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.
| 19(1) |
5-9001 |
| |
G. Thornley |
| |
(613) 957-2101 |
December 21, 1989
Dear Sirs:
Re: Section 28 of the Income Tax Act (the "Act")
This is in reply to your letter of October 30, 1989, requesting our interpretation of the application of the provisions of paragraph 28(1)(c) of the Act to the partners of a partnership.
Our Comments
Interpretation Bulletin IT-138R in paragraph 3 states, "Where a partnership operates a farming business, paragraphs 96(1)(f) and (g) provide for the allocation to the partner of only his share of the income or loss therefrom". It then goes on to discuss the application of section 31 of the Act to the partners, stating in essence that each partner whose chief source of income is neither farming nor a combination of farming and some other source of income is entitled to claim a section 31 deduction. The distinction being made is that the determination of income is made at the Partnership level whereas deductions in arriving at taxable income are taken at the partners level.
As paragraph 28(1)(c) is relevant in the computation of income it is applied at the Partnership level.
We trust our comments will prove helpful.
Yours truly,
for DirectorBusiness and General DivisionSpecialty and IntergovernmentalAffairs Branch
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© Her Majesty the Queen in Right of Canada, 1989
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© Sa Majesté la Reine du Chef du Canada, 1989
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