Income Tax Severed Letters - 1996-10-18

Principal Issues:

Can a capital gain from one corporation be "transferred" to another corporation such that the gain will be treated as being ancillary to the second corporation's business (so as to allow it to claim full CCA on its rental properties?

Position:

Strictly a question of fact.

Reasons:

Principal Issues:

Is the RRSP issuer or carrier required to maintain a spousal designation of an RRSP following the death of the contributing spouse?

Position:

NO

Reasons:

Principal Issues:

principal residence: If taxpayer shares ownership of a parcel of land larger than 1/2 hectare with other joint tenants, can each joint tenant consider his or her ownership to be a proportionate share of the total so that it is no necessary to prove the need for the land in excess of 1/2 hectare in order to fully exempt the property under the p/r rules?

Position:

when each joint tenant is allocate a proportionate share of the land for his or her use, along with a residence, we will consider a joint tenant's ownership of the land to be represented by a proportionate share of the total -thus, in the situation described, the deceased brother would be able to fully shelter any gain on the deemed disposition of the property without being required to prove the need for land in excess of 1/2 hectare, even though the law with respect to joint tenancy or tenancy in common gives him an undivided share in the ownership of the entire parcel of land

Reasons:

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

									962844
XXXXXXXXXX							M.P. Sarazin

September 24, 1996

Dear Sir\Madam:

Re: Capital Gains Tax - Real Estate Investment

Principal Issues:

1.Whether a PHSP continues to qualify as such where benefits are provided to same sex couples. 2. PHSP coverage - Whether it will be necessary for same sex couples to cohabit for a certain length of time.

Position:

1.The plan can qualify as a PHSP 2. We would expect that employees in such a relationship will have to cohabit for at least 12 months before being eligible for benefits from the employer's PHSP.

Reasons:

Principal Issues:

Can funds be withdrawn from an RRSP and returned later

Position:

Only under the home buyers plan and some transfers.

Reasons:

Position Adoptée:

Principales Questions:

Les sociétés de personnes qui existaient avant le 1er janvier 1994 étaient tenues de déposer au registre des entreprises individuelles des sociétés et des personnes morales, une déclaration d'immatriculation à défaut de quoi, l'article 115 de la Loi sur l'application de la réforme du Code civil prévoit que ces sociétés de personnes deviennent des sociétés de personnes en participation. Quel est le traitement fiscal accordé à une société de personnes en nom collectif qui omet de s'enregistrer?

Position Adoptée:

Principal Issues:

How can RRSP invest in small business.

Position:

Routine reply sent to taxpayer as requested.

Reasons:

Principales Questions:

Est-ce que les actions de la Société Z, qui oeuvre uniquement dans l'achat et la vente de terrains et qui a comme actif une balance de prix de vente, constituent des «actions admissibles de petite entreprise»?

Position Adoptée:

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

Canada Mortgage and Housing Corporation
Winnipeg Branch Office
P.O. Box 964							962846
4th Floor								B. Kerr
10 Fort Street
Winnipeg, Manitoba

Attention: Peter Sanderson

September 9, 1996

Dear Sirs:

Re: Limited Dividend Housing Companies