nil be earlier repayment until related designation made in the return for the year u |
| Income Tax Act - Section 146.01 - Subsection 146.01(1) - HBP Balance |
where opening HBP balance is repaid in Year 1 with RRSP contribution, the HBP balance is not reduced until the Sched. 7 is filed in March of Year 2 |
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