Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
Principal Issues: Sale of Land
Position: None
Reasons: Insufficient information provided.
XXXXXXXXXX 2002-014209
Cornelis Rystenbil, CGA
July 5, 2002
Dear XXXXXXXXXX:
Re: Sale of Land
This is in reply to your letter of May 21, 2002 in which you request our advice regarding the income tax implications of the sale of a parcel of land that you purchased in trust on behalf of your underage children.
The particular circumstances in your letter on which you have asked for our views is a factual situation. As explained in Information Circular 70-6R5 issued by the Canada Customs and Revenue Agency ("CCRA") on May 17, 2002, it is not this Directorate's practice to comment on proposed transactions involving specific taxpayers other than in the form of an advance income tax ruling. Furthermore, your request did not include sufficient information for us to provide you with general comments.
For general information on the subject matter, you may access the relevant publications at our website at www.ccra.gc.ca. You should refer to Interpretation Bulletins IT-510, Transfers and Loans of Property Made After May 22, 1985 to a Related Minor; IT-511, Interspousal and Certain Other Transfers and Loans of Property; and IT-369, Attribution of Trust Income to Settlor. The guide T4057 - Capital Gains may also be of assistance.
Considering the complexity of the issues involved with respect to this subject matter, you may want to consult with a tax professional.
Yours truly,
Mickey Sarazin, CA
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
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